Saturday, August 12, 2006

Day Trading Tips For Newbies

The modern world lays a great emphasis on money. It is a medium to trade goods and services. While our forefathers used the barter system for trading, we use money for trading. Today, trading is a profitable business that can make millions for you within a short span of time. There are various types of trading vehicles. Examples are FOREX trading, which trades in foreign currencies, and commodity trading, which deals with many physical goods like gold, silver, tea, rice, sugar etc. Along with these trading types, day trading has earned a reputation for itself in the market. Here we offer some tips for successful day trading.

What is Day Trading?

The system of buying and selling financial instruments like bonds and stocks in a single day is called day trading. Every stock you buy means there is another trader who has sold this particular stock. The profit or loss made is calculated on the difference between the goods and the trading price. The concept works on the assumption that all the transactions are carried out on the same day to keep the current closing price constant. Changes in the closing price happen overnight taking in account the result of the trading activities that take place during the day. This becomes the new closing price.

Can anyone do day trading?

Theoretically, day trading looks simple and can give you immediate financial gains. But in reality, it is not so easy. People have lost a lot of money without getting anything in return. Hence if you plan to go in day trading, you should keep your thinking cap on.

What are the tips to trade successfully?

The three main tips for day traders are:

1. Cut your losses quickly: Control the situation positively. If you see that the losses are increasing, sell off your stock quickly and exit.

2. Go with the market: Trade in stocks that are in high demand rather than the stocks that have barely any takers. Do not go against the market trend.

3. Keep your emotions in check: Hype created by day trading will make emotional people act impulsively. A piece of good news can make the day traders buy stocks and thus raise their price. If you are very emotional, you will buy the stocks on hearsay basis without using any rational judgment. In case of loss, evaluate the situation carefully to understand your errors.

ForexProfiteer.com - Learn to trade the Forex with our Simple Day trading strategy.

4 comments:

Anonymous said...

Hi !.
You re, I guess , probably very interested to know how one can manage to receive high yields .
There is no initial capital needed You may commense to get income with as small sum of money as 20-100 dollars.

AimTrust is what you need
The company represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

It is based in Panama with offices around the world.
Do you want to become an affluent person?
That`s your chance That`s what you desire!

I`m happy and lucky, I began to take up real money with the help of this company,
and I invite you to do the same. It`s all about how to choose a proper partner who uses your money in a right way - that`s it!.
I take now up to 2G every day, and what I started with was a funny sum of 500 bucks!
It`s easy to join , just click this link http://renesike.o-f.com/xyjupon.html
and lucky you`re! Let`s take our chance together to become rich

Anonymous said...

Good day, sun shines!
There have been times of troubles when I felt unhappy missing knowledge about opportunities of getting high yields on investments. I was a dump and downright stupid person.
I have never imagined that there weren't any need in large starting capital.
Nowadays, I'm happy and lucky , I begin to get real money.
It's all about how to select a correct companion who uses your money in a right way - that is incorporate it in real deals, and shares the profit with me.

You can get interested, if there are such firms? I have to answer the truth, YES, there are. Please be informed of one of them:
http://theinvestblog.com [url=http://theinvestblog.com]Online Investment Blog[/url]

Anonymous said...

Hi everybody!

We are not acquainted yet? It’s easy to fix,
friends call me Peter.
Generally I’m a social gmabler. recently I take a great interest in online-casino and poker.
Not long time ago I started my own blog, where I describe my virtual adventures.
Probably, it will be interesting for you to find out my particular opinion on famous gambling projects.
Please visit my blog. http://allbestcasino.com I’ll be glad would you find time to leave your comments.

Anonymous said...

Hi everybody!

Sure, you’ve heard about me, because my fame is running in front of me,
my name is Peter.
Generally I’m a venturesome gambler. all my life I’m carried away by online-casino and poker.
Not long time ago I started my own blog, where I describe my virtual adventures.
Probably, it will be interesting for you to find out about my progress.
Please visit my blog. http://allbestcasino.com I’ll be interested on your opinion..