Tag: Day trading

All day-trading related articles are found here. Educative, informative and written clearly.

  • Is Day Trading Like Gambling?

    Is Day Trading Like Gambling?

    Is Day Trading Like Gambling?
    If you have poor risk management, if you size your trades higher the more you lose, you are gambling. That is how casino-players lose money. 

    By Guy Avtalyon

    I know some of you are asking themselves is day trading like gambling. Also, some would say yes, it is gambling but not me. Let me ask you something. Would you like to have enough money for everything you need? Even more, for everything you would like to buy, to travel everywhere you want, to have a super designed home, luxury items. Honestly, it’s possible. Imagine that kind of life. No money problems, no anxiety, no stress caused by money issues. Really, that could be a wonderful life. Everyone would like it. The truth is that only a few know how to achieve that. 

    Having a life without financial stress and suffering is everyone’s goal. 

    As the days rush by and the nights draw in, it’s well worth resting for a moment to catch up on what’s going on in the world. That’s why I’ve selected this topic to help you do just that. Let’s break this myth! The money belongs to all of us. We all can have it enough to have a dreaming life. In fact, we have all the right to enjoy, to be happy, we are born for happiness. 

    This isn’t some life coaching mumbo jumbo or MLM trick, this is a real-life story. It’s a business. Day trading is a business so how can anyone talk about it like gambling? Is day trading like gambling? Of course not. 

    I’ll point out several differences. 

    Day trading means prompt actions in the markets. Day traders don’t have the luxury of a long-term study of all the circumstances that can make a trade. It is all about odds in your favor.

    The main characteristics of day trading

    It works very fast. Day traders have to react quickly to any market change because trading means buying and selling securities at the right time with a profit. Short-term changes in the price changes are favorable for day traders. They can think quickly, act promptly, and profit. Day trading doesn’t necessarily mean taking a lot of risks per trade. It’s quite opposite. Traders don’t take a risk on every trade. They are trained to recognize any change in the market, even more, thanks to their knowledge and experience, they know what markets are telling them. So, they can act based on that info. In essence, they are responding to the market’s movements.

    Are all of their trades successful? No! Many of their trades are failures. But if more than half of trades are winning everything is okay. Day traders don’t have time for long and in-deep estimations. They can recognize profit opportunities based on price and volume patterns. 

    Is day trading stressful? It can be. They have to react here and now if they want a quick profit. 

    How is day trading different from gambling?

    In gambling, you put up your money with the belief that some fortunate events will occur. But what about the odds? Are they in your or house’s favor? Behind gambling lies unsupported and unrealistic hope. Do you have any chance to hit lucky? Actually, there is more chance for the airplane to hit you. 

    On the other hand, hitting losses is more possible. Gambling is exciting for people with the wrong view of money-making. 

    Day trading is completely different. It is based on knowledge, research, training, experience. You can find only a few traders that enter a trade randomly. Basically, they are amateurs and it is very smart not to take them as the right example. You might think if they don’t take a lot of risks how could they expect big returns? Actually, they don’t expect such a thing. Their returns aren’t big but they are frequent. That’s a big number game. Profit a little but frequently. Of course, some trades will bring you a lot of money, some will end up in losses. The point is to have more winning trades than losing ones. Simple!

    Are you ready for trading?

    Many of you aren’t ready yet. You might be angry at me but it is true. As the Sun is in the sky and the Earth is a globe. I know you can easily fall into beginners’ mistakes. I saw so many people doing the same. Honestly, I was like you. I know what you mean exactly. You think that day trading is just a process where you can easily find the securities’ price past action, find the current price, and know how it will act in the future. You couldn’t be more wrong. 

    The truth is that all traders must have a good education about trading, markets, price movements, financial circumstances, securities they are trading. Their decisions are based on knowledge. Are you one of them? Are you able to make money every single day, every month? Do you know that even the best traders have losing years?

    Do you understand why are you wrong? You treat day trading as gambling. So, to the question: Is day trading gambling you have only the wrong answer.

    How to prepare for day trading?

    If you are able to put your emotions away from your trades, you’re close but not ready yet. Why is that? First of all, if you want to be a day trader you’ll need to be indifferent about profit and loss sums. What you need is a workable trading strategy. Are you concerned about losses? If yes, it’s more likely you don’t have a viable strategy, so you’re not able to identify or take a reward to risk trades. 

    Let me ask you. What if you have a losing trade, what if the trade goes against you? That’s how odds work. You’ll have losing trades from time to time, don’t be afraid to lose money. If you never learn why you have losing trades, you’ll never learn how to have the winning ones. Losing trades are not the end of the world, they are just a phase. That shouldn’t affect you. Bear in mind, as long as you are able to learn and find where you make mistakes, you’ll be on the right track. You must understand that trade will go against you occasionally. Losses are run by possibilities. The point is that the possibilities are changing. Don’t let your losses influence your approach to the markets in the future. 

    Take the trades that give you the highest reward relative to the risk you take. Size your position properly and never let any trade dominate your profit and loss amounts. Spread your trades. If you do so you will have good results in their cumulative performances. It’s a point of diversification. You should diversify your trades but never over-diverse. Do it to reduce the volatility in securities performances not to tell to friends how many different securities you’re trading. 

    So, is day trading like gambling? No, not even close.

    How to track your profits?

    Let’s say you have a viable day trading strategy. That means you are confident. But your job here isn’t finished. You have to track your day trading profits and losses. You may have the best strategy ever but if you don’t have a track record, you’ll be lost. You’ll not know what’s happening. Don’t get careless. That never drives you to success. Keep in mind, you’re not playing a game, you’re doing a job. If you have an accurate track record you’ll be able not only to know how good your strategy is but also you’ll be able to adjust it if it is not working for you.

    I’m suggesting you set up a spreadsheet. Add columns for the securities you bought, the exact time you made a trade, the third column should be at which price you bought it, in the fourth column you should add how many assets you bought, and the last column is for the commissions. 

    Also, set up the columns for closed positions so you’ll know how your trades ended up. Then, calculate how good you are, what is the return in percentages for each of your trades. You can calculate it in currency, of course. 

    So, at the end of this post, let me ask you, is day trading like gambling? 

    Waiting for your answer. Happy trading! Do it smart!

  • Trading Personality – How To Know What Style Suits You best

    Trading Personality – How To Know What Style Suits You best

    Trading Personality - How To Know What Style Suits You Best
    What are the main characteristics of different trading styles, how to choose the right one based on your trading personality? How to pick the trading style that suits you the most?

    By Guy Avtalyon

    I hope you figured out the “best” trading system for you but do you really know your trading personality? Of course, the trading system you chose is one that suits your personality, I hope. No? Where is the problem? How is it possible you made such a mistake? You tried with some quizzes on the internet, right? But is that the right way to figure out your trading personality? It’s for fun, for God’s sake! You must be serious when choosing the trading style, your money is in play. 

    How to choose a trading style based on your trading personality?

    We have four basic styles of trading and each trader will choose the one that suits him or her best. We all have to choose between day trading, scalping,  position trading, and swing trading. Which one will a trader choose depends on trading personality. In other words, our trading style depends on our personality. 

    If you think it is an easy task I have to tell you’re completely wrong. Your trading style must be in harmony with your personal characteristics and knowing them is just half of your way. 

    Are you still with me?

    Okay! Let’s go further!

    I suppose you’re new in this field. So, here is how to match your trading style with your trading personality. If you’re still reading this it is more likely you didn’t find the right trading style yet. I can help you.

    Finding the right trading style that fits your trading personality is extremely important. Otherwise, you’ll have losses. And nothing but the stress, losing money and finally you’ll give up. That decision could be wrong because you’ll miss the chance to earn money.

    How to choose the trading style that best suits your personality?

    If you never harmonize your trading style to your trading personality or even worse, if you never recognize what your personality is in trading, you’ll never become a profitable trader. 

    But here is a tricky part. You have to be honest about your wishes and your possibilities. Moreover, you’ll have to put them in alignment. They have to walk side by side, supporting and taking care of each other.

    So, be honest when answering these questions.

    – What time frame do you prefer when trading? Is it position trading, swing trading, day trading, scalping?
    – How do you recognize yourself, as a fundamental or technical trader?
    – What is your risk tolerance?

    These are three basic questions and based on your answer you’ll figure out what is your preferred trading style. I have to repeat, you MUST be honest. The most important thing is to avoid your emotions. It really doesn’t matter what style you like more. It is all about how to match your trading personality with your trading style and you’ll have to do that without emotions. 

    I know it is the hardest part. 

    To put more pain into your life I have to tell you that you’re not choosing the style only, you’ll need to decide the type of trader you want to be.

    Are you a discretionary trader and system trader? 

    Some of you will be able to recognize at first glance but the others will need to try both types before making any decision. Nothing is wrong with that. Always keep in mind that your hard-earned money is in play and you want to see it growing, not to lose it.

    From my point of view, both types have the potential to be profitable. But it’s up to you to find the one that suits you best. My choice shouldn’t be yours necessary. Choosing the right style and the right type of trading that suits your trading personality is an individual decision. What I can do for you is to give you some hints and clues on how to do that and avoid mistakes that could lead you to great losses.

    I want to share one secret with you – when choosing your trading style keep in mind that less is more. What does it mean? It is better to choose one strategy that works for you and when you master it and advance it, you can easily shift to another if it is necessary or you want changes.

    So, let’s go more deeply into each trading style and see how they match your trading personality.

    Position Trading

    Position trading is suitable for long-term traders since it is comparable with holding an investment for a long time. In position trading, your trades may last between several weeks to several years. The length of your trade will depend on trends because the main focus is on the price movements. Position traders seek stocks with the ability to grow in the long run. They believe when the trend appears, it is going to continue. 

    Trading personality characteristics for a position trader

    First of all, you don’t like or don’t have time to monitor the markets all the time. Further, you’re not an aggressive type of trader. You don’t prefer instant treatment and, more importantly, you have a large portfolio.

    In what circumstances position trading isn’t suitable for you?

    If you are an aggressive trader this isn’t for you. Also, if you’re not patient and have a small portfolio, so you would like to enlarge it. Or maybe, you want to profit instantly. 

    Day Trading

    For day trading style you’ll need a good education and large funds. For being a day trader you’ll need a great knowledge of short-term strategies and to recognize even the smallest market’s moves. Day trading is when you enter and exit the position during one trading day. Your profit will come from small changes in the market. 

    Trading personality characteristics for a day trader

    You’ll need a great knowledge of the market you want to trade. Also, you’ll need a large capital ready to invest. In case you’re a quick thinker and quicj=k decision-maker this strategy is suitable for you. If you think you can maintain severe discipline, this could be the right trading style for you.

    In what circumstances day trading isn’t suitable for you?

    This isn’t a good choice for beginners or for the traders with a lack of capital. If you’re not experienced and tend to sell your winners too early or you’re keeping your losers too long, this style isn’t for you.

    Let’s go further! I hope you’re interested.

    Swing Trading

    In this trading style, you don’t need to continually monitor your trades. You’ll hold the position for a few days because you’ll follow the trend and it may last a few days. When it is an uptrend you’ll go long, while when it is a downside, you’ll go short. This is a perfect style for traders who have regular jobs and can’t monitor trades all the time.

    Trading personality characteristics for a swing trader

    If you’re patient and can wait for the best trading opportunity this is for you. This means you’re not going to panic when the trade changes direction and moves against you. In this style, you don’t need full-time devotion to the trade and you don’t need to make your trading decisions quickly. 

    In what circumstances day trading isn’t suitable for you?

    If you feel nervous and get panicked when the markets change direction against your favor, it is better to avoid this style. Also, if you’re not able to recognize the trend. Trend following is very important in swing trading. If you can’t, just don’t swing.

    Scalping

    This is the quickest strategy among trading styles. You’ll take profits from tiny price changes, but they will frequently occur. If you want to become a scalper you’ll need to make several trades within a few seconds. For this style you;ll need a great and accurate exit strategy. You’ll have small gains but frequently. These small gains compounded, have the potential to generate a large profit. But be careful, this style could be a double-edged sword. Just one big loss could delete all your small gains.

    Trading personality characteristics for scalpers

    If you’re a quick decision-maker, and able to act without hesitation, this is your best pick. Also, you’ll have to be fully focused on your trades while performing them. This style requires a lot of time to devote to trades since you’ll need to act quickly. Moreover, you’ll have to know how to handle stress while trading. 

    In what circumstances day trading isn’t suitable for you?

    If you’re not focused enough, feel stress while have to make quick decisions, or hesitate to trade

    How to pick the right style based on your trading personality

    I have to be honest, there is no magic or easy answer. It depends on your individual characteristics and conditions. Also, you have to take into account some other variables.

    The most important part is to be realistic and honest when evaluating your trading personality. You MUST know what trading style is easiest for you to handle, which style will best fit your abilities. When you choose one it doesn’t necessarily mean you’ll have to stick with it. You can change it. Choosing a suitable trading style is a process. It’s not set in stone. Hence, it’s changeable. But don’t change it fast and try numerous styles in a short time. Evaluate and estimate before choosing any. And stick to it even if you have losses at first. Try to find where you make mistakes and fix them, make some improvements. The trading journal will be a great help to do that. If you made the right decision you’ll take profit. Your loyalty will be rewarded.

  • Day Trading Stocks – Most Profitable Type Of Trading

    Day Trading Stocks – Most Profitable Type Of Trading

    For day trading stocks you need volume, volatility, and a trend or range tendency. When using a stock screener, enter your rules into the relevant fields to narrow the surplus of stocks down to a few.

    Maybe it is too difficult to explicitly say that one type of trading stocks is more profitable than the others but Day trading stocks is the choice of active traders because of its profitability. Why did we say it is difficult to point to the special one? Because it depends on what kind of trader someone is and, maybe much more, on which strategy the trader chooses to use. Also, it isn’t the same which market you trade and what assets you are trading. 

    The individual traders can make a few trades per day since it isn’t hard to enter and exit several trades daily. Of course, big investors would prefer long-term opportunities. 

    One is sure, getting into day trading stocks is a decision that no one should make in a hurry. You should take time to examine all difficulties, to learn them since day trading stocks requires very careful planning. Only in that way, you’ll be able to earn your life-time capital in just a few hours. Yes, it is possible because day trading stock is one of the most profitable types of trading.

    Before we jump into the day trading stocks we have to explain what day trading is.

    What is Day trading stocks? 

    Day trading stocks means the trader is opening and closing the position during one trading day. When a trader opens a trade at 10 PM and closes it before 2 PM we are talking about day trading. You can find the traders who trade day only, some will perform it depending on the situation and opportunities, but also, so many traders never implement day trading stocks.

    How does a day trader pick the stock?

    Of course, a day trader is very careful and never just picks a stock no matter which one. Day traders always estimate the reasons to trade a particular stock. And as the reasons are different, traders have different criteria and strategies.

    Since there are thousands of stocks in the market to choose from, the main question is how to do that? What is the best criterion, measure, method? It differs too. And if we try to figure it out, we can get confused. Look, some traders can find a new stock every single day. They are seeking stocks that are breaking out of patterns. Some are looking for the most volatile stock or the stocks that breakout of support or resistance levels. Also, some traders have the favorite stock or two and trade them every day for months or years. This isn’t without a good reason behind. If you know the particular stock very well, you’ll need less research on it. Since you already have the chosen one, you don’t need to search further for new stocks and breakouts or volatility. 

    How to find a stock for day trading?

    If you want to become a day trader, you have to pay attention to several things.

    Volume

    For a day trader, a stock volume is important to enter and exit trades. To explain this more. When the volume of the stock is high it is much easier to enter and exit the position and to do without slippage or with very little. Why is it important to avoid slippage or to lessen it? Slippage happens almost all times but generally during periods of high volatility when traders use the market orders. 

    It happens when a trader gets a different price than expected, no matter if such a trader is on an entry or exit from a trade. Slippage occurs when the market order or your stop-loss point shifts somewhere between the time of your entry and the time of the execution. This is especially noticeable during periods of higher volatility when orders are bigger than the usual amount of shares on the bid or offer.

    While choices vary, but many day traders will trade stocks with a daily volume of several million, some have over 90 million. That is a big number and it is hard to manage that. So day traders usually narrow the number of stocks down by using a stock screener. If they still have too many stocks to observe, the traders commonly reduce it to stocks with a volume of 3 of 4 million on a daily average.

    Volatility

    Volatility is important too because day traders need stocks with strong change during the day. The stocks have different volatility. Some will move 0.5% daily but others will move 5% or more per day. Picking the stock may depend on many factors, for example, reflexes, a trading style, your temper, etc. For the majority of traders, the stocks that shift 0.5% to 2% daily are the best choice since they can handle that volatility. Volatility over 5% daily is hard to handle. Only the most experienced traders trade these stocks.

    Trend and range

    These two components are important in day trading stocks. Traders differ by what they are trading, so we have trend traders, range traders and some that use both excellently. As you know, the trend is the direction of stock’s price, while the range is the difference between low and high prices over a particular trading time. The stock price is moving all the time. It can go down or up showing a downtrend or uptrend. A stock screener is very helpful here and will separate stocks with trend or range depending on your setups for the strategy you chose.

    How to learn day trading stocks?

    There are many ideas and methods to maximize profits from day trading. Nevertheless, managing the risks connected to day trading is most important.

    First, trade only the amount you can afford to lose. You must have aside some amount of money for day trading. Don’t rent money for day trading because it’s possible to lose it. Start with a small amount and keep strong control over losses until you get some knowledge and experience. Don’t think you can quit your day job immediately. Day trading is seductive, we know that. But you need to test your strategy when the markets get rocky, for example, during the recession. If you are profitable, you can easily shift to day trading.

    When to buy?

    Day traders try to make money by using small price movements in assets. They have to leverage vast amounts of money to do so. They are focused on liquidity. That allows them to enter and exit a stock at a favorable price. Further, they keep an eye on volatility, higher volatility leads to greater profits or losses. Trading volume is another thing that they are considering. High volume means there are a lot of people interested in the particular stock. When the volume is increasing that is a sign that the price will drop or go up. After you choose a stock you want to trade you have to learn how to recognize the entry point. Some tools can help you. For example, some news services, but it has to be a real-time service because the stock prices can be influenced by news.

    Quotes are important too. Electronic communication networks, for example, display the best open bid and ask quotes from various market players and can automatically pair and execute orders. 

    Intraday candlestick charts are useful but provide a rough analysis of price action. 

    Your entry point has to be defined very accurately, you have to know the exact point when you are going to enter the position. For example “during the downtrend” isn’t precisely defined. You have to define more specifically and test it too and find if there is a chance for that to be generated each day or more often. 

    Also, the direction has to be tested. You would like the price to go in your expected direction. After you check and test everything you may have a potential entry for your strategy. 

    After finding an entry point you’ll need to judge how to exit, or sell, your trades.

    When to sell?

    There are many ways to exit a winning position. For example, trailing stop and profit target. The profit target is the most popular. The other well-known price target strategies are scalping, fading, daily pivots, momentum. The best time to exit is when the interest in the stock is decreasing. The volume will show that. Your profit target should provide you more profit on winning trade than you would have a loss in a bad trade. For example, if your stop-loss is 2% away from your entry price, your take profit level should be more than 2% away. You have to know your exit before you even enter the trade. The exit level has to be precise.

    Bottom line

    Day trading means to take advantage of small price changes. It can be a profitable game if you play it carefully. Hence it can be a risky game for new and inexperienced traders who don’t have a strong trading strategy. This type of trading is connected to the high volume of trades. So you have to respect some general principles if you want to become a day trader.

    You may have profitable trades by following the patterns. More about it learn from the “Two Fold Formula” book, we recommend. But we also recommend to test it by using our preferred trading platform firstly.

    You might find these interesting too:

     >>> Is Day Trading Like Gambling?

    >>> Swing Trading and Day Trading – The Difference

    >>> The pattern day trader rule

    >>> Day Trading the Best Methods – Day Trading for Beginners

    >>> Day trading stocks – How to find best trading platform

    >>> What is the best day trading strategy?

    >>> Money Required to Start the Day Trading

     

     

  • Open Interest Strategy And How To Use It

    Open Interest Strategy And How To Use It

    Open Interest Strategy And How To Use It
    Open interest strategy is based on indicators that traders use to confirm trends and trend reversals for the stock futures and stock options markets. 

    Do you use an open interest strategy in trading options? What? No? Maybe that is the reason behind your losses. Well,  you are not alone, to be honest. Many traders don’t use open interest strategy while trading options. Yes, if you want to be a profitable trader you have to analyze open interest. It is a very important momentum indicator. So, let’s see how you could have better chances to reach profitable trading by using an open interest strategy in trading options. But first, we have to understand open interest. 

    What is the open interest?

    Open interest represents the number of active contracts. It shows how many contracts for options and futures are for the given market. This important indicator shows the strength of the market and measures how actively traded the market is. Someone could say we have the volume for that estimation. Wait! It isn’t the same as volume. There are some differences. 

    You can notice this data along with current prices, volume, and volatility. But still, so many options traders overlook active contracts, so that can lead to shocking results. They are losing too much money and have too many lost trades.

    So, open interest shows the cumulative number of options or futures contracts that are currently traded but not yet cashed by an exercise, offsetting trade or assignment.

    How to calculate?

    There is simple math to do that when running an open interest strategy. The calculation is: add all contracts connected with opening trades and subtract all contracts connected with closing trades. For example, let’s assume we have 3 traders. Okay, we will give them the names: Anna, Bob, and Connie.

    Assume they are trading the same futures contract, in our case study. When Anna buys one contract and enters the long trade, open interest will increase by 1. When Bob buys 5 contracts and goes long too, the open interest will increase to 6. Connie picks to short the market and decides to sell 4 contracts, open interest will increase to ten. Open interest will stay the same until one of them or all exit their positions. In such a case open interest will decline. For example, Anna sold 1 contract and open interest declined to 9. Also, Bob decided to exit his position, he buys back his five contracts, so open interest will be down to 4 and will remain at 4 until Connie decides to sell her 4 contracts. 

    Volume and open interest

    And here is where the volume is different from open interest. While the volume counts all contracts traded, open interest shows how many contracts stay open in the market. So, we can say they are related concepts but different in what is taken into account. Open interest also shows how much money is in the futures or options market. When open interest rises, more money is flowing and when open interest decreases money is going out of the options or futures contracts.

    It can be more complicated since the traders are buying or selling from other traders who are selling or buying. You will find that both sides can open their trades and increase open interest. If both sides close their trades, open interest will drop. But if one side of traders is opening the trades and the other is closing that will have no influence on open interest.

    That is another difference from the volume. The volume will increase caused by both entries or exits, open interest will increase caused by entries and decrease caused by exits.

    Analyze open interest strategy

    Open Interest is relevant for both stock futures traders and stock options traders. It displays you where the traders are allocating their money. Therefore, you must have an open interest strategy. To be able to create an open interest strategy you have to analyze the open interest data. We can find a lot of option sellers in the market. It is due to the time decay of the premium of stock options.

    Their profit is maximum the premium value of the sold option, but the possibility of losing is extremely big. The option sellers are generally very agile and ready to close their positions quickly in case of any unfavorable change. In the market, we can see the bullish traders selling their put options since they get premium if the price doesn’t run under the strike price. In the same sense, the bearish traders are selling their call options since they get premium if the price doesn’t run over the strike price. 

    If we notice a high open interest in any stock’s strike price of calls and puts, we should understand these levels as support or resistance areas. It will depend on if the option is put or call.

    So, the open interest will confirm the strength of a trend. Rising open interest is a confirmation of the trend. On the other side, reducing open interest can be a signal of a failing trend. Traders are supporting the trend when they enter the market and that raises the open interest. Hence, when traders don’t believe or when they lose confidence in the trend open interest will decrease.

    The importance of reports

    At the end of each trading day, the open interest data report is published. This report includes all details about open interest from all market players, are they holding long or short positions. These reports provide important info about what all players are doing in the market for futures and options contracts. Traders use open interest strategy to support their decisions. For example, if a trader notices a big move in the open interest he or she knows that particular market players are entering or leaving the position. That may give hints to market direction.

    Using open interest strategy

    In trading futures, for example, the initial stage of a trend, post-breakout, is not started by trend followers. It is driven by traders who had to liquidate their positions because they were on the wrong side and had to catch the direction of the old trend. The more traders on the wrong side mean the more violent the move post-breakout. Well, you have to understand, if open interest increases during a range-bound action, the transit post-breakout in any direction will be violent. So, if the open interest falls at the start of a new trend, that is the sign that losers are covering their positions.

    For example, the price is moving inside the 6 months average levels, but you notice that operating loss has started growing massively. What’s going on? Is the price still in the range? Oh, yes. Let’s examine this more. For example, the company’s average operating loss per share was $5, last week it reached $8 but the price is still in the same range. How is this possible? It is possible by creating new positions but buyers and sellers are in balance, there is no pressure from one or the other side. That’s how the price stays in the same range. For every long trade, there has to be one short trade. What will happen if the price breaks out on the upside?

    Short-side traders will hurry to cover their short trades and start the rally. Before long-side traders start the rally. When uptrend is created, comes the trend-followers.

    Bottom line

    Indicators are important. They tell you what other market players are doing and can provide you to create your trading strategy. An open interest strategy can be used to recognize trading possibilities you might miss. It allows you quickly to enter and exit a trade at the best price. Many traders don’t use this profitable strategy because when they are looking at the whole open interest of an option, they cannot know if the option is sold or bought. 

    But they fail to catch really valuable information.

    Trading means to have all the valuable data before you enter or exit the position. It isn’t gambling. There are some trading patterns and more about some profitable you can read in the “Two Fold Formula” book. Our suggestion is – test it with the our preferred trading platform.

  • Swing Trading and Day Trading – Make A Difference

    Swing Trading and Day Trading – Make A Difference

    4 min read

    Swing Trading and Day Trading - Make A Difference
    Swing trading or day trading? Where is the difference?

    For some new trader, day trading and swing trading are like two different movie roles.

    Day traders open and close many positions in a frame of one day. On the other side, as a totally different character, is a swing trader. Such a trader takes trades that last many days or months.

    The different styles satisfy different types of traders. It depends on some factors such as the type of market, how much time they want to spend on trading, or what characteristics they have as traders.

    Normally, both methods have the same goal: to make a profit grown on price changes in the market.

    First of all, you should know all the features of your trading system. You have to feel comfortable when trade and you must profit from it.

    Never ever pick your trading system randomly. Or because it works for someone.

    Why is that?

    Because the trading system is like a pair of gloves. The only one will suits you the best.

    Your trading system must meet your temperament.

    It isn’t about that swing trading is better than the day trading. It is all about which method satisfies a trader’s individual goals.

    Some traders will adopt swing trading, but others will use day trading.

    Day trading is good for traders who want quick returns. For example, a day trader risks 1% of funds on each trade. If there are loses, the trader loses 1%.

    What does happen if a trader win?

    A trader will make 2%. Do you know why?

    Reward to risk ratio is 2:1.

    Let’s go deeper!

    Assume the day trader wins 50% of trades. And the trader makes, for example, 6 trades in one day. That will be in the final score 3% on the account balance. Yes, minus trading fees.

    Well, with making 1% per day the trader will increase trading account by more than 200% per year.

    Wait, nothing is so easy!

    On the other side of the medal is that you can very fast drain your trading account if you opt day trading.

    How?

    Let’s see!

    You must have winning trades twice more than lost trades. At the same time, you have to win 50% of all the trades you take.

    Tell now is it easy!

    Swing trading collects gains and losses increased gradually.

    The purpose of swing trading is to take larger price moves than it can be found as intraday price performance.  

    In other words, swing trading has based on the fact that the price does not run in a continuous course.  

    For you to have a clear picture.

    Have you ever see the waves on the ocean?

    That’s how the price moves in swings, depending on the short-term price trend and momentum.

    The essential concept of swing trading is to enter at or near one swing top and exit at or near the next.

    Just like riding the waves. Swing trading is a trading methodology that seeks to capture a swing.

    Just like a surfer trying to catch the wave. Swing trading, in essence, is to catch one move in the market.

    Swing Trading and Day Trading - Make A Difference 1
    In an average month, the swing trader could profit 3%, minus fees.

    For a one year, a swing trader may gain 36%, which sounds good. Some proponents of day trading will tell but offer less potential than a day trader’s possible earnings.

    But swing trading fans will tell that has a much larger profit potential than day trading.

    On their benefit, the time frame for trading is larger so the profit targets are also greater.

    The truth is if you modify the numbers of trades won, the wins compared to losses will have an influence on earning potential.

    Sound logical indeed!

    The universal rule, day trading has more profit potential. Especially if you trade with a small account.

    Well, everyone would like to trade with a large account.

    But there is the catch with day trading.

    When the volume of the account increases it is harder to employ all the resources on short-term day trading.

    Or think about this!

    For example, the percentage of returns decline the more capital the day trader has.

    The money returns are increasing, of course! But 3% of returns on $2 million account is still more than 50% on $100,000.

    The capital demands

    Day trading and swing traders can begin with different sums. It depends on which market they want to trade. There are some differences if they trade the stock, forex or futures market.

    If you want to day trade stocks in the US it is recommended to start with $25,000.

    Swing Trading and Day Trading - Make A Difference 2
    A swing trader will start with $10,000 and rather with $20,000 if want to pick a profit from trading.

    A lot of money indeed.

    But if you want to start day trading on the forex there is no minimum needed for that.

    Well, it is advised that traders should start at $500. To swing trade forex, the minimum recommended is about $1,500. But you would like to start with more. You will need the capital that allows you to enter a few trades at one time.

    To trade futures as a day trader, you will need about $6,000 more or less.

    For example, trading micro contracts may require less.

    For swing trader to trade a futures contracts, it is recommended at least $10,000. Even more! About $20,000 or more is better.

    This amount depends on the margin demands of the contract you want to trade.

    Time frames differences

    Frankly, day trading takes up much more time. Day traders ordinarily trade for at insignificant two hours per day.

    Are you sure you have 2 hours every day to dedicate to trading?

    There is preparation time, too. That means spending three to four hours at the computer.

    Swing trading will demand a much shorter time. For instance, a trader is swing trading off a daily chart. Such a trader may find new trades and update orders on current positions in less than one hour.

    Even less!

    Some swing traders will finish all about trade once a week. That means a one-hour per week, and moreover, not over the night.

    They can go to sleep earlier! Or do whatever they want! Go to the cinema! Or have a romantic dinner!

    If you prefer to be an unfortunate day trader, you must do day trading while a market is open and hot.

    On the other side are swing traders. They can place orders at any time of day. Even when the market is closed.

    They are such lucky guys!

    The bottom line

    We cannot say the one trading style is better. They are just different. Both can be suitable for different needs.

    Day trading has more profit possibilities.

    Swing trading has a bigger chance of percentage returns.

    There is one big difference.

    Money demands to start trading are considerably different.  

    Day trading requires more time than swing trading.

    But swing trading demands less stress.

    Anyway, your decision will be the last one. But remember, you have to find the one which will suites you the best.

    For your profit.

    Don’t waste your money!

     risk disclosure

  • The Best Forex Strategies to Trade the Market

    The Best Forex Strategies to Trade the Market

    The Best Forex Strategies to Trade the MarketHow to find the best Forex strategies and win the market? Here are some suggestions.

    By Guy Avtalyon

    The best Forex strategies are those that fit your circumstances and personality best. Right? We wish we could give you a direct answer about what are the best Forex strategies.

    Well, we get this question frequently because we are the portal where everyone wants to find some answers about trading and investing.

    However, this is a complicated question.

    This article is essentially for those who are new to the world of currency trading. Also, they are questioning how they can make money from the forex market.

    The traders who are trading on demo or live accounts should also find some helpful advice in this article. Opposite to popular belief, you don’t have to be rich in order to trade forex today. All you need to start is a computer with fast internet and a small account with a broker.

    Before you enter into a position, you need to know when you are going to exit the market. WHEN is the most important resolution.

    A trader is not going to hold onto a position endlessly.

    How long you want to hold onto your open position will define your exit points and prices. If you pick to hold a position for a week, your profit goal would naturally be higher than if you were to hold it for a few hours. That is because you would expect the price to move further, given a longer period of time.

    You have to make your personal decision w depending on your risk tolerance level, lifestyle, and the amount of time to be dedicated to analyzing the market.

    Here are Traders Paradise’s choices that we want to show you better.

    The best Forex strategies that work:

    1. scalping
    2. day trading
    3. swing trading
    4. position trading

    So, we have to explain each of them.

    Scalping 

    This is the shortest time frame in trading. It employs small changes in currency values. It is the ultra-rapid action of opening and closing of a position within a few seconds or minutes. The aim is ‘stealing’ a few pips from each trade. The profit of the winning trade is not big. Hence, the number of such winning trades should be big enough so that these small profits can add up to a decent amount.

    Scalpers must have access to the tightest spreads and fastest connection speeds possible. Of course, in order to carry out this very fast trading, with the tiny profits.  They perform this many times a day. Scalpers have to perform many sequences, to collect small profits. Losses must be limited but in a way that one large loss does not delete out the profits from winning trades.

    Many forex market makers will not allow this type of trading. Simply, they think it is difficult to cover the opposite side of the transactions. The reason behind this is fast speed and numerous orders entered into their systems.

    Day trading is one of the best Forex strategies

    This is one of the popular types of trading. The traders open and close positions within a day. They also almost never hold their positions overnight due to the higher risk. What to do if prices change dramatically while they sleep?

    Their trades last from minutes to hours. Day trading relies constantly on intraday momentum to bring the current price to the aspired price level in one direction.

    Day traders are looking out for signs that a currency pair has a high probability of moving in a particular direction.  For day traders, a currency pair must go from point A to point B, within a day. Doesn’t matter whether the price is moving in a trend or range. Such traders know to wait for good trading opportunities, instead of trading madly like scalpers tend to do. This style of trading requires full concentration. It is the priority, the positions must be closely monitored on the price charts.

    Swing trading

    Swing traders hold their positions for a few days, but rarely more than a week.

    Identifying and driving on trends early is the central objective of this trading style. The profit goal tends to be set higher than that of day trading. Hence, the swing trader is expecting that by holding out for a few days, there is a better chance of capturing a larger price movement.

    Unlike the day trader, the swing trader has to deal with overnight risk. Swing trading requires less monitoring of the market. This type of trading is generally favored by people who hold their day jobs.

    Honestly, if swing trader wants to be successful, such must still keep up-to-date with the latest fundamental and technical changes in the market. Even if they are not monitoring the market all the time.

    Position trading as one of the best Forex strategies

    For many traders, this is one of the best Forex strategies. Position trading involves the longest period. It refers to traders holding their position for weeks or even months. Position traders attempt to recognize and trade currency pairs that signal that a medium to long term trend is playing out, but will take more than a few days to play out.
    Position traders usually close their positions while the trend is most powerful before it loses power.
    This trading time frame doesn’t demand a lot of time. That is the difference from others. There is not much need for absolute monitoring.
    If you practice position trading, it is smart to place a trailing stop. This will automatically close your position if the price retraces past a particular point

    When you try to find what are the best Forex strategies, you must have several things on your mind

    As a general rule of thumb: the smaller the time frame you trade then the more time is needed to be devoted to monitoring the markets. For example, day traders tend to be more in touch with the price swings and the goings-on of the market. You know, the positions are opened and closed on the same day.

    On the other hand, a position trader does not have to monitor the market so intensively. This is simply because the market has more time to move against them. It can move a lot further against them than it is possible in a smaller time frame.

    However, you have to decide on the length of your holding period. That must suit your personal preference by adjusting the profit target and stop-loss accordingly. Of course, the size of the profit goal and stop-loss will be equivalent to the length of your holding period.
    What does it mean?
    If your trading time frame is small, your target profit and stop-loss should be smaller. And vice versa. If you have a longer time frame, your profit target and stop-loss should be wider.

    Don’t waste your money! Never traded in your life? Stay tuned! 

  • Day Trading the Best Methods – Day Trading for Beginners

    Day Trading the Best Methods – Day Trading for Beginners

    3 min read

    Day Trading the Best Methods - Day Trading for Beginners 1
    The methods of day trading contrast with the long-term trades underlying buy and hold and value investing strategies.

    Some of the day-traded financial instruments are stocks, options, currencies, and a host of futures contracts, interest rate futures, currency futures, and commodity futures.

    This method was an activity that was exclusive to financial firms and professional speculators. Many day traders are bank or investment company employees. They are working as specialists in equity investment and fund management. With the appearance of electronic trading and margin trading, day trading has become available to individuals.

    What is Day trading

    Day trading is speculation in securities, specifically buying and selling financial instruments within the same trading day.

    Surely, day trading is trading only within a day. That means all positions are closed before the market closes for the trading day. Many traders may have day trading as one component of an overall strategy. Traders who engage in day trading are called day traders. They are therefore speculators.

    For beginner traders, it can be both exciting and confusing. Many new traders are found in the market because they see the possible rewards when becoming a successful trader.

    Of course, there is unlimited earning potential. You can work from home, and you can be your own chief. The rewards are obvious. The hard part of this game is figuring out what path you need to take to achieve your goal.

    Day trading is when a trader buys and sells a futures contract within the same session.

    Traders manage open positions within the limitations of an intraday methodology. There are no open positions held at the daily closing bell.

    The discipline of day trading is questionable. Some traders argue that it relates to gambling it’s workable and potentially very profitable.

    Frankly, there are no traders who take part in the markets only over day trading strategies.

    However, beginners should take a few basic actions in the first days.

    It is a good idea to ask yourself some questions. The current market is a fast-moving, and contemplation before entering is useful in mastering challenges.

    Having knowledge about personal goals and abilities is an essential start in developing into a competent day trader.

    So, what you have to examine before start day trading?

    First, what kind of personality type you are.

    Whether you are a risk taker or you like unpredictable action. That can impact the execution of trading dramatically.

    What are your goals?

    You have to find out a sustainable trading niche. So, you have to understand what your goals are before the start

    What are your personal characteristics?

    You must know the key personal strengths and weaknesses. Find the areas that need improvement. For example, you are not technologically savvy, then you have to improve this area. That can help boost your market system.

    Honestly, day trading is not for everyone.

    Think if it is for you.

    If you are not familiar with the trading environment as a whole, maybe you should think twice.  It is better to save time and money before placing your first trade.

    Obtain the essential elements

    The number of active traders has grown dramatically over the past several decades.  Developing online technologies have reduced many of the common barriers to entry. It brings the markets to the crowds.

    The modern market is a completely digital place. If you want to take part, there are some essential elements:

    The basic computing power is a necessity. No matter if you are using a desktop or mobile phone.

    Further, you must have a secure and functional internet connection.

    It is essential for accessing brokerage and exchange platforms.

    Day Trading the Best Methods - Day Trading for Beginners 2

    The platform is the trader’s portal to the market. Examining streaming data and placing market orders in real-time is best executed via robust software.

    It’s never been easier to take part in the financial markets. Nothing will stop you. Your time zone, capital sources, or experience, mean nothing.

    Attempting your market goals is possible all over the globe.

    Have your plan and stick to it

    A complete day trading plan must have:

    Entry/exit point: It isn’t a piece of cake to identify good opportunity in a few seconds. The crucial part of any trading strategy is to know WHEN and WHERE. You have to be fast thinking trader if you want to exercise a day trading.  

    A rules-based approach can streamline the process. That can ensure optimal market entry and exit.

    Position management: A strong plan can define the location of stop losses and profit targets on a per-trade basis. Good systems should include scaling, break-even, and trailing stop functions.

    Risk management: Well, you want to get the most out of your risk capital when you are a day trader.

    Knowing your exposure in the meaning of a viable risk vs reward is the key to not be overextended.

    A complete strategy guarantees that trade-related actions are carried out in a logical and disciplined style.

    Without a strategy, the profit or loss often is followed by a lack of luck.

    Who wants to bet on luck?

    The bottom line

    Day trading can be financially rewarding. But the challenge, too. Nevertheless, given the proper due diligence, joining the markets successfully is possible.

    Hope we helped you a bit in your endeavor.

    Don’t waste your money!

     risk disclosure

  • The types of stocks and stock trading

    The types of stocks and stock trading

    The types of stocks and stock tradingWhat are the main types of stocks, what are the main types of stock trading? Here is all about them you ever wanted to know.

    By Gorica Gligorijevic

    The types of stocks can be different. There are 3 stocks major groups divvy up the stock market into smaller pieces.

    Here are the 3 main types of stocks:

    Traders-Paradise will point these three types that are most interesting to investors and traders. We want to explain all benefits and disadvantages if any for each of them

    Common stocks

    The term originates from the availability. These stocks are the most common among others. They make up the bulk of the buzz on Wall Street. Common stock is a part of ownership in the company. Common stockholders have a right to a company’s profits and value, as well as a vote in major decisions and board elections. You can see their prices quoted online, in newspapers, financial publications, etc. Common stocks may pay a dividend but not necessarily. They are riskier than preferred stock.

    Over the long run, these stocks, from the point of capital growth, will yield higher returns than almost any other investment. But it isn’t without costs. Common stocks involve the most risk.

    When people talk about types of stocks, in general, they are most likely referring to this type. Common shares represent ownership in a company and a part (dividends) on a portion of profits. Investors have one vote per share to choose the board members. They monitor the major decisions made by directors.

    But this is the place where privileges stop. For example, if a company goes bankrupt, the common stockholders will not get the money before the creditors, bondholders. Only when they all are paid it’s time for stockholders to be paid.

    When you buy common stocks, you become a partial owner of the business in the way. Stocks are bought in shares. The more shares you have, the bigger your share of the profits. It commonly refers to dividends. Investors usually get one vote per share. Voting is a privilege given to a shareholder and is used in situations such as as-as the election of the board members who oversee the major decisions made by management.

    Preferred stocks

    This is another one among the types of stocks. Preferred stock represents some level of ownership in a company but regularly doesn’t come with the same voting rights. They are issued with known dividends much higher than the common stock. An added advantage is that in the case of liquidation preferred stockholders are paid off before the common stockholder. These stocks are safer than common stocks.

    Preferred stocks can be callable, which means that the issuing company can buy back issued preferred stocks at a premium on its own accord.

    Stocks are also convertible, that allow a preferred stockholder to change their preferred stocks into common stock.

    The owners of the preferred stock take on most of the risk. For example, if the company misses one of the dividend payments, it doesn’t result in a failure.

    In most cases, a missed dividend payment accrues and the company will eventually pay it back to the investors. The dividend on the preferred stock must be paid before any dividend is paid to the common stockholder. Preferred stock is however junior to debt.

    Share classes

    This is considered to be one of the types of stocks for many reasons.  Common and preferred are the main kinds of stock. However, it’s also possible for companies to modify different classes of stock in any way they want. The most frequent reason for this is the company wants the voting power to remain with a certain group. Hence, different classes of shares give different voting rights.

    For example, one class of shares would be held by a select group who are given 10 votes per share while a second class would be issued to the majority of investors who are given 1 vote per share.

    If there is more than one class of stock, the classes are traditionally characterized as Class A and Class B.

    In many instances though, the company may choose to decouple the voting rights from the shareholding by creating multiple classes of stock. The most common way this is done is via the issuance of A and B classes of shares. Shares are normally sold to the public but they may carry very little voting right. Most of the voting rights may be concentrated in the B shares, which may primarily be held by the management or the founders/founding families of the company.

    This is one way of enabling the public to finance and participate in the growth of the business. But, at the same time, not giving up the ability to control the direction of the company. This may be useful for the management or the founders of the company to continue to run the business in line with their original vision.

    However, this also creates various conflicts or issues such as:

    1) The A-shares are less desirable and will trade at a discount to the B shares due to the limited voting rights,
    2) This discourages the shareholders or an activist investor to come in and make changes to the management or the business direction that may be sorely needed, and,
    3) This encourages the management or the B shareholders to run the company for their own benefit and not for the benefit of the public shareholders.

    Some of the well-known companies that have their shareholding organized this way are Ford Motor Company, Google Inc, and Alibaba.

    For example, Berkshire Hathaway (ticker: BRK), Warren Buffett’s company, has two classes of stock.
    You can notice the difference in the ticker symbol. For example, BRKa or BRKb, also, BRK.A, or BRK.B.

    What are the 3 main types of stock trading?

    Based on the duration of stock holding, the different types of stock trading can be classified as:

    Day Trading

    It is a type of stock trading where both buying and selling of a financial instrument are done on the same day. This means, all the tradings are closed before the market closes for the day. Traders who participate in day trading are described as active traders or day traders. Day trading requires a fast decision and quick action.

    We don’t advise this type of stock trading to a beginner.

    Short Term Trading

    A trade period of more than one day to a few weeks is viewed as a short term trade. Traders buy and hold in position from one day to a few weeks. They enter the short trade when creating a sell position.
    It is closed by buying after one day or in a few weeks.

    For example, swing trading and pattern trading are varieties of short trading.

    Long Term Trading

    In this type of stock trading, the stock is held for many months to many years. The investment decision is made by a fundamental analysis of a stock. Why traders like this type of trading? Well, it is due to the profit that comes from the company’s growth, the other reason is dividends.
    For example, value Investing and the buy-and-hold strategy.

    All about types of stocks and stock trading

    So we can say, stocks are claims of ownership in the business that is publicly distributed.

    However, this ownership can come in many different ways. We presented you with different types of stocks that you may find in your investment business. Not all of these are exactly an alternative of stock ownership, but we have included these here.

    A stock trader job can be very profitable.

    You realize that there is plenty of benefits to stock trading. You have legitimate reasons to enter the field of stock trading. It is now time to decide what type of trader type you want to be.

    All you have to do is to adopt the correct strategy in your future investment profit making!

     

  • What is the best day trading strategy?

    What is the best day trading strategy?

    What is the best day trading strategy?
    Day trading is connected to great risk but also with great potential to profit.

    By Guy Avtalyon

    So, let’s see what is day trading.

    Day trading points to the rapid purchase and sale of stocks throughout the day. With the goal that purchased stocks will climb or fall in value for the short frame of time, seconds, or minutes.

    Day traders believe that through certain day-trading strategies, they can add up small daily wins into long-term profits.

    Day traders have their own jargon and terminologies, online communities for day-trading tips, support, and strategies.

    But you have to know – day trading is risky and only for speculative investors.

    The day trading strategies

    Scalping Strategy This is the philosophy of how small wins can add up to a lot of money at the end of the day. The scalper sets a buy and sells target and sticks to these levels.

    The scalping strategy is fast and traders make buys and sell within a few seconds. This is one of the best day-trading strategies for traders who can make quick decisions and act on them without regret or doubt.

    These traders have enough discipline to sell immediately if they see a price decline. In that way, they are minimizing losses. This strategy isn’t for people with short nerves. But still, it is very popular.

    Momentum Trading Investor jumps on a stock whose price is moving up. When to use the momentum day trading strategy?
    This strategy is very popular for beginners because it focuses on news and recognizing strong trends.
    Stock movement of 30 to 40%, smaller stocks, which trade faster due to the reduced number of outstanding shares, a unique and major move in price, driven by a catalyst like a surprise earnings growth, a drug company’s huge, new treatment launch or news that a small company will be acquired by a larger firm. Option stop – loss is required as insurance.
    Just hold your position and wait to see indicators of reversal and simply get out. Also, you can decrease the price drop and round your price target at the moment the volume starts to decline.

    The most important part of this kind of day trading strategy is to be extremely aware of the expected news and earnings reports. If you execute it correctly, you’ll be able to profit from each trade. And you trade just short as few seconds per trade. Wonderful!.

    Breakout Trading – When the stock price rises above the former top resistance price you can use this strategy. You should monitor the level of stock trading volume or how many shares are changing hands. Breakout trades on high volume are more likely to be sustainable at the new higher price than those breakouts with less volume. It’s not as easy as looking at a chart, recognizing the resistance, and then buying after a breakout.

    Breakout trading focuses the point when the price clears a particular level on the chart. Also, you have to notice that the volume is increased. So, you have to enter into a long position after the stock breaks above the resistance level. The other possibility is to enter a short position when the stock breaks below the support level.

    To explain this more detail, after the stock trades beyond these levels, the volatility will increase and the stock price will usually follow the trend, meaning it will move in the direction of the breakout. Always keep in mind these two levels: resistance and support. You have to see how frequently the stock price hits them. More hits, more volatility, more important the levels become.
    Plan your entry point according to which level the price hits. If the price is set close or higher than the resistance level is, you’ll need to take a bearish position. The contrary is when the price hits the support level or move below. In that case, you’ll need to take a bullish position.

    Your exits should be set reasonably. Calculate the average recent changes in price to set your price target. For example, if the average price is 3 points more than the last few swings, your price target will be rational. When the stock price hits your target price, just exit the position and take your profit. You had a winning trade.

    Day trading on news

    News Trading – You must be keeping an eye on the business news, day traders can capitalize on the popular daily stories.

    If the news is bad, you might short the stock during the day by “borrowing” shares of the stock from the investment firm. And then selling those borrowed shares.

    Similarly, if the stock price declines as expected, you should buy the shares back at the lower price and profit from the difference less a commission payment. If the news is good, you go long or buy the stock outright and sell the shares after the price rises. 

    Pullback Trading – The first step is to look for a stock with an established trend. Then, monitor the trend until there’s a price decline from the trend. If the established trend is upward, then the pullback is an entry point for the day trader to buy.

    If the trend completely reverses after you buy-in, there’s no need to panic. The trend usually continues in the trending direction for a long time.

    You may find pullback ”candidates” from the stocks making the biggest gains.

    Is there any risk involved

    But be aware!  ”Day trading is extremely risky and can result in substantial financial losses in a very short period of time,” according to the SEC website.

    And one advice: If you’re afraid to try your hand at day trading, only invest money that you can afford to lose.
    Or don’t try this!

    Read more about Strategies to Avoid Bad Investment Moves