Tag: trader

  • 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

     

     

  • How I Lost 10.000 dollars On A Trading Platform

    How I Lost 10.000 dollars On A Trading Platform

    How I Lost 10.000 dollars On A Trading Platform
    Lost money in trading isn’t a big deal. But lost self-confidence is the disaster.

    How I lost 10.000 dollars on a trading platform? It was a painful experience and I want to share that with you. When you hear that somebody lost $10,000 on a trading platform, what is your first thought? How stupid he/she must be!

    Thank you. I’m that one. I lost! So, what?

    My entire savings were gone. Don’t even think that I traded without knowledge. I went through all the forex courses available to the time and I’ve spent a lot of money to pay for them.

    Let’s go back to that moment in my trading history.

    Only a few hours ago everything was fine. But what happened? Let’s take a look. I lost! OMG, I lost all my savings!

    First of all, I was so-called, “day trader”. There was no reason I couldn’t have made a billion dollars day trading. Actually, I was the exception. I made a nice sum of money before stopping. The secret was that I treated the thing with respect. I did not plan to get rich overnight, but in a reasonable time, yes. My plan was to become indecently rich in 2-3 years. And I was on my way to becoming so. In fact, I was like many others. Becoming filthy rich for 2-3 years?

    How stupid I was!

    Fun fact: I was trading without proper preparation and education.

    Ha? What do you think about me now?

    I never listened to what my father told me:

    “Don’t gamble, it is not worth it. Build up your assets with honest work and time. There is a time and a place for everything. With gambling, enough is never enough.”

    I thought I knew everything and I have the holy grail in my hands. Just because I bought a trading robot. Yeah, that was very smart of me. Well, after 6 months, my trading account was gone. 

    Kaboom! It exploded and disappeared in its own smoke! That’s how I lost 10.000 dollars on a trading platform.

    I lost everything! How it was possible? I believed marketers and some guys with their “track records”, and hundreds, thousands of testimonials. It is hard to resist when you read or hear some of them.

    Would you really like to know how I lost 10.000 dollars on a trading platform?

    How I Lost 10.000 dollars On A Trading Platform

    Take a look at the image above. What can you see? Stop-loss levels. My trading strategy didn’t have stop-losses. I didn’t see the point of using it! The truth is, with a stop loss, you’d get sold out at a loss, and then the market would move back and you would have ended up making money if not sold. But I didn’t see that opportunity, I just wanted to earn a big sum of money.

    I had no strategy except to make money

    And I really believed that the robot knows what it is doing. I started investing slowly. It was fun. I checked the price of my investment, followed the news on Twitter, and talk about the company’s products. Then the stock price plummeted and I didn’t have a stop loss and that ruined me. Can you understand how I lost 10.000 on ta trading platform now?

    Only then I realized that I had chosen the wrong stock, the wrong company.

    My skipping of stop-losses and liquidating my position at a very low price. That triggered a chain reaction with all my positions being liquidated in a few minutes. The market was having one of its ‘corrections’. I’d received multiple margin calls overnight that had gone unanswered, so my CFD provider sold my positions out.

    The people I was playing against were in many instances the big financial institutions. These institutions’ employees aren’t so many traders as risk managers.

    I didn’t realize that trading is like a game of tennis.

    You need to know who your opponent is

    Today I know what was obvious, that this would never have worked. Do you really think that some rich guy believes in some trading robot account to make his buying decisions?

    Of course NOT! But  I have seen a number of miracles happen.

    And the truth is only ONE! Trading without the right knowledge leads to a deep disaster.

    When I see people who are day traders and they are following some crap newsletter or some coach with a fudged up track record, I am going crazy.  I can’t even see someone watching FOREX algorithm sales pitch or sniveling over some poor stock report.

    I have that one desire, I just want to say to them: you are guaranteed to lose money in any period of time unless you learn to trade well. If you trade without the proper education you should go to some casino or play the lottery. You would have better chances to win. Not to lost.

    Yes, how I lost 10.000 dollars on a trading platform? I faced that beast.

    The nature of the beast is that even if you are financially educated and you think you know everything about trading, investing or markets at all, you still haven’t guaranteed to win.

    For you to know, I’m not selling anything. It didn’t even cross my mind to teach you how to trade. Hm, maybe I could sell my ideas, I could run some newsletter and give you trading ideas? That kind of person makes a lot of money, indeed. And they are generous when they have some secret ideas to share with you for free.

    How I lost 10.000 dollars is true BS! 

    I am not saying all that information is bad, you just have to be careful and try not to follow anyone uncritically.

    The Forex systems and robots stirred by internet marketers are a joke. Especially if you think that’s how they make money on Wall Street. And believe me, they DO make tons of money. The markets are full of sharks and they will eat you quickly if you don’t stick to simple and reasonable rules instead of their predatory advice.

    Forget about making 20% per month. That’s how poor people like to think.

    I learned a few key points when I lost on a trading platform exactly $10,000. My risk tolerance was pretty high. I never felt the need to sell. I regret losing the money, but I never regret making the investment.

    The lesson to myself was: you have to know whether it will move up or down and markets must agree with your judgment and you also need to know when the stock will move.

    To be successful with individual stock investing, you must predict its future movement AND when that movement will come. You’ve got to be fluid as a trader and there are no guarantees.

    The Forex market is the most volatile market in the world and therefore it cannot be manipulated.

    KISS, live long and prosper, and trade smartly!

     

  • Just 5 F***ing Minutes In Trading To Find What BS Is

    Just 5 F***ing Minutes In Trading To Find What BS Is

    Start with a small amount if you do not have a lot of money.
    Stop on what you consider to be the last stop.

    2 min read

    Just 5 F***ing Minutes In Trading To Find What BS Is

    These are the best trading tips you’ll ever get. Remember this:

    * When the market is sinking rapidly – buy.
    * But when it rises, place a stop order at the price of the purchase.
    * Each time the value rises to $100, move the stop for $100. Follow the trend.  Every time you move your stop, it protects your profit. Follow the trend until the momentum is lost or until everything is reversed.
    * Do not try to predict the climax. Continue moving the stop order point.
    * Stop on what you consider to be the last stop.

    So, you want to enter the crypto-trading? You do not want some small 10% ROI after a year on a regular old stock market because it’s for grandparents and old people. Or you want to quit your business with a middle finger and immediately start trading cryptos. Okay!

    Maybe it’s your dream to become Gordon “greed is good” Gekko, or Jordan Belfort, a Wolf from Wall Street? Or you may want to blow up and do not want anything less than a yacht, a villa and a girl in a bikini scrambling around one of your pools. All this and even more FULLY can be yours! Find how HERE

    Are you ready to turn your dreams into reality?

    Cryptocurrencies have some of the best ROI in history (ROI = return on investment) and you have a great opportunity to earn good money.

    How to make money with cryptos?

    Stories like “… I invested all my money in Ethereum (and so are all my friends) …” they are fun at some level (students can afford some risks because if they lose everything they will have a lot of remaining life to recover later).

    On the Internet, you could read the announcement of a person who pawned his car because he wanted to enter the “shit coin pump”  where traders gather and buy like crazy to inflate a collapse of crypto. Before it falls on idiots. Of course, he lost all the cryptos and his wife kicked him out. This is not good and you do not want to be that guy.

    FIRST QUESTION

    “Do you have enough money to invest?”, is the first thing you need to ask yourself because if you have extra money, you would be surprised what you can do with it.

    Start with a small amount if you do not have a lot of money. Careful. You should only invest money that you can afford to lose.

    Of course, nothing stops you to take a loan, sell a cottage, another apartment, a wife’s car, something that you do not need anyway. It will be hard not to make money. The crypto will not disappear as the Internet has not disappeared.

    SECOND QUESTION

    “Are you a buy-and-keep, or a trader?” This is the second question that you need to ask yourself when trading with crypto. Because these are two completely different things.

    Simply, just buy and keep is the right strategy for most people. You should get some of the famous cryptos like Bitcoin, Litecoin, or Ethereum, put them in cold storage and forget about them. Do not read the news and do not worry about wild swings or predictions of a collapse from the ”yellow” press.

    But if you want to trade cryptos, this is something else, because that means looking for information on how to enter and exit the market. We recommend you to do some research before you accidentally select some cryptos and look at their charts because otherwise you will trade blindly and you don’t want that. The rules of the game are basic, but it’s important to remember:

    Buy cheap, sell more expensive! 

    There are two parts: earning money and keeping! Most people fall and burn in the second part because everyone earns money and then immediately invests it further. Trading with crypto is like a golden fever! You are like the conqueror of new territories.

    You enjoy the excitement that is better than sex.

    However, it is brutal in the days when you are losing. You will lose money, friends, hair, you will be unsatisfied, angry, depressed and distracted.  Remember, you play against the maniac and sadistic “mind” of the market, and against yourself. Your system of belief, emotion, and mental power works against you. Markets and people are not rational. First of all, we all have partial information like in the fog, because the information isn’t near evenly distributed. We all have different degrees of ability to process this information, which means that we are all at some point stupid. We all own distorted mental heuristics and a stupid system of belief.

    Being “right” when you are actually wrong is a great way to lose your money.

    The reasons why new traders are losing are:

    a) They trade without edge, in other words – they are gambling
    b) Also, they are trading on a lot
    c) And they’re trading low-value things

    Trading with crypto is like juggling with a cobra! So if you’re not a professional trader, do not do these things. Crypto markets are moving at the speed of video games and you can easily lose money.

    Does this mean you should not trade cryptos? It’s not about it. We enjoy trading!

    You should too!

    Risk Disclosure (read carefully!)

Traders-Paradise