Trading with Stocks - Introduction (Part One)

Discussion in 'General Business' started by ecommerce_guru, Dec 8, 2006.

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  1. #1
    Hi everyone
    following my thread: http://forums.digitalpoint.com/showthread.php?t=189926
    and as i said, here is the introduction (part 1) to stocks trading (Day Trading)

    Tutorial is dedicated to Day Trading Stocks (Not swing).
    Requirements: You should be familiar with basic stock trading, terms, and abbreviations

    Part One:
    What is Day Trading?
    Its A style that covers a holding period of several minutes to hours.

    Types of Day Trading:
    - Three forms of Day Trading:
    1) Scalping 2) Momentum 3) Day

    Charts Used:
    Day Traders use 5- & 15-Min. charts to make entries and exits.

    Stocks to buy, sell:
    Day Trading is best used on active, highly liquid stocks.

    Strategy:
    Day Traders try to capture smaller gains with gains with minimal dollar risk.

    Warning:
    Day Trading is a style of trading that May not be suitable for ALL as it considered RISKY

    Requirements:
    - Confidence
    - Patience
    - Discipline
    These are the main and most important factors needed to be successful day trader, but HOW to achieve them? Should Eliminate the Subjective analysis.

    Tools Needed:
    - Charting Tools
    (5-, 15 , 15- & 60 & 60-Min. Day Min. Day-Trading charts displayed in Candlestick form, Color coded volume)

    - Technical Tools
    (20 20- & 200 & 200-period ‘simple’ moving averages)

    - A Price Pattern:
    (The Pristine Buy & Sell Setup)

    - Money Needed:
    Most brokers require a minimum of $2000 to open an account. However, there are brokers out there that require as little as $0 top open one.
    if you start with $2000+ you may trade with margin (with margin you would now have up to $4000 of stock buying/shorting power (2 times the amount in your account. Note : some brokers may give you 4 times of the amount in your account)

    - Time needed:
    Personally i prefer from 2-3 hours/day

    - Brokers Type:
    You need a direct access broker to provide a LIVE data.

    (End of Part One)

    In part two i will go in depth with some terms/techniques

    Enjoy
     
    ecommerce_guru, Dec 8, 2006 IP
  2. qwestcommunications

    qwestcommunications Notable Member

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    #2
    I wouldn't advise day trading for any newcomers. I think they should look to invest with a long term view.
     
    qwestcommunications, Dec 9, 2006 IP
  3. ecommerce_guru

    ecommerce_guru Notable Member

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    #3
    Agree, thats why i said its risky. this introduction is for those who is willing to switch to day trading.
     
    ecommerce_guru, Dec 9, 2006 IP
  4. PForex

    PForex Banned

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    #4
    PM me your MSN/YIM. I would like to discuss more futher with you. Thanks.
     
    PForex, Dec 13, 2006 IP