Day trading tips for the Newbie pdf ebook

2. Once you determine which business cycle the economy is currently in you can start researching for a trade. It is best to have some sort of a system in place that will be used before EACH trade. Here is a simple 5 Step formula to help get you started. 5 Steps to Investing Online: 1. Find a stock This is the most obvious and most difficult step in stock trading. With well over 10,000 stocks to trade a good rule of thumb to consider is time of the year. For example, as I write this, it is the beginning of spring. It would make sense to consider stocks that traditionally make runs, or slide if you are bearish, during this time of year. 2. Fundamental Analysis Many short term traders may disagree with the need to do ANY Fundamental Analysis, however knowing the chart patterns from the past and the news regarding the stock is relevant. An example would be earnings season. If you are planning on playing a stock to the upside that has missed its earnings target the last 3 quarters, caution could be in order. 3. Technical Analysis This is the part where indicators come in. Stochastics, the MACD, volume, moving averages, RSI, CCI, support levels, resistance levels and all the rest. The batch of indicators you choose, whether lagging or leading, may depend on where you get your education. Keep it simple when first starting out, using too many indicators in the beginning is a ticket to the

3. land of big losses. Get very comfortable using one or two indicators first. Learn their intricacies and you'll be sure to make better trades. 4. Follow your picks Once you have placed a few stock trades you should be managing them properly. If the trade is meant to be a short term trade watch it closely for your exit signal. If it's a swing trade, watch for the indicators that tell you the trend is shifting. If it's a long term trade remember to set weekly or monthly checkups on the stock. Use this time to keep abreast of the news, determine your price targets, set stop losses, and keep an eye on other stocks that you may want to own as well. 5. The big picture As the saying goes, all ships rise and fall with the tide. Knowing which sectors are heating up stacks the chips in your favor. For example, if you are long (expecting price to go up) on an oil stock and most of the oil sector is rising then more likely than not you are on the right side of the trade. Several trading platforms will give you access to sector-wide information so that you can get the education you need.

4. Day trading the stock market involves the rapid buying and selling of stocks on a day-to-day basis. This technique is used to secure quick profits from the constant changes in stock values, minute to minute, second to second. It is rare that a day trader will remain in a trade over the course of a night into the next day. These trades are entered and exited in a matter of minutes. The main question that most people ask when it comes to is simple: ​‘is it necessary to sit at a computer watching the markets ALL day long in order to be a successful day trader?’ The answer is no. It’s not necessary to sit at a computer all day long. There are a number of factors to consider, but generally the rule of day trading is to trade when everyone else is trading. In other words, trade in the morning. As with all financial investments, day trading is risky – in fact, it’s one of the riskiest forms of trading out there. The stock prices rise or fall according to the behaviour of the market, which is entirely unpredictable. Day traders buy and sell shares rapidly in the hopes of gaining profits within the minutes and seconds they own those particular stocks. Simple to do in theory, harder to do in practice.

5. If you are constrained by a small amount of capital, you may not be able to buy large amounts of a stock, but buying only a small amount can add to the risk of a loss. And, obviously, it is impossible to predict with certainty which stocks will result in profits and which in losses. Even the best of traders must learn to accept both outcomes. It’s also important to know that in day trading, it is the number of shares rather than the value of shares that should be the focus. If you day trade, you WILL face losses, but even for the more expensive stocks, the loss should be marginal, because prices do not usually fluctuate to an extreme degree over the course of just one day. The day trading industry deals in a large variety of stocks and shares. Here are just a few: Growth-Buying Shares ​– shares made from profit, which continue to grow in value. Eventually, these shares will begin to decline in price, and an experienced trader can usually predict the future of this type of share. Small Caps –​ shares of companies which are on the rise and show no signs of stopping. Although these shares are generally cheap, they are a very risky investment for day traders. You’d be safer to go with large caps and/or mid-caps, which are much more secure and stable thanks to a premium. Unloved Stocks​ – company stock that has not performed well in the past. Traders buy these shares in the hopes of generating profits if and when the stock rises in value. As with small caps, unloved stocks can be a risky choice for day traders. These examples are NOT your only options when it comes to day trading stocks. The best way to determine which type of stock is right for you is to invest some time for careful research, a knowledge of market patterns, a solid strategy, and a disciplined trading plan. The key to successful day trading is to be prepared. Know as much as

6. possible about the industry before you begin actually trading. You need to learn to trade ONLY when the market gives the right signals, and ONLY when the volume of activity in the market supports a successful

7. Anyone who knows anything about stock trading or day trading has heard the term ‘trading strategy.’ A trading strategy is a simple concept – it’s basically the roadmap that a trader follows while trading the markets. A trading strategy is governed by a set of rules that do not deviate for anything other than market action. Faithfully following a sound trading strategy will provide you with your greatest weapon against your worst enemy – your emotions. With a trading strategy, you’ll know exactly when to buy and when to sell, regardless of what the market does or what your emotions are telling you. About Day Trading Strategies Every profitable trader will tell you that the key to trading success is an effective, reliable trading strategy. You, as a trader, need to identify a winning system, implement it, and have the discipline to stick to it. Though it would be possible for you to develop a unique trading strategy, it probably wouldn’t be that practical. The best – and most efficient – approach would be to adopt an existing strategy, one which has been used by other traders in the industry and which has already proven to be successful. Just remember, whether the strategy you’re using is your own or someone else’s, it is critical that you have a thorough understanding of it, especially its entry and exit signals. Do not fall prey to the pitfalls

8. of following untested trading “advice,” especially the free advice available in numerous trading forums and chat rooms. Advice that you receive in these types of venues is likely to be opinion rather than fact, and in the market, opinions are not worth anything. What you NEED is a proven and effective ​trading strategy​, one that will work in any market, under any market condition. Because of this need for solid strategies, more and more traders are looking for trading success through technical approaches to the markets. One of these approaches is ​Welles Wilder’s RSI indicator. ​ The general idea behind using the RSI is to buy when the RSI crosses above 30 and to sell when the RSI crosses below 70. As you can see, these rules are clearly defined and don’t leave much room for interpretation. This is EXACTLY what you want from a trading strategy. In trading, you’ll need to make big decisions in mere seconds. There’s simply no time to rethink, or try to interpret the unknown signals and information that come your way. Following a set of simple, easy-to-understand rules – and having a trading strategy that regulates all of your signals and indicators efficiently – is the major key to trading success. Though the rules of trading are very important, they are not the most essential element of trading success. The most essential element is YOU. The best trading strategy in the world will be useless if you lose your head in the market and panic. You need to remain calm at all times, executing your trading strategy efficiently, without hesitation. How to Find a Good ​Day Trading Strategy So, you’re convinced that trading strategies are important. Now, how do you find one that works for you? Obviously, day trading strategies don’t grow on trees. You’ll need to do some research and either develop a strategy yourself, or find one that is easy to understand and has been proven to be successful. Take your time and do your research. Your strategy is an important step towards financial success, and it’s more than worth the investment of time and energy. There are plenty of books and helpful websites to guide you along your way. Also, be on the lookout for scams. There are a lot of “educational companies” out there, each selling their own trading systems and strategies, and each claiming that their system works better than their competitors’. Be wary of these companies. Don’t fall into the trap of believing that you can buy a solid trading strategy for $97 and then make thousands in a short period of time. This is a lie. More recently, some of the “educational companies” mentioned above started offering “free local workshops” in nice hotels. These free workshops,

9. which are typically advertised in late night infomercials, are another danger sign. Most of them are merely a sales pitch for the company’s actual product, and the learning that takes place at the “workshop” is minimal. ​You’d be better off spending that time researching ​the trading market on your own. To avoid scam artists and faulty systems and strategies, you need to educate yourself. Your trading education should focus on exploring and familiarizing yourself with several different strategies; these ought to teach you to take advantage of price direction. You won’t be able to get a solid education after reading only one book or watching a single 60-minute webinar on the Internet. True education takes more time and effort than that. Fortunately, there are many ways to get a good trading education these days, and your best source of trading information and research is online. Education and training play a vital role in the molding of a successful trader. If you want to be profitable in the trading market, you shouldn’t be cheap when it comes to high-quality trading education. Find a company that has a proven track record. Check the Better Business Bureau (BBB) to learn about their reputation. Research the internet for company information, especially handy sites like www.ripoffreport.com and www.badbusinessbureau.com. Get Researching So You Can Get Trading! Day trading​ is a very risky venture if you have limited knowledge, weak discipline, and/or poor money management. However, if you approach day trading correctly, armed with extensive knowledge, a sound strategy, and the drive to succeed, it can become one of the most lucrative business ventures you’ve ever embarked upon!

10. 5 Tips To Make Money In Trading Stocks Online Tools To Start Trading Stocks Online The method of trading stock online has been proved as the most convenient and successful method of trading stock. It is also very easy for anyone to start trading stock online by just possessing 3 important tools which are: 1 - ​Computer:​ If the whole procedure of trading has to be done online, then it is obvious that the main foundation of this trade is the computer. If anyone wants to start with online stock trading then he should possess a fast computer with Windows XP as its operating system. 2 - ​Internet​: It is the major component of online trading as it will connect you to the various companies of the stock market. It is always suggested to go for a high speed cabloe or broadband internet connection. It is always recommended to have an internet back up even if you possess a good net connection as there are the chances for the net to get down. You should always possess an access to a telephone line if, in any case, your system gets disrupted and you want to exit the trade then by using telephone you can inform the broker regarding the same. 3 - ​Brokers:​ In order to enjoy the excitement of trading stock online, one has to require a broker through whom you will be involved in online trading. There are many online brokerage firms possessing different fees and offering different services. You should always opt for the online broker that proffers good stock trading and charting software. You should always select that online brokerage firm which offers market data and the updated information to all its clients. Before going to have the tools for online stock trading, you should jot down the things which will be required by you from each and every tool.

11. Tips To Make Money In Trading Stocks Online There are many people who have been successful in making out huge amounts from the online stock trading. The following 5 tips will really help the online traders to make out dollars from online stock trading. 1 - ​Chart reading in stock trading is the most beneficial step​ for the traders to trade efficiently. By becoming skillful in the activity of reading charts, you can easily judge out the stocks that will move up. 2 - It should be habitual to set ​stop loss orders​ whenever you make trade else your entire account will get smashed. You should always proceed in the game by scraping down your losers early and by allowing the winner to continue. Basically, this is one of the tactics of the trade. 3 - You should ​never purchase the stock which is dropping down with a perception that it will increase ​suddenly after you will purchase it. You should always opt for the stock that is constantly moving up and will keep on touching the heights. Therefore, you should get rid of a myth "buy low and sell high" from your mind. 4 - You should never give an importance to the media personalities rather it is recommended to work independently while trading online. This is so because there are frequent ups and downs in the stock market and by the time information of the media persons reaches you, it becomes too late. Therefore, it is always recommended that ​you should always work with your brain instead of trading by using someone else’s brain​. 5 - You should always search for the ​brokers whose commission share should be low​ else your profits will be spent in paying the commission to the brokers. These five tips will really help everyone to hitting the jackpot while trading stock online.

12. Stock trading has numerous benefits as a viable part time occupation. In contrast to a second job, there are no special qualifications to begin. The stock market doesn’t care about your level of success, education, ethnic origin or any personal characteristics. Complex employers, office politics or difficult employees do not play a part in trading. Additionally you have the freedom to trade from any location. If you follow a few simple rules you can run your business on your own terms. The most important factor is to be clear about why you want to trade stocks. What do you hope to gain financially from learning to trade? Are you looking to: 1. ​Create an enhanced lifestyle​ with supplemental income? 2. ​Replace a full time income​ with a passive income stream? 3. ​Become independently wealthy​ by creating a financial base independent of other income sources? What would being a successful trader mean you? Imagine yourself making successful trades and gaining financially. Think about what it would feel like to have extra money in your bank account and to achieve your targets. With a clear picture of what you want and how that would feel you will be able to remain focused and motivated. Your first task. Your first task is to put one primary goal for your trading plan in writing. Additional goals you set can then support your primary plan. Know Yourself As well as learning to trade stocks it is essential that you understand yow you react under stress. Being aware of your own behaviour patterns and common causes of and reactions to stress when trading will help you to

13. master stock trading. The reason that many people lose money in the stock market is because they lack the proper knowledge base. Independent of trading styles there is one thing common to all successful traders; the use of a tested and proven system. In learning to trade you must be willing to let go of pre-formulated ideas and start fresh, develop new successful habits, and the discipline necessary to trade successfully over time. Are you willing to do this? Successful stock market trading eludes many people because they don’t have contact with an experienced, successful trader or trading system that actually works. Going it alone can be potentially expensive when learning by trial and error. Investing in a solid education and taking advantage of the insights and experience of successful trader makes a lot of sense when learning to trade successfully.

14. For every investor in the world, there are hundreds of people who think they cannot afford to get into the game. Worried about expensive brokerage fees and the prices of stocks themselves, these people walk away from opportunities to invest and make money that can be phenomenal. Thanks to trading stocks online, this doesn't have to be the case. Trading stocks online is a fairly new venture that opens the doors for investing to virtually anyone with an Internet account and a few dollars to play with. With stocks ranging in price from a few pennies all they way up to the thousands, the field for investing online is quite great. Even the smallest of investments can pay off for those who do their homework, too. Before getting involved in trading stocks online, potential investors should do a few things. They include: * ​Investigating sites​: There are a lot of places to start trading stocks online. Some of these Internet sites are quite reputable, easy to use and bring to the table very little risk in and of themselves. However, since financial information will be transmitted over the Internet, it's a good idea for potential investors to do a little research about the sites themselves before choosing one.

15. Things to consider here include reputation of the company hosting the service, the built in security, the pricing involved in transactions and even the advice available for investors - especially ones new to the game. * ​Studying the market​: Investing in the stock market, even in a small way does come with its risks. Jumping in without a basic understanding of the market, potential stock buys and the risks involved isn't recommended. Fortunately, good online sites offer basic lessons about the market and what investors might expect. * ​Understanding the site chosen​: Once a site is chosen and the market is understood enough to make a buy or two, it's a good idea for a potential investor to check out the site more closely. Things to look for here are how the site works, what it takes to buy and sell and how to go about getting help if it's needed. * Setting a budget:​ Playing the market is called that for a reason. Since there are no guarantees investments will pay returns, it's a good idea to set a budget for investments and stick to that. Invest smartly and slowly and don't commit more than you can safely afford to lose. As you make money, you can invest more if desired. * Expect mixed results: Since a broker won't be over your shoulder generally when you're trading stocks online, it's a good idea to expect some mixed results at the start. You might have some wins and some loses to face. Trading stocks online is a great way for almost anyone to get involved in the stock market. With fast results and lower fees, this form of investing has opened a lot of doors for people. Since it's real money involved, however, it's a good idea for new investors to take it slowly and do their homework before jumping in.

16. Exchanging commodities​ is a centuries old means of investing, trading, and managing money. It is believed by some historians that variances of the modern commodity exchange have been in existence for nearly 800 years. Exchanges that deal with company stocks are a much more recent development. It has been just over 200 years since the first American stock exchange opened on Chestnut Street in Philadelphia, and 190 years since that exchange moved to lower Manhattan and the New York Stock Exchange rang its first opening bell on Wall Street. In the years since, the fortunes of American business and American investors have been made and lost countless times on the floors of that exchange, and usually with the help of stock brokers who, as members of the stock exchange, act as agents for buyers or sellers by facilitating transactions in accordance with the law. However, recent years have seen a change in the traditional broker-client relationship, and the advent of the Internet has spawned a new group of investors who eschew the help of brokers and try to make their fortunes trading stocks online. When you purchase stock you are purchasing a share of ownership in a corporation. In the past, stock brokers acted as the intermediary agent

17. that connected the client to the market. Typically, stock brokers would also be ​Certified Financial Planners​, a qualification that allowed them to provide the client not only with market access, but with financial advice and management of their account. In exchange for the service of the account and access to the markets the brokerage earned a commission in the form of a flat fee or a percentage of the trade, and those commissions could be quite sizable, especially if you were engaged in frequent trading. The desire to eliminate commissions while still accessing financial markets is the primary reason that so many investors can now be found trading stocks online. The Internet has allowed investors the option of controlling their own financial direction and decisions.​ By trading stocks online an investor can avoid a significant portion of the fees and commissions that a traditional brokerage would charge - trades can cost as little as $5 dollars - but those savings come at a price. When trading stocks online through a discount online brokerage, the brokerage is only responsible for executing your trades in the market. When it comes to advice, research, and account management, you are truly on your own. Therefore, trading stocks online is not something that should be entered into lightly. Successful investors usually have experience, expertise, research tools, and a basic market savvy that allows them to successfully, and profitably, navigate the complicated financial world. Investors who lack those skills are not likely to be good candidates for trading stocks online. A hot tip on a new stock ​is usually not a good reason to get into trading stocks online. Experienced investors know that today's hot tips are often tomorrow's trash, and it takes more than some quick hits to be a successful online investor. However, if you are an individual with a strong financial background and an understanding of markets then you may be equipped to successfully manage your financial future on your own. However, if you are not sure of the difference between a market order and a market maker, or ex-dividends and earnings per share, then saving money on commissions and fees probably will not offset the trading losses you are likely to incur. Trading stocks online is not for everyone, but if you want to ​try your hand then the Internet​ is the easiest way to access reputable discount online brokers who can provide you with the access you need to control your own financial destiny.