Make Your Fortune By Day Trading

By Dr. Asoka Selvarajah

Day trading defined

If you buy stocks on a particular day and also sell them again before the market closes you could be said to be indulging in day trading. It was earlier felt that only investment professional working for companies that took care of investments for their customers could practice day trading. But now that the internet has allowed people to trade online from their homes, a lot of casual traders have also started day trading.

Day trading has its pitfalls

Day trading is now one of the most popular ways of making money for traders. Whether you are doing this to supplement your income or trying to make a living through day trading it has unsurpassed money making potential if followed properly and if proper care taken. There are risks involved in day trading, but learning how to take these risks and making wise decisions can maximize the profits that you can make from such day trades.

Tips for a day trader

The basic secret to making money from the stock market is not an earthshaking one. You purchase a financial instrument when prices are low and sell when prices go up (or, you sell short when prices are higher and buy the instrument back when prices move lower). This seems quite simple, but it is making the correct judgment and deciding the right time to buy and sell that is the hallmark of a successful day trader.

You MUST be well informed about the stock market, by reading all the newspapers that generally carry such information. Surf the net or view one of the many channels that cater exclusively to stock market news and happenings. However, ensure also that you do not suffer from an overload of information, which can overwhelm you with its sheer volume. Instead, read, surf or view only those that you are comfortable with. See that your day trading activities are restricted to just a few stocks (if you choose to day trade in stock markets), and that you are fully conversant with all the information regarding these companies. Make sure that you know how the stock market is behaving in general and how shares of certain blue chip companies are moving.

Select only those stocks that constantly show substantial movement, i.e. volatility, because it is only such stocks that can make a profit for you via conventional day trading. If they lack movement remove them from your list of stocks in which you will trade daily (yes, you CAN make money from inert stocks via options, but that is beyond the scope of our discussion here). Learn to make a quick but accurate analysis of the movement of the stocks that you are interested in, so that you can take early decisions and gain from this action. This is best done through becoming excellent at technical Analysis - the art of predicting stock price movements from price charts. Remember that a small movement everyday may mean just a percent or two, but when added up throughout the year could make a huge sum. So you may have to base your day trading activities on just a few percentage points.

Keep your emotions always in check. A very good profit van also be followed by a loss and you need to keep your perspective and constantly see that you are ahead of the game, and not allow emotions to cloud your judgment.

Summary

Sudden fortune may not come your way the day you start day trading! However, a steady accretion of cash can definitely take you to the goal of becoming the wealthy person you desire to be. The key is to be well informed, maintain a SMALL list of stocks that you KNOW as well as you know your own relatives, keep on top of what the markets are doing, analyze them continually, and make the right decisions at the correct time without getting too psychologically bogged down in the consequences of your action - either on the profit or the loss side. - 23204

About the Author:

Discover FREE expert Trading videos, podcasts and articles packed with secret strategies to super-charge your Trading and rocket your profits. Dr. Asoka Selvarajah also offers you his critical FREE report, The 7 Deadly Mistakes Of Online Trading. Visit His Online Trading Site OnlineTradingRebel.Com Right Now!

Stock Trading: Follow Your Rules

By Jim Fredrickson

When it comes to following rules, most traders in the stock and commodity markets let it go in one ear, and out the other. This severely hinders trading. Being a good trader requires a serious amount of time and patience.

To be able to trade well in any market you have to gain the necessary skills. Don't worry, there are many good traders we can emulate. Here we will go over some great stock trading and analysis tips.

In the stock market, you will meet a lot of investors. Basic needs are fulfilled by depending on one another but when it comes to stock investing, you need to be independent. Youre on your own, just like in a battlefield.

You cant control or manipulate the stock market. In a natural environment, like your home, you need to control it (at some point) so that you can fulfill all your desires and needs. If you want to attain the same success in stocks trading, you must be able to control the market at some degree. Even if you can control the social environment, the techniques youve learned cant be applied in the stock market. The only way to effectively manipulate and control the stock market in some way is to be a wise and large trader.

One way to be successful in stock trading is to control your behavior and the market information youre dealing with. Since it would be impossible to control the stock market fully, you need to control or manipulate yourself. All the information you have should be viewed objectively and you need to ensure that you behave accordingly; thereby promoting your best interests. You must learn to create rules in how to trade wisely and you must strictly follow such rules.

Stock and commodity traders alike will often venture away from their very own rules chasing after a pot of gold. Make sure to never be that person. It is natural for us to want to do that, and the freedom that you can experience as a trader, along with the occasional rush, don't help at all. Again, set rules before any trade you enter and make sure that you have a good exit strategy.

Are you familiar with any that have had success? If you have, you will certainly know that they are consistent, and level-headed. They follow their plan to a 'T', and make the kind of living that others are envious of. Once you are able to be more like them you can surely reach the same levels of limitless income.

Those who refuse to stick to their plans are the same people who lose their money, and lose it quick. Start slow and learn the ins and outs of the stock market.

If you are new to the game make sure you learn the basics first. Their are endless annals wherever you go that will teach you various technical trading strategies and other things pertaining to the stock market. If one man can do it, so can another. Start now by learning these things, and remember to always follow your rules. - 23204

About the Author:

Jim Fredrickson writes articles that teach people how to buy stocks and about no load mutual funds

Investing Principles Made Simple

By C.P.Billows

You do not need to be an accountant or a financial wizard to handle your investments. There are some basic principles to follow, known as the KISS principle. KISS is generally know to stand for "Keep It Short & Simple" but I think the acronym can also apply to investing:

K - Keep invested

I - Invest in stocks

S - Self-direct your investments

S - Small investments possess an advantage

K - Keep invested and don't become discouraged

There are lots of people who enter the stock market, get burned, drop out, and then hand their finances over to a broker or mutual fund seller. That is the wrong thing to do. Losing money in the stock market is all a part of learning how to invest.

I have lost thousands on bad investments but I have also made more thousands on good investments. I still come out ahead because the good investments are that much better and I have invested wisely. The worst thing I could do is become discouraged and drop out of the market.

Investing is like any skill. It takes practice and knowledge to master. You need to keep investing and learning. The trick is to start small and increase your investments as your mastery develops.

Consistent contributions are critical especially if you are depositing into a retirement account. Every contribution will help reduce your taxes payable and all of your gains are allowed to grow tax-free.

I - Invest in stocks and instruments related to stocks

The best place to park your money is in stocks. There are thousands to choose from but for long term planning it is best to pick sold big capital stocks that are the basis of your long term plan.

You can invest in mutual funds but be prepared to get poorer results. Diversification is taken to the negative extreme in these financial instruments and the fund has to overcome its own hefty management fees before it can even turn a profit for you. You can find better results by investing in a few sold companies and in Exchange Traded Funds.

Stocks come in five basic varieties. You want to avoid the last one and invest in the others depending on your investing philosophy.

a) Blue-Chip Stock - Solid companies whose steady profits allow it to pays out dividends. These should make up a majority of your stock portfolio.

b) Growth Stock - Typically technology or biotechnology companies that grow and expand. Rarely do they pay out dividends because they plow their profits back into the expansion.

c) Value Stocks - Companies that the market has undervalued. The market is not always rational and sometimes these companies make great buy-out opportunities for other firms.

d) Mad Money Stocks - Very speculative stocks that are not making any profits but have a product you believe in. Depending on your investing constitution, set aside 0-10% of your portfolio for some speculative fun.

e) The Dregs - Companies that are losing money, revenue, and leadership. Avoid these unless you are interested in betting against their decline in what is called 'shorting'.

Some investment firms will value stocks by the size of the company in stock value. That is useful to tell you how big a company is, but it would be like valuing the denomination of dollar bills - a $100 is always worth more that a $20 bill - so what? Two companies might trade for $100 but in actual fact the worth of the company behind the stock price is like a $100 bill in US money and a $100 bill in Mexican money. They are not worth the same amount.

General Motors is one of the largest publicly traded companies but should not be considered a blue-chip. GM has had declining revenues, has debt problems, and faces very stiff competition from the Asian automakers.

S - Self-directed accounts ensures lower trading costs and control

Get a self-directed/discount brokerage account. Do not go with a stock broker if you have every intention of taking control of your financial future. Some options are

This allows you to both save money and act in contrarian ways when the rest of the market is panicking. It is possible to double your money on stocks that everyone has given up on. The fact is most investors operate on fear and emotion. You can win in the stock market if you are one of those people who blink last.

S - Smallness can be an advantage in the investing world

Not having millions of dollars is an advantage you can leverage to your benefit. Large institutional investors like pension plans and mutual funds cannot enter the market without hurting some of their investments. You on the other hand, can purchase stocks at great prices without driving up the price. You can also get out of a stock investment without worrying about driving down the price.

Having millions of dollars to invest has its own set of headaches, one you likely want to experience, but until then, you should take advantage of your smaller size as an investor. Nimbleness has distinct advantages in the stock market. Enjoy it while you are still small.

There you have it: the KISS principle for the investing world. Hopefully, you will be inspired to take control over your investments with these principles. - 23204

About the Author:

C.P.Billows is the publisher of In The Money, the Stock Options Trading Course, a 60 page eBook available at www.mandalainvesting.com. The eBook has given hundreds of people the investing edge they need to keep ahead of inflation and taxes. Click here to submit article.

Oil Futures Contracts Make a Sound Investment

By Derek Powell

Invest in oil futures contracts as they offer various trading options and solid risk management. Among all commodities, light sweet crude oil, which is commonly used in heating oil, gasoline, jet fuel and diesel fuel, is the most popular worldwide. As such, it is traded rather aggressively.

With oil futures contracts, you have a legally binding agreement to purchase or sell a particular amount of oil at a certain price at a future time. The price is based on supply and demand at any given time. As the market has shown, supply and demand of oil fluctuates almost daily. Those who invest in future contracts have the option of a cash settlement or having the actual oil delivered to a specified location.

The unit of measure for an oil futures contract is a barrel. Typically, this will involve a variety of grades, consumed both internationally and in the USA. A typical contract equals 1000 barrels of oil, but for investment portfolio purposes, the agreement dictates 500 barrels of crude oil, and which is half the size of a typical futures contract.

The major exchanges for oil futures contracts are the New York Mercantile Exchange and the Intercontinental Exchange. Trading could be for oil delivery in a few months or several years in the future. Typically, three months is the norm for a contract.

Several types of oil futures contracts exist. A short hedge contract, allows investors to buy futures to sell oil, whilst a long hedge agreement allows investors to buy futures to buy oil. Normally a portfolio includes a mixture of both, and for many years now, there's been an increased interest in oil amongst investors who consider them a better option to stocks.

Oil futures contracts are used most often in the risk management of portfolios. As investors buy and sell a security, they purchase or sell a future security with the opposite risk. This means that losses and gains balance each other and balance the risk in the portfolio between current and future market rates. If a portfolio is balanced there is less risk for loss.

Often times, oil futures contracts are utilized for hedging, particularly among businesses that make products or offer services that use oil, such as a utility company or an airline. But it's difficult to set a price for these products or services because oil prices change so frequently. Buying or selling future contracts for the commodity helps to minimize the risk and address constant fluctuations with oil prices.

Investors who hope to make a profit based on future prices will often speculate with oil futures contracts. Banks and other financial institutions generally make up the majority of speculators and are thus important to the trading market. - 23204

About the Author:

Author Derek Powell has a lot of information about oil futures contracts. Check out http://www.thecommodityblog.com for latest news.

Profit By Understanding Forex Secrets

By John Eather

The Forex market is very attractive because it provides an international forum for the avid trader. To make money in this market, however, you must understand and take advantage of a variety of resources. This is a very complicated market which revolves around the changes in international currency values as well as individual markets. Conditions are always changing, and unless you possess a good understanding of currency trade, you will not last long in this type of market.

The Forex market is the largest trading platform in the world with a daily turnover of more than 3 trillion USD. Expert traders from various parts of the world test their luck using different techniques apart from their own experience. In such a situation it is very much necessary for you to know some forex secrets to make profit.

Forex secrets are, in truth, anything but secret. The majority of traders know them. The secret lies in knowing how to use them, and getting the timing just right. Forex trading will be profitable for the patient person, who is courageous, and able to wait. Waiting involves being mindful of your investment strategy. Successful traders do not invest everything at once, but rather, keep their options open by setting aside funds for future investments. Then, when the opportunity strikes, they are prepared.

There are many market indicators which can be valuable. For example, Forex secrets include understanding the current market trends, by analyzing past and current data; the ability to read charts documenting certain patterns and understanding what implications they have upon the current market; and taking advantage of pivot programs, which allow you to identify the typical entry and exit indicators. Other important secrets involve keeping a watchful eye on the heavy traders, and their actions; understanding and utilizing broker tricks; and taking advantage of currency value changes in an international setting.

Apart from the above, memorizing the history of various currencies, knowledge about hedge currency trades, using perfect strategy to enter and exit in a wise way, avoiding pitfalls, knowledge about filtering different currency pairs are some more secrets through which you can earn profit.

As with any other form of trading, profit is not guaranteed in the Forex market. Because of this, trends and patterns are analyzed and turned into various trading techniques. The Fibonacci trading technique is among the most popular and useful of these.

This method was derived from the work of a twelfth century mathematician named Fibonacci, who developed a relationship of ratios whereby to plot comparative charts, known as the Fibonacci Ratios. These ratios are used in terms of price and time scales to help understand Forex market changes. In addition to these methods, you will need to have an understanding of charts and pay close attention to them yourself.

Possessing these Forex secrets will not be enough. You must understand how to use them, and give yourself enough time to learn about the different indicators and various aspects of trading. The Forex market is very sophisticated, and it requires time and experience to produce a positive result. - 23204

About the Author:

Before you start trading forex online, please sign up for John's fantastic ecourse and reports. Receive the latest info about trading forex online. Go to Money Making Fx Trader to learn more.