What are some good day trading stratagies?

Question

What are some good day trading stratagies?

Answer 1

Anyone who tells you that you cant make money long term day trading doesnt know what they're talking about, or just negative about it because they blew up their accounts (most do).

Strategies depend on the risk you want to take, and wether or not you use indicators. Learn about fibs (fibonacci) because they've been around a long time and work well especially in the forex market.

Answer 2

there arn't any, day trading does not work very well in the long run in comparision to the buy and hold strategy. Any intelligent investor will tell you that. You also cannot predict the market based on historical trends.

Answer 3

"A nobody" has the best answer. The others have no idea what they're talking about.

In addition;

Set a goal to read one book a month on trading. Start with swing trading before you get into day trading.

Two books to start with;

Mastering The Trade, John Carter

Trading In The Zone, Mark Douglas

Every night... watch this;

http://www.alphatrends.net/

Learning to trade takes years & a lot of effort. It's worth it..... but it's not easy.  Three years is the average for the few that make it that far.

Any decent trader will tell you there are no "winning" stratagies. You need to develope them yourself & feel confident in them.

Answer 4

Good trading stratagies hold true for whatever type of trading is being done.  They work for scalpers, swing traders, positions traders, short termers or long termers.

Following one's own rules protect them from losses, can make profits and most importantly protect what we have.

There are four basic requirements that all good traders as well as investors follow

1- A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself.

2 - Sufficient trading/investment capital.  Use your own money, there’s no need to go into debt so that you trade/invest.

3 - A written money management program in place.

4– A full and complete understanding of the rules & regulations of the industry.

Here are some stratagies that have worked for many traders and/or investors over the years

The first and primary rule should be never enter into a trade without knowing when and where you’re going to close the trade.

Never invest on emotions; feelings have no place in determining investments.

Only buy stocks with real sales and real earnings, does not apply to pennystocks since they are c**p shoots and are traded as fun things and not as trading vehicles and/or investments.

Only consider buying stocks with each of the last three years' earnings up 25%+, return on equity of 17%+ and recent earnings and sales accelerating.

Avoid cheap stocks, buy only higher quality stocks selling $10 a share and higher.

Never buy if the firm is filing or in bankruptcy.

Learn how to use charts to see sound bases and exact buy points.

Stay with up trending stocks, never buy on down trends. This does mean “the trend is your friend”.

Always buy companies with new ideas, styles or products.  

Cut every loss when it’s 8% - 10% below your cost. Make no exceptions so you can always avoid huge, damaging losses. You can always average “up”..

Follow selling rules on when to sell and take profit on the way up.

Never average down

Always sell when management cuts sales or earnings forecasts

Buy when market indexes are in an uptrend. Reduce investments and raise cash when general market indexes show five or more days of volume distribution.

Pick companies with management ownership of stock.

Select stocks with increasing institutional sponsorship in recent quarters.

Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock's industry

Don’t buy because of dividends or P-E ratios.

Find out if the market currently favors big-cap or small-cap stocks

Answer 5

I´ve been investing for more than 20 years and trading for almost 14, and I can tell you that if you want to make BIG and FAST profits, I recommend you trading rather than investing, trading can help you to go from rags to rich.

If you are investing, you must have already achieved some degree of financial success, long term stock investing and FOREX can help you to diversify your money and become much richer than you are today.

My experiences as a Nasdaq Market Maker, Head trader of several brokerage firms, and currently as a professional trader and private hedge fund manager, I can suggest you that:

We trade because we want quick, short term profits on a consistent basis. We want to cash flow the market. Milk it like a cow.

Make consistent, small, short term gains rather than trying to hit a home run on every trade. Don't ever forget that.

Don't marry a stock, marry the idea of making money trading stocks. That's the only way to do it.

For me "All stocks are equally worthless”

I don't hold on to any illusion that the stock market will continue to go up and provide a nice retirement for me.

I could care less which way the market goes. It's irrelevant to me if the market goes higher, crashes or moves sideways for the next 50 years. I really could care less. Stocks are just four letters with two prices next to them that I use to make a living trading.

Trade ONLY when you have a clear, easy and identifiable advantage, because without a CLEAR EDGE your odds of success are NO better than a flip of a coin… That´s why so many new traders (and investors) lose money.

Take a look at any daily chart of any index or stock and you'll probably see the most volatility and the biggest opportunity for profit during the first Hour of the stock market's opening.

The popular thinking and conventional wisdom is that you should wait about an hour before you start trading.

But if you do, you'll miss the big, fast moves that stocks make as all the amateurs let their emotions out through their online accounts, usually right after they read some news headline or hear Maria Bartiromo go off about a stock on CNBC.

It's easy to see why trading the open is the market's prime time for profiting from other online traders.

The market's open is very volatile - that is the perfect environment for LARGE, FAST profits.

Learn to trade as a professional Market Maker, not as an emotionally driven amateur trader or investor with few thousand dollars in an account at Etrade.

There isn't any other time during the day or any stock you can invest in, that can make you 1, 2, 3, 5, 7 or more points in minutes OTHER than during the first hour the stock market is open, that means: if you are buying or selling short a 1000 shares per transaction, you´ll make $1000,$2000,$3000,$5000 or $7000 Usd "IN MINUTES !!!" not in a day, not in a week, not in a month or in a year, in less than 60 minutes... That's why I love trading the open so much.

I trade only when I have an edge and that means "only the first hour the market is open".

If you are a beginning trader, you can give yourself an unfair advantage in the market trading this way.

I can carry on for hours on how to make money trading online, but if you ask me:

"What is your best advise?

I will say:

Give yourself a BIG favor and go to this "Top Secret" site and learn how to get by yourself the BEST stocks that will make the largest and fastest day trading profits you´ve ever seen.

www.onehourtrading.com

After you review this site you won´t need any system, strategy, book, software, guru or mentor to tell you what to do, you will be able to profit HUGE every day.

Besides, you´ll learn:

• The right amount of money to start trading…

• The best Online broker out there…

• Learn how to enter and exit a trade in seconds making Huge profits…

• Make more money than most day traders simply by trading one hour a day!!!

• How to reduce stress, limit risk and stay disciplined like a Pro.

• The 4 basic rules you should know, that every successful trader know, and amateurs don´t even imagine.

• How to trade against the amateurs and avoid like the plague doing it against the professionals , and why this will put you ONE STEP AHEAD of all traders.

• What causes more devastating trading loses than any other factor... and... How to avoid this pitfall! (Even savvy traders often fall victim to this! )

• Not to spend most of your day in front of a computer dealing with complex charts, software or technical analysis.

• Learn how to read the market´s open to make a huge profit just a few minutes after the opening bell.

All this and a lot more…

Good luck and good trading,

John Fontaine

Answer 6

Log on to Green on the Screen.... read the blog...and especially listen to  " Muddy's interview"....

Just a nice approach to the business of day-trading....and no ranting and raving about how fabulously successful this or that trader is !!

Answer 7

While it isn't a good idea to day trade and you generally won't win, why not have fun and day trade with a small set of money?  I invest long term with most of my money and then "gamble" with a small portion.

So really, day trading is gambling.  I don't necessarily day trade but I do have a stock that I buy for .03 and sell for .038 consistently.  Sometimes my buy order doesn't go through for a month.  Just be patient.  So step one is "Use a very small portion of your money".  Step two is to watch a stock's behavior over a long period of time.  

I don't recommend this but why not have fun with a small percentage of your money?  I am up 40% on this particular stock I have been playing with but it made a 1% improvement to my portfolio.

Answer 8

I agree with A Nobody and Common sense