Luckily I wasn’t actually trading my real money because over the next month or so I’d turned the $50,000 sim account into around $40,000, which at the time would have been the equivalent to around 1,000 hours of work as a labourer or dish-pig. I didn’t know anything about technical analysis, the period of time that I was trading, when I was going to get out of the trade, what fundamental analysis was, what volume or a stochastic was, what a profit and loss statement looked like or anything.

Unfortunately, just like at the time I considered it to be enough to trade on, there are thousands of traders who trade $1,000, $3,000, $5,000 or $10,000 based on a “hot tip”, or “thorough analysis” like I did (please excuse my sarcasm). The point being, is that most traders haven’t the faintest idea what fundamental or technical analysis is and which type of trading they should be using for what type of market, or style of trading they’re about to embark upon.

Day Trading and Fundamental Analysis -A Bad Mix?

Some of the most basic principles you’ll learn in our 21st Century Eminis course is that you need to know your entry and exit strategy and points before you enter a trade. When considering fundamental analysis, you’re looking at the financial statements and health, its management and competitive advantages, and its competitors and markets. For the most part, it’s an analysis on the numbers of a company.

The problem is that analysing the numbers of a company doesn’t take into consideration the variables of traders. If you’ve ever studied psychology, you’ll know that people don’t make decisions based on logic, they make decisions based on emotions. Emotions like Fear and Greed. So trying to make a decision on when to enter and exit the market based on the numbers of a company without considering the emotions of traders can prove quite difficult.

For day trading in particular, the ability to look at financial statements and other company numbers would take you more than a day and by the time you actually wanted to take a trade, the market would have moved.

If you know much about it, the entire concept of day trading and fundamental analysis is almost contradictory, but unfortunately many traders still seem to get caught up in looking at fundamentals in the news or the like to help them with their day trading.

Day Trading With Technical Analysis

In his book Trading in the Zone, Mark Douglas describes technical analysis as “a method that organises this collective behavior into identifiable patterns that can give a clear indication of when there is a greater profitability of one thing happening over another”. It’s one of the best definitions that I’ve found because instead of focussing on the analysis side of trading, it’s focussed on the emotions of people.

This highlights a very important part of trading. People are emotional and this affects the nature of the markets. In order to accomodate for this, you need to be able to have a set strategy and stick to it. You need to be able to make decisions quickly and have reasons for taking them, not just a hunch or a few ideas like I did when I traded Billabong and Bluescope at 19, which is why so many traders have looked towards technical analysis.

Technical analysis gives you the ability to see patterns and movements in price, which is a direct indication of the markets “emotions”.

Be Clear On Your Day Trading Strategy

The biggest problem we see is when people get confused because they see different information telling them different things. If you are considering day trading, it’s important that you get a proper education, not just bits and pieces from here and there, otherwise it will only lead to confusion and a strategy that isn’t clearly defined or consistently profitable.

Making money in a single trade is easy, you’ve got 50/50 odds of the market going up or down. Making money consistently requires a clearly defined strategy, mindset and action plan.

If you want to find out more about day trading, we recommend you order our free dvd or take part in our Eminis course. You’ll learn how our professional traders use technical analysis to take trades and the key elements to becoming a consistent and profitable day trading professional.

Best of Trading,

The 21st Century Eminis Team

P.S. We’d like to hear your first trading experience, leave your comments below!

It’s funny how when we get older and we experience the real world, that what we thought was so complicated, or who we thought were experts it becomes a little more evident that it isn’t the case. Remember how you thought that everything your parents did and said was gospel? And then when you got older, you ended up telling your parents what they’re doing wrong?

It’s kind of the same when you first learn about day trading or investing. It seems like it’s a complicated world, often the people who you think are the ones telling you the right information aren’t, terms and concepts that seemed so complicated aren’t really that difficult and almost exclusively through experience or further education you find out that it’s not the “academically educated” people who become successful, but those that are willing to learn, take risks and solve or deal with problems.

Why Most Day Trading Beginners Fail

Unfortunately the statistics for day traders aren’t too crash hot. 90% or more of traders lose money in their first year. Likewise, 90% of the population hold around 10% of the world’s wealth, and 10% of the population hold 90% of the world’s wealth. There seems to be some overwhelming idea that following what other people do is the way to a happy life, yet it’s pretty apparent that 90% of people are crying out to make more money and aren’t satisfied with the way they are living their life. The sad truth is that most people fail in both investing and day trading, simply because they aren’t educated enough.

We all get taught the same things at school. Study hard to get a degree, with which you can get a good job. Work hard, save your money, buy a house, have a family and retire in your 60′s. Now I’m not saying that some of that advice wasn’t good. What I’m saying is that if you haven’t achieved the financial success that you want, it’s not entirely your fault.

Think about it. Who did you learn about your finances from? How much money did they make? How fulfilled were they? Did they work because they wanted to, or because they HAD to? Are there people living the lifestyle and life you want to live? Could there be people with more money than you, that are also fulfilled, living a happy life with a happy family and friends? Have you ever thought what they did to achieve that? In most cases I bet you that they didn’t achieve it from working and dong the same things that everyone else did. These are all questions that most people NEVER ask themselves, yet 90% of people won’t have enough for a comfortable retirement.

I guess to the credit of the 90% of traders that fail they have at least taken SOME action towards their financial future by doing SOMETHING, which is saying a lot compared with many others. The key though, is finding the RIGHT distinctions and learning from people that have already achieved the success you want.

The Key Distinctions Between Day Trading Professionals And Investors

One of the KEY distinctions that I find often trips people up when it comes to day trading eminis is that they confuse it with investing. Investing is buying an asset that grows with the view of making a profit through either capital gains or income.

Day Trading on the other hand is buying and selling assets in order to make a profit. It might sound similar, but there is a big difference.

Buying an investment requires a completely different criteria and mindset than trading. Investing is about finding an asset that is going to GROW in value. Growth meaning it’s going to have something improved. Day trading is about making a profit from MOVEMENTS in the market. It’s a completely different buying (or selling) criteria and a completely different mindset.

Too many people who get into day trading have hang ups on buying or selling out of a position either because they get out early, or they stay in too long. Likewise, they’ll using INVESTMENT criteria to TRADE eminis. They’re completely different forms of making money and the way they’re conducted are almost ALWAYS different.

Why It’s Important To Build Wealth With Trading And Investing

To build long term wealth that you can rely on, it’s important that you take a look at both INVESTING and TRADING. Yes, you heard us right, even though we’re TRADING educators, and almost all the other trading educators out there that trading is the ONLY thing you’ll ever need to do, we understand that you might not want to be an active trader forever. (even though it is a lot of fun).

Now we’re not trying to give you any advice here. You need to be able to make decisions like this by yourself, but there comes a time when your family needs your attention or you want to take a long holiday etc, so it’s important that you have something like INVESTMENTS that will support you. An investment might be a house paid off (or two) and maybe some money in the bank that gives you a return every year. whatever, there’s plenty of ways you can invest your money, but here’s the secret:

If you don’t have enough money to BUY the quality investments in the first place, how are you going to have an asset base to support yourself?

You need income in the shorter term to support yourself right? And working in a job is just forcing you to sell your most valuable asset (your time) for money.

There is NO leverage, and for most people, you can’t even delegate your work to others. You can only get the money for the amount of work or time YOU contribute. You pay your taxes FIRST and anything left over, you can then invest. It’s certainly a long way to achieving the success that so many people dream of.

Now don’t get me wrong here. I’m NOT saying you should give up your job. You still need an income. What I AM saying is that there are other ways to INCREASE your income (and potentially quite substantially too) so that you can then invest that money and ultimately be able to live the lifestyle and life you want.

Day trading eminis gives you the ability to make money from trading an asset, not your time. What does that mean? It means that for the same TIME that you work, you have the potential to make more money by trading. Starting off by increasing your income, so that you can trade larger amounts and invest it wisely.

Now please don’t make the mistake of thinking that day trading is going to result in millions of dollars overnight. Becoming a day trading professional takes time and practice, just like it took you time to learn your job. But what if you could learn from someone who’s already become hugely successful? Do you believe that you could learn it faster? Of course you could.

So what do we suggest? Take a look at your options. If you think trading might be for you, learn from someone that has the success you want to achieve. There’s a better way to make more money instead of working harder. Consider investing to build up your wealth with the money you’re going to make from trading and educate yourself from people that have achieved the success you want.

If you do want to find out more about trading, we’re happy to educate you about it risk free. You can order a FREE DVD here.

To your health, wealth and happiness,

The 21st Century Eminis Team.

P.S. We’d love to hear your thoughts or experience with this! Leave your comments below…

So, if you’re one of our many loyal readers who’ve been trading for a while now, this post might not help you with your trading, but it might help you to know a little more about the history of what you’re trading, and those of you who are new and want to understand how it all actually works, then this post is made exactly for you. (we hope you feel special)

Anyway, we’ll start off with the basics:

What are Eminis?

Eminis are a form of contract that allows you to control a certain amount of an underlying asset. The technical definition of “Emini” stands for “Electronic-Mini”, which is why you’ll see Eminis spelt “E-minis”. We’ve heard all the various ways to say “Eminis” from our members: “E minus”, “E min us”, “Eminus”, but the reason why Eminis are called “Electronic Minis” is because they’re a smaller version of a Futures contract that’s traded electronically.

If that sounds a bit vague and you don’t yet know what a futures contract is, it’s simply another form of a contract that controls an underlying asset such as gold, silver, currency, stock etc.

Futures contracts were invented to allow the trade of commodities (such as gold, silver, oil, wheat, pork bellies etc.) because it was too difficult to trade a commodity at a specified time, for a specified price, and a specified quality.

Just like stocks give you the right to own a particular amount of a company, futures or Eminis allow you to control a certain amount of an underlying asset.

Eminis are typically traded on the S&P 500 market, which is basically a fancy way of saying the top 500 stocks in the USA, but it can also be traded on many other markets. So in essence, when you trade an Emini contract, you are effectively controlling a portion of the S&P 500 (or whichever market you’re trading) without having to buy a slice of each individual stock.

To allow for greater measurement and further market investment, the top 500 stocks in the USA were grouped together into what’s called the S&P 500. Instead of thinking of each individual stock going up and down, if you imagine that you put the entire 500 stocks in a basket, and then take an average of how those stocks perform, then the whole “basket” of stocks moves up and down this is kind of like how the “index” or S&P 500 works.

So instead of having to buy a little slice of each and every stock that you want, you have the opportunity to trade the top 500 stocks as a whole. What this means is that you have the opportunity to trade a much larger market. By trading a much larger market, you’ve got a lot more movement and a lot more opportunity to get in and out of the market, which is what day traders like us like because it means more opportunity to make money!

For years many traders with larger portfolios (in other words traders with a heck of a lot of money in their trading account) traded futures contracts to take advantage of trading gold, silver, oil and the indexes (like the S&P 500) etc. but for the smaller investor, it meant that they had to miss out on opportunities where large amounts of money were made in short periods of time trading both directions in the market.

Why Were Eminis Introduced?

With the change in technology (namely computers taking over trading instead of the actual trading of pieces of paper that you would have seen in the “the pits” before the 80′s-90′s) and growing demand from investors and traders in the stock market, Eminis were introduced to provide a “vehicle” for smaller investors and smarter investors to trade the markets more easily.

A typical futures contract will mean you’ll need an account of around $30,000+, however with Eminis, you can start trading with as little as $2,500 US (although we suggest $5,000 as a minimum) and you can control as much as $70,000 worth of stocks on the S&P 500 market with as little as ONE single contract.

That means that Eminis are a LEVERAGED product, and that’s why you can lose (or make) a lot of money rather quickly. If you’re trading with $100,000 of your own money and it goes up to $110,000, you’ve made a 10% gain on your investment. However if you’re trading $100,000, but instead of having all of the money up front, you simply have a “deposit” of let’s say 10%, ($10,000) it means that when you’re investment goes up (or down) 10% you can potentially make 100% (or lose 100%).

That’s why it’s VITALLY IMPORTANT to know what you’re doing when trading Eminis. They’re not something that you just jump into because you heard that you can get great returns. Yes, you can get great returns, and you can also lose too. That’s why we recommend you firstly learn from a professional such as our master trader David Loughnan, and also “paper trade” (pretent trade) for your first 50 or so trades, to make sure you’re doing the right thing, and you’re consistently profitable.

How Can You Trade Both Directions Of The Market With Eminis?

One of the massive benefits of trading eminis is the fact that you can trade either direction of the market, whether it’s going up or down. This means you have more opportunity to make money regardless of whether the markets are soaring, or in turmoil. The reason why this is made possible, is because Emini trading is done using a “contract” instead of the actual underlying asset. Everyone is familiar with being able to profit when the market goes up, you simply buy low, and sell high. However when the markets are going down, there aren’t as many investors or traders that know how to profit from this.

By trading an Eminis contract you essentially have the ability to “promise” to buy the stock (or asset) at a specified price. For example, if we had three people, John, Tim and Ben. Lets say that Tim wants to buy a mobile phone for $200, John has a mobile phone and Tim wants to be a trader who connects the two and profits in the process. Tim doesn’t care about owning a mobile phone, he simply wants to trade it for profit.

Tim can make a “promise” to Ben that he will sell him a mobile phone within the next 24 hours for $200. He enters a legal contract which OBLIGATES him to sell Ben a mobile phone for $200 within the next 24 hours. So in essence, Tim has sold something that he does not yet own himself by making a “promise”.

Tim then goes to John and tries to buy the phone for less than $200. If he manages to buy the phone for less than $200 he’ll make a profit. If he doesn’t manage to buy a phone for less than $200, he will make a loss because he has already entered a contract that obligates him to sell a mobile phone for $200.

This is how the whole premise of trading works. Tim (the trader) uses his knowledge of the markets by analysing technical and/or fundamental factors which will help him to make a decision whether the market is going up or down so that he can profit from the transfer of an underlying asset from one person to another.

How Can You Determine Which Direction The Market Is Going To Go?

In order to become a day trader, you’re going to need to learn how you can determine which way the market is going to go. Because of the nature of day trading (and the fact that you’re using leverage), you also need to be able to analyse the markets over a shorter period of time. Fundamental analysis is the process of observing the “fundamentals” of a company such as profits, losses, opportunities etc. it looks at the overall “health” of the company and determines whether it will go up or down. It’s very lengthy and in depth.

In order to profit from small movements in the markets Eminis is a leveraged product, which means that small movements in the market can result in larger losses or gains. What this means is that day traders don’t have time to analyse the profits or losses of companies, as they wish to be in and out of a trade within the same day (or a number of minutes). So day traders have developed a technique called Technical analysis, which is the process of looking at price movements to determine patterns and trends, which will act in their favour.

Unfortunately, many novice investors think that day trading is an easy “quick profit” way to make money with little knowledge and this definitely isn’t the case. If you have no knowledge of market movements, technical analysis, trading psychology or money management, day trading can be a dangerous game. It’s important to educate yourself on how to trade effectively and UNDERSTAND THE RISKS.

Trading does involve risk, however if you’re able to understand those risks and have a set plan and strategy to implement for every situation, then it allows you to control your trading and potentially take a big slice of the upside between market movements.

Where Can I Go To Lean More About Emini Trading?

Emini trading has a lot of benefits. Not only does it allow you to trade both directions of the market, it’s also low in brokerage, and it allows you to trade the hours that you want to. Many of our traders trade as little as 2-3 hours a day and in some cases, many day traders become full time day trading professionals. If you are considering day trading eminis, we recommend you start by ordering our FREE DVD so that you can learn what’s involved. If you would prefer, you can also call us on 1800 999 270 and speak to one of our wealth coaches. They’ll walk you through your personal needs, what you want to achieve and help you to determine whether emini trading is for you.

Day Trading Techniques That Experienced Traders Use

Even the most BASIC day trading technique that novice traders miss is the use of stop losses. Many individuals believe that a stop is not indicated because it has the possibility of stopping action just prior to a move that could realize huge profits, and yes, this does happen, but the truth is, you NEVER make money on EVERY trade you take. There are bound to be times when you lose money on a trade. Any professional trader knows this. The use of stops as forms of day trading techniques is used in two scenarios: Firstly to prevent considerable losses if the market suddenly takes a plunge. And secondly to hold your trade to a set STRATEGY or day trading techniques that you have set out PRIOR to placing a trade. Day trading techniques such as a stop loss are important because, without thinking things through and sticking to a strategy, you can get caught up emotionally, trying to make a decision about the trade, when you only have a short period of time to do it, and this often leads to the WRONG decision.

A Systematic Approach to Day Trading Techniques

Other day trading techniques that professional traders use is to allow their winning trade to run. The most common mistake a novice trader will take is to either enter too early, enter too late, exit too early, or exit too late. This is primarily done because they have no day trading techniques to follow. No set strategy that says: “you need to use this technique in this situation and this scenario”. With that being said, it’s important to know that no one is able to fully predict the movement of the markets. With that in mind, the question of when to get out of a winning position at the right time and not prematurely or after the fact can be raised and is an important part of your day trading techniques.

Plan Out Your Day Trading Techniques

Day trading techniques that help to address this question involve utilizing chart patterns, which help to set trailing profit targets. If you have no one else to show you, the only way you can find out day trading techniques like this is to test and measure them yourself. Unfortunately this is a lengthy, and in most cases costly process if you don’t know what you’re doing. If you are going to try and do it yourself, you might want to consider looking at the overall direction of the market. For example: If you’re going long, and the market continues on a bull run then you may want to allow your winning trade to run with the bullish market by setting profit targets that progress higher and higher. However, when using these sorts of day trading techniques, you need to be aware of market reversals and how to spot them (and that’s where technical analysis comes in).

Day Trading Techniques: RULES!

An ESSENTIAL part to your checklist of day trading techniques is to establish rules. Rules allow you to ensure that you form a systematic approach to trading when you’re emotional. If you think you won’t get emotional when you’re trading you’re fooling yourself. EVERYONE gets emotional, but it’s how you deal with those emotions that determines whether you’ll be a successful trader or not.

Sadly, having day trading techniques such as rules is easier said than done. How do you determine rules? How do you know whether your rules are right or not? These are questions that really need to be answered BEFORE you start trading, and for that exact reason we insist that our members do their complete training, then paper trade for at least 50 trades PRIOR to trading live.

Matching Day Trading Techniques to the Market

It is also important to realize that as a day trader, you’re only going to make a profit when the day trading techniques you have match the market that you trade. Unfortunately, some traders think that just because they read a book about trading commodities, that they can apply the same rules to the eminis market. Or because they have traded the options maket before, that they will be a pro when it comes to developing an eminis trading plan. Day traders, who incorporate day trading techniques from different markets either fall flat on their face, or end up changing their day trading techniques to suit the market.

Some markets have low volatility, and some markets have high volatility. Trading the Eminis S&P 500, is much different to trading the Russel 2000. Therefore, it is important to understand that the market you trade needs to have different day trading techniques applied to it. For example, markets that do not fluctuate are extremely dangerous to day traders because they need movement in the market to capitalize on the volatility, and the risk is magnified especially if the day trader who uses day trading techniques does not have time to monitor their trades.

If you’re looking for day trading techniques in the Eminis market, it’s important to stay away from markets where trades are defined as very erratic. What I mean by this is markets that have little activity and are then followed by significant gaps in prices. It’s important to keep this in your checklist of day trading techniques because gaps in price can mean large slippage and consequently large losse if your stop loss isn’t exercised at the set price.

All in all, having day trading techniques that are applicable to your market will mean you’ll be more aware and on top of the game much more. Just like starting a business, if you don’t have any day trading techniques, you might as well walk into a dark alley with a blindfold and a wad of cash in your pocket. You’re going to get beaten up, your wallet will be empty, and your pride will be lost.

Learn Day Trading Styles

The first step to learn day trading is to learn the style you want to trade, the trends you need to be aware of, and the strategies to implement that trading plan.

There are various different trading styles and they depend on the personality of the trader. Some traders are more aggressive, and some are more conservative. Particular styles are varied for traders and generally match their personality as well as their specific needs. If you want to learn day trading, no doubt you have heard of, or will be taught about scalping. This particular practice is when an investor holds their position for a short period of time. That can range anywhere from seconds to minutes. It’s important that under any circumstances, you don’t try scalping when you first learn day trading because it requires timing, skill and experience in knowing what can happen.

One of the worst mistakes traders can make is to make money from a bad technique or trade. Unfortunately, due to the unpredictability, this often happens. A trader will place a trade without a style, trend, strategy, or plan and make money, consequently thinking that it will work again. In this sense, trading is like gambling. There is no set strategy or plan of attack, simply HOPING that they’ll make money.

Another method taught to students that want to learn day trading, includes the method known as shorter-term swing trading. Although swing trading typically means trading over a few days, weeks or months. Day trading involves short-term action. If you do wish to trade over the longer term, then different rules apply. Don’t mix your trading style with the styles or rules of other traders who trade a different market or style.

Learn Day Trading Trends

To learn day trading you also need to consider the various trends. Those various trends include counter trade trends, ranging trades and continuation trend trades.  Specifically, counter trade trends are those trades that are conducted within the shares or stock prices as they start to edge upwards or directionally against the price movement. Ranging trades are those trades that generally pace back and forth between two specific prices and generally come into play when there is a sideways movement in the market. A continuation trend trade is that specific trade that is transacted in the direction that the price movement is flowing.  To learn day trading it is important for you to utilize various trends depending upon the market scenario, so that you can take opportunities as they come.

Learn Day Trading Strategies

The third tip to learn day trading, that’s critical for you to understand is the day trading strategy. For all traders, the goal is the same, to make profit consistently. But the strategy may be different in achieving that goal. For example some investors might learn day trading by capitalizing on various market fluctuations and trade often throughout the course of the day. On the other hand, another option you might consider when you learn day trading is to hold off trading until the end of the day and study the optimum market situation and when that time arrives conducted trade and end up making a profit by just completing one single trade within the day.

Some will take trades with a higher profit target than others, and various different profit to stop ratios will be used depending on what signals they are trading.

Whatever you do, it’s important to educate yourself on ALL of the styles, trends and strategies to learn day trading. NEVER enter the market on a “hot tip” because someone was certain it was going to work. The ONLY way you’re ever going to make money CONSISTENTLY in the markets is to have a PLAN and STRATEGY to implement in your day trading business, and learn day trading through modelling professionals, not your friend who has thrown a few bucks into it. Take it from our members, who have made some serious money: 21st Century Emini Members

Countering Failure With a Day Trading Strategy

Despite the often-bad media around the markets, it is important to note that even though some of these arguments are true, it IS possible to address these challenges -hence the writing of this article. The simple truth is that any attempts to move into something new will be met with some sort of failure.  Think about how many other things you’ve failed at in life. Just because you fail at something doesn’t mean that it’s not good, it doesn’t work, or that you shouldn’t continue to work at it. The problem comes when someone hasn’t made a conscious DECISION to master something.  Utilizing a day trading strategy is no different.  In fact, the Forex markets often cite that first-time day traders fail at a percentage of anywhere from 90% to 99%.  First-time traders quickly get discouraged and give up on their day trading strategy because somehow they don’t understand that it takes failure to make success, or they don’t have a strong enough reason why behind what they are doing. They’re looking for an easy fix, quick way out.  This significantly adds to the high percentage rate of failure.  Adding to the failure rate are those individuals who try a day trading strategy and who, from jobs that have burned them out or jobs that they no longer leave the individual professionally satisfied.

Look, if you’re going to go into a day trading strategy then the reality is that your true attitude is demonstrated in your failure of implementing a day trading strategy.  It’s easy to do something when everything goes well and you make money straight away, but this almost never happens, and you’re true character is shown when despite your failures, YOU MAKE it a success.

Ok, so you might be asking yourself what about the knowledge to do the right thing? And if you asked yourself this question, then you’d be right. 80% of your success is mindset, but 20% is also strategy, and that’s where your day trading strategy comes into play.

It is important to know that a day trading strategy is a skill and a science that requires discipline and provides great rewards, but also takes a lot of effort and the right psyche to succeed.  Therefore, the reality is that the failure rate of truly committed students who implement a day trading strategy is much lower.

Additionally, there may be an increased failure rate amongst beginning day trading strategy investors than with other kinds of trading because the day trading strategy that is implemented is misdirected when utilized from other long term trading strategies.  It’s not just about getting A day trading strategy, it’s about getting the RIGHT day trading strategy. Plus day trading is done much quicker than swing trading or long term trading, so you’re mistakes are going to be visible much quicker as well.

Beginners need to build up their confidence and may benefit from trading in a shorter time period and evaluate their progress accordingly. That’s if they don’t bum themselves out before they actually implement their day trading strategy properly. Consequently, based on the same rationale, day trading strategy traders for the novice trader will benefit greatly with immediate results that arise from day trading.

Factors To Consider For a Day Trading Strategy

So how do we determine the success for an individual who wants to get involved with a day trading strategy?  If there is success what are the critical elements of consideration that separates those who are successful from those who are not?  First of all, it is important to know that the day trading strategy that’s practiced by many individuals are different to those practiced by institutions larger in nature, so you’re going to get a large variance.  Some of these financial institutions include banks and hedge funds and the day trading strategy they use often involves millions if not billions of dollars.  Not only will you have institutions, but you’re also going to get those that indulge in day trading strategy as an individual like you.

So what do you need to consider? By studying these entities and those individuals who are day trading strategy investors and following their movements, certain repetitive features begin to emerge.  The fact that there’s such a rapid movement and price action changes, the day trading strategy most use is price based rather than studying indicators.

If you don’t know what an indicator is, it’s basically a form of measuring or determining previous market movement. Therefore, a day trading strategy is based on price observations, support levels, resistance and patterns that are fast cycle in nature.  Another major factor is the hours of trading within the day trading timeframe.  This means that trading only occurs during those times when it is practically guaranteed that the price will move significantly in one direction or the other.  The only qualifier is that in extreme circumstances will there be period of high volatility?

Now that we’ve discussed the importance of observing the price in your day trading strategy, and the mindset behind trading, there are some other beneficial indicators that will help you be aware of spot changes within the cycle.  These identifiers include observing a trend presence, changes and direction within the stock.  The specific tools will help you with your day trading strategy and help to provide analysis of the ongoing market and observe the bigger players.  Other strategies that can be incorporated into a day trading strategy include stop hunting, hedging news events and grid training, but there are endless things you can get involved in, so it’s best to stick to a few that work for you.

If you are looking to get involved in a day trading strategy, don’t be deterred by the negativity expressed by others or even by statistics.  Specifically, it’s important that the day trading strategy that you decide to use is firstly effective and secondly incorporates a specific day trading strategy rather than following a day trading strategy that is general in nature. Find your own strategy from your own trading style, and tailor it to your emotions and your appropriate levels of risk, but don’t waste your time and energy trying to do everything yourself and learning by trial and error. It’s an old method and modeling works much better. How else do you think we’ve had such success for students in such a short period of time?

In some aspects, people seem to feel that trading is scary, and yes, you’re right. If you have absolutely no idea what you’re doing then it is absolutely scary. Just like driving a car for the first time was scary. In addition to the false misconceptions of the market, the unfortunate side of the stock market is that just because people do become millionaires through trading, some people assume they will become millionaires overnight.  Yep, that’s right. No matter how ridiculous it might seem, there are STILL people out there looking for the ‘get rich quick’ solution thinking that just maybe THIS time it will be different.

However, as individuals educate themselves about the stock market, they soon realize that the only way they will become wealthy in any aspect is if they educate themselves on stock market day trading.  Additionally, there are plenty of brokerage sites that promote trading simply to get people to pay brokerage with 90% of traders failing within their first year. People who don’t understand the process and inevitably risk their money in rapid trades and don’t fully understand the process causing them to fall over quickly and stock market day trading leaving a bad stain on their pants (if you know what I mean).

Educating Yourself About Stock Market Day Trading

If you’re looking to be successful in the stock market, there are a number of options to consider.  And as with all things, knowledge is power.  This is true if you’re looking at investing safely through long-term commodity training or stock market day trading.  Therefore, it is important that you do your homework by taking a class, doing the research and practicing the process WITHOUT actually risking money to learn more about stock market day trading before you begin.

Also if you’re considering stock market day trading it’s important to realize that stock market day trading can be very volatile.  What does volatile mean? It means that it has a tendency to go up and down in large amounts, instead of a steady climb or decline. Stock market day trading actually refers to the purchasing and selling process of shares that occur within one day.  Which means, these transactions can occur a number of times throughout the day itself.  Professional Stock market day trading investors are not interested in how much the value of the stock is, nor are they concerned with the prices currently offered for the stock.  Stock market day trading traders are interested only in buying the stock at one price and then selling that stock quickly in order to obtain a profit. Simple.

Stock Market Day Trading:  Technical Analysis

If you are considering taking part in stock market day trading, an essential tool for profitable stock market day trading is to make sure that you incorporate a technical analysis of the market.  Now what does that mean? It means that you need to actually analyze what’s going on in the market before you place a trade. (And you heard that trading was another form of gambling… tut, tut.) Yes, technical analysis in stock market day trading is an important, no ESSENTIAL concept to learn when you’re looking to get involved in stock market day trading.  More specifically, if you’re a details person; technical analysing is the study of the market and looking for patterns and trends of the stock and the fluctuations in pricing with the stock’s history.

Often, when a pattern is spotted this usually indicates growth and they concentrate on that stock and see if it can be validated by market motivation and volume.  Generally, when this type of stock is identified, the stock market day trading trader will buy that stock knowing that it will continue to grow in value.

One caution to point out with technical analysis is that even when studying a stock it cannot take into account all of the market movements that are occurring or may occur.  Therefore, it is important to utilize caution when indulging in stock market day trading which utilizes technical analysis.  What it basically comes down to is your best education is going to come from mentoring and experience. That way you’ll save time and money, instead of getting your hands dirty and quitting before you’ve seen any real results.

How Do I Get Experience Stock Market Day Trading?

Where do you get that? -By taking part in our stock market day trading courses and paper trading with a professional trader until you’re confident to go live and hit the markets with that unbelievable drive I know you’ve got in you.

If you’re a beginner or novice new to the arena of stock market day trading you’ll soon realize that there are a number of substantial investments that you can take advantage of and that will provide you with a great return on a small investment over a short period of time.  An important factor to realize however is that before you do achieve this, you’re going to need to understand the universal law of supply and demand and come up with stock market day trading strategies.  Here are some important considerations about stock market day trading.

Understanding Stock Market Day Trading

First of all, it is important to know that stock market day trading, simply put, is the purchase of stocks over a short-term with the intent of capitalizing on these short-term investments as the market increases.  Unfortunately, the downside to stock market day trading is that a number of traders lose a considerable amount of money because they are careless in their approach to stock market day trading coupled with a lack of emotional control.  Not surprisingly, the successful day traders are those that involve themselves in stock market day trading over the long-term.  What that means to you is that; the strategy you implement for stock market day trading needs to be one that you would use for long-term trading opportunities with an eye on long-term gains. For some reason, new traders expect to be professional within a few short weeks, or months. It’s like they think they can play baseball for the first time in their life and hit a home run on the first bat.

The other important factor in the basic strategy of a stock market day trading investor is to have complete control of your emotions. It might sound like a simple strategy, but until you’ve explored how you react and respond under different situations, you just can’t know how you’ll go at stock market day trading.

Some Important Particulars About Stock Market Day Trading

Before entering the stock market day trading arena, it is important to have a focused goal with that focused goal being the gaining of long-term profits.  In our stock market day trading course, this is a key focal point and seems to be a big contribution to the reason why traders never achieve success. They simply don’t know what they’re targeting.

It’s also important to remember that the market may fluctuate during the course of the day and at anytime.  Therefore, it’s essential to remember that at any point during the course of the day, what seems like a good opportunity may only be one that heads the investor towards a pitfall, so stick to your trading plan.

One of the secrets to stock market day trading, and pretty much anything success in else, is to look before you leap.  That doesn’t mean you look at what you might be afraid of and not even start stock market day trading, it simply means that the situation should be studied and thought through completely before deciding on the next step.  In a nutshell, the only way to succeed with stock market day trading is to anticipate the stock patterns and try to make a financial gain when the market swings upward or downward over the short-term. As a day trading professional, you shouldn’t be trading for long-term movements or yearly trends. Although we take this into account, we’re more concerned with daily trends, hourly trends and current price movement, so it’s important to have an overall picture of the longer term, but trade over the shorter term.

Most newbie traders think that just because you’re trading, you need a full service broker. As a stock market day trading trader, you’re not really going to need the assistance of a stockbroker.  The reason for this is because the nature of stock market day trading is to buy and sell stock within the specific trading day.  Stock Market day trading is typically also done very quickly and depending on your trading style, by the time you’ve called your broker to enter the trade the opportunity may be missed, so trading is done online.

Typically stock market day trading involves holding the stock for less than an hour and then selling those stocks before day’s end.  The goal of stock market day trading is to realize an increase in the value of the stock before the sell.  It is also important to remember that for a single share there are limits on what can be gained.  Therefore, it is important that there be a frequency of buying and selling within the day trading period. That’s a big part of the reason why we trade an index rather than an individual stock. With the S&P 500 for example, there is around $43 billion traded daily.

All in all, the idea of stock market day trading is simple, just buy and sell. However the reality of stock market day trading is quite different. Knowing when to buy and sell is the challenge.

To help you first up though, we’re going to look at what makes a day trading guide good, and I’ll provide a few tips and help the individual get a safe and quality head start.

Utilizing the Internet For a Day Trading Guide

With this point it is important to be careful and ensure that any researched online account has the financial backing of a reputable financial firm.  A day trading guide will help the novice investor through this initial process and beyond.

One option is to use the free software offered by various Internet businesses as part of a day trading guide. Generally, these Internet companies offer rapid transactions and support around the clock seven days a week. In addition these companies provide all of the analysis and signal tools that are required be successful.

Additionally, even having a quality Internet business in your corner does not assure you of financial success. Therefore, it is important to be acquainted with the online trading business. Consequently, the day trading guide will help to educate the new investor and provide the needed edge in the trading business.

What a good Day Trading Guide Will Provide

For example, a day trading guide will talk about Bull and Bear markets. It is important to know that these are not referring to animals, but are a reflection of the financial state of the market. Therefore, a good day trading guide will start off with the basics and let the individual know that a bull market reflects a robust economy which is reflected by high employment rates, strong national currency and an increase in foreign investments.

A good day trading guide will therefore explain that a bear market is what we experienced during the financial crisis. It is a reflection of high unemployment numbers and monetary currencies that are declining and foreign investments that are being experienced minimally. A day trading guide will inform the investor that this is a time of recession and is a prime time to trade because of the strong movement and volatility.

Consequently, a day trading guide will help the new investor to learn the fundamentals before plunging into the online trading arena. Being a new investor it is important to temper one’s enthusiasm for wishing to be profitable and take time to learn through a quality day trading guide to ensure that one’s portfolio is bursting with Benjamin’s rather than Lincolns.

A day trading guide will also emphasize to the new investor that the there will be wins but that there will also be losses. Therefore, it is important to utilize the strategies that work best for the individual investor. The day trading guide will also share that there are no standard rules but that one must stay the course and not lose hope.

Additionally, a day trading guide will encourage the investor to continue their education. Therefore it is important to read the reviews available through the Internet listen to seasoned as well as newcomer investors and to provide feedback to mentors so they continue to be a source of inspiration.