Beginning to Trade

1. Don't blame the market. You must take responsibility for your financial security and all of your actions.       2. Study and learn all you can. Choose one market to trade, many suggest the Dow Jones futures market, and become an expert in your area.   3. Be prepared for problems. Have a back-up phone ready with your brokers information in case of problems.           4. Have a notepad, pencil and calculator at hand to record trades.   5. Know the days and times when economic data is released.   6. Never let a winning trade turn into a loss. ... [read full story]

You finally opened your first stock market trading account. You analyzed a long list of stocks and spotted one you want to buy. But wait. First you need to know how to place a trade in the stock market and how to effectively use the different types of market orders you can execute. Basically there are 5 different types of order you need to know about:   Market Order A market order is a request to purchase or sell a stock at the current market price. Market orders are pretty much the standard stock purchase order. One thing to keep in mind with a market order is the fact that you don't control how much you pay for your stock purchase or sale; the ... [read full story]

"Because it's there!" What has come to be known as day trading is new, and many are lured by it. Of course, day trading is as old as the first market, but it has generally been the preserve of professionals. Now one finds traders of all degrees of experience at innumerable trading houses hunched over computers, buying and selling in seconds or minutes, hundreds of trades a day. Uncountable trading rooms in cyberspace connect thousands of traders all over the world, responding instantly to "calls" made by head traders to buy or sell. And in countless chatrooms, this or that stock is touted or rumored into buying or selling frenzies by traders acting on this information alone. Four factors converging in the last few ... [read full story]

Without doubt, no trader will last long if he doesn't plan every trade. But there is absolutely no point in making a plan for a trade if you are not disciplined enough to follow it. A plan should cater for every eventuality. As Richard Dennis said,"Don't worry about where the prices are going. Worry about what you are going to do when they get there." Emotional Trading Think about what is being said here. Once you put your money down on a trade you can not control the prices. So stop worrying about what could happen and concentrate on you trigger points and what you will do when these points are violated. By doing this your trading stops being emotional ... [read full story]

Any trader, no matter how good  their discipline is, should be using stop  orders.  It will definitely help you  act in your own best interest more often than not. Whenever initiating a position, always  make sure to have a stop order in to protect yourself.  All off-the-floor traders should also use stop orders to protect themselves and their open positions.  You  don’t want to end up like the stock market traders who’ve failed to use  a stop order and then lost 20-25% of their account in a single trade  with only one contract (in the S&P 500 Futures). The more you trade, the more you  realize what a big part emotional discipline plays in your trading.  Being  successful really has more ... [read full story]

Market makers make day trading exciting. They are dealers who buy and sell stocks on behalf of their clients or for their own firm. They provide liquidity for their customers and make the Nasdaq market viable. When a stock is liquid, it means the price will not be greatly changed by heavy buying or selling. Market makers make money by capturing momentum moves. They also make money capturing the spread, just like NYSE specialists. Market makers also act as commissioned representatives for large financial firms or mutual funds. As reps, market makers become brokers acting on their client's behalf to buy or sell a security. When market makers act as intermediaries for a big firm, they get paid a commission. The commission is usually ... [read full story]

To become a successful stock market trader, it helps first to understand the way the various stock market identities or trader timeframes coexist, intersect, and interact. To establish a foundation for this understanding, we must first define the different market identities and timeframes, as well as the general motivations of each. Scalper The scalper lives by the minute hand, continually buying and selling in order to take advantage of fleeting discrepancies in order flow. Stock Market Scalpers may make as many as several hundred trades a day, comprising thousands of contracts. The classic image of a scalper portrays an individual who shouts, shoves, and survives on the exchange floors. But advances in technology and mobile communication now enable the scalper to conduct his ... [read full story]

There are only certain avenues available to investors to purchase shares in a company and all of them revolve around a broker. Brokers are people whom have access to the market and handle your orders to buy and sell shares. They are a type of financial intermediary - that is, they help companies sell their shares and investors buy them effectively bringing both parties together and closing the gap. They charge a fee for their service - called a commission - and have a duty to you, as their client to get you the best deal they can. There are number of differing types of brokers and it is important that you understand the distinction between them. What sets brokers apart is whether they offer advice ... [read full story]