Saturday, April 21, 2007

Day Trading Strategies

investments & trading

Day Trading Strategies By J. Foley

While day trading is neither illegal nor is it unethical, it can be highly risky. As a trader you will probably fall into two main categories, traders who like to trade the breakout and traders who like to join the trend once established. Most day traders have their favorite markets.

You don’t need to know everything about day trading to succeed as a day trader. More important for the day-trader than others is to have the proper 'team' in place. Keep in mind a day-trader with a computer and access to the Internet already has access to a world of information.

Some day traders might buy and sell stocks in minutes, but might also hold some overnight or longer. During the day trading, a day trader will quickly buy a large number of stocks at a time and sell it once they see the stock gain within the day. Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest-rate futures, and commodity futures.

An investor needs to have a system that helps him to be prepared for all scenarios of a trade. Is Day Trading Right For You? Can day-trading be learned?

With the unlimited potential to earn of daytrading, comes the possibility of great financial loss. The Forex market is the largest financial market in the world with average daily trading of the currencies going over US$1.6 trillion. Day trading doesn't mean trading every day. Day trading simply means not holding any position beyond the current trading day.
Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations. Before starting out in the Forex daytrading market we need to make sure we understand the basics of daytrading. Even if you`re starting out with a small day trading float, you should practice good money management.

By simply changing the amount of capital you risk in your day trading, you can turn a system from returning 10% to returning a 100% per annum. As the prices go up and down, the day trader must be alert as to when to sell his stock or wait for the moment to hold on it. Your best chance to make money trading is by following the path of the best traders.

Access to timely information and fast execution of trades is essential to day trade successfully. You must know how to daytrade if you want to be a sucessful daytrader. Some websites have sought to profit from day traders by offering them hot tips and stock picks for a fee.

The application of Fibonacci to trading can be very complex, and take much time and experience to perfect. Day traders go bankrupt because they lose money, not because they don't make enough money. You’ll need to ascertain for yourself whether you are comfortable with the levels of risk inherent in daytrading..

Do you have the tolerance for the risk involved with day trading? Day traders typically hold stocks anywhere from only a few seconds to several hours but they never keep stocks overnight. Can day-trading be learned? Be aware that day trading does not offer the protection of an advisor who can tell you whether a particular investment is suitable to your financial goals.

investments & trading
Article Written By J. Foley

Sunday, April 08, 2007

Practicing in the Forex Market

investments & trading

Practicing in the Forex Market By J. Foley

So you want to learn about the Forex market, and trading internationally but you are risking your personal wealth if you jump in before knowing all about how trading takes place. Online, you will find many games and simulations while learning the methods involved in forex market trading. The forex markets include countries from around the world, where all countries involved are using different currencies, and when faced against each other are worth more or less than the original valued currencies that are being traded. The forex markets are used to build wealth in, for governments, banks, and brokers, and for many countries.

To get started in learning about forex trading, you will need to locate the forex trading software, education-learning system you want to use. As you find the games, as they are called, you will enter information about yourself, about what you are interested in learning and then you will download software to your computer. In following the 'game', you will learn how to make and lose money in the forex market. This type of game is going to make you more aware of what happens daily, how the markets open and close, and how different the various countries currencies really are.

You will open an online 'account' using the gaming system. You will then be able to read the news, find and compare markets, and you will be able to make 'fake' trades so you can watch your money build or be eaten away in losses. As you learn the system, using it a few times a week, you are going to be more prepared, more educated and you will be ready to use the forex trades to make money. Of course, you may still need the aid of broker or a company to make your transactions happen but you will better understand the process, what will happen, and what calls you may want to make when you read about the news, the markets, and the currencies in other countries.

The forex market is also referred to as the FX market. If you are interested in joining the millions who are making money in the forex markets, you want to ensure you are dealing with a reputable banker or company involved in forex trading. With the spur of interest in the forex markets, there are many types of companies that are popping out on the Internet appearing to be genuine forex trading companies but in reality, they are not. Forex trading can be completed through a broker, a company that deals in the funds, and from within your own country. For example, the US has many regulations and laws regarding forex trading and what companies are permitted to work with the public dealing with international trading and markets.

investments & trading
Article Written By J. Foley