Posted 1 year, 1 month ago at 6:24 am. 0 comments
Forex trading has become extremely popular in recent years. Many newcomers to the stock market enjoy Forex trading because it’s a simple way to earn profits without monitoring hundreds of company stocks. Forex trading (a.k.a. currency trading) is easy to learn, less risky for short-term profits, and can be very lucrative for those who invest wisely. Fortunately, there’s online Forex trading to make things even easier. Outlined below are five profitable reasons to take advantage of currency trading online.
1. A Liquid Market
Online Forex trading offers you a liquid market in which you are in control at all times. Though no profits are guaranteed, you can buy or sell at will with the simple click of the mouse. This prevents getting stuck with a particular trade. You can set the online Forex trading platform to close at a pre-determined profit level automatically, or even to close a trade if the odds are going against you.
2. Forex Margin Leverage
You can leverage your money with Forex trading through a margin account deposit. Your deposit might be small when compared to many stock investments, but you can still enjoy amazing profits through leverage. Unlike the stock market, some Forex brokers will offer as much as a 200:1 leverage. This means you can invest $1,000 of your own money to create a margin of $200,000! Margin calls are used by brokers to keep risks to a minimum for you and the broker.
3. Profits for Rising or Falling Currencies
With currency trading online, you can earn profits in both a rising and falling currency market. When currency pairs are up or down, you can still make big profits depending on the position you take. The “long” position means you are buying the pair at one price and selling it at a higher price later. The “short” position means you are selling the currency pair and buying it back at a lower price. The key to success in Forex trading online is to make the right picks either way.
4. Around-the-Clock Trading
One thing you’ll love about the Forex market is it never sleeps during its open times. You can trade in Forex 24/7, from Sunday evening to Friday afternoon. This enables you to trade at night (2nd or 3rd shift) and still work a full-time job during the day. You can also trade on a part-time basis, and you’re always in control of when you trade!
5. Plenty of Forex Training for Beginners
Another great thing about online Forex trading is you can learn from experienced Forex traders and brokers through online demos, newsletters, e-books, and numerous online resources. These trading tools are available free or at very low cost and can help you learn all you need to know to get started. As a beginner, you can take advantage of free currency trading demo accounts to practice trading before actually making a trade. These are absolutely risk-free because you’re not trading with real money yet.
Online Forex trading offers these benefits and many others. With so many useful Forex resources online, you can start trading with a very small investment and quickly work your way up to tremendous profits!
Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies on the web.
Learn more about 5 Forex Trading Benefits.
Posted 1 year, 3 months ago at 6:39 pm. 0 comments
The forex trading tips enclosed can turn a mediocre forex trading strategy in to a winner and anyone thinking of trading should consider incorporating them because they work - here they are…
1. Leverage Stops and Risk
Most traders get 200:1 leverage from their broker and want to use it but this is a huge mistake - a trader should use leverage wisely and 10 20: 1, is enough. This allows you to risk more to your stop and this is vital to success.
Most traders put stops so close they are guaranteed to get stopped out by normal volatility. They get the direction right, see their stop hit and then see prices reverse back the other way and make thousands and their not in!
If you want to win, your stop must be far enough back so you don’t get hit by random price moves in the trend. This isn’t being rash this is sensible investment strategy.
2. Risk More Per Trade
In line with the above forget all the rubbish you read about risking 2% per trade.
On a small account its so little risk it guarantees you will get stopped out.
Sure if you have 100k you can do this - but not on a small account.
Many traders try to restrict and control risk so much they create it and lose. To make meaningful gains, you need to risk 10 - 20% on a small account.
3. Learn Patience
Most traders think the more they trade the more profits they are going to pile up - dead wrong.
You don’t get rewarded for your trading frequency; you get rewarded for being right!
The high odds trades only come around a few times a month in each currency - hit these and hit them hard.
Hitting the high odds trades and hitting them hard can make you a lot of money. I know lots of forex traders, who only trade a few times a month and still pile up big triple digit annual gains, because they are hitting good risk to reward trades and hitting them hard.
4. Forget Diversification
OK on a 100k account there is an argument for doing it but not on a small account.
If you have a great trade, why potentially dilute its profit potential by taking trades for the sake of trading? It doesn’t make sense and will dilute your potential profits.
Hit the high odds trade you like and focus on it.
Keep in mind:
You Don’t Get Rewarded for Effort in forex trading.
Many traders make this mistake.
They want to trade and force profits but this is not possible. They spend a lot of effort looking for trades that it blinds them to the fact most are dogs and should be passed by.
In forex trading your success is determined by the accuracy of your trading signals and your market timing and the money you put in your pocket - that’s it.
So the forex trading tips here mean you need to be patient, hit high odds trades, hit them hard and take meaningful, calculated risks so, you can make a triple digit annual income.
The above is really common sense and these forex trading tips, should be the cornerstone of your forex trading strategy and if you use them wisely and have a good forex trading system then you can enjoy the currency trading success you desire.
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Posted 1 year, 3 months ago at 8:16 am. 0 comments
If I’d never read ‘Rich Dad, Poor Dad’ by Robert Kiyosaki, my outlook on life would be so different. I’d still believe that job I have should go to support my lifestyle, and that any budgeting I do should be for the purchase of my next toy, like a jet-ski or a motorbike. No way, not me, not now… here’s why.
I’d never been much of a finance or business oriented person - I was always more interested in history. But what I know now wasn’t really taught in schools anyway. Schools teach kids to be workers - it’s blunt but it’s absolutely true. The school system is not designed to make us all comfortably well off. It’s designed to benefit rich industrialists. Having a job is not freedom, it’s not certainty, it most likely won’t make you wealthy, and odds are it won’t help you fulfill your dreams for the future.
These sort of ideas are promoted by Robert Kiyosaki in ‘Rich Dad, Poor Dad’, and they really speak to me. He tells the story of having been brought up with two father figures giving him conflicting advice. The two also came from different backgrounds, and were going different places. The examples used in the book illustrate Kiyosaki’s points perfectly. It’s such a well written, well rounded text, it should be mandatory reading in all schools.
Kiyosaki turns concepts of finance and assets upside down. Let me give you an example. Kiyosaki believes- and I do too now that I’ve read his explanation - that the house you live in is not an asset, it’s a liability. The conventional thought is that your home is something that features large on the assets column, but Kiyosaki disagrees. This is because of the amount of money you pay for it.
Let’s say for example that your home is worth $300,000. Your mortgage on the home… well what you pay per week will change depending on your financial institution. But over a 30 year loan term you’ll end up paying almost $600,000 for your $300,000 home. And that doesn’t even take rates, maintenance, repairs and other ongoing costs into account.
There are legitimate ways to make that gloom and doom scenario much brighter - and they’re legal.
Similarly with the stock market: the general consensus is that you need serious cash outlay to be a big player on the stock market - well let me tell you now that’s just not true. You’re not looking in the right place, and I’m not talking hot stock tips here. There are tried and true ways of making ongoing income from the stock market that don’t involve outlaying large amounts of money.
That’s all legal too - and practically anyone can do it.
The thing that astounds me about Robert Kiyosaki’s book is that the ideas and concepts are explained so plainly, and the most complex of notions is clearly laid out for interested persons or all levels of investment knowledge to be able to understand. The ideas he espouses are easily transferable to the real world you live in. Don’t waste another minute of your life. This book is right up there with Napoleon Hill’s “Think and Grow Rich”.
To learn more about share trading, stocks, options, cfd’s, education, finance, shares, futures, stock options strategies, options trading, investing and a whole range of other things you need to know to gain your financial wealth and freedom you need to visit http://www.lockstockenbarrel.com
Posted 1 year, 4 months ago at 5:57 am. 0 comments
Currency swing trading is the perfect method for a novice to use because it overcomes the main barrier that most traders have when trying to achieve currency trading success…
It overcomes the problem of discipline. Most traders lack discipline and it’s the big difference between success and failure and swing trading requires very little as profits and losses come quickly. It also overcomes the impatience of most traders who like to trade.
Before we continue you might say well, forex day trading requires even less because the moves are shorter but the problem you have with day trading is it simply doesn’t work.
Why?
Because all moves within a day are random and you can never get the odds on your side and you will eventually lose.
You get a lot of vendors telling you that you can make money day trading but look at their track records - there all simulations in hindsight and that means nothing.
Swing trading is easier than long term trend following from both a discipline point of view and a patience point of view but can be just as profitable.
You’re Aim
You are looking for reactions within the major trends when prices get over bought and oversold and trading into these levels and a swing trading based upon the following will work.
You simply need to use trend lines and Bollinger Bands - the latter tells you the volatility and is a great tool. Check our other articles for more details. When prices become overbought and oversold and testing resistance or support you have a potential trade.
Confirm the Move
Before it gets to this level you need to check the strength of price it should weaken into resistance and strengthen into support ( never guess always wait for confirmation), you check the strength of price with momentum oscillators and two great ones to use are the stochastic and RSI.
You’re Stop
If they support your view you trade and your stop goes behind the support or resistance level tested.
Hit and Run
You should take your profit early and not trail a stop and your profit should be taken in when the price moves toward the next level of support or resistance. Currency swing trading profits disappear quickly, so you simply take them early or “hit and run and bank”
Simple but Effective
Now the above is a simple currency swing trading system I have used for 20 years or so and it’s worked well for me and can for you and you can pile up triple digit profits. Don’t be put off by its simplicity all the best systems are and this means they are robust with fewer elements to break.
You can learn to swing trade in a week or so and it will take you less than 30 minutes to apply. It’s fun, exciting and can and does make big profits - try swing trading and you maybe glad you did.
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Posted 1 year, 5 months ago at 11:14 am. 0 comments
Here we are going to look at a forex trading strategy that works, will continue to work and which you can learn in a couple of weeks and implement in about 30 minutes a day…
The forex trading strategy we are going to look at is a long term trend following system based on breakouts.
Most traders make the mistake of thinking they can buy low and sell high and predict market turning points in advance but this is rubbish.
Predicting is hoping and guessing and there is no way of doing it, so don’t try.
The best way to trade is not to hope or guess but to act on the reality of price change. This is why anyone should make breakouts part of their forex education.
A fact of Forex Trading
It’s a fact most trends start and continue from new market highs and lows and the big trends last for weeks, months or years and if your forex trading strategy is based on breakouts, you can catch huge chunks of these major trends and make big profits.
Look at any forex chart and you will see how much profit can be made from breakouts.
Valid Breakouts
Breakouts are the way to trade but you have to be selective.
Generally the more times a level has been tested, before it breaks the more the odds are on your side also, the more time frames and the wider they are spaced apart, the better the breakout is likely to be.
You are looking levels which the market considers important. If the majority think prices shouldn’t break out and the more uncomfortable the trade feels, the bigger the trend is likely to be remember, the bulk of traders lose!
Why the Majority don’t do it!
Most traders can’t buy breakouts, as they want to get in at a better price and wait but they wait in vain. The big breaks move quickly and they watch the trade sail over the horizon and never get in.
This is why breakout trading is so effective.
The big breaks don’t come around often, so you need to wait for them and to give you an example of how profitable they are, I know traders who trade just a few times a year but make triple digit annual gains.
Don’t be fooled by the thought of the more you trade the more you can make - this is simply not true.
Getting the Odds on Your Side
To get the odds even more on your side, when the breakout starts, price momentum should be on the rise and here you need to learn about momentum oscillators.
We have discussed these in our articles but a good two to look at are - the RSI and stochastic. These are visual indicators and you learn all about them and how to use them, in around an hour.
If they support your view, go with the break and put your stop under the breakout point.
Milking the Trend
Most traders never catch big trends because they want to move their stops too quickly to lock in profits. You must avoid this temptation.
Keep your stop well back until the trend is in motion. Trail your stop up slowly and outside of normal volatility, so you don’t get bumped out of the trend to soon.
Keep in mind valid breakouts, can last for many weeks or months and the aim of your forex trading strategy is to get a good chuck of the trend and the profit which means giving the market room to breathe.
Simple and Effective
You can put together a breakout system in around a week.
Make sure you keep it simple as simple forex trading strategies work best, as they are robust. As you are trading long term price trends you only need to watch the market once or twice a day and this should take you around 30 minutes at the most.
Breakout trading systems work and will always work, as long as there are trends.
Most traders try to work hard and predict - when they could just trade the reality and win. Sure a breakout forex trading strategy is simple but it’s very effective, very profitable and to make money, is the aim of any serious trader.
Take a look at trading long term breakouts in more detail and you maybe glad you did.
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Posted 1 year, 6 months ago at 12:35 pm. 0 comments
Forex money management is simply seen as a way of restricting loses but its lot more than placing a stop, if you follow the tips in this article, you could increase your gains dramatically…
The aim of forex traders is to take risks at the right time and get the odds on their side and then get as much as the trend as they can - sure you knew that already!
However most traders think high odds trades come around all the time - they don’t.
The really great trends maybe come around a few times a month no more but how many traders try forex scalping and day trading? Lots. How many lose? All of them.
The first real rule is to get the odds on your side as much as possible and that means
Cutting your trading down - most traders simply trade too much.
Keep in mind though you don’t get paid for how often you trade you only get paid for being right with your trading signal and that’s it.
Once you cut you’re trading down, you can concentrate on hitting the opportunities you are going to trade harder.
A huge mistake is to diversify why?
It simply dilutes gains. Most traders, also have small accounts and if they take the common wisdom of risking 2%, they have to have their stop so close, their guaranteed to get stopped out.
They have a small loss - but on the other hand, they have no chance of winning.
Sure it’s the majority view to risk 2% - but the majority doesn’t win!
Risk 10 - 20% and you will stay in the trade and get some meaningful profits.
Next the most common error of all of novice forex traders is to trail their stop to close and get bumped out the trade, by normal market volatility.
If you don’t know what standard deviation of price is, make it part of your essential forex education!
Knowing how to trail a stop, outside of normal volatility is the key to huge gains.
If you trade don’t trail too quickly and if your long term forex trend following, keep your stop well back.
A good way to do this is to use key trend line support, around the 40 day Moving Average.
Sure you give a bit back at the end of the trend but you don’t know when the trend was going to end anyway so don’t try and predict - you can’t
If you look at a forex chart, the big trends last for weeks, months or years and there worth a lot of dollars in the pocket.
If you trade forex you need to take risk pure and simple. You are not trading in a manner but take calculated risks when the odds are on your side.
If you want to make 10 - 20% you can do it with less risk elsewhere.
If you want 50 - 100% you need to take risks, it’s as simple as that.
Most traders try to restrict risk so much they create it. Sure they keep their losses small but they have a lot of them and never make any decent gains.
So in forex money management terms, you need to take risks at the right time hit the high odds trades with your forex trading strategy and milk them for all there worth.
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Posted 1 year, 7 months ago at 11:14 am. 0 comments
What is an Exhaustion Gap
An exhaustion gap comes at the end of an impulsive move. The exhaustion gap has an abnormal pickup in volume and then reverses sharply. An exhaustion gap occurs after an earnings announcement or news release. This final blow off brings enormous public attention and increased trading activity. This event provides professional traders and institutions the opportunity to close out large positions. This mass exodus of the big players causes the sharp reversal in the stock, because after the public gets in, there is no one left to hold the bag. Exhaustion gaps can occur in both up and down trends.
How to Trade Exhaustion Gaps
Exhaustion gaps can be one of the most profitable setups to trade in the market. The first component of an exhaustion gap is climatic volume. Secondly the first candle in the setup should close off its high. This is a sign that the stock is tired and is losing its upward momentum. If the next bar closes below the first bar, there is good odds that an exhaustion gap is in play. A stop can be placed above the high of the first bar, and the rest is history. The stock should immediately begin to fall precipitously without any retracements. The move down should resemble a falling knife.
Example of an Exhaustion Gap
For an example of an exhaustion gap check out BTU during the month of August. The stock had run straight up from $76 to $86 and then had a sharp pickup in volume. This final move up, quickly reversed and the stock dropped 6 points in 2 days.
Al Hill is the co-founder of mysmp.com (My Stock Market Power) which provides education on all topics finance; including stocks, bonds, options, futures, forex, technical analysis, and more! Please visit http://www.mysmp.com for more free financial educational content.
Posted 1 year, 10 months ago at 11:26 am. 0 comments
If there’s an available market as big as the whole world that would be forex. Forex is a large market where big corporation and financial institutions trade. It’s a sure market with the odds standing at 1:1. It’s either you loose it or win it. Well, that’s how it’s supposed to be, at least. But trading schemes make this market a little complicated. The chances of winning becomes smaller because a lot of people who are trading in it have developed strategies that makes the chances favorable for them. You need to work hard in order to be competitive. This business is not for the faint-hearted or lazy people. Forex is a lot of work. Some people may make you believe that forex is as easy as counting from one to ten and backwards but that is not the truth. Forex is as complicated as how other people is making it to be.
If you are new to this business, you need people to work with you to guide you and teach you. You may also need people to help you watch for trends and signals. Now that would be difficult if you do it on your own but you can with the use of forex software such as the Metatrader 4. This software is developed for people who want s to extend their working hours while they themselves are taking a rest. It’s an automation program that helps people acquire data and do necessary analysis. This will become basis for a well defined execution of trades in the proper time.
Metatrader 4 is sometimes used with other softwares that allows trading automation. The system provides charts that one can use in analysis and decision making. It will give you indications when to make a buy or a sell based on the current situation and expected changes. You are given the option to make your own strategy or follow direction for the system. You an absolute control over the software. If you want to make the system extra user friendly, you need to incorporate other programs that will translate all the signals generated by the Metatrader 4 to a workable solution and trading automation.
Many people have tried and proven Metatrader 4 to be very effective. It requires some expertise, though, which means it is not intended for those who knows nothing a bout the forex system. The program is already used by many individuals and companies so you will be assured that your trading is safe if you just do it by the rules.
There is an opportunity waiting for you in the world of forex. The odds are playable and the earning limit is immense. If you have the right tool that can guide you and work with you, then you can start making profit where the world is the limit. You have use a system that is already proven and tested that generated a high probability result. Nothing in this world is certain. Forex is no exemption. The probability could be high or low depending on the system that you use. So it sis really necessary that the right tool is chosen and used properly. For reliability and trustworthiness, Metatrader 4 is guaranteed.
Steve Comet is a pseudonym for a group of experienced forex traders. Our team has reviewed all the different forex auto programs that exist, and found out the ones with make money. Check out our forex automated trading reviews
Posted 1 year, 10 months ago at 11:14 am. 0 comments
Forex day trading is popular but it’s one of the best ways to lose your money. Try and find a day trader with a track record of real gains (not a simulation in hindsight) and you won’t find one. Why? Because:
It doesn’t work.
You will see numerous e-books and forex trading systems advertised all with great copy and a track record - but check the track record disclaimer and you will see that there all done in hindsight.
Here is a standard CFTC disclaimer:
“Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those show”.
Well could you make a profit knowing the closing prices?
Of course you could and so could a child.
The reality though is we don’t have the benefit of trading backwards when we trade forex, we have to trade not knowing the prices and that’s a little more difficult.
So why doesn’t forex day trading work?
Quite simply - all short term volatility is random.
Because of this, support and resistance levels are meaningless and you can never get the odds on your side.
If you think about this its common sense - you have millions of traders all trading with different viewpoints and methods and to say that you can predict what they will do in a few hours, or a day session is ridiculous.
So why are forex day trading systems so popular?
There mostly promoted by marketing companies NOT traders - it makes a good story but so to does Harry Potter but that’s all it is a story.
Forex day trading appeals to lazy or naive traders, who think forex trading is simply a walk in the park - no effort required, spend a few hundred bucks and get rich!
Well forex trading is not that easy and you wouldn’t expect it to be with the huge rewards that can be made.
If you want to trade successfully then you need to get the odds on your side and that means trading longer term meaningful data - not random data where you may as well flip a coin.
Trading success is based upon a logical method that takes into account the odds.
To be successful in life (not just forex trading) accept the fact that no one else will make you rich. Sure you can take advice - but never follow anyone blindly, you need to understand what you are doing and make sure you are trading the odds!
If you don’t, you won’t have confidence. If you don’t have that, you will never make money, as you won’t have the discipline to follow your method through inevitable losing periods, to achieve long term currency trading success.
So the next time you see a day trading system with a simulated track record - think twice before investing in it.
If it has a real time track record over a few years of profits by all means consider it - but if you find one let me know, I have been looking for 25 years and not found one!
If you want trade successfully forget forex day trading, trade the odds and that means using longer term data.
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Posted 1 year, 11 months ago at 11:14 am. 0 comments
Day Trading Styles
There are a number of day trading styles that make money in the market. This article provides an overview of multiple day trading strategies that professionals use to make money on a consistent basis. This article will contain the pros and cons of the following day trading styles: (1) breakouts, (2) scalp trading, (3) counters, and (4) trend following.
Day Trading Breakouts Overview
Breakouts is the most common form of day trading styles. It involves identifying the pivot points for a stock and then buying or selling short those pivots in hopes of reaping quick rewards as the stock exceeds a new price level. Breakouts is generally the starting place for newbie traders as it provides a clear entry level and it is a trend following system.
Pros of Breakout Trading
Breakout trading has the potential for quick gains. When key price levels are exceeded it will trigger stop order which gives that initial burst. The key component of a valid breakout is that volume and price accompany the move. This will increase the odds of the trade continuing in the desired direction. Breakouts are also easy to identify. Most trading platforms provide methods for tracking volatile stocks and how close they are to their daily highs or lows.
Cons of Breakout Trading
Breakout trading is by far the most challenging form of day trading. For starters, the levels where trades are placed are the most obvious to everyone regardless of their trading style. Think about it, no matter what system you use on a daily basis, every day trading system factors in the highs and lows of the day. Secondly, the vast majority of intraday breakouts fail. This doesn’t mean they don’t head higher a day or two later, but if your day trading and there is no instant follow through, odds are you are in a losing trade. Day trading breakouts requires the most discipline as you have very little time to make the call as to whether you are wrong or right. The inability to pull the trigger fast and consistently will mount in to huge losses.
Scalp Trading Overview
Scalp trading is a day trading style where a trader looks to make small gains throughout the trading day. This day trading style suits people who love “action” in the market.
Pros of Scalp Trading
The obvious benefit of scalp trading is the fact you are looking for very little from the market. Another plus is that stop losses are very tight. This will allow the day trader to avoid the monthly “blunder” trade that we all have put on one time or another.
Cons of Scalp Trading
Scalp trading like any other form of trading requires discipline, but due to the large number of trades one will put on during the day, it requires an enormous amount of focus. This “all day focus” can make the trading day a tense situation and can lead to high anxiety for the trader. Also, people go into the business of trading for unlimited earning potential and the idea that you do not have to slave away at a desk all day. Well if you plan on scalp trading, kep a bottle next to your desk, because bathroom breaks are considered a luxury.
Counter Trading Overview
Counter trading is when a trader looks for a pivot point, waits for that pivot point to be tested and trades in the opposite direction. This type of trader has a personality where he or she enjoys going against the grain.
Pros of Counter Trading
Counter trading has a high success rate for day trading. Ask any seasoned trader and they will tell you that intraday trading is nothing more than constant head fakes and lies. So, the counter trader is already up in the odds department, because they are going against what the market is telling them. Another plus for counter trading is that when the market fails it often fails hard. Day traders who are able to play morning reversals can make a great living only trading the first hour of the day.
Cons of Counter Trading
While counter trading has a high win percentage, the losers can bring destruction to an account. Even if you win on 4 counter trades, if you do not cut the loser fast, a breakout could run away from you in a hurry. Another downside to trading counter is the next pivot level is too far from your entry, so you will have to set some arbitrary stop limit. Since your stop is not based on an actual price point on the stock, it could get hit quite often. Lastly, setting your price target is also a challenge. Stocks will often appear to make a double top, only to change course just as fast and reclaim the recent highs.
Trend Following Overview
When most people think of trend following, the first thing that comes to mind is a long-term hold buy and hold strategy like the Turtle System. Believe it or not, there are day traders who utilize trend trading systems. The basic method is to look for stocks that are up big in the news and then buy the pullback on these stocks after the first reaction in the morning. Lastly, the trader will place a longer moving average (i.e. 20) and sell the stock if it breaks the line.
Pros of Trend Trading
Trend trading allows the trader to ride a stock for big gains. The day trader will have a limited number of stocks to trade per day, so the commissions are low for this kind of day trading style.
Cons of Trend Trading
If every trader was able to determine which stocks are going to trend all day, there would be a new millionaire created every 30 minutes. No one knows at 10 am, which stocks are going to trend all day long. This means that at best, a trend following day trader can hope to be right 20% of the time. While this trader could still make a killing with such a low win rate there are very few traders that can stick to their trading plan with such a low win rate.
Summary
Every trader is responsible for his or her success. Day trading can be a great money maker, but without a sound trading plan it can push you to your mental limits. The first step in becoming a successful day trader, you have to determine which style of trading best suits your personality.
Al Hill is the co-founder of mysmp.com (My Stock Market Power) which provides education on all topics finance; including stocks, bonds, options, futures, forex, technical analysis, and more! Please visit http://www.mysmp.com for more free financial educational content.