Archive for February 18th, 2012

Your Questions About Day Trading Strategies

Saturday, February 18th, 2012

Joseph Your Questions About Day Trading Strategies

Joseph asks…

How to start day trading?

I want to start day trading, but I have virtually no experience with stocks. I’ve done a bit of research on it and I really want to get real time feed to test my strategies. Is there a way to get real time feed of the markets for free? And if not could I just open and account and and watch for a month or so with no penalties?
I know all the brokers that cater to internet traders. I need a broker that provides direct real time access. If its for free, then great but even in a demo form, or if i open an accound with their account minimum. I would just like a way to get real time data so I can make hypothetical trades..

admin answers:

Fidelity provides Active Trader Pro free for investors with large accounts. It includes real time quotes, with a number of other tools.

More sophisticated Level 2 data is available. See Online Academies online tutorials and consider attending a class.

Use practice sites for an extended period before getting started with real money.

Mark Your Questions About Day Trading Strategies

Mark asks…

day trading eminis???

your thoughts?
pros cons
strategies etc

would love to hear anybodies feedback

admin answers:

They are highly volatile. If you are an experienced trader, you can make a lot of money. If you don’t have experience, this is no place to learn about futures trading. Start with grains or something relatively straight-forward and then move to eminis when you feel comfortable.

Paul Your Questions About Day Trading Strategies

Paul asks…

Can I make money Day Trading Stocks?

In 2007 and 2008 I did a little trading, I made some money, but I lost nothing. I only had $5000 at the time, so I couldnt make any real money off it. I had to stop because Im a loan officer and 2008 was when the industry died and I needed that original $5000 to survive.

Anyways, I have been Papertrading for a year now, although its fake money, I have been making big gains. I have a very simple strategy. I have about 6 stocks I like, when the market opens I wait 10 to 15 minutes to see which, if any, of my $10 or under stocks are surging up. I pick one of those stocks, stay in for just a few minutes, or until I see any sign it may be done surging up… then I sell and shut off the computer.

This worked for my with real money and its working for me now. So, now, I have $25,000 (real money) and I want to know if I should start real trading. Am I missing something? Why does this seem so easy? I want to start using the $25,000.

admin answers:

How do you account for slippage? Are you accounting for commissions and taxes? Are you accounting for margin interest? What do you do if it doesn’t go up? Have you been keeping statistics on the number of stocks you thought was going up and did versus didn’t? How many of the stocks that you thought was done surging was actually done surging? Have you kept statistics on that? I don’t know what you’re missing, but you’re probably missing something, if you haven’t missed anything in your method than what you’re missing is putting your money where your mouth is.

Linda Your Questions About Day Trading Strategies

Linda asks…

A Difficult Investing/Trading Question! NOT HOMEWORK?

I’ve been testing out two trading strategies lately, and here are my results.

Strategy 1
Profit to Loss Ratio
1 : 1.5
Chance to Profit
85 percent

Strategy 2
Profit to Loss Ratio
2.5 : 1
Chance of Success
60 percent

If both strategies are applied on the same day in order to hedge Strategy 1 against Strategy 2.

What is the chance of both strategies succeeding?
What is the chance to breakeven?

Thanks

admin answers:

There’s no way to know the chance of both succeeding since you don’t give any idea of their relationship to each other. For example, it’s not a hedge if number 2 loses EVERY time number 1 loses. This might be the case if they’re both equity investments.

I’ll just say that a market with the above relationships isn’t efficient, thus I think it’s unlikely to exist as you describe. I think you’ve screwed up the math someplace.

Sharon Your Questions About Day Trading Strategies

Sharon asks…

what do say about day trading or intraday in share market is it a wise decision?

do you prefer investment strategy…4r short term and long term. else tell me wats your take on share market??

just few days back my friend bought essar oil 1000, ptc 1000, Rnrl 1000, gmr 600 recently for intraday. price gone down so he tought to hold and sell tomo but still down. you cannot keep the stocks with more then 3 days time limit if you dont give the cheque for shares bought.he dont have that much money to give cheque. so he sell everything in loss???

and last week he bought chambal 2000, videocon 1000 for intraday, price gone down. so he was holding with debt 4r 3 days time and sold everything in loss.
no he is not a beginner, he is in this from past 4 years..

for day trading should u buy small quantity.so the risk becomes less or you should buy like my friend.

admin answers:

If you have to ask this type of question on Yahoo answers, then you 100% should not be day trading, or anything even close to this. You will loose all your money. This has happened to many folks.

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Your Questions About Forex Forums

Saturday, February 18th, 2012

Richard Your Questions About Forex Forums

Richard asks…

trade the lag? what it is.?

i’ve came across at several forex forum that saying trading the lag is illegal. the thing is, what is it anyway in terms of forex understanding??

admin answers:

What a ridiculous question. Next!

Sandra Your Questions About Forex Forums

Sandra asks…

Why trade Forex?

Hello. I have been studying for about 6 months the market of currency trading. Trying to tackle the learning curve and different analysis in this specific market. But I start to wonder when I read most articles and forum posts stating that only a few people profit yearly from this trading. If you do not profit, then why do you trade? It does not really make sense to me why someone would play/work such a volatile market not to make profit? Please someone enlighten me with their view on this. Thanks.

admin answers:

Hi
Yes, forex market is not for everyone as well as stock, cfd or metal trading. Those markets are very volatile but in the same way are very profitable.

Main reasons that 95% traders fail are:
- they don’t keep money risk management rules,
- greedy,
- absence of patient while waiting good enter/exit point,
- poor knowledge of analysis,
- absence of trading system.

So traders who have trading system are patient, not greedy and keep strict money management rules always are successful. And of course there is no one trader in the world that had no loss. Actually the loss always exists but win/loss proportion should be not less than 7/3.

6 month it is very short term to make your own conclusions. 5 years ago I have lost my first deposit too as well as almost all traders in the world. But I don’t worry to say it while others conceal it.

I advice you to read and study those books:
Market Wizards by Jack D. Schwager;
Technical Analysis by Jack D. Schwager;
Comprehensive Course on The Wave Principle by A.J. Frost and Robert Prechter;
Candlestick Charting Explained- Timeless Techniques for Trading Stocks and Futures by Gregory L. Morris;
Trading Chaos – Applying Expert Techniques to Maximize Your Profit by Bill Williams;
New Trading Dimensions by Bill Williams

It helps you to create your own trading system and technique. Then start again practice on demo account. After your funds start gain on demo then you’ll be able to start with real account.

Everyone could slip and fall down and only the few ones could rise up and go ahead. Those ones are real Men.

Good luck!

Ken Your Questions About Forex Forums

Ken asks…

which method is best for currency trading?

Hi everyone i have been trying to get into currency trading forex from past one year but still havnt found any profit taking method .i have been to alot of forums and searched but none of them is really impressive i would be glad if anyone tells me a scalping or any method which works gud and gives you reasonable profit margin thanks

admin answers:

Hi buddy,

there is no holy grail of forex. The only is proper money management .. There is 101 systems out there for 101 situations … Only proper money management is good for ALL situations.

Once you get that under control, you can slowly explore the various systems.

Remember forex is slow and steady.

If you want to know more about proper money management you can read it up at this blog for forex new comers.

Robert Your Questions About Forex Forums

Robert asks…

Doubts about Paypal?

Paypal deposits money in dollars.
But I live in India where it is Rupees.
So if i request money to be delivered to me will it be in rupees or dollars.
If it is in dollars – are there any Tax or forex formalities relating to it?

Actually i was thinking of joining an online site mylot.com which pays money if you actively participate in their forums. This one seems to be a genuine site They require you to have a Paypal account and pay you in dollars. so how can I encash the money (in rupees)

admin answers:

It’s a good idea. Join the PayPal.

PayPal is an e-commerce business allowing payments and money transfers to be made through the internet. It serves as an electronic alternative to traditional paper methods such as checks and money orders.

PayPal lets you send money to anyone with email. PayPal is free for consumers and works seamlessly with your existing credit card and checking account.

In October 2002, PayPal became a wholly owned subsidiary of eBay. Their corporate headquarters is in San Jose, California, at eBay’s North First Street satellite office campus.

Mark Your Questions About Forex Forums

Mark asks…

Anybody know a better link about the bullion forum .?

I have been searching for a website where experts get together….. and discussion about the trend of the gold…… i have came across an excellent like but that is for the forex….

http://forexforums.dailyfx.com/

can anyone know any better links about gold…….. with something like elliot wave analysis…

admin answers:

Http://www.kitco.com

http://realcent.forumco.com/default.asp

http://forum.bulliondirect.com/

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