Make Your Fortune By Day Trading

By Dr. Asoka Selvarajah

Definition Of Day Trading

The practice of buying and selling stocks, stock options and currencies within the same trading day so that there is no outstanding left at the end of the day is referred to as day trading. This practice was originally followed by investment firm employees who were specialists in investment. But with the electronic way of trading having made its entry into the market, day trading is now practiced by many people who are at the most casual traders.

Risks in day trading

Traders have now found that day trading is one of the best ways of making money. Whether you are into day trading as a professional or are just trying to increase the sources for your income, day trading has proved its potential for making money if due care is taken and proper norms are followed. Day trading can be risky but unless you take risks and make the correct decisions, there is no way you can maximize the profits from day trading.

The steps to be taken by a successful day trader

You can earn money from the stock market if you purchase stocks when the costs are low and sell them when the prices increase. Though the process sounds fairly simple, it is this judgment of the time to buy and the time to sell that differentiates a successful day trader from the rest. In day trading you must always keep yourself well informed about the market. A lot of printed matter is available and most newspapers devote large sections of their daily issues to the stock market.

Knowledge is the key to stock market trading in general and day trading as well. Newspapers generally have separate sections devoted to the stock market and you would do well to peruse these. The internet is another source of information, as well as many TV channels that are devoted exclusively to following the stock market. Make sure that you are not snowed under by the plethora of information that is available and limit your sources to only those that make you feel comfortable.

If the stocks you have selected do not show much movement over a period of time, remove them from your list of day trading stocks. It is only when prices change that you can make any sort of profit. See that you are capable of analyzing quickly, the data on the stocks you have bought. This will enable you to take immediate decisions which could affect your profit. Remember that a small movement of just a percent or two in a day translates into huge amounts throughout the year, and you may find that you have to take a chance on quite low percentage movements.

Keep your emotions always in check. A very good profit van also be followed by a loss and you need to keep your perspective and constantly see that you are ahead of the game, and not allow emotions to cloud your judgment.

So what have you learnt?

Sudden fortune may not come your way the day you start day trading! However, a steady accretion of cash can definitely take you to the goal of becoming the wealthy person you desire to be. The key is to be well informed, maintain a SMALL list of stocks that you KNOW as well as you know your own relatives, keep on top of what the markets are doing, analyze them continually, and make the right decisions at the correct time without getting too psychologically bogged down in the consequences of your action - either on the profit or the loss side. - 23221

About the Author:

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Investing Principles Made Simple

By C.P.Billows

You do not need to be an accountant or a financial wizard to handle your investments. There are some basic principles to follow, known as the KISS principle. KISS is generally know to stand for "Keep It Short & Simple" but I think the acronym can also apply to investing:

K - Keep invested

I - Invest in stocks

S - Self-direct your investments

S - Small investments possess an advantage

K - Keep invested and don't become discouraged

There are lots of people who enter the stock market, get burned, drop out, and then hand their finances over to a broker or mutual fund seller. That is the wrong thing to do. Losing money in the stock market is all a part of learning how to invest.

I have lost thousands on bad investments but I have also made more thousands on good investments. I still come out ahead because the good investments are that much better and I have invested wisely. The worst thing I could do is become discouraged and drop out of the market.

Investing is like any skill. It takes practice and knowledge to master. You need to keep investing and learning. The trick is to start small and increase your investments as your mastery develops.

Consistent contributions are critical especially if you are depositing into a retirement account. Every contribution will help reduce your taxes payable and all of your gains are allowed to grow tax-free.

I - Invest in stocks and instruments related to stocks

The best place to park your money is in stocks. There are thousands to choose from but for long term planning it is best to pick sold big capital stocks that are the basis of your long term plan.

You can invest in mutual funds but be prepared to get poorer results. Diversification is taken to the negative extreme in these financial instruments and the fund has to overcome its own hefty management fees before it can even turn a profit for you. You can find better results by investing in a few sold companies and in Exchange Traded Funds.

Stocks come in five basic varieties. You want to avoid the last one and invest in the others depending on your investing philosophy.

a) Blue-Chip Stock - Solid companies whose steady profits allow it to pays out dividends. These should make up a majority of your stock portfolio.

b) Growth Stock - Typically technology or biotechnology companies that grow and expand. Rarely do they pay out dividends because they plow their profits back into the expansion.

c) Value Stocks - Companies that the market has undervalued. The market is not always rational and sometimes these companies make great buy-out opportunities for other firms.

d) Mad Money Stocks - Very speculative stocks that are not making any profits but have a product you believe in. Depending on your investing constitution, set aside 0-10% of your portfolio for some speculative fun.

e) The Dregs - Companies that are losing money, revenue, and leadership. Avoid these unless you are interested in betting against their decline in what is called 'shorting'.

Some investment firms will value stocks by the size of the company in stock value. That is useful to tell you how big a company is, but it would be like valuing the denomination of dollar bills - a $100 is always worth more that a $20 bill - so what? Two companies might trade for $100 but in actual fact the worth of the company behind the stock price is like a $100 bill in US money and a $100 bill in Mexican money. They are not worth the same amount.

General Motors is one of the largest publicly traded companies but should not be considered a blue-chip. GM has had declining revenues, has debt problems, and faces very stiff competition from the Asian automakers.

S - Self-directed accounts ensures lower trading costs and control

Get a self-directed/discount brokerage account. Do not go with a stock broker if you have every intention of taking control of your financial future. Some options are

This allows you to both save money and act in contrarian ways when the rest of the market is panicking. It is possible to double your money on stocks that everyone has given up on. The fact is most investors operate on fear and emotion. You can win in the stock market if you are one of those people who blink last.

S - Smallness can be an advantage in the investing world

Not having millions of dollars is an advantage you can leverage to your benefit. Large institutional investors like pension plans and mutual funds cannot enter the market without hurting some of their investments. You on the other hand, can purchase stocks at great prices without driving up the price. You can also get out of a stock investment without worrying about driving down the price.

Having millions of dollars to invest has its own set of headaches, one you likely want to experience, but until then, you should take advantage of your smaller size as an investor. Nimbleness has distinct advantages in the stock market. Enjoy it while you are still small.

There you have it: the KISS principle for the investing world. Hopefully, you will be inspired to take control over your investments with these principles. - 23221

About the Author:

C.P.Billows is the publisher of In The Money, the Stock Options Trading Course, a 60 page eBook available at www.mandalainvesting.com. The eBook has given hundreds of people the investing edge they need to keep ahead of inflation and taxes. Click here to submit article.

Stress Free Forex Trading with Forex VPS

By James Smith

Forex VPS is a leading service provider for VPS forex hosting. By using a VPS, ar a virtual private server, you alleviate many of the problems associated with a shared hosting account. When many people are using one server sometimes things slow down or other times it's hard to open a page. VPS is a server being used by only one person. Imagine using a server alone in the whole world. The main server will be divided into several servers and distributed and used as forex VPS.

With the dedicated server you will have your own software's and operating system. This virtual server is like a branch of the bigger universal server but still operates individually. This server is usually used by forex traders and is referred to as forex VPS, ie hosting for your forex trading requirements. The dditional beneift of using a VPS is that your MetaTrader EAs will run 24/7, even while you are sleeping. This means that you do not need to have your computer switched on for your trades to be placed.

A virtual private server is like a dedicated server in a number of ways - you can install applications, reboot the server and access the server root without worrying about affecting other users. There is also a shared element to the hosting because you will have to share hardware with other users. When it comes to forex trading there are traders who don't want to run MetaTrader platforms on their computers. By accessing the services of Forex VPS you can have your own server.

If you are a trader and like to trade on a regular basis, subscribing to forex VPS services will let you trade without having the computer on the rest of the day. You can trade through a metatrader broker by simply logging into the site; you will view it and manage the account then start trading immediately.

For those traders who run their expert advisers without interruptions, forex VPS is the ideal service for you. It is always on-line, and does not reboot when trading. Power outages do not affect it and the best part is that the computer can be off. With all its benefits, you can also use this kind of server to test WebPages right before you make them available to the public. It lets you test applications and different software's without having to reboot the whole server.

The automatic restart feature is a vital specification, incase the server is rebooted and you need to automatically restart. The 24/7 access feature is needed because you should be able to access your forex VPS at any time, and from anywhere in theh world.

In terms of selecting your forex hosting company, there are a large number of providers who are in the market, and this number is growing daily. Some of the leading forex VPS providers are; EzforexHost, MetaTrader Hosting and Forex Hoster.

All in all, most of the forex VPS hosting providers offer pretty much the the same specs within their hosting accounts. The features that you should look out for especially are a pre-installed MetaTrader preferably with the most recent edition, MetaTrader 4. Also ensure that the hosting service is compatible with all brokers, as there are some brokers which can only use certain operating systems. This will allow you to download and install trading platforms from brokers to your VPS. Finally, double check that the EA you have is compatible with the VPS host. - 23221

About the Author:

If you require more information about forex trading, forex hosting and Forex VPS go to Forex Village. They offer independent reviews and have considerable expertise in forex hosting and MetaTrader MT4 automated trading systems.

Being Readily Prepared For Robotic Trading

By John Eather

The best, or for something to title itself so is such a broad and loose generalization of the term. What may be the best for some may have the complete opposite effect for others. When it comes to Forex investing, or trading and choosing the best software that will ensure the best results, it is important to first know exactly what it is you are looking for.

Forex trading, more specifically Foreign exchange rate trading, keeps both brokers and traders happily busy during these uncertain times. Despite our recent unstable economic situation, one financial market recently saw a 41% surge in trading and profitability over the preceding years.

People who originally wouldn't have given this lucrative market a second look not only took notice, but now want to get involved themselves. A technology that has been around for years provides an inviting opportunity for Americans looking to cut out the middle man from their potential profits.

Robotic currency trading has been utilized in the exchange market sparingly for at least a decade. It was not until recently that the technology behind such a machine was reevaluated and thus updated to produce more profitable and stable results.

The end product of this quest for the best has afforded the world with newer, smarter, faster robotic traders whose forex investing intervention in the way the market does business could just mean the difference between making hundreds, or making thousands of dollars.

When seeking out the right match for your needs, you want to focus on two key points: price and results. First off, disregard any robotic software that can't show live feed of one of their products in action. You can sit and listen all day to someone drone on about how great their product is, but it doesn't matter until you can physically inspect the program actually producing results that you can base a solid decision upon.

With many offerings out there in the world of forex investing, all promising equally staggering results, it's important to educate yourself. Find a product that interests you, but then do your research about it to ensure that it can and will do exactly what it is you are looking for.

Thankfully, the internet has opened the door for millions of people to be able to do just that. Read reviews on the software, watch the actual robot live and in its element, only then will you truly be prepared to know without a doubt what works best for you. - 23221

About the Author:

Before you start trading forex online, please sign up for John's fantastic ecourse and reports. Receive the latest info about trading forex online. Go to Money Making Fx Trader for more details.

Automated Forex Trading Softwares Use Fibonacci Formula

By Richard U. Olson

Leonardo of Pisa, better known to us today as Fibonacci first introduced what we call the Fibonacci sequence to the west in his 1202 book Liber Abaci (the sequence was already known in Indian mathematics). He stumbled upon this sequence while attempting to estimate how many rabbits he would be able to breed in one year based on his knowledge of their breeding habits. This mathematical model is used by Forex traders today.

Mistakenly many individuals consider mathematical abstraction as frivolous; however it is rooted into real world mathematical applications. The Fibonacci sequence is useful for making us aware of and then explaining those hidden patterns around us daily.

How can this be applied to investing? Very astute investors understand that there are hidden patterns in the stock market--based on the mass of investors' behavior. "Buy low and sell high" and "The best time to buy is when there's blood in the streets" are but two investment aphorisms that not only work, but also come from understanding hidden patterns of the investment markets.

Hidden patterns of investment marketing cannot be seen up close. There is no accurate sense in trying to predict the hourly or daily fluctuations of investment markets. However, overall extended trends very well can be. Increased profits are taken advantage of when investors and Forex traders confidently use the number sequence of Fibonacci to reach their gains.

The Fibonacci sequence is a series of numbers in which each successive number is the sum of the two previous numbers. So it goes 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and into perhaps infinity. There are a number of interrelationships held within these numbers; for instance, any given number is approximately 1.618 times the preceding number, and 1.618 happens to represent the ancient Greeks' "golden ratio"--considered to be the supreme essence of balance (and balance is the ultimate key to successful investing).

Arcs and retracements are two of the most widely used applications of the Fibonacci series by investors, including Forex traders.

Fibonacci chart technique involves three curved lines drawn for anticipating key resistance and supporting various levels as well as areas of ranging. First drawn is an invisible trendline between the two points of high and low for particular period of time. Next, three intersecting curves are drawn overlapping the trendline at the levels of 38.2, 50, and 61.8 percent according to Fibonacci. When the price of the asset crosses through these key levels, decisions of transaction are made.

Next is the retracement - this is when the movement of a stock or other traded commodity reverses direction; this is a reversal which is stronger than the prevailing trend of the stock's movement. Retracement patterns are looked at closely by investors; a Fibonacci retracement can be used to analyze the odds of a commodity's price having a larger than average retracement before continuing back on the direction it had before reversal. The trendline is typically drawn between two extremes and is divided vertically by the Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.

Multitudes of high-level traders gain with the Fibonacci retracement method. It aids them in finding the most strategic placement of transactions, their target prices and stop-losses. Gartley patterns, Tirone levels and the Elliott Wave theory are other technical tools that make use of retracement.

The reason that the Fibonacci sequence is used in investing is simple: it works! Forex traders in particular in particular seem to find it useful in making profitable trades. - 23221

About the Author:

Richard U. Olson uses the state of the art Forex Robot Software and he recommends it to make consistent profits in the Forex markets. Grab his FREE e-course on Forex Trading Tips to achieve your financial freedom.