Daytraders try to profit from intraday price movements in any type of market. It is very important that daytraders close all their positions at the end of the trading day. There are many ways daytraders try to make money. Some will look to enter a trade between 6:30 am to 8:00 am PST and/or 12:00 noon to 1:00 pm PST and close the position at the end of the day while others will close a trade when it reaches their profit objective. Some traders will enter as many as 20 trades in a day, taking smaller profits as soon as they have them. During the beginning of the day trading phenomena in 1997, there were traders that did over 100 trades a day at OTA.
Where do I Begin
You may have heard it before, when it comes to any type of trading, it starts with the markets, fear and greed. It is all a reflection of emotions, and in order to make money trading, you have to learn to control your fear and greed, and this friends, is the most difficult thing to do.
How To Overcome Fear and Greed
All of us have different emotions at various times of our lives, and they really come into play and effect us when we trade with real money. At one of the online trading seminars I attended earlier in life, I heard the speaker say that trading is the clear window of your own personal psyche, the clearest of any other influence, and I agree.
Understanding The Markets Today
I have been there many times when I was afraid to do another trade after I went through a number of losing ones and the fear of losing more sets in. I caved in when my fear got the best of me, and so I get stopped out of a trade without giving it enough time to develop. On the other side, I have held trades longer than I planned on and I lost more money unnecessarily.
On the other end, we all have taken profits too early, because we don’t want to give back any of the profits, so we miss the bigger winners this way. We trade more shares than we should because we give in to our greed and we feel really good about this one. How can we understand the markets then? If we learn to understand the workings of the markets, we will understand ourselves better, and make better traders.
The purpose of the markets is that they exist to let us trade as much or as little as we choose to. Markets are constantly moving up and down in search for buyers and sellers, anything to get us to participate.
If markets don’t move, they don’t survive. The knowledge that markets have to move, will change the way you think about trading. It will give you the confidence that your losses can’t continue, this will help eliminate the fear.
The markets have to bring traders in to survive, or they will die. The main reason for the market is survival and keep traders interested, so it has to move. It cannot stay in a narrow trading range or traders will lose money, become uninterested and leave, which amounts to less and less liquidity and eventually the market will die.
This knowledge gave me the confidence to continue trading. This has reduced my fear and gave me a lot of confidence.
From my experience the last 40+ years, system trading answers the problem of fear and greed, and it is the only way to have an advantage of the markets.
It gives you the discipline to help you with overcoming fear and greed. There are many trading systems that have been tested for a long period of time and the information is quantifiable. The implementation of a trading system is a much better way than trying to interpret the market. If the system is not working, then we can change it. That is a good business decision and you are on your way to making money in your business.
Since we know that a market must continually facilitate trade in order to stay in business, we can customize the design of our system to make sure that we are in for that big move when it happens. None of us have ever been able to predict when the market is going to move big, so it is much better to invest and devise systems and prepare for the big moves and reduce our losses while we are waiting.
My conclusion is the only way to trade all the markets is to use a system that is being constantly re-engineered to the current times. The big money makers do not try to figure out the tops and bottoms, they just take money somewhere in between. This makes good business sense.
The Latest Technology Available
If you are serious about using systems that are profitable, you must use the latest tools available. Learn how to use a desktop, laptop, tablet, smartphone, trading/chart software and any other tool as effectively as possible.
In the “good” old days, I remember doing so many things by hand that can now be done by any of the above tools. This will help you avoid mental errors, let the tool (s) do your work, i.e. backtesting, parameters and so on.
This will give you more time to do research and test new trading concepts.
Please review and explore everything I mentioned, use and test your systems over and over, refine and continue exploring, until you find your personalized trading system.
Just to share my continuing adventure and journey at Block Trading from June 1997 to 2000, which later became Online Trading Academy (OTA), out of the 1st class of 30 students, only 3 survived, which means that 27 students lost it all, whatever trading $ they had, it is all gone, ouch! I was fortunate enough to survive, and with all the newbies coming in to take the courses, we were now the experts. I started helping develop OTA with content and selling the classes, which then comprised of 1 week Beginner and 1 week Advanced, $3000 per class. A few months later, I went from customer to VP of Sales and Marketing, and started to develop a sales team to meet up with the demands for our classes. Here are some additional tools to help you, feel free to try them out.
Try a number of financial calculators here.
Interactive calculations, dynamic graphs, and fully customizable reports are just a few of the features that make these calculators stand out.
College Planning and Student Loan Calculators
Use this calculator to help develop or fine-tune your education savings plan.
The Student Loan Consolidation and Debt Payoff calculator applies two simple principles to paying off high-interest debt.
Credit Cards and Debt Management
Use this calculator to determine how long it will take you to payoff your credit cards if you only make the minimum payments.
Use this calculator to see what it will take to pay off your credit card balance, and what you can change to meet your repayment goals.
This debt calculator applies two simple principles to paying off all your debt that can cut years off of your repayment schedule.
Even a small difference in the fees you pay on your investments can add up over time.
Use this calculator to see how different fees impact your investment strategy and save you money.
Use this PV calculator to determine the present value of a stream of deposits plus a known final future value.
Learn how to create a balanced portfolio of investments.
Retirement Savings and Planning
Quickly determine if your retirement plan is on track – and learn how to keep it there.
Analyze your budget, see where your money goes and find out where you can improve!
Should you rent or should you buy your home? This calculator helps you weed through the fees, taxes and monthly payments to help you make a decision between these two options.
This calculator is designed to show you how the outstanding balance of a reverse mortgage can rapidly grow over a period of time.
This calculator collects these important variables and determines your required income to qualify for your desired mortgage amount.
Use this calculator to see how this deduction can create a significant tax savings.
This calculator collects these important variables and determines your maximum monthly housing payment and the resulting mortgage amount.
Should you lease or buy your car? Use this calculator to find out! Calculate your monthly payments and your total net cost. By comparing these amounts, you can determine which is the better value for you.Insurance Calculators
Find out how much life insurance you really need.
As you may have read on my “About” page, I was one of the first daytraders (guinea pigs) in the world, June 1997, I was at the age of 49 then, very excited and definitely a newbie. I really understand the phrase now, “Learning is a lifelong experience” and when it comes to losing and winning a lot of money, you will learn fast. The pleasant part of the adventure and journey of learning how to trade, was all the friends I made through the years and the camaraderie we have developed. Students from Europe and Asia that I have become friends with and actually met up with them while traveling is another highlight. I wanted to share some of the sites I used to become a better trader, hope you make use of them.
Charts and Research- TradingView
TradingView.com is a site providing real-time prices on stocks, ETFs, and forex pairs. It also provides delayed data on futures markets.
If you are new to trading and want to practice watching the market in real time, this site allows you to do that.
If you’re an experienced trader, it’s quick and easy to pull up site to do research, as it works well while on the road or if not near your normal trading platform. TradingView also works well as a “backup” data feed, in case you lose quotes or get disconnected from your trading platform.
The chart themselves are of high quality, providing a lot of indicators, comparison tools and various chart types, i.e. candlesticks and Heiken Ashi.
Other features include a stock screener, watch lists, “paper trading,” alerts for when an asset meets specific requirements, strategy testing, and see/share trading ideas with the large TradingView community.
Analysis Website: StockCharts
StockCharts.com offers tons of free resources, and you’ll likely find yourself spending a fair bit of time on the site as you explore the high-quality trading articles as well.
The Sector Summary shows which sectors are hot, and which aren’t, over various time frames. Many day traders like to focus on buying strong stocks in strong sectors in a bull market (rising prices), and short selling weak stocks in weak sectors in a bear market (falling prices). This tool can help you easily find such stocks. Click on the sectors, and then the sub-sectors within, to get a list of stocks ranked by performance.
The StockCharts SCTR Report lists large capitalization stocks from strongest to weakest, so you have a quick list of stocks moving well to the upside or downside at either end of the list.
The DecisionPoint Market Analysis Gallery (DP Chart Gallery) breaks down how the stock market is performing by showing various charts and technical indicators on different time frames. It’s a quick way to learn about analyzing price action and get an overall (uses daily charts) snapshot of market direction and potential turning points.
Normal price charts can be changed to “seasonality charts,” which show how a particular asset performs during particular months of the year.
Trading Research Tools: Finviz
The homepage of Finviz.com offers a host of stocks which are potential day trading candidates. Quickly see the day’s top gainers and losers, stocks breaking out of technical patterns and the day’s most volatile stocks.
Use the other pages to dig up more data on stocks, forex pairs or futures. The News page provides timely reports and analysis from major news vendors. The Screener allows you to find stocks that match your exact criteria for trading. The Map shows which stocks are performing well and poorly during the trading day.
Price data is delayed on the free version of the site, which is still useful for research, but as a day trader, you may want more timely information, especially if using the home page for trade ideas. Finviz Elite offers real-time quotes and pre-market data so you can see what stocks are moving well and breaking out in real-time.
Free Trade Ideas Tool: StockTwits
If you’re an active trader and want a constant stream of stocks (or other assets) that are moving well or breaking out, then this social media platform is one of the best free resources out there.
Search for day traders on StockTwits, and follow them if they provide timely information on stocks (or other assets) that are moving well for day trading purposes. Utilize your own strategy for trading the assets mentioned. StockTwits is just an idea generator not a trade signal service, or at least it isn’t recommended for that.
StockTwits can be distracting, so while day trading keeps the focus on market research related to your specific trade parameters and market.
Trading Tools: Demo Accounts
For traders starting out, the demo account is the best free resource out there. While a demo account won’t replicate the emotional ups and downs of making and losing real money, it will let you know if your trading methods are sound or not. If money can’t be made consistently in a demo account, then money certainly won’t be made trading real capital (which is much tougher).
There are loads of demo accounts available, but try to open a demo account with a broker that you would consider using if you do opt to start trading real capital. That way, you get familiarized with the broker, their fees, and their platform while also working on/assessing your trading skills.
Final Word on Free Trading Websites
Whether for research or generating trade ideas, these free trading websites offer tools to help in your day trading endeavors. Ultimately, these are resources to help you find stocks, forex pairs or futures that suit your strategy. That means you still need your own strategy, and shouldn’t just buy or sell assets blindly based on what you see on these websites. These are tools to be used in conjunction with your own knowledge and thorough analysis. Demo trading accounts help you find, hone and practice a strategy that is right for you.
Welcome to Online Trading Center, where you can find information to anything that has to do with any kind of online trading.
Our mission is to help you be the best trader you can be and learn from our mistakes.
I was at the same time fortunate and unfortunate enough to be one of the first daytraders in the world.
I was originally interested in buying a Block Trading franchise, but after seeing all the excitement of trading live, I decided to become a full-time daytrader instead.
I signed up for a 1-month class June 1997 (1 of 30 students) and paid $4000.00 to Block Trading in Irvine, CA, which later became Online Trading Academy (OTA).
I was one of 3 survivors from the 1st class of 30 students, and as other students came, I helped with the curriculum and development of OTA courses, seminars and latter part of 1997 became VP of OTA, I was at OTA from 1997-2000.
To make a long story short, we were the guinea pigs of daytrading, slaughtered like cattle.
By losing thousands of dollars, we finally figured it out and started making money and started making a living from live online trading.
We traded all the IPOs as they went public live, and we were the first to use Level II software from Cybertrader.
One of the IPOs, Amazon, symbol AMZN, became my favorite stock still and I still own and trade it today.
My wife and I both love the company, and we buy most items through Amazon online, and we also subscribe to Prime to get free shipping.
WHY WE WANT TO HELP YOU
We want to help you NOT to make the same mistakes we did. We have developed our own trading style and systems that we want to share with you.
Our goal is simple- we want you to learn how to make money and limit your losses.
If you ever have any questions, feel free to leave them below and I will be more than happy to help you out.
All the best,
Roy van Broekhuizen