Categories
How to Trade

Is Daytrading For You Or Something To Think About?

Day trading can be simple, but don’t make the mistake of thinking that it’s easy.
I know that there are many websites and late night infomercials that try
to tell you differently. They make you think that you just have to read a
few pages or attend an online class, and then, magically, you’ll become a
successful trader, don’t be fooled.
Like in any other profession, you need solid education and knowledge
before you get started. After all, the goal is to make more money than
a lawyer or a doctor, but many aspiring traders expect to learn everything
they need to know from an eBook that they might get somewhere on the internet,
most likely for free. How could a small amount of free information
teach you to make more money than people who have gone to school for
years and years?
Right, the answer is, it can’t.
Some aspiring traders think they don’t have to learn a single thing. They
believe that they can buy a “magic system” or “MAGIC software” that will
place their trades for them and make them rich while they sleep. Or they
rely on the advice of some “guru” for their trading decisions, blindly
following his recommendations without knowing anything about the
markets.
I’m glad you’re different, you’re serious about becoming a successful day trader.

You’ll learn a lot of facts and concepts about day trading,
and become the trader you want to be, you’ll have to adapt the
ideas that you’re about to learn to what you already KNOW.
Socrates said that “Learning is remembering.”
And Richard Saul Wurman says:
“Facts in themselves don’t solve the problem. Facts are only
meaningful as they relate to a concept you can grasp.
New ideas are not so much discovered as uncovered by moving from
what you already understand into the realm of what you would
like to understand.”
Here is an example:
I moved from Netherlands to the U.S. in 1961, and one of my first investments
here was buying a house. It should have been no problem – I mean, we
do have houses in the Netherlands. It’s basically the same process, right?
Right, but where I come from, we measure in meters and kilometers.
So, you can just imagine my confusion when my realtor started describing lot sizes
in quarter-acre, half-acre, etc. What the heck? How big is an acre?
Of course, I didn’t want to ask – no one likes to seem ignorant – but I
looked it up. An acre is 43,560 square feet. Great. That didn’t really help
me. Now I knew the exact measurements, but I still couldn’t picture the
exact size of “an acre” in my head. I had no frame of reference.
But, I have it now. A friend of mine told me that an acre is about the size
of an American football field without the end zones.
Proof. Understanding. A frame of reference.
The same is true in trading. You might already know many of the
concepts (e.g. that you should use a stop loss).
There might be some concepts that are new to you (e.g. using a time-stop
when exiting a trade).
I’ll present all of these concepts in a very practical way.
Remember Socrates: “Learning is remembering.”
Objective: Free training on this website will save you
both money and time when it comes to your trading goals.
I’m convinced that it will help you become the trader you
want to be.
Much success and significance with your life and day trading.
OnlineTradingGuru

Categories
General Stuff How to Trade

In the beginning …

10 Day Chart of Amazon

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.

System Trading

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.

In Conclusion

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.