I am looking for some study material which can help me understand the funda of day trading. can you provide me with names of some website where I can find details about day trading rules and procedures.
2006-09-23 22:25:26 · 6 answers · asked by zahoorbatoo 1 in Business & Finance ➔ Investing
Have you read John Carter's book yet? Mastering the Trade.
Also read Tom Busby's book, Winning the Day Trading Game.
They'll give you a good primer. Fantastic books to get you started. After that, you'll have a much better sense on what and where to go next.
One option would be to work with a mentor. Todd Mitchell looks interesting at tmitchell.com or tradingconcepts.com for trading.
Though if you go to daytrading, you'll need to practice a lot more than a couple of weeks. Most successful day traders I know practiced at least months before being somewhat successful as there's all sorts of nuances, the shorter the timeframe that you trade in.
Let me know if you have any questions.
Hope that helps!
2006-09-26 18:21:26 · answer #1 · answered by Yada Yada Yada 7 · 2⤊ 0⤋
Day Trading Strategy
This day trading strategy should be a good starting point for you. This may not be the exact way you wish to day trade, but it is intended as a guide to help you determine a day trading strategy that suits not only your timeframe, but also your personality. Trading in accordance to your personality will ultimately serve you best. If you prefer a longer timeframe, please see the swing trading strategy page for more information.
Day Trading Strategy:
If you are a day trader, your position size is likely larger due to the fact you are looking for a smaller move with your short timeframe. Keeping a tight stop is extremely important when trading larger size, as a day trading strategy gives stocks multiple opportunities to work. For day trading, the strategy is rather simple:
Always keep your profit objective at least 3 times greater than what you are willing to risk.
Allow no more than a 1% move against you from your entry point. Ideally, you are in the trade beyond the trend line and out of the trade below it. You can always get back into the trade if the stock returns to the buy point.
If the futures (Nasdaq and S&P e-minis) make an intermediate lower high intraday (or higher low when trading the short side), exit half of your position. This implies a weakening market and can make it tougher for open positions to continue working.
If your stock hits a new low for the day (long trades) or new high for the day if you are short, exit the position. A day trade is intended for initial moves, so there is no purpose in widening stops to accommodate a stock moving in the wrong direction. Get out if the stock breaks a low (or high if short) as you can reenter the trade if it triggers again.
Once momentum fades and buyers are thinning out, take your profit. This can be done by carefully monitoring the intraday chart and the time & sales window for fading momentum.
2006-09-23 22:35:36 · answer #2 · answered by Anonymous · 2⤊ 0⤋
read Curious Cook's answer carefully. But most day traders get wiped out rather rapidly. There are a few that do ok, less than 5%. If you think you beat the odds go right ahead.
Long term investing however gives you better odds. 1. brokerage commissions take a much smaller percentage of your winnings. 2. long term capital gains taxes leave you with more of your earnings 3. enough time goes by for good companies to make extrodinary gains.
2006-09-24 01:18:44 · answer #3 · answered by Anonymous · 0⤊ 0⤋
1
2017-02-19 13:03:34 · answer #4 · answered by ? 3 · 0⤊ 0⤋
I don't know about websites, but my boyfriend bought a really helpful book from Amazon called Trading for Dummies.
2006-09-23 22:28:06 · answer #5 · answered by Krystal V. C 2 · 0⤊ 0⤋
If your an Aussie, try asx.com.au.
The site is loaded with information and they also run classes.
II'm sure the stock exchanges of most. countries have sites with equally helpful info.
2006-09-23 22:49:08 · answer #6 · answered by Yellowstonedogs 7 · 0⤊ 0⤋