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Are
You Cut Out To Be A Day
Trader? |
How to create wealth trading stocks, options, futures and indexes: People who are trying to create wealth in the stock market fall into two basic categories, your either a buy and hold long term investor or your a day trader looking to capitalize on trends, momentum, and news events.
For the buy and hold investor, creating personal wealth in the stock market takes patience, luck, desire, access to timely information and a lot of home work. For the day trader, being connected at the hip to the people who are making money on Wall Street every minute of the day is the ultimate ingredient required for their success. Sure you can use elaborate trading systems, get advice and assistance from professionals, and attend countless seminars, but the stark reality is that most people who attempt to profit from trading stocks on a daily basis usually lose money. Conversely, the buy and hold strategy in recent years has shown itself to be equally fraught with downside risks, So what is the right method for making money on Wall Street?
The stock market is a lot like Las Vegas without the lights and fanfare. Investors, tempted by the intense amount of wealth being bandied about on a daily basis, are drawn into the markets like bees to honey. The allusion of some much wealth being created is enticing, captivating, and fun to experience because it appears to be a place just about anyone can make a small fortune. But it’s also one of the most dangerous places to make a living. If you do well, you’ll be wealthy beyond your wildest dreams, or if your not careful you could lose every penny you’ve ever invested.
With so many investment opportunities out there, where does an investor look for trading opportunities. Theres high volume blue chips, growth stocks, income stocks, defensive stocks, penny stocks, currencies, options and a daily list of newly created ETF investments to choose from. Yet it’s this immense diversity that makes trading the market on a daily basis so much fun, but also confusing for most investors.
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Reliable,
Timely Information is the
Key to a Trader’s
Success |
By the time you’ve read about some event in the news papers or magazine its old news. Placed media coverage of stock, sector or industry might help the buy and hold investor but it won’t lead to day trading profits. Real time online news, found through web sites, news services and newsletter writers is the friend and bed side companion of an active day trader.
Where to begin? Day trading requires a certain amount of technical know how and this is where understanding tradable chart patterns comes into play. Theres a universe of free charting software available. With these software applications like
bigcharts.com,
stockcharts.com and
Aistockcharts.com you get the tools, the educational information, the expert opinions, and the support you need to improve your trading skills. Trading systems can be very simple with high, low, close bar charts or more sophisticated like Japanese Candlesticks which offer more complex features not found in other charting systems. Layer in a technical indicator like a
Moving Average Convergence Divergence
(MACD) and a Relative Strength
(RSI) indicators and your good to go with a basic trading system.
While everyone gets to use these free tools, subscribers to daily newsletter services like
Stockhideout.com,
Hototc.com,
Investorsoup.com,
Stockmarketinginc.com,
Smallcapvoice.com
and Smarttrend.com, with its proprietary pattern recognition system, get daily access to real-time data, the momentum stock pick and trade of the day and much more. Whether your trading penny stocks, currencies or commodities, subscribing to these free newsletters will give you an inside look into what’s trading that day and where you might want to throw some of your disposable cash. An endless list of these service providers can be found through a simple keyword
Google search.
Trading put and call options is a whole different ball game. Web sites like
Optiontradingtips.com will give you an insight into the world of options trading, but basically, options gives a trader an inexpensive way to play the market and can provide some upside and downside protection, with long and short equity positions through the use of a variety of creative put and calls strategies. Options are a much riskier trading strategy than equities because with options you can loose your total investment if you’re not careful. But if you don’t have large amounts of money to throw at the market, but want to play the big names, than options may are the less expensive way to go. High volume, volatile indexes like the SRS, PXJ or FAS have lengthy option chains and are unique way to play the long and short swings in the market.
Commodities, commonly referred to as futures, are compelling trading vehicles but once again, trading these instruments requires a specific acquired skill set and some professional help to get started. Learning about each particular commodity is an important step before you begin trading commodities. Commodities are comprised of grains, livestock, energy, softs and metals "Limit orders" are common in the futures markets. This is where a customer instructs the broker to buy or sell only if the price of the contract reaches a certain point. Limit orders are usually good during a specific trading session, or an order can also be marked "G.T.C." good till canceled. Overall, the
futures market
which is very volatile, isn’t for the faint of heart.
If you choose to try day trading, start by investing in some education materials. Read up on the latest trading platforms and maybe even buy one. If you understand the commodities your trading and the factors that affect their prices, you'll have
a better chance at picking profitable trades.
And create a flexible investment strategy that
your willing to refine and modify dependent upon market conditions and your personal finances.
Traders with the right tools have the best chance of being a successful investor, speculator or trader. But usually the people who market the most money from the day trading game are the people standing on stage trying to sell you the books, software and sure fired formulas for success.
So buyer beware. Ronald J.Blekicki
Hanover Financial
Services
has been
providing scalable,
cost effective
business development
strategies for
emerging growth
companies since
1984. We
offer our clients
professional advice,
exceptional service,
practical guidance
and access to the
capital they need to
achieve their
business goals and
objectives. We're always looking for
opportunities where we can use our
insight, capabilities, and resources to make a difference.
So Contact
Us Today!
and let us show you how we can help your business
grow.........................
At Hanover Financial Services, our ultimate goal is our client's
success!
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