January 21, 2014

Five reasons why day traders lose their money

Day trading is a business where you have to think both ways. You have to enjoy the profits and embrace the losses.

Here we will discuss the five reasons why day traders are losing their money every day

Over confidence that comes after a few successful investments

If you are making profits, that doesn’t mean you are not going to suffer loss the next day. Do not get too carried away by profits, or you might make mistakes and suffer a capital loss.

Lack of research that leaves you clueless at times

A day trader needs to be up to date and synchronized with the current market activities.

Insufficient knowledge will leave you vulnerable to market fluctuations, which is the main cause which makes day traders lose most of their money.

The hunger for more positions

This is one of the most common mistakes made by inexperienced traders. Holding more positions technically means dealing with more money and increased chance of profits. This is not true in a practical sense as it is not considered profitable to hold more than two positions at a time.

It is uncommon but acceptable to hold overnight at times

According to the current trend; it is more productive not to hold the stocks overnight because of the higher risk of market fluctuations the next day. Sometimes it is profitable to hold the stock for the next day if the trader is expecting a loss, but holding overnight anticipating profits is nothing more than gambling.

The inevitable loss that eventually hits

This is the worst nightmare as I have said above, which is true in every sense. You are going to suffer losses that might leave you hopeless, but with every loss, you get to learn something. Take this opportunity as a learning experience and do not get demotivated if certain losses occur. Try another day, as no one makes money every single time.

September 8, 2013

Day Trading Players

The financial market works in ways which is not so easy for a lay man to understand and thus work around investing through it. It requires a good sense of fluctuations and expectations to be judged and trends to be identified before making any buy or sell decision for any kind of financial securities or trade worthy entities.

Day Trading Players
The knowledge and the precision is extremely important for investors, especially in day trading when the market sentiment is speculator and people or rather speculative investors are trying to get in the market to earn and generate instant and large amount of profits. This also justifies the name given to this system of trading which is day trading since the trading on the security is carried out on the same day itself.

The people who under take this kind of financial activity in the market are called speculative investors. This is because they are coming or rather entering the market because of their motive of getting quick gains and profits. As it is said in the financial markets that higher the risk in the investment higher is the gain. And this is exactly what is played on by the investors who enter in to the day trading market. They enter with the aim to earn the maximum out of the single day of trading and thus they are also faced with a high risk of getting nothing out of the day trading process and also of suffering very high imaginable losses.

Day trading is also one concept which should be very well known to any speculative investor before he or she jumps on to the band wagon to gain and earn quick profits and money. The day trading is a financial method of investing in the market where both the buying and selling positions are held in the course of the same day. This means that if one person has bought a certain financial security in a particular day then before the market closes for the end of the day the investor or speculator will also sell that security on that very same day.

The various financial securities which are available in the financial markets can be traded under the method of day trading. These securities include stocks, stock options, currencies, future contracts like equity index futures, interest rate futures and commodity futures.

day-trading There is a very large amount of financial leverage involved in the process of day trading and the mere pace at which this entire process f trading is carried out, two possibilities are highly likely. One being that of a very profitable result of the trading and the other being that of highly un profitable. There is no middle level path which the investor can hope to achieve and then stick to that pattern of trading.

So playing the fundamental analysis vs technical analysis in the entire process is the speculator or the day trader himself, or herself. He or she is the one who is responsible for the market swing through the way of investment, buying and selling of securities and other financial activities which he or she under goes during the day trading process.

September 8, 2013

Contrarian Investing And Day Trading

Day trading is not averse to risk since the positions of buy and sell have to hold within one day itself and the investor does not get a very long time to analyze and study the market over a large period of time. The knowledge and the precision is extremely important for investors, especially in day trading when the market sentiment is speculator and people or rather speculative investors are trying to get in the market to earn and generate instant and large amount of profits.

day_trading

The day trading is a financial method of investing in the market where both the buying and selling positions are held in the course of the same day. This means that if one person has bought a certain financial security in a particular day then before the market closes for the end of the day the investor or speculator will also sell that security on that very same day.

Contrarian investing is one of the most unique methods involved in the day trading process of financial investing. This strategy is basically a time based strategy and depends on the entire judging of the timing of the market and then accordingly timing the decisions.

The main expectation behind this strategy is that if a certain financial security has been rising for a large period of time then the next move for the financial security would be a drop because if something goes up for a long time then it will have to peak at some point or the other. This timing of the peak value of the security is what are the key and the drawing line between a profit and loss in this method.

Thus under this method the day trader will be known as the contrarian investor. If a particular financial security has been falling for a long period of time then the investor in this situation will buy the security as the hope is that the lowest point has been reached and the next move for the value will be up wards. If the security has been rising then the investor will short sell it with the hope that the peak has been reached and now the value of the security will decline.

The main reason for the gaining popularity of the day trading method is because of the increase in the digitization of the entire trading system and process. The people do not have to visit the market personally for under going through the entire buy and sell process. The decisions on the pricing and which stock to buy and sell how much to sell etc have to be taken within a very short span of time and an experienced day trader will definitely be able to gauge the market well and thus end up earning good profits for him or herself in the trade result at the end of the day.

The advent of accounts and several features being offered under the online day trading course of various financial firms has made it easy and convenient for the home traders especially since the task of visiting the market themselves has now been removed from the process.

September 8, 2013

Day Trading: Guide for Beginner

Day trading is also one concept which should be very well known to any speculative investor before he or she jumps on to the band wagon to gain and earn quick profits and money. The day trading is a financial method of investing in the market where both the buying and selling positions are held in the course of the same day.

Day Trade Forex This means that if one person has bought a certain financial security in a particular day then before the market closes for the end of the day the investor or speculator will also sell that security on that very same day. This also justifies day trading training which is day trading since the trading on the security is carried out on the same day itself.

The financial market works in ways which is not so easy for a lay man to understand and thus work around investing through it. It requires a good sense of fluctuations and expectations to be judged and trends to be identified before making any buy or sell decision for any kind of financial securities or trade worthy entities. The knowledge and the precision is extremely important for investors when the market sentiment is speculator and people or rather speculative investors are trying to get in the market to earn and generate instant and large amount of profits.

The people who under take this kind of financial activity in the market are called speculative investors. This is because they are coming or rather entering the market because of their motive of getting quick gains and profits. The various financial securities which are available in the financial markets can be traded under the method of day trading. These securities include stocks, stock options, currencies, future contracts like equity index futures, interest rate futures and commodity futures.

Day trading is not averse to risk since the positions of buy and sell have to hold within one day itself and the investor does not get a very long time to analyze and study the market over a large period of time. the decisions on the pricing and which stock to buy and sell how much to sell etc have to be taken within a very short span of time and an experienced day trader will definitely be able to gauge the market well and thus end up earning good profits for him or herself in the trade result at the end of the day.The main reason for the gaining popularity of the day trading method is because of the increase in the digitization of the entire trading system and process.

day-trading-software

The people do not have to visit the market personally for under going through the entire buy and sell process. The advent of accounts and several features being offered under the online trading systems of various financial firms has made it easy and convenient for the home traders especially since the task of visiting the market themselves has now been removed from the process.