Make Money Trading Online

Archive for September 15th, 2009

I was sure that my brother had gone crazy when he told me he was quitting his paying job to become a full time day trader. Gerald is well known for always approaching things carefully and never doing anything in a reckless manner. But in less than a week he quit his job at the bank and began working out of his home office. I was speechless towards my brother. My brother always was my role model, so I couldn’t point out his faults.

However, when I remembered my little nieces, I thought I should take a step back and inquire. One weekend when I got to his home I asked him what was up. Why, I asked, had he thrown away a good job with a fine salary and great benefits? Gerald simply smiled and responded in his usual cocksure way that he knew what he was doing. At that point I nearly lost it. I told my brother he was self-centered, and he should think about others. I thought twice as soon as I spoke those words, however my brother only smiled and agreed with me.

{Though I had almost no interest in the stock market, Gerald pulled me aside later that evening and insisted on explaining to me why he had decided to become a day trader.} To me it was all Greek. I wasn’t really interested in day trading or the market. Nevertheless my brother told me it wasn’t the entire black magic. He said there was a definite rhyme to his reason.

I sat back and listened to his rap. He found that the most successful day traders gave their attention to just one or two stocks. It could sometimes take watching a stock for several months before deciding if it was worth it for them to trade it. All in all, it just came down to patterns. My brother said that there were patterns that each stock moved in on a daily basis. You can’t really set your watch by these patterns, but they give a good hint to brokers about what the stock price will be in the future.

And this was how my brother made his fortune.  The way he made his money was simple. Instead of buying big, he bought small and watched his profit grow slowly over time. It was not uncommon, he said, for him to trade the same stock dozen of times a day.  In the end, a successful day trade was all about short term results and something that could be repeated several times a day.

His success at learning how to day trade got me interested to try my hand at it as well.I am really lucky my brother is patient and a good teacher, as I now have a mentor to teach me what I need to know about day trading.I do not expect to get to be as good as my brother is at day trading, but I think it can provide me with some extra income.I really am glad I took the leap and learned about trading the stock market.

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