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Posts Tagged ‘day trader’

Scalp Trading is a precise high speed form of day trading where you buy and sell a stock within a time frame of seconds to minutes trading millions of shares per day on low priced stocks.  Although the scalp trader only looks for gains of 0, 1, 2 or more pennies per trade, when you take in consideration the large volume of shares being traded, the profits can be lucrative. And yes, you can still make a profit when you end up flat, it’s called rebate trading. It is named rebate trading because ECN’s will rebate you money when you add liquidity. Despite what some people feel, other than requiring extreme focus, Scalp Trading is an easier type of Day Trading to learn and perform.  With this “in and out for quick profits” style of trading, scalp traders work with a small universe of only 2 to 6 stocks.

In this video, you will see a Proprietary Trading trained trader Scalp Trading the last 15 minutes of the market.  This scalp trader already has done 1.3 million shares up to this point and $5,000 in profit but during those final 15 minutes, you will see him finish out the day with 1.five million shares and $5,600 in profit.  In the 20 minutes preceding his profit was $4,500 but unfortunately you tube won’t allow videos more than 15 minutes.

This Proprietary Trading firm has been having great success with graduates of their trading seminars that have continued on to Scalp Trading the markets.They tracked the traders results with this method of trading and saw that those scalp traders achieved better results with less risk than when they engaged in swing, day and intraday trading.

Keep in mind that Scalp trading is not something you run out and do on a whim. It a specialized form of trading that for most will require training and practice using low volume at first. In addition, a trader must have acces to special pricing as low as 50 cents per thousand shares and just as important, access to special floor routes where you will have the privelage of getting your orders filled in a quicker manner. These are important advantages that you would not receive if with a online broker.

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Stock exchanges are volatile and please use caution trading, this can be a risky market. The practice of trading it on margin increases that volatility exponentially. We are therefore talking about a very ‘fast market’ which is naturally inconsistent. Following that precept, it is logical to say that in order to make a successful trade, a trader has to take into account technical and fundamental data and make an educated guess based on his or her own perception of market sentiments and the market expectations. Using timing to make money and finding a good trade is probably the a very important variable in trading successfully but sometimes there will be times where a traders’ timing will be off. You cannot always make money

We will see what a day trader needs to do in order to put the best chances for money making trades on his side:

Usually Trade with a lot of cash you can afford to lose:
Trading reits is speculative and can result in loss, it is also exciting, exhilarating and can be addictive. The more you are ‘involved with your money’ the harder it is to make a clear-headed decision. Your money you have earned is really valuable, but money you need to survive shall not never be traded.

look at the trending indicators of the market:
What is the stock exchange? Is the stock market trending sideways, downwards, is it in a trading range. Is the trend really strong or weak, did it begin long ago or does it look like a new trend that’s forming. Getting a clear picture of the market situation is laying the foundation for a successful trade.

In closing, please do your homework on the markets and you should have winning trades in your hands

Remeber, a good trade is a good day and a win-win strategy for your pocketbook

Click this stock link now

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Did you know that there are 4 mains types of trader and depending on what sort you are will determine many parts of your trading strategy and trading plan. The 4 types are: scalping, day trading, swing trading and position trading. When you decide the type of trader that you are it will also determine the time frame in which you will be making your trade. This will be a very important decision that you need to make when deciding how you want to learn to day trade.

1. Scalping Trader, if you scalp the markets this means that you are only looking for a few ticks profit per trade and you may only be in the trade for a few seconds or a minute at most. trading. Some people will also call this day trading but it’s really micro day trading, buying the bid and selling the offer, it’s high speed trading and you might end up doing 10-50 trades a day. This is a very stressful way of trading for many people.

2. Day Trader, the true day trader opens and closes their trade within the same trading session, usually this mean the same day, but unlike a scalper the trade may be held for a few minutes up to several hours. Usually day traders make about 2-5 trades a day and most of them will be in the 5-30 minutes range. This is a less stressful way of trading than scalping but it still requires a lot of attention and quick decision making.

3. Swing Traders, swing trading usually means that a position is held for between 1 to 5-10 days, although some swing traders may keep a trade on for longer most are within this time period. For many this is the idea way to trade because it allows you to review your trade overnight, at the very least you have several hours to make your trading decisions.

4. Position Traders, this just means that you are going to hold onto your trade for longer than a few days, maybe even as long as 1 to 2 months.

If you are still working out how to day trade then it may be better to go with the longer time frames as it gives you more time to think.

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