Trading with Stocks - Introduction (Part One)

Hi everyone
following my thread: http://forums.digitalpoint.com/showthread.php?t=189926
and as i said, here is the introduction (part 1) to stocks trading (Day Trading)

Tutorial is dedicated to Day Trading Stocks (Not swing).
Requirements: You should be familiar with basic stock trading, terms, and abbreviations

Part One:
What is Day Trading?
Its A style that covers a holding period of several minutes to hours.

Types of Day Trading:
- Three forms of Day Trading:
1) Scalping 2) Momentum 3) Day

Charts Used:
Day Traders use 5- & 15-Min. charts to make entries and exits.

Stocks to buy, sell:
Day Trading is best used on active, highly liquid stocks.

Strategy:
Day Traders try to capture smaller gains with gains with minimal dollar risk.

Warning:
Day Trading is a style of trading that May not be suitable for ALL as it considered RISKY

Requirements:
- Confidence
- Patience
- Discipline
These are the main and most important factors needed to be successful day trader, but HOW to achieve them? Should Eliminate the Subjective analysis.

Tools Needed:
- Charting Tools
(5-, 15 , 15- & 60 & 60-Min. Day Min. Day-Trading charts displayed in Candlestick form, Color coded volume)

- Technical Tools
(20 20- & 200 & 200-period ‘simple’ moving averages)

- A Price Pattern:
(The Pristine Buy & Sell Setup)

- Money Needed:
Most brokers require a minimum of $2000 to open an account. However, there are brokers out there that require as little as $0 top open one.
if you start with $2000+ you may trade with margin (with margin you would now have up to $4000 of stock buying/shorting power (2 times the amount in your account. Note : some brokers may give you 4 times of the amount in your account)

- Time needed:
Personally i prefer from 2-3 hours/day

- Brokers Type:
You need a direct access broker to provide a LIVE data.

(End of Part One)

In part two i will go in depth with some terms/techniques

Enjoy

 

I wouldn't advise day trading for any newcomers. I think they should look to invest with a long term view.

 

Agree, thats why i said its risky. this introduction is for those who is willing to switch to day trading.

 

PM me your MSN/YIM. I would like to discuss more futher with you. Thanks.