Author Topic: A beginners guide to day trading online  (Read 445 times)

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GreenMoney

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A beginners guide to day trading online
« on: May 27, 2012, 01:25:36 AM »
Market operate without normal human helpfulness. Every trader tried to hit others. Every trader get hits by others. The trading highway is lettered with wrecks. Trading is the most dangerous human endeavors, short of war. Majority of the people (80%) lost their trading accounts by ignorance, trading too much or taking foolish risks. Some can't handle the stress.

You can make boatloads of money daytrading. If the rewards are high, however, so are the tradeoffs. The stockmarket is a ruthless arena. Newsweek once called Wall Street the "avenue of avarice". It's inhabited by the sharpest minds in the world, all intent on grabbing your money as fast as possible. It's a greed-againts-greed, fear-versus-fear, trader-battling-trader, if-you-die-i-win world. Every day. No mercy. The more you lose, the harder I laugh.

Emotional discipline is a must. The best traders monitor their emotions constantly. In Trading for a Living, Dr. Elder says, "Your feeling have an immediate impact on your account equity. You may have brilliant trading system, but if you feel frightened, arrogant, or upset, your account is sure to suffer." I've traded while feeling scared, amug and sad. During those times, I've always lost money.

Greed and fear rules the financial markets. These two emotions motivate nearly all market players- institutional managers, stockbrokers, investors, traders and you.

Say you buy a stock at the perfect entry point, and it raises exactly as you expected. A little boy whispers in your ear, "This baby's gonna fly. Why don't you take all the money in your trading account and buy as many shares as you can? You'll make a killing. Greed

Or you buy a stock and it moves up two points. I'ts your predetermined profit exit and you think, "This is the sensible place to take profits. But this stock might push higher. I'm staying in." Greed.

Typically, when strong stocks explode in a bull market, greed explodes in direct proportion. But there's a downside. These same stocks fizzle as fast as, and usually faster than they mushroom. The falling price detonantes panic (fear), and everyone runs for the door with less money than they came with!

Another example: Convinced a particular stock would shoot up at the market's open the following morning, you took a hefty position home the night before (greed). The next morning though, the market opens way down (fear). Your stock crashes like a boulder off a cliff, as selling runs rampant. Panic twist your heart and your stomach. The blood pounds in your ears as you watched a big portion of your trading account dissolve with the red blinking prices on your monitor.

Gulp. "Is there a way around this?" you ask. "Can i trade without greed and fear?"

Absolutely, If you learn how to control these two destructive emotions by replacing them with positive ones, if you study and apply what you learn in a discipline and cool-headed fashion, then you'll have the edge over 99 percent of all market players.

Don't push the river: Swim with it and the money will flow to you.

The stockmarket flows like a river. You cannot push it in the other direction. You cannot paint it in a different color. You cannot disagree with it, or demand it behave differently. You can only control yourself and your reaction to it!

Once you have that concept firmly in place, your goal is to come to the market each day, as professionals do, and regard it with positive objectivity. How does that feel like? Like this:

* You observe and interact with the market as it truly is, not as you wish it were.
* You feel calm, your self-trust is fully intact, and you feel no pressure to do anything except follow your plan.
* Feeling of fear, rejection, and having made mistakes are nonexistent.
* You focus intently, yet with a certain feeling of detachment.
* When the markets gives a signal to act according to your plan, you execute
the trade quickly and calmly.


a compilation from "A begineers guide to day trading online." - Toni Turner

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A beginners guide to day trading online
« on: May 27, 2012, 01:25:36 AM »

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