Day Trading
I'm Colin Dallas.
This is my day trading site.
You can expect ups and downs on the stock market at the best of times. Prices go up and down and so do your emotions. To take money consistently from the markets, you need experience, a lot of experience. You also need a plan to make sure you don't lose everything if the market suddenly turns against you. Always have something put by for a rainy day.
Are you planning to trade by the seat of your pants? Watch Bloomberg in the morning, listen out for a few tips from the 'experts' and then trade them? There are a few words I could call you, but the kindest is loser. You need some sort of trading system written down. If you lose money, adjust the system using logic as your guide.
If you want to be a day trader, not just a trader, you need to start early and identify if there are any trades your system tells you that you could take on today. If there aren't, watch the markets as the day proceeds, looking for opportunities. Don't take on trades for the sake of it. That's for losers. Only trade if your system gives you the greeen light.
It's up to you whether you trade stocks, commodities or currency. The currency markets are the most liquid, meaning you'll always be able to trade instantly. At the opposite end of the spectrum, there are some stocks out there which are lucky to see a few trades each week. If you day trading, you need liquidity so aim for the big commodities, the highly traded stocks and currencies.
I'd strongly advise you not to buy a trading system from anyone. Honestly, if you had a trading system that could take 10% out of the markets each week, would you sell it to anyone and have everyone trying to trade your system, which will immediately turn it into a pile of manure? If you did have a system like this, think about what it could do, starting with just $1000.
| Week | Money |
|---|---|
| 0 | $1000 |
| 1 | $1100 |
| 2 | $1210 |
| 3 | $1331 |
| 4 | $1464 |
| 5 | $1611 |
| 6 | $1772 |
| 7 | $1949 |
| 8 | $2144 |
You more than double your money in 8 weeks. In one year, you would turn $1000 into $142,043. If your system worked for two years, you'd make over $20 million. Even if your first system stopped working, if you were good at system design, you'd have another one up and running by that time, and you'd continue to churn out the cash. In my experience, people who can make millions from the markets don't easily surrender their competitive advantage.
If you're a new day trader, you need a demo trading account. Make your mistakes virtually and not for real.