Step-by-Step Stock Investing for Beginners
http://www.stock-investment-made-easy.com/
http://answers.yahoo.com/question/index;_ylt=As61UR4DWXZnVDIVK6se6XLty6IX?qid=20070717183111AAk8IIS&show=7#profile-info-kFApW5uJaa
While day trading is neither illegal nor is it unethical, it can be highly risky. Most individual investors do not have the wealth, the time, or the temperament to make money and to sustain the devastating losses that day trading can bring.
Here are some of the facts that every investor should know about day trading:
Be prepared to suffer severe financial losses
Day traders typically suffer severe financial losses in their first months of trading, and many never graduate to profit-making status. Given these outcomes, it's clear: day traders should only risk money they can afford to lose. They should never use money they will need for daily living expenses, retirement, take out a second mortgage, or use their student loan money for day trading.
Day traders do not "invest"
Day traders sit in front of computer screens and look for a stock that is either moving up or down in value. They want to ride the momentum of the stock and get out of the stock before it changes course. They do not know for certain how the stock will move, they are hoping that it will move in one direction, either up or down in value. True day traders do not own any stocks overnight because of the extreme risk that prices will change radically from one day to the next, leading to large losses.
Day trading is an extremely stressful and expensive full-time job
Day traders must watch the market continuously during the day at their computer terminals. It's extremely difficult and demands great concentration to watch dozens of ticker quotes and price fluctuations to spot market trends. Day traders also have high expenses, paying their firms large amounts in commissions, for training, and for computers. Any day trader should know up front how much they need to make to cover expenses and break even.
Day traders depend heavily on borrowing money or buying stocks on margin
Borrowing money to trade in stocks is always a risky business. Day trading strategies demand using the leverage of borrowed money to make profits. This is why many day traders lose all their money and may end up in debt as well. Day traders should understand how margin works, how much time they'll have to meet a margin call, and the potential for getting in over their heads.
Don't believe claims of easy profits
Don't believe advertising claims that promise quick and sure profits from day trading. Before you start trading with a firm, make sure you know how many clients have lost money and how many have made profits. If the firm does not know, or will not tell you, think twice about the risks you take in the face of ignorance.
Watch out for "hot tips" and "expert advice" from newsletters and websites catering to day traders
Some websites have sought to profit from day traders by offering them hot tips and stock picks for a fee. Once again, don't believe any claims that trumpet the easy profits of day trading. Check out these sources thoroughly and ask them if they have been paid to make their recommendations.
Remember that "educational" seminars, classes, and books about day trading may not be objective
Find out whether a seminar speaker, an instructor teaching a class, or an author of a publication about day trading stands to profit if you start day trading.
Check out day trading firms with your state securities regulator
Like all broker-dealers, day trading firms must register with the SEC and the states in which they do business. Confirm registration by calling your state securities regulator and at the same time ask if the firm has a record of problems with regulators or their customers. You can find the telephone number for your state securities regulator in the government section of your phone book or by calling the North American Securities Administrators Association at (202) 737-0900. NASAA also provides this information on its website at www.nasaa.org/QuickLinks/ContactYourRegulator.cfm.
Instead, read the Intelligent Investor and follow Warren Buffett. Get a great job and invest the proceeds wisely.
Best Regards,
Docmase
I tried the 15 day free trial and was making over 30% annual interest on my money. They showed how I could make more but also had to take bigger risk trading. I was able to swing some trades for positive return of 10% in 15 days trading conservatively with a demo account. I have only been in the forex market for a short time but found it very intriguing.
Thanks for your responses in advance.
There are thousands of stocks and trillions of shares in existence, and theoretically, each share could have a single owner. During a regular business day, billions of shares change owners. Every single transaction (date, time, number of shares traded and the price) is recorded somewhere and broadcasted over the internet, so others can get
real-time quotes and historical quotes and charts for each stock…
Some kind of super computer must be working in the background to keep track of who owns what or else the stock market would not work. So, my question is where is all this information stored and what kind of computer is responsible for handling all this important data and making the stock market work? How is it possible for this huge system to work so smoothly? Explain plz.
If you have a brokerage account at Wells Fargo then they have your information.
You are right, there 9 billion shares of Microsoft in the Planet but Wells Fargo only handles 0.01% of them with a regular $999 Dell Personal Computer.
If you have a brokerage account at Bank of America then they will have your private information and the same case applies.
There are thousands of banks all over the World and each one of them has a few thousands of Microsoft shares.
When you sell your Microsoft share to me Wells Fargo reduces the number of shares in your brokerage account from 1 to 0 and it only takes a nanosecond.
In contrast, the number of shares of Microsoft increases in my brokerage account from 0 to 1 and it only takes a nanosecond.
There is a middle man between Wells Fargo (Your bank) and Zecco (My broker)
In this case, the middle man is the NASDAQ.
Basically, I'm not up for a big gamble, I want to take twenty dollars and make it fourty.
A friend of mine mentioned day trading, how and where do I start? What's it all about?
Any information or insight would be appriciated!
Forex market or Foreign Currency Exchange market is one of the biggest trading market in the world with over USD 1.3 Trillion traded in a day. It is drawing attention ever since it is open to Online trading. Forex trading can be very profitable if you take your time to do a proper research, understanding various options and choose a system that works for you. The most used Forex trading system may not be the most suitable for your needs.
There are many different kinds of Forex Trading Systems and you need to know a few facts as mentioned below, before choosing and funding a system.
1. Testimonials: Is there anyone out there who is trying to sell a system and show you testimonials from the people who actually didn't like the system? Highly unlikely. You should do proper research before indulging into a system that is completely new to you.
2. Profit: Do you want to work with a Forex Trading system that breaks even? Why? If you keep the money in your home, you will still break even, then why take all the hassles of setting up an Forex Trading account and do all the work. Really speaking, you should always do some research on how profitable a particular trading system is?
3. Drawdown: The maximum drawdown of trading system is defined as the greatest peak-to-valley drawdown in a trading system’s equity. Maximum drawdown gives us a measure of the survivability of the trading system.
4. Time to profit: The actual time it takes to achieve the results with a particular trading system. You should plan to have a long and profitable relationship with your trading system.
Try to use a trading system that let you open a Demo account so that you can practice and learn about Forex Trading without risking any money.
I have tried many of these systems in my quest to simplify my trading experience. I personally have found FreedomRocks to be the system that has worked for me. I have found no bad information on this system from anybody that has actually used it. I have found many skeptics and bashers but nothing from those that have actually tried at least the free trial they offer.
Below are a couple of links I have found in my travels around the web:
http://www.yourforexinvestor.com
http://www.babypips.com
Now as far as how much money you would need to gat started I have helped people get started with amounts ranging from $500 up to well over six figures. If you would like I could send you a spreadsheet of how to get started right with just $500 invested on a monthly bugeted basis. The spreadsheet will show you how that investment could easily grow to well over $240,000 within 60 months! Feel free to e-mail me and I will get that right over to you.
bjwells@yourforexinvestor.com
To Your Success,
Brandon Wells
877-773-5345
What king of success rate do you get with software? Are you better off just going on instinct? Is there a better trading company than tradindex as I find the site too slow for closing trades. The spreads are too wide.
Any suggestions would be appreciated!!!!
Thanks
In order to understand how markets work it is always better to have a good knowledge of the markets themselves. Few traders actually know this and this explains why a lot lose money on the derivative markets. One of the key ingredients to success is to understand the fundamental basics of supply and demand. Chartism also plays its role if you take the time to undestand it.
What I don't like about the programs that give people technical analysis information and "buy" and "sell" signals is that despite their claims of instant riches why is it that most people who make money on the market NEVER use them? There is the old saying "if something seems too good to be true isn't it the case it usually is?"
Many years ago I received a maling shot through the post about a program that could predict the exact peaks and troughs of the FTSE and other major indices. It said it had 90% accuracy and went back as far as 1901 predicting the 1930's slump! You just push in numbers and like magic instant wealth is produced. Now that's amazing software!
A few months later the entire company were exposed as a fraud on BBC television – which hardly surprised me!
The truth is that there are so many variables to the movements in stock prices and commodities that having a clear set mathematical formula for success is almost impossible. If you understand the correct method of trading and how to use derivatives correctly you can be on the way to a small fortune but this requires intelligence, vigilance and patience – qualities that most traders don't have.
I have found Tradindex to a a superb company which have given me one of the easiest trading platforms imaginable. However, a lot boils down to personal taste.
Another company I highly recommend is this one:
http://www.finspreads.com
Also try this brilliant authoress:
Toni Turner (http://www.toniturner.com/)
Good luck with your trading!
all the required information is in this blog..
www.shares2share.blogspot.com
Because companies are releasing news almost 24 hours/day these days, their stock price reacts to these news releases whenever they become available. Also, the world does not go to sleep at 4 p.m. eastern time and stocks in general are reacting to all kinds of news being released on a 24 hour basis.
Individuals can participate in these after-hours market activity by having their trading accounts with brokerage companies which offer their customer access to their accounts via Direct Market Access systems. These systems are considered to be electronic trading systems and can be run on your computer at home utilizing high speed internet access like DSL, Cable or fibre-optics.
If you would like to get more information on Direct Market Access systems or open an electronic trading account I would suggest you speak to the guys I use. They can be contacted at:
http://rematatrading.com/contactus.aspx
They have been very professional and helpful to me.
Good luck.
But to answer your question; the previous response was a good one. One approach is to find securities that are highly volatile, where you can buy in low one day, and sale on an up day. Right now the market is extremely volatile, so finding the volatile securities will not be hard. Finance sections on search engines, provide a lot of helpful information.
BUT, the biggest thing to consider here, is that day trading is extremely risky. You could create big losses. Always consider your Risk Tolerance before trading any security.