Day Trading

The best way to get started: LEARN as much as you can about the market. And then start trading on a paper trading account to gain experience.

If you are new to trading, then you should definitely take a look at trading systems.

Here's why:

Every minute more than 150 Million Dollars change hands in the electronic index futures markets like the e-mini S&P and e-mini NQ. You can win or lose thousands of dollars in a few minutes; the futures markets can make you rich in a few weeks or months or wipe out your account with no mercy.

If you want to compete in the “game of games” and play against the best traders in the world, then you need to get ready. Too many gamblers are entering the arena without any plan or strategy, completely unprepared, and that's why they lose.

Trading a system will dramatically increase your chances to succeed in trading, because it eliminates five of the top six reasons why unprepared traders fail.

Here are the top six reasons why traders fail,
and how a trading system eliminates them

Let's take a look at the reasons why traders lose money:

1. Lack of a Trading Plan
2. Lack of Discipline to Follow the Plan
3. Failure to Control Emotions
4. Failure to Accept and Limit Losses
5. Lack of Commitment
6. Over-Trading

By all means you have to avoid these mistakes if you want to win.

Here's how a trading system eliminates 5 of the 6 top reasons why traders fail:

Solution #1: Having a trading plan

Having a trading system means having a pre-defined set of rules you have developed to guide your trading. Therefore you HAVE a trading plan, eliminating the No.1 cause for failure.

Solution #2: Following the trading plan

The easiest way to follow a trading plan is to automate it. Almost every trading system can be automated, and you could let the computer trade for you. You won't have to worry about your discipline any longer, as the computer mechanically trades every setup for you.

Solution #3: Controlling emotions

Trading with a system removes emotions from trading. If you don't have a strategy and you try to make decisions when the market is moving, you are liable to become emotionally attached to positions. You may experience panic and indecision when the market does not move in your favor, as you do not have a prepared response. That's when most traders lose their money. If you follow a system you will know what to do no matter what the market does.

Solution #4: Controlling your losses

You probably have heard the saying “Let your profits run”. Unfortunately most traders let their losses run. A trading system will get you out of a position when the predefined stop is hit. Unless you override the system to “give the trade a little bit more room” it will stop the loss and therefore limit your losses.

Solution #5: Commitment

You won't believe how many traders show a lack of commitment and therefore lose money. Lack of commitment means that they stop trading after the first loss, and don't give their system a chance to make back the money they lost. Trading is not a one-way street, and losses are part of our business. If you can't accept the fact that there will be losses, you shouldn't trade. Fortunately a trading system can help you to overcome this problem; an automated trading system continues trading according to the rules, and therefore adds much more consistency to your trading.

As you can see, five of the six top reasons why traders lose money in the markets are simply eliminated when you start trading with a system.

Without any guarantee, your chances of making money rise incredibly when starting with a profitable trading system.

Hope that helps.

You will need a computer that is quick you will also need a highspeed internet connection and most importantly you will need level 2 charts that are not delayed that are up to the minute tick for tick with the market, which you will probably have to pay a subscription for. Most charts on the internet are delayed. If you don't know how to day trade you will need to learn how which I am assuming you don't understand the true concept of day trading most people don't they think it is based on volatility and momentum which couldn't be further from the truth. It is based on mocking the specialists and getting inbetween the bid ask spreads which have become very tight in todays markets. so educate yourself before you start.

Day trading is definitely a great way to make huge profits but many people don't know the SEC rules on day trading. The SEC requires that you have a minium of $25,000 in your market account in order to day trade. I would recommend getting a scottrade account set up and using that as your broker to place orders. You can setup a joint account with another account holder and use the combined account balance to create your $25,000 minium balance. I personally bought 2 $10,000 CD's at a 6 month term to have a safe place for $20,000 and the other $5,000 was used for day trading. I've made lots and lost lots doing this so do your research when taking such risk. I've also made large profits in real estate but location and timing play a large part in that. Real estate is more of a long range investment tool and can eat you up if you don't run the numbers right! You have to keep in mind that you're paying interest on your loan, taxes always go up, home owners insurance, and the rent money isn't always on time. A great place to invest internationally is cancun! Great rentals and its always a hot spot!

You need to maintain a minimum of $25k in your account to get 4x buying power. If you're deemed a pattern daytrader (4 daytrades in 5 business days), you HAVE to have that ($25k, that is).