I will be very thankfull to someone who gives me advice as I have already lost lot of money this days. At present I have short sell Niftyfut.
Definitions time folks:
Savings – reserve funds invested in a safe vehicle to protect ones assets and receive a small return in exchange for giving up current purchasing power.
Investing – putting capital at calculated risk in order to achieve higher returns.
Trading – Speculating on short term movements of securities prices, involves high levels of personal risks but provides benefits of providing extra liquidity & effecientacy to securities market.
Now professional traders, a) have the financial ability to withstand prolonged periods of losses, b) understand there is no "perfect" method, and c) even if they had found something even bordering on effective, wouldn't distribute it freely as it would dilute the efficacy of their method (And with the current state of the mortgage markets we're learning just how falliable even those "propietary" methods can be).
Sounds like you need to back up. Start building your savings, then your investments. After that, if you must, you can start a trading account. But, honestly I've made far more in two years of investing, than I did in 10 years of trading. (Simple math lesson one, if a stock drops 50%, from that point it has to go up 100% for you to break even — meaning minimize your loses is more vital than maximizing your gains).
For the beginners which one will be better… Intra-day trading or Long term trading..??
But you also need to ask yourself how much could you lose.
If you ignore the risks you'll be taking you won't last too much time on the market.
About the intraday or long term trading: basically the best trading strategy is the one that fits your personality. But keep in mind that for short term trading you would need much more than Rs5000.
Good luck on your trading
Seriously, that is how most stock tips work – so be very careful.
PS – MSTR is a very good stock, I bought at $108 in October, and it has hit $130 several times since then.
Regarding taxes, in the US, if you make $60000 daytrading, you will pay short term capital gains. On the other hand, if you lose a net of $60000, you can only write off $3000 per year, until the $60000 is written off (about 20 years).
swh
An important aspect of day trading is to have a set investing plan. Day traders don't always make a profit on each trade they do during the day but if they keep to their plan (if it’s a good plan) they will be more likely make a profit for the day.
The barriers to becoming a day trader are experience and cash. You need both to succeed in the stock market.
They impact the market in a few ways. First they add volume to the market. They also can increase the speed of spikes. When a day trader sees his stocks tanking he will sell them. This will drive down the price more. Conversely if he sees a stock that is starting to rock he will buy. This will increase the value of that stock.
In order to profit from the forex market, you will need strategies and also the will to change these strategies. Traders who lack a well thought out trading plan are prone to panic and confusion, when unexpected swings in the forex market occur. Many traders will tell you that trade driven by emotion is the fastest way to deplete your funds. Whether or not you are using a technical or fundamental style, it is still essential that you have a proper view of the market.
Developing your own trading style is a time consuming process and is often acquired through trail and error. It is unfortunate that there is no ‘golden’ rule’ to trade in the forex market and technical and fundamental styles of trade won’t be successful all the time. Successful traders often have a unique style of trading and take up various strategies during a trading session. Only continuous practice will help you gain a feel for the movements of the forex market.
Here are this month's best traders:
http://www.top10traders.com/Top10Standings.aspx
Good luck.
Does anybody have any good experience with this software?
Your response will be much appreciated!
Thank you!
First, you're using Vantage Point to day trade, but they will tell you that Vantage Point is for position trading. Yes, they're predicted high/low is very accurate (granted, major moves can be outside the range, but how often do you have a huge 1 day move?), but it only tells you the possible high/low, now what the trading pattern for the day will be.
One thing I could suggest is this: Use the Short Term/Medium Term Predictive averages (the pink and light blue lines, I have mine set on the bottom part of the chart) to get an idea of when prices could be changing direction. Also, when you switch from the 10 day or 5 day average to the predicted high/low, you'll notice that the short/medium predictive lines will be different that from the 10/5 day chart. What I do is when the short predictive (light blue) line crosses the medium (pink) line on both the 5/10 day and predicted high/low chart, is when I get an indication markets will turn (and it's very accurate).
When that happens, since you day trade, use your technicals on whatever time frame chart you're using to take trade only in the direction of the crossover. For example, say you're watching the S&P 500, the market is trending up and you notice that on the 5 or 10 day chart that the short term predictive has crossed below the medium term, and when you switch to the predicted high/low chart that the short has not crossed below the medium predictive, but is about to, wait till the short crosses below the medium predictive on the predicted high/low chart (that is short has crossed below medium on both 5/10 and predicted high/low chart). When that happens, use your technicals to time short entries, don't go long. In other words, say you're using a 5 minute chart. If the market is trending up, and you're technicals give you a signal for a short, then take the short trade.
When the signals show the 5 minute chart starting to turn back up again, close your short, but do not go long, only enter again when you get a sell signal.
Trade in the direction of the larger trend. You should get less whipsaws and will be trading in the direction of the larger trend. When the short crosses above the medium predictive on both the 5/10 and predicted high/low chart, the only take long trades.
Hope that helps.