Day Trading

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!