Day Trading - How To Succeed?

By Dr. Asoka Selvarajah

Day trading defined

If you buy stocks on a particular day and also sell them again before the market closes you could be said to be indulging in day trading. It was earlier felt that only investment professional working for companies that took care of investments for their customers could practice day trading. But now that the internet has allowed people to trade online from their homes, a lot of casual traders have also started day trading.

Risks in day trading

Traders have now found that day trading is one of the best ways of making money. Whether you are into day trading as a professional or are just trying to increase the sources for your income, day trading has proved its potential for making money if due care is taken and proper norms are followed. Day trading can be risky but unless you take risks and make the correct decisions, there is no way you can maximize the profits from day trading.

The steps to be taken by a successful day trader

To make money on the stock market you have to buy when the prices of stocks are low and sell them when the prices go up. This is a very simple rule, but deciding when the price is low enough for you to buy stocks, and whether the price has appreciated enough for you to make a profit can be quite tricky and could decide whether your venture into day trading is successful or not.

Knowledge is the key to stock market trading in general and day trading as well. Newspapers generally have separate sections devoted to the stock market and you would do well to peruse these. The internet is another source of information, as well as many TV channels that are devoted exclusively to following the stock market. Make sure that you are not snowed under by the plethora of information that is available and limit your sources to only those that make you feel comfortable.

Restrict your day trading to shares that you are fully conversant with and see that the list is not too extensive. Your information on the stock market should keep track of its general behavior and you should pay attention to what is happening to the shares of reputed companies even though you are not trading in them. Your list of stocks should be of those companies that are constantly showing some movement as only then can you indulge in day trading and hope to make profit. If a stock stops moving, whatever the reason, take it off your list and look to replace it with a more volatile stock.

Learn how to analyze a stock's movements quickly so that you can decide instantly whether to buy or sell. Do your calculations well and judge whether the small percentage movements are to your benefit or not. As you are trading from day to day, movements may not be large, though over the long run these can accumulate to quite large sums. Keep your feelings under control, and do not go overboard with a large gain or depressed by a big loss. Just see that your overall portfolio worth is always increasing even if it is witnessing some daily fluctuations.

Conclusion

You may not become a millionaire the day you start day trading, but you can start earning that cash on a daily basis and go towards your goal of making the fortune you always wanted to. Keep yourself well informed, limit the number of stocks you deal in, watch for those price changes, analyze the movement in the market, take quick decisions and above all keep your emotions in check. - 23223

About the Author:

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The Beautiful Australian Silver Kangaroo Coin

By Christina Goldman

Because of its potential intrinsic value, the Australian Silver Kangaroo would be an enriching addition to any coin collection. The Silver Kangaroo is an epitome of the high quality of RAM, (The Royal Mint of Australia), minted coins, world-renowned for their exquisite craftsmanship and design.

Investing in this coin could serve as a hedge against inflation owing to the popularity it has acquired, which was bolstered to a great extent 1-oz. silver makeup. This single-ounce concept has proven convenient and effective for trade and purchase purposes, the liquidity aspect characteristically sought by most astute investors.

So just how did the Australian Silver Kangaroo come into existence?

In 1993 The Royal Mint of Australia, RAM, immortalized the kangaroo as a countrywide icon when it started to mint a coin in its respect : the Australian Silver Kangaroo. Because of its potential natural worth, this RAM mintage would be an enriching addition to any coin collection.

The Kangaroo, (scientifically classified under the genus Macro), is highly regarded as the official animal icon for Australia as, along with the bird emu, it appears in the countrys coat of arms. The kangaroo and the emu, so many Aussies say, are representative of Australia because these animals can only move forward thus epitomizing the nations drive to ever step ahead.

Early coin editions are highly sought, particularly those of the 1998 vintage. Limited minting by the RAM is what makes the Australian Silver Kangaroo a very attractive investment proposition. In 2007, for instance, RAM minted just 15,000 of this coin bullion.

The design of the coin, which varies each year, has also been elegantly rendered for that year. It proudly displays the highly recognizable kangaroo engraving back-dropped against the constellation of the Southern Cross.

Rounding out these distinctive features is the coins diameter of 40.6 mm and thickness of 4 mm. Face value of this coin is at 1 Australian dollar, just a mere fraction of the intrinsic value that this silver bullion coin enjoys among collectors and investors all over the world. - 23223

About the Author:

Find great prices and selection every day on the gorgeous Australian Silver Kangaroo at: http://AustralasianCoins.com

Trade 24 Hours a Day with Forex VPS

By James Smith

When you get online either for forex VPS purposes or research on information you are logging into a server. There is one server that everyone taps into and one operating system. When many people are using one server sometimes things slow down or other times it's hard to open a page. VPS which is a virtual private server as the name states is server being used by only one person. Imagine using a server alone in the whole world. The main server will be divided into several servers and distributed and used as forex VPS.

By using Forex VPS, or a virtual private server, as they are known, many of the problems associated with a shared hosting account are eliminated. When many people are using one server sometimes the account is very slow. VPS is a server being used by only one person. The main server will be divided into several servers and distributed on a shared basis, and forex hosting is usually limited to 15 or 20 virtual servers on a single main server.

One of the biggest advantages of a forex hosting service is that on the dedicated server, you will have your own software's and operating system. This virtual server is like a branch of the bigger universal server but still operates individually. This server is usually used by forex traders, hosting your forex trading requirements. The additional beneift of using a forex VPS is that your MetaTrader EAs will run 24/7, even while you are sleeping. This means that you do not need to have your computer switched on for your trades to be placed, and you do not need to worry about power outages, or losing your internet connection.

If you are a forex professional and transact deals regularly, setting up a forex VPS hosting account will enable you to trade without having your laptop or PC on all of the time. You can trade through a Metatrader broker by simply logging into the site; you will view it and manage the account then start trading immediately.

For those traders who run their expert advisers without interruptions, forex VPS is the ideal service for you. It is always on-line, and does not reboot when trading. Power outages do not affect it and the best part is that the computer can be off. With all its benefits, you can also use this kind of server to test WebPages right before you make them available to the public. It lets you test applications and different software's without having to reboot the whole server.

You need the automatic restart feature incase the server is rebooted and you need to automatically restart. The 24/7 access feature is needed because you should be able to access your forex VPS anytime and trade.

In terms of selecting your forex hosting company, there are a large number of providers who offer this service, as it is becoming so popular with forex traders. Some of the leading forex VPS providers are; EzforexHost, MetaTrader Hosting and Forex Hoster.

All in all, most of the forex VPS hosting providers offer pretty much the the same specs within their hosting accounts. The features that you should look out for especially are a pre-installed MetaTrader preferably with the most recent edition, MetaTrader 4. Also ensure that the hosting service is compatible with all brokers, as there are some brokers which can only use certain operating systems. This will allow you to download and install trading platforms from brokers to your VPS. Finally, double check that the EA you have is compatible with the VPS host. - 23223

About the Author:

If you require more help and advice about forex hosting and Forex VPS go to Forex Village. They offer independent reviews and have considerable expertise in forex hosting and MetaTrader Expert Advisors.

Stock Trading Strategy: Pyramid Your profits!

By Jordan Weir

Are you one to throw caution to the wind, or do you cut your losses short, and let your profits ride? It may surprise you to realize that while many traders think they cut their losses short, and let their profits run, there is a simple technique that will allow them greatly amplify those profits, while keeping their losses manageable. This technique is known as pyramiding your profits.

In order to properly pyramid your profits, you must understand a basic tenant of risk management. This tenant alone is enough to bring many an unprofitable trader to profitability, but only once combined with the idea of pyramiding profits, can its true utility be realized. This tenant states that no more then 5% of your portfolio should be at risk during any trade. Thus someone with a $50000 portfolio can risk $2500 on a trade. This doesnt mean they cant invest more then $2500, but it means that when setting a stop loss, your initial position size should be based on the $2500 number.

To determine your position size, what you do is you take the amount your willing to risk, and divide that by the amount your risking per share (the difference between the stock price, and your stop loss). So on a $20 stock, if your stop loss is at 17.50, and your risking $2500, then you do $2500/2.50 = 1000 shares. Your position size should be 1000 shares.

Now lets say the stock then moves to 22.50, and you move your stop loss to $21. At this point, you've looked in $1000 in gains. To pyramid your profits, you then add shares to the position based on the profit made so far. At this point, you have made $1000 in gains, and your risk amount was $2500. Add these numbers together, and then divide by the difference between the current stock price, and the stop loss to get the number of shares you should add to the position. So 1000+2500=3500/1.50=2300 shares. By doing this, you greatly increase how much you make if it continues to go up, while still keeping losses minimal should it go against you.

Now lets analyze your position for a second. You bought 1000 shares at 20, and 2300 at 22.50. If it goes to 25, then you made $5000 on the original 1000 shares, and another $5750 on the second set of 2300 shares. If it goes down to your stop at 21, then you made $1000 on the original 1000 shares, and lost $3450 on the second set of $2300 shares, for an overall loss of $2450 (about the same as the risk you were willing to take on). The same idea can be applied to shorting stock as well. Just remember " add to your position as you become profitable, but keep your maximum loss relatively constant factoring in the unrealized gains.

Yet the applications of this strategy are important not just for the short term trader; it can be used by long term investors as well. Assuming its an up trending stock, long term investors would be well served to start with smaller positions, with a stoploss, and essentially add to the position on breakouts. This allows you to profit from the frequent megatrends in the market, while being taken out of the market if it begins going against you.

You may have heard the saying, you never go broke taking a profit. This idea is the polar opposite to pyramiding your profits, and is in fact, dangerous. To succeed in the investing world, your profits must be substantially higher then your losses, and that is whats accomplished by a trading strategy such as pyramiding your profits. Cut your losses short, and let your profits run.

The art of pyramiding your profits is essential to long term success in the stock market. They say that even some of the best traders are only right 50%, 40%, sometimes even only 30% of the time, but as that example showed, by pyramiding your profits, your gains will far outweigh the small losses you occasionally take. - 23223

About the Author:

Don't even CONSIDER trading another stock before checking out Jordan's website on Stock Trading Stategies. Learn about Stock Option Stategies, etfs, shorting and more by visiting the Stock and Options Guru!

Discover Forex Trading

By G. Malone

Forex trading is the trading of foreign currencies on the foreign exchange market. This is exchange where a Nations currency is traded for currencies from around the world. Participating in Forex trading means that you are participating in an international market in which a large number of currency fluctuations take place due to many different factors. Profits generated in this market are usually in the trillions of dollars every day and millions of people from many backgrounds engage in it worldwide.

For many people this is one of the primary ways of earning money, while other treat it as an additional source of income. There are people who have earned huge sums of money very quickly and at the same time there are people have lost their fortunes in this market. However, just like any other business activity, in Forex trading too you need to take care of several things, such as through understanding of the market, sufficient money to participate in the market, constant eye on the market pulse, expert knowledge through experts along with others.

Technically speaking, Forex trading is one of the biggest, most liquid and most popular ways of earning legitimate money online that operates round the clock. One estimate has Forex trading generating exchanges in the range of 3 trillion dollars each and every day and still growing. Therefore, it means a great deal of money is involved in it, so if you are able to take right decisions at the right time you can probably earn a huge sum of money. And, the great thing is, anybody can participate in this market almost from anywhere in the world.

Not just individuals, but transactions in Forex market take place between big private investors, small individual investors, multinational corporations, private and public banks, financial institutions, currency speculators, large government and central banks. Another most remarkable feature of Forex trading is that up to a great extent it differs from a stock market as it is divided into various levels of access. At lowest level you will find small investors, while at the highest level you will find inter-bank market which has large investment banking firms and institutions that deal in billions of dollars each day. But that shouldnt discourage small investors who have a few hundred to few thousands of dollars to deal with. In fact, in terms of number of participants, they have a clear majority.

A majority of the information that is available on the internet doesnt necessarily guide you in the right direction, so you need to be very careful about putting your hard earned money in to the Forex trading market. Just like any other business venture, you need to equip yourself with the right knowledge, have a complete understanding, and need to have patience and persistence. Be careful about falling into the trap for those service providers or companies that promise to make you huge profits instantly. Instead of accepting short term gains, always look for ways that can help you invest for the long haul. In choosing a company or service provider, always look for their past track record and customer feedback. Unless you have complete knowledge about the Forex market, its trading components, and its fluctuations, no one can help you earn profits in this market. Find your own trading style coupled with the expert knowledge and tips and start investing slowly and gradually. Develop your own trading strategies and stick with them. Listen to the experts but when it comes to making a decision, ask yourself, because you are investing your money. When you develop your own strategies based upon your own feelings and guidance from experts and technical analysts, you should become an expert investor. The lack of guidance and you will be aimlessly throwing your money away instead of earning money from Forex trading. - 23223

About the Author:

To find out if Forex Trading is right for you, visit www.allforexshop.com. Click here for article submissions.