One of the greatest benefits a good day trading stocks newsletter provides is the chance to learn from experienced professionals. The best day trading stocks newsletter will give you pointers on stock and market analysis, using various trading strategies, and money management, as well as less concrete aspects of trading like the psychological issues involved on both the trader’s side and the market’s.

Save time

The staff at a day trading stocks newsletter have the time to do in-depth stock analysis and report their findings back to you. After all, if you’re honest with yourself, do you really have time to do sufficient research on the stocks your interested in?

Catch trends fast

Turn your back on the market for a moment and things can change fast. While you can’t spend every waking moment watching your stocks, as a day trader you need to keep on top of trends if you expect to turn a decent profit. A quality day trading stocks newsletter can not only help you quickly identify tends, but also let you know how those trends may change. Many online newsletters even send out email alerts when a stock’s situation is really changing fast.

Protect your trading capital

A good day trading stocks newsletter will give you tips on how to limit risk and keep your trading capital safe from large losses and market drawdowns by using sound stoploss and money management techniques. The quality newsletters offer more than just theory. Many even provide you with exact stop loss levels.

Access the professionals

Many stocks newsletters conduct interviews with top investors and business leaders, quizzing them about their trading and money management strategies. Writers for these newsletters not only have access to such people, but they know exactly which questions to ask to get exactly the information their readers need.

Get specific instructions

If you’re relatively new to day trading getting clear, specific instructions on what to buy and sell when can make a huge difference in your profits as well as cut down on a lot of stress. Even if you’re already an experienced day trader, though, these instructions can give you valuable insight into the minds of other expert traders. Either way, you’re bound to learn a thing or two.

Avoid mistakes

Let’s face it, when it comes to day trading, even professional make mistakes. They might be due to technical miscalculations, misjudgments or simple psychological reactions that lead to rash decisions. Checking your decisions against the recommendations in a high quality day trading stocks newsletter let’s you see when you might be going astray.

Whether you’re just starting out in day trading or you’ve already got some experience, the guidance available through a good day trading stocks newsletter can increase your profits while making lighter work of research and buy and sell decisions.

Author: Mark Crisp
Article Source: EzineArticles.com
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On the other hand, the financial requirement for trading index futures contracts lends itself favorably to the day trader. The key element is margin, in this case. When trading stocks, Regulation T becomes a prime issue, and Regulation T requires you to put up 50% of the contract value in order to trade the stock. If you are trading GOOGLE in round lots, say a hundred shares, you will be forced to pony up a significant amount of cash in order to trade this stock.

Futures contracts are another matter all together. Most futures contracts, specifically the emini variety, were specifically designed for day traders. You can usually find brokerages that offer margin requirements in the range of $500 per contract. Each point on, lets use the ES emini contract, is worth $50 dollars, and lets assume the ES index is trading in the 1000 dollar range. Simple math tells us that you are controlling nearly $50,000 dollars with a paltry 500 margin requirement. In trading, leverage is kind, when used properly.

Once simple consideration should always be forefront in your mind, though. Leverage will maximize you returns and maximize you losses. A skillful trader will manage his money effectively, never overextending himself/herself in a given trade. In my trading, I never like to risk more than 10% of my futures account value on a given trade. Some traders even lower this amount to no more than 5% on given trade. This is, of course, a personal preference but the point is a simple one; because of the high degree of leverage in futures contracts, money management is of utmost importance.

For example: Lets say you have established a $5000 futures trading account. Generally speaking your futures broker will let you trade up to 5 contracts on this account. It should be noted that most futures brokerages will not let you trade up to your account limit, and most set trading restriction at about 50% of your account value. Anyway, there is no way that you should even consider trading your maximum level (5 contracts) on a given trade. On a $5000 account I would be hesitant to trade more than I contract, maybe 2 if I felt very comfortable with the trade. Overextending your trading account is a great way to end up broke. Be judicious in the number of contracts you trade, and always use stops to make sure you don’t get caught in a run away trade in the wrong direction.

Leverage in futures contracts can be a very useful tool to increase your account balance, and your potential to make money is far greater in a futures account than day trading a stock account. But managing a futures account takes a high degree of skill and self discipline. There is a constant compulsion to overtrade your account, or trade an excessive number of contracts relative to your account size that has to managed with skill. Further, it is your responsibility to exercise proper money management when trading futures contracts.

In summary, we have taken a close look at day trading stocks and futures contracts. Stocks can be suitable investment vehicles to day trade, but because of the leverage requirements in futures contracts they are generally a better choice, but only if you are able to responsibly implement money management techniques that don’t expose you to excessive risk. Money management is one of the most challenging aspects of trading, and one of the most difficult to master. I suggested never risking more than 10% of your account on a given trade.

Author: David S. Adams
Article Source: EzineArticles.com
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First step first. Most new day traders don’t have a solid trading system. Most don’t understand that first you develop your trading system and after that you select the stocks as it is all about working with the right stocks.

When it comes to the right choice of stocks, most new day traders have a weak and shaky idea of what stocks will be best for day trading. Most bad trades are due to beginners who are trying out unfamiliar stocks. If you are accustomed and used to the rhythm and swings of a stock and you have traded that stock with success than you should pick stocks that are similar.

Now most new day traders make the mistake of trading a stock that they had discovered a night before! They lose money. Don’t trade a stock without first researching that stock for days and weeks. If you want to trade a new stock, first try to trade it with only 100 shares. After you have become familiar with its behavior you can start trading it more shares.

Now when selecting a stock for day trading you need to keep an eye on the news headline to make sure that your stock is not making any news headlines. Do not trade a stock that is in the current headlines. Go through different financial papers like the Wall Street Journal, Financial Times and watch CNBC and Bloomberg or even google the name of that stock to see if it is making or is about to make any major headline. Your motto,”The less news, the better.”

It is critical for you to be patient with unfamiliar and new stocks. You should treat all new stocks as your first date. Someone totally new that requires exploration! Most often, the new stock that you find may not be a good stock for day trading. So, initially you should drastically reduce your exposure by trading only 100 shares and not more. Stock picking is the area where most new traders make blunders. Pick your stock carefully.

But my friends, this is not the time for day trading stocks. This is the time for day trading currencies. Trust me; forex day trading is going to make many millionaires in this decade. Forex day trading is much simpler that stock day trading.

Author: Ahmad A Hassam
Article Source: EzineArticles.com
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Finding good stocks for day trading is not difficult with more than 50,000 stocks listed in the US Stock Markets. The most important rule to remember is that you are not an investor. Rather you are a day trader who does not hold positions overnight. No need to think long term. Keeping this fact at the back of your mind, you should focus on the intraday price movements of your chosen stocks.

There are some rules that you need to follow when doing the stock picking. These rules have been developed by different successful day traders with experience. The first rule that narrows down the universe of stocks that you can choose says that only choose those stocks that have a daily average volume of one million shares or more. What this means is that the stock is having an average daily volume of around one million stocks daily for the last many weeks and months rather than having this traidng volume for one odd day.

This rule should be followed religiously by you in doing the stock picking for day trading. You should try to avoid low priced stocks with high volume as well as high priced stocks with low volume. I explain it more in the next paragraph.

Once you have narrowed down the universe of stocks that you can choose for doing day trading, now you need to narrow it down further with this rule. This rule says that choose stocks that are trading btween $10 and $100 per share. Now, a price below $10 just,means that the stock is not well known and there might be some problems with the company. However, a price of above $10 per share gives an indication that the company has good health and the stock is not having severe liquidity problems. You see, liquidity in the stock that you choose is very important. To ensure, liquidity you chose only those stocks that were trading on average with a volume of one million shares.

Stocks above $100 might be overpriced and can be highly volatile with wide retracing swings. Stocks between the range of $10 to $100 have a consistent intraday price patterns and are best suited for day trading. When you pick a stock in this price range, observe its intraday price swing. Study the past three days data and observe the intraday chart patterns to see the price bouncing back and forth between the intraday support and resistance levels. You want a stock that has a good intraday swing.

Don’t trade stocks that are affected by government regulations. For example, a pharmaceutical stock or a biotech stock may not be good. Suppose, an approval is pending with FDA! You are trading that stock when FDA announces more tests are needed before giving the approval. You can imagine what can happen. In the same light, stay away from day trading stocks of companies that are in the process of merging.

Forex day trading can be a much better option for you as compared to day trading stocks if you are really serious in day trading. Currency market is huge with around $3.2 trillion transacted in it daily. Combine all the stock markets in the world and they don’t add up to even one trillion dollar. Currency market is open 24/5 unlike the stock market. So you can trade currency at a time that best suits you. There are six major currency pairs that make up more than 90% of the business transaction in the currency market as compared to thousands of stocks in the stock market that require a lot of fundamental and technical research. By trading only two of these major currency pairs, you can make a lot of money. Give forex day trading a try. It is a better option!

Author: Ahmad A Hassam
Article Source: EzineArticles.com
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* · To understand a particular stock you need to know a lot about the underlying company and the industry before choosing to buy or sell.

* · Day trading is different from investing. You should focus on one product at a time and become an expert. If you are trading stocks there would be many days with very limited opportunities.

* · Trading equities requires you to put all your money in at the time of purchase, which means that you need more capital to start.

For these reasons I suggest trading futures if you want to be a day trader. If you want to hold longer (but still short term) I would consider options, because there is protection built in so you do not have to constantly monitor your positions.

Here are the reasons I would choose to day trade futures instead of stocks:

* · You do not need to be an expert on the fundamentals. Futures trading is based on momentum and technical analysis (understanding charts). It does take a lot of studying to understand the intricacies of charts and technical tools, but to really understand what is going on with a stock it takes a lot of experience in an industry or a lot of higher education. There are many futures trading training courses on the web site, some free such as the CME site and others that cost.

* · There are always opportunities. Once you learn the technical’s you will see opportunities throughout the day to buy or sell and make money.

* · You can buy or sell easily to enter a position. Selling is equivalent to shorting. The market in most products is very liquid and you can get filled quickly at the price you want.

* · There is leverage in futures. You can choose whatever product you want (stick to one at a time) to become an expert in and they all offer leverage. For example the e-mini S&P is leveraged 50:1, so a 1 point move is worth $50. The e-mini S&P moves by 1/4 in the futures so each 1/4 point is worth $12.50. The mini-Dow is $10/tick, so a 100pt day in the Dow is worth $1,000. Oil is also $10/tick, but is moves in cents, so a dollar move in oil (a very common occurrence) is worth $1,000.

Ø Realize this can work against you as well. A bad day is exacerbated by leverage.

* · The upfront cost is less than trading equities. When you open a trading account you deposit money which gives you buying power. There is no upfront cost to buying or selling a future, gains or losses are added or deducted from your account when you exit the position.

* · The trading cost are less. You can trade equity index futures many places for less than $5.00/round turn. A discount stock broker would be around $5/each side for a total of $10.00.

Day trading is not a get rich quick scheme it is a job and should be considered as such. You will hear a lot more about peoples successes than failures because nobody wants to talk about failure until they succeed. You need to learn as much as you can about technical analysis before trying to day trade. Most brokers have live futures paper trading platforms that you can practice with before trading your own money. I would suggest paper trading for about a month before risking your own money. What do you have to lose.

I have written a couple articles on other sites about trading futures, futures trading training and about what options are. Here is a link:

www.squidoo.com/erwFutures

Author: Evan Welsh
Article Source: EzineArticles.com
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Day trading stocks and commodities is really a highly lucrative job. Just like a regular job, it needs you to have a number of traits in order to succeed, as well as a number of firmly ingrained habits.

The first thing you’ll absolutely need is a good sense of time. The kind of person who’s not good in the mornings or needs that morning jolt from coffee will only make themselves miserable trying day trading. That’s because the best time to decide how you’ll be playing the market today is right before opening bell. That’s at nine in the morning in New York and six in the morning in California. If you’re living in Hawaii or Alaska, it’s five am. Of course, just being an early riser isn’t enough. You’ll also need to have a good internal clock and a solid scheduling system.

Habit number two that you’ll need is having a good set of skills for quantitative thinking. You’ll make or lose money in day trading just by operating on gut instinct. Making informed decisions, on the other hand, requires you to be able to look at numbers and understand them completely without even thinking about it. This means that numeracy and the ability to deal with numbers in your head is vital if you’re going to tell whether something’s a blip or a trend, and deal with it correctly.

I should point out that you don’t have to be a mathematician to do this. You can learn how to analyze the numbers correctly, even if you’re not fond of math. There are quite a few numerical skills that can turn into second nature, as long as you get well into the game.

Successful day traders also have to have patience and skills of observation, and combine them with a short memory. This can be pretty hard to learn, since you have to avoid feeling disappointment when you don’t catch a stock at the top, or when you lose money because the short you’re intending just never shows up. Don’t get caught up in things when you lose, and don’t allow winning to take over your life, either.

Dedicated research is also a must. Day trading doesn’t require you to devour accounting statements like long term investing usually does, but you do need to constantly be able to deal with the flow of data and make analyses. You also have to be proactive about shares that you’re buying or selling, and make snap judgments that you act on fast. The only way you’ll know these judgments are the right ones are through the right research. However, don’t let this desire for good research paralyze you.

You should also keep in mind the fact that much of this analysis isn’t directly done by you. The best traders always keep lots of tools available, and can quickly access a number of different data and research services.

If you’re thinking about getting into day trading, you’ll also need to build up a support network. That requires dealing with a broker, as well as finding investors who will help you apply leverage to the market. You have to understand that this is work, and that this kind of work requires intelligence, focus, and a strong will.

If you believe you’ve got what’s needed to be a day trader, it could be a great way to make a significant income. This is a job you can seriously call fun, if you have what it takes, and it could be pretty enriching, too.

Author: Sam Lockwood
Article Source: EzineArticles.com
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As such, day trading stocks or commodities is a job, and a highly lucrative one. It’s a job that does require a number of traits to be successful, and habits that need to be ingrained.

The first habit is a good time sense. If you’re the sort of person who has trouble crawling out of bed in the morning, or can’t think before the second cup of coffee, day trading will only make you miserable. The prime time to assess how you’ll be playing the market on a given day is just before the opening bell. The opening bell starts at 9 AM in New York, and that’s 6 AM in California and 5 AM in Alaska and Hawaii. It’s not enough to be an early riser; you need a good internal clock and scheduling system.

The second habit that’s necessary is a good set of quantitative thinking skills. You can make money (and lose money) in day trading just running from your gut hunches. To make informed decisions, you have to be able to read, parse, and understand numbers without having to think about them. You need to be numerate, and be able to do numbers in your head well enough to determine if something is a trend, or a blip, and know how to compensate and act accordingly.

Now I should point out that this doesn’t mean you have to be a mathematician. The numbers you will need to know can definitely be learned, even if math was never a strong suit. There are specific numerical skills that can become second nature to you once you get in the game.

The third habit for successful day traders is patience and observational skills – combined with a short memory. It’s a difficult skill to learn, not feeling disappointed when you miss catching a stock at its top, or lose money because your intended short never materialized. Don’t get caught up when you make a losing trade, and likewise, don’t lose focus when you make a big winner.

The fourth habit is dedicated research. While day trading doesn’t require devouring accounting statements the way long term conventional investing does, it does need a constant influx of data and analysis, and you need to be proactive about the shares you’re buying and selling, making judgments quickly and acting on them. The only way you’ll make the right judgment calls is if you have adequate research; don’t let the research yen drive you into analysis paralysis.

Keep in mind that much of this research or data analysis isn’t done directly by you. The top traders always have a bunch of tools at their disposal and various research and data services at their fingertips.

If day trading is something that appeals as a change of career, you’ll need to build a support network – a broker, and some investors willing to help you apply leverage to the market. Understand that it’s work – and it’s the kind of work that requires focus and intelligence and will power.

If you think you have the skills listed above, day trading offers you an exciting way to potentially make an incredible income. It’s a job that you can honestly call “fun” and if you have what it takes, you’ll be able to call it “enriching” as well!

Author: Sam Lockwood
Article Source: EzineArticles.com
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