Daytrading info from WWW.DAYTRADING.COM

DAY TRADER � (day trad�er), noun - A person who's goal
is to make his or her profits from a security in the shortest
amount of time [preferably during a single day].

Following are a number of "Trading Strategies" which we keep in mind, and suggest you keep in mind while day trading. We refer to these as strategies, because much like war, you are pitting your wits against every other person in the market. Every dollar you make is on the back of someone else's losses. Never forget that and you'll be a much better trader in the long run.

Before you read this page, take about $10,000 in crisp, brand new one hundred dollars bills out into the back yard and pour lighter fluid all over them and then strike a match. Don't burn your money just yet, but stand there and always remember that at any given time, when you are day trading for a living, you are risking probably that much money or more and it may be in as much risk. Our analogy is fairly accurate and if that bothers you, then perhaps you might consider another line of work, because I don't know any GOOD day traders that haven't seen at least $10,000 go up in a puff of smoke during market hours and their learning process (and you thought college was expensive!).

So put away the match and let us help you save a few thousand dollars on your day trader education. In the following text we will try to impart some of the knowledge we have acquired while day trading for a living:

� TRADING STRATEGIES �

PATIENCE - If there is one thing you must learn, it's patience. Good things come to those who wait, be it low buy prices or high sell prices. Sometimes if you had only waited, you could have sold higher or bought lower. Have patience, it's without a doubt one of the golden keys to making money in the stock market.

REVERSE PSYCHOLOGY - If patience if the golden key to trading, then the silver key is doing things opposite from the rest of the market. You want to buy when the average investor is selling and driving the price down. And when wonderful news is driving a stocks price higher, you want to sell your shares at the over inflated price. Buying when stocks are falling and selling when they are moving into higher ground is one of the hardest things to learn [and do] when you first start trading. We don't have the luxury of holding our stocks for years to help iron out the little highs and lows. We live off the little highs and lows. Buy when there is blood in the streets!

EMOTIONS - The stock market is very good at playing on your emotions. In order to be a good trader, you must look at the market in a cold, hard way. When the masses are selling in a panic, you must stand fast or step up and buy. Remember that the market is made up of emotional sheep buying and selling in waves - you must be the cold, cunning and calculating wolf looking over the herd for your kill. Don't panic sell and don't buy on hysteria.


BID/ASK - If you aren't aware that stocks are sold to you at one price and bought back at a slightly lower price, the difference being the spread, then you may be in for a very big surprise when you go to make your first trade! Trade on stocks with small relative spreads, and spreads that are well controlled (such as on the NYSE board).


MARKET ORDERS - Don't use them unless you have to, and DON'T EVER place a market order for a stock at the opening of the market, or when a stock is making new ground fast (such as during a positive mention on CNBC). Putting in a market order in the first 10 minutes of the market is a sure way of paying the highest possible price for your stock, because as all the built up orders from the previous day go through, it lifts the stock prices for a few minutes. You can be pretty sure that you order will go off at the high of the day this way (but keep in mind it's sometimes handy to sell during this time).


STOP LOSSES - These are almost as bad as market orders. Stop losses are a sure way of selling at a loss. We only recommend using them when you are "in the money" and would normally sell your stock, but want to retain a slight possibility that it might continue to go higher. Stops can also be used to sell your stock a little quicker in volatile markets, as stops seem to taken a little more seriously than market and limit orders when bid prices are being changed rapidly.

On a personal note......it's alot easier to SHORT a stock in todays market than to catch a stock on a rise daily......

Email me for more info if you are interested in daytrading.....

Also..... for the discplined daytraders there is a IRC chat room dedicated to live discussion pre till post market, this channel does not tolerate any abuses, so act accordingly.

it's  on : Othernet   #daytraders #activetraders

sorry no aol users allowed (aol users may pay a fee in order to get a specail connection to this room)

Recent Market action still suggests a strong slowdown in the tech area.... be very careful what stocks you go home with.

I myself will wait till mid Jan before doing any serious plays. scalp till then with caution.