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| About Day-Trading |
Daytrading is one of the most profitable jobs which exists. It is all about the buying and selling of futures and/or stocks during the same trading day.
The aim is to make a profit on the day and have no open positions at the close of the trading session, so you don’t have any overnight risk !
Classic day traders end the day flat (with no open positions).
Daytrading became very popular during the 1990's boom as people gave up their regular jobs to play the market full-time. The bursting of the hi-tech bubble was a rude
awakening as most of them had no experience, didn’t follow courses and didn’t realise the financial market is NOT A CASINO !
As daytrading can generate huge daily profits, it also can be extremely risky and can result in substantial financial losses in a very short period of time if you did not
follow professional courses with a professional follow-up. Just look at the advertisements. They don't say "danger, danger," they say "profit, money, %-return, easy."
There are few jobs at which it is more difficult to make a living than trading ! Most people would make more money working at McDonald's for a minimum wage than
trading. Estimates are that 80% to 90% of all those who begin trading today will lose their trading capital within the next 12 months.
That said, let me now get to the fun part : the homework. If you follow a professional course with professional follow-up, you study diligently, you plan your work and
work your plan, you can make a very, very decent living trading right from your desk at home or elsewhere. With your computer, from home, from all places of the
world, you can exercise your Day-Trade profession. The Internet, offering instant communication for everyone across the world. And now, we are doing away with
stock exchanges and replacing them with online electronic, instant fills.
Officially, "day-trading" is the act of trading during the daily market hours and closing all of your trades before the market closes each day. You don't "take a trade at
home." That means : you have no open positions at the end of the day. The fundamental premise of day-trading is that the market (whatever you are watching) will
move enough during the day for you to make a profit. Not too long ago, the Dow Jones Industrial Average might have moved 20 or 30 points in a week. Now, if it only
moved 20 or 30 points in a day, it was a pretty flat day. Today, the Dow Jones futures are moving with an average of 70 to 100 points a day ! To make a living at day-
trading, you need the large daily point moves. This is referred to as volatility. Without volatility, a day-trader cannot make money.
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The typical day-trader looks for a few points movement in FUTURES (or stocks) and trades them several times during the day. They
"make it up in volume." So, if you traded (let’s say a LONG position) 10 contracts of the Mini Dow Jones Futures on the 1ste of June
2006 at a level of 11.157 points, and you sell it a few minutes later at 11.184 points, you made 1.350 USD, very nice money. (27 points
gain x 5 USD/per point x 10 contracts = 1.350 USD Profit = 3 % profit of your capital (*). And this is only ONE TRADE. A good day-trader
will execute an average of 10 to 15 trades a day !
(*) (= 2.250 USD margin intraday x 10 = 22.500 USD capital !).
In this example, you would need an amount of capital of 22.500 USD on your account.
But, by the end of the day you could have made a tidy 1.500 to 2.500 USD profit, for a hefty 10 % return, in a day. Not bad for a day's work.
If you could do that 15 days average a month (there are approximately 250 trading days in a year), you would turn an incredible 1.800 %
return per year on your capital, which means a profit of 180.000 USD.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Before entering into the day-trading (or even the trading) arena, it is advisable for you to create a business plan for your new venture. Don't start counting your chickens
before the eggs have hatched ! You will never be able to predict the market exactly. You might make a few holes-in-one, but you won't do it every time. You won't even
do it regularly. No one can. So, your best bet is to follow and study the market, because you certainly aren't going to lead it.
Your trump card in day-trading consists of two major components : discipline and method ! The most difficult practice for every trader is discipline. If you can
master this single element, you will be ahead of 99% of all traders. Having the discipline to repeat your proven strategy, day after day, is the single most important facet
of successful trading. If you can develop a simple method that will produce a steady, though small, profit regularly - and follow it religiously - you will be the trader who
walks away consistently winning.
The simpler the solution to a problem, the more likely it is to continue working into the future. Complex, intricate solutions rarely continue to work as the market
makes its inevitable changes as time marches on. The simpler your solution is, the more likely you are to follow it. And, the simpler your solution is, the less the
classical elements of fear and greed will enter into your trading.
If you are willing to take the time and do the homework, day-trading can become a profitable venture. Getting there is just like getting to Carnegie Hall: practice, practice,
and practice.
If you are not willing to suffer the pangs of loss while learning, then invest in a good educator to help smooth the path. If you think this is a road to easy riches,
give it up. It’s a long, hard road with lots of losses and educational expense along the way. And, even the best blow out from time to time.
(Witness : Victor Neiderhoffer's $70,000,000 single day loss right after writing his recent book.)
The aim is to make a profit on the day and have no open positions at the close of the trading session, so you don’t have any overnight risk !
Classic day traders end the day flat (with no open positions).
Daytrading became very popular during the 1990's boom as people gave up their regular jobs to play the market full-time. The bursting of the hi-tech bubble was a rude
awakening as most of them had no experience, didn’t follow courses and didn’t realise the financial market is NOT A CASINO !
As daytrading can generate huge daily profits, it also can be extremely risky and can result in substantial financial losses in a very short period of time if you did not
follow professional courses with a professional follow-up. Just look at the advertisements. They don't say "danger, danger," they say "profit, money, %-return, easy."
There are few jobs at which it is more difficult to make a living than trading ! Most people would make more money working at McDonald's for a minimum wage than
trading. Estimates are that 80% to 90% of all those who begin trading today will lose their trading capital within the next 12 months.
That said, let me now get to the fun part : the homework. If you follow a professional course with professional follow-up, you study diligently, you plan your work and
work your plan, you can make a very, very decent living trading right from your desk at home or elsewhere. With your computer, from home, from all places of the
world, you can exercise your Day-Trade profession. The Internet, offering instant communication for everyone across the world. And now, we are doing away with
stock exchanges and replacing them with online electronic, instant fills.
Officially, "day-trading" is the act of trading during the daily market hours and closing all of your trades before the market closes each day. You don't "take a trade at
home." That means : you have no open positions at the end of the day. The fundamental premise of day-trading is that the market (whatever you are watching) will
move enough during the day for you to make a profit. Not too long ago, the Dow Jones Industrial Average might have moved 20 or 30 points in a week. Now, if it only
moved 20 or 30 points in a day, it was a pretty flat day. Today, the Dow Jones futures are moving with an average of 70 to 100 points a day ! To make a living at day-
trading, you need the large daily point moves. This is referred to as volatility. Without volatility, a day-trader cannot make money.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
The typical day-trader looks for a few points movement in FUTURES (or stocks) and trades them several times during the day. They
"make it up in volume." So, if you traded (let’s say a LONG position) 10 contracts of the Mini Dow Jones Futures on the 1ste of June
2006 at a level of 11.157 points, and you sell it a few minutes later at 11.184 points, you made 1.350 USD, very nice money. (27 points
gain x 5 USD/per point x 10 contracts = 1.350 USD Profit = 3 % profit of your capital (*). And this is only ONE TRADE. A good day-trader
will execute an average of 10 to 15 trades a day !
(*) (= 2.250 USD margin intraday x 10 = 22.500 USD capital !).
In this example, you would need an amount of capital of 22.500 USD on your account.
But, by the end of the day you could have made a tidy 1.500 to 2.500 USD profit, for a hefty 10 % return, in a day. Not bad for a day's work.
If you could do that 15 days average a month (there are approximately 250 trading days in a year), you would turn an incredible 1.800 %
return per year on your capital, which means a profit of 180.000 USD.
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Before entering into the day-trading (or even the trading) arena, it is advisable for you to create a business plan for your new venture. Don't start counting your chickens
before the eggs have hatched ! You will never be able to predict the market exactly. You might make a few holes-in-one, but you won't do it every time. You won't even
do it regularly. No one can. So, your best bet is to follow and study the market, because you certainly aren't going to lead it.
Your trump card in day-trading consists of two major components : discipline and method ! The most difficult practice for every trader is discipline. If you can
master this single element, you will be ahead of 99% of all traders. Having the discipline to repeat your proven strategy, day after day, is the single most important facet
of successful trading. If you can develop a simple method that will produce a steady, though small, profit regularly - and follow it religiously - you will be the trader who
walks away consistently winning.
The simpler the solution to a problem, the more likely it is to continue working into the future. Complex, intricate solutions rarely continue to work as the market
makes its inevitable changes as time marches on. The simpler your solution is, the more likely you are to follow it. And, the simpler your solution is, the less the
classical elements of fear and greed will enter into your trading.
If you are willing to take the time and do the homework, day-trading can become a profitable venture. Getting there is just like getting to Carnegie Hall: practice, practice,
and practice.
If you are not willing to suffer the pangs of loss while learning, then invest in a good educator to help smooth the path. If you think this is a road to easy riches,
give it up. It’s a long, hard road with lots of losses and educational expense along the way. And, even the best blow out from time to time.
(Witness : Victor Neiderhoffer's $70,000,000 single day loss right after writing his recent book.)
| THEREFORE, Daytrader-Generation can help you to show you the way to become a professional Day-Trader ! |
| Back to Courses : click here |
Trader : Herman Bogaerts --- Tradersname : Freedom --- Portable : 0033.(0).683.13.99.99
E-Mail : Herman.Bogaerts@Wanadoo.fr --- Herman_Bogaerts@Yahoo.com
E-Mail : Herman.Bogaerts@Wanadoo.fr --- Herman_Bogaerts@Yahoo.com
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| Daytrader-Generation “No Gambling but True Working Tools to Achieve Profit” "Day-Trading, Business of the Future !" |