Day Trading - How To Succeed?

By Dr. Asoka Selvarajah

Definition Of Day Trading

The practice of buying and selling stocks, stock options and currencies within the same trading day so that there is no outstanding left at the end of the day is referred to as day trading. This practice was originally followed by investment firm employees who were specialists in investment. But with the electronic way of trading having made its entry into the market, day trading is now practiced by many people who are at the most casual traders.

Day trading can be risky

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.

Tips for a day trader

You can earn money from the stock market if you purchase stocks when the costs are low and sell them when the prices increase. Though the process sounds fairly simple, it is this judgment of the time to buy and the time to sell that differentiates a successful day trader from the rest. In day trading you must always keep yourself well informed about the market. A lot of printed matter is available and most newspapers devote large sections of their daily issues to the stock market.

The internet is another source of information. Nowadays there are also TV channels dedicated solely to the stock market and viewing these can always keep you up to date. Do not overload yourself with information and limit yourself to reading, surfing the internet or viewing the channels that you are comfortable with. Limit your day trading activities to just a few shares that you think are the best for you and concentrate on learning all you can about them. Also see that you are always well aware of the stock market in general and the movements of the shares of some of the larger blue chip companies.

If the stocks you have selected do not show much movement over a period of time, remove them from your list of day trading stocks. It is only when prices change that you can make any sort of profit. See that you are capable of analyzing quickly, the data on the stocks you have bought. This will enable you to take immediate decisions which could affect your profit. Remember that a small movement of just a percent or two in a day translates into huge amounts throughout the year, and you may find that you have to take a chance on quite low percentage movements.

Keep your emotions always in check. A very good profit van also be followed by a loss and you need to keep your perspective and constantly see that you are ahead of the game, and not allow emotions to cloud your judgment.

Summary

Day trading can make you a fortune if you persist with some sensible trading. Keep your knowledge about the stocks you deal in up to date, have a limited portfolio which is easy to manage, the analysis of the price changes and decisions to buy and sell are correctly made and you keep your feelings well under control. - 23212

About the Author:

Which Of These 7 Deadly Mistakes of Online Trading Are You Making Right Now? Get Dr. Asoka Selvarajah's critical Free Report, The 7 Deadly Mistakes Of Online Trading and surge your trading profits, starting today. Visit His Online Trading Site OnlineTradingRebel.Com Right Now!

Trade 24 Hours a Day with Forex VPS

By James Smith

Have you ever wondered how it was possible to trade forex and make money in your sleep? Well, with Forex VPS, this is now a reality. For the increasing number of traders who trade automated systems with Metatrader EAs, they can now set up a forex hosting account, such as with Forex VPS, and have that server running 24/7, with the EA system always switched on, and always making money for the trader.

With 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 and is referred to as forex VPS, ie hosting for your forex trading requirements. The dditional beneift of using a 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.

VPS is a crossbreed between full - fledged dedicated hosting and shared hosting. It is full- fledged because it is just like an individual server. You can install applications, reboot the server and access the server root without worrying about affecting other users. There is also shared hosting because you will have to share hardware with other users. When it comes to forex trading there are traders who don't want to run MetaTrader platforms on their computers. By accessing the services of Forex VPS you can have your own server.

A forex VPS is like a dedicated server in a number of ways - you can install applications, reboot the server and access the server root without worrying about affecting other users. There is also a shared element to the forex hosting because you will have to share hardware with other account holders. When it comes to forex trading there are traders who don't want to run MetaTrader platforms on their computers.

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.

The automatic restart feature is a vital specification, 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 at any time, and from anywhere in the world.

There are a number of other reputable companies that will offer you similar forex VPS services. Some of them are namely; Commercial Network Services, Crucial Paradigm, Gallant VPS, VPSLAND, eApps, HostEasier, OmegaSupreme, EzforexHost 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. - 23212

About the Author:

For 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 MT4 automated trading systems.

Oil Futures Contracts A Sound Bet

By Derek Powell

Oil futures contracts represent a sound investment, as they carry a variety of options and good risk management alternatives. Amongst the commodities, light sweet crude oil, which is commonly used in heating, diesel, jet fuel and gasoline is the most commonly traded.

Oil futures contracts carry a legally binding agreement to purchase or sell a set amount of oil at a predetermined price. This price is projected and based on supply and demand. The price of oil fluctuates daily in a volatile market. Investors have the option of settling for cash or arranging for the delivery of actual oil to a set location.

Trading in oil futures contracts is specified in units of barrels. Usually this involves a number of grades, which are used both in the United States and internationally. a standard contract equates to 1000 barrels of oil, but for investment portfolios, the agreement usually relates to 500 barrels of crude oil, i.e. half the size of a standard futures contract

The major exchanges for oil futures contracts are the New York Mercantile Exchange and the Intercontinental Exchange. Trading could be for oil delivery in a few months or several years in the future. Typically, three months is the norm for a contract.

Oil futures contracts exist in many forms. A short hedge contract allows investors to buy futures to sell oil, whereas a long hedge contract allows investors to buy futures to buy oil. It is usual to find a mix of both in a portfolio. For a number of years, there has been increased interest in oil as it is considered a better option to stocks.

Oil futures contracts are often used in risk management of portfolios. Investors, by buying or selling a security, purchase or sell a future security with the opposite risk. In this way losses and gains counterbalance each other and also balance the risk in a portfolio between current and future market prices. It goes without saying that a more balanced a portfolio, the less risk there is for a major loss.

Very often, oil futures contracts are used for hedging, especially amongst businesses that make products or services that use oil, in particular, the airline business. It is difficult to set a price for these products or services as the market is so volatile. But buying or selling future contracts for this commodity helps to reduce the risk and overcome constant fluctuation.

Investors who hope to make a profit based on future prices will often speculate with oil futures contracts. Banks and other financial institutions generally make up the majority of speculators and are thus important to the trading market. - 23212

About the Author:

Author Derek Powell has a lot of data about oil futures contracts. Check out http://www.thecommodityblog.com for up-to-date news.

ETFs: Investing for the 21st century

By Jordan J. Weir

While many investors have an overall outlook, and may be able to accurately predict what will be the next big thing, it is often harder to nail which company will be able to best take advantage of the coming conditions. After all, while it may be easy to figure out, retail stocks are going to be hammered by this recession, that doesn't help you decide which retail company is best to short. And while it may be easy to figure out, reduced demand from the developed world is going to hurt Chinese companies, its much harder " especially for those non-mandarin speaking people such as myself " to figure out exactly which Chinese companies might escape this fate. So how can we take advantage of these outlooks without having to pick specific companies?

ETF. The latest all important acronym to add to your vocabulary. ETF stands for exchange traded fund; a relatively recent innovation that allows investors to directly target sectors for investment, instead of picking individual stocks, and praying those stocks wont underperform their sector. ETFs are similar to mutual funds, with a couple important differences. They can be bought and sold like a stock, no minimum investment or redemption fees, and you can short them.

ETFs can focus on certain regions; China for instance, is represented by the FXI. ETFs can focus on certain sectors; Those playing financial stocks may find XLF interesting. It can even focus on certain capitalizations; Those wanting diversification across small cap companies can make a single investment in IWM.

But why shun the mutual fund? Why take the new guy over the established king? Lets start with the tax advantage. When mutual funds endure large sell offs, they have to liquidate many positions, some of which are currently at a gain. They then have to pay capital gains on those positions, and this negatively impacts their return. It would be an understatement to say that Mutual funds generally have higher expense ratios in general compared to ETFs. It can sometimes cost as little as 8 dollars to get into an ETF whereas a mutual fund of 20,000 that grows to 60,000 over a 20 year period may have conservatively lost as much as 18,000 to its competent managers.

Perhaps the biggest consideration is the simple convenience of owning ETFs when compared to mutual funds. They can be bought and sold (or shorted) any time during the trading day, using the same order types available to normal stocks. Free from redemption fees, the only deterrent from actively trading an ETF is belief in the efficient market hypothesis, and the standard commission costs from buying and selling stocks

A great boon to ETF investors, never before experienced by mutual fund holders, is the ability to use stock options to control risk. Stock options can be used to reduce the risk by using covered calls, or buying protective puts. Alternatively, call options can be used to control maximum loss, and potentially increase profits.

There are some disadvantages to ETFs as well. Some ETFs have complex structures that can lead them to deviate from what they are supposed to be tracking. A similar instrument, ETNs, can also easily be mistaken for an ETF, leading to some general confusion about what exactly you are investing in. Yet for those willing to put in the work to learn, ETFs can be a highly profitable venture for the modern day portfolio.

The only reason not to use ETFs is a lack of understanding, for they really are one of the most revolutionary investment tools of the 21st century. Their ability to reduce risk through diversification across an asset class, while still effectively giving an investor exposure to an entire sector, should be taken advantage of by everybody, for both long and short plays. ETFs are an invaluable asset for everyone invested in any stock market, and their advantages should be used to the fullest. - 23212

About the Author:

You must learn the ways of the market before you can truly succeed there, so visit my website and become a market virtuoso! Come and master hidden techniques such as ETF Investing, stock option strategies, sector rotation, and shorting stock! Unleash the true power of ETFs in your portfolio, and allow your portfolio to be the best it can be

Forex Trading Revealed

By John Eather

Forex Trading, more often known, in it's short form of FX, is an international market for the exchange or goal of selling and buying the money of different countries competing with each other in the monetary market. The investors have the ability to sell and buy these various currencies in the hope of making small profits with each transaction.

Investors are attracted to it and many end up Forex traders. The FX market is open for trading from Monday 0:00 GMT and shut down on Friday 10:00 GMT and traders are not only locked to the NASDAQ or The New York Stock Exchange time frame.

In fact, the Foreign Exchange Market liquid and truly attention-getting to investors who can accomplish trades ranging up to two trillion dollars day to day. Such immense amounts of money in the trading field make it just about unimaginable for an individual trader to produce a noticeable impact.

Foreign Exchange Trading is the managing of one nations currency for a different nations by buying and selling their currencies. The differing strengths of that currency, the ups and downs of it's economical value to that of the other country. E.g., investing three thousand American dollars ($3000.00) versus the British pound, at 1.7999 and a margin of one percent expecting the climb of the exchange rate.

If this came about you would end the rate of exchange at 1.8050 you would make approximately one thousand two hundred dollars ($1200.00). This would yield you a 40 percent profit on your investment funds. That's why there are a lot of Forex investors, but it still calls for planning and knowledge of the currency scene to be prosperous.

Forex investors are equipped an a tremendous chance to trade and realize big earnings and losses if they try without a thoroughly considered and attentive short-term trading plan. Forex isn't like the stock exchange which extends positions for a much longer time period. Whilst Forex traders are numerous, they cling on to these positions for much shorter time intervals.

Forex trading in marginal accounts are very desirable and they allow traders to amass larger positions without the necessity of large deposits. You can find marginal accounts many situations with five percent of the required funds. For example five thousand dollars ($5000.00) would get a position of one million dollars ($1,000,000.00).

To trade well and enable you to maximise your net profit you must develop and employ a few methods of trading and be systematic and adopt them. There are a a couple of methods applied in making a decision on which FX trades to make the best of are: Forex technical analysis and Forex fundamental analysis.

The most used analysis is the technical. It uses the assumption changes happen in the Forex exchange are true and come about for a reason. The consensus being whenever a specific currency is traded towards a high it will preserve that trend. As a rule, the opposite is also true. Opinions of the technical Forex do not elicit predictions of long-term on the market, simply attempt to make use of the experiences of the past.

The fundamental analysis dissects all aspects, factors and trading currencies of countries involved. Such as the interest rates, economics, unemployment rates, which are all considered. E.g., rates of interest going up suddenly can make Forex traders open a position which is confirmed by appropriate data. It could also hasten him to remove an active position because it's a way to keep from losing funds.

Forex trading can potentially exceed profitability when properly done. Discover how to Forex trade - go online and open a Forex Account, using a Demo, used without any funds. This will help you learn about the methods of trading, currency activity around the world and how they are shaped by this. Once you become familiar with the Forex market you will build confidence with trading.

Make certain you feel relaxed with what you'll be doing prior to beginning. When you feel you are ready you will be able to open an active account and possibly start trading and realising profits. Even so, I strongly propose to you, whilst with any investing, never use cash you can't afford to lose. Don;t touch the mortgage money at all. By abiding by these suggestions you'll be prospering in no time. - 23212

About the Author:

Before you begin trading forex online, be certain you check John Eather's excellent free ecourse and reports on Forex Trading. Get the most recent information on the most cutting-edge trading robots and trading systems available on the internet today. Go to MoneyMakingFxTrader.com to learn more.