First of all, control your trades,don't let your trades control you or your trading dollars..
With day trading you must treat this aspect on investing as a business..There is no such angle in day trading as a get rich quick scheme..Many are confused what is involved in day trading and the notion that you can get rich quickly is further from the truth..It's easier to lose your money than make money,but it doesn't have to be this way with a proper program..
It requires discipline and a strategy and the ability to make a buy or sell based on market criterions,not emotion or anxiety..The latter is the most prevailing problem and will always result in loses.
Now most of you understand the difference between a market order and a limit order..On the OTCBB and pinks many brokerage houses won't allow a market order and prefer limit orders on buy and sells..Market orders you're at the mercy of the Market Makers and limit,as it means, that you have the control..Control is the key word here..You must be the one in control,don't allow your emotions to control your decision making..
Entry and exit are two very critical stages in day trading,your emotions will at times get the best of you but must be controlled. Never chase a stock,because when a stock is moving fast in either direction you could be entering or exiting when its done with its run..This is part of control that requires discipline.
When you have bought into a position have your exit strategy in place,don't wait for the run to end.The right approach is to exit a position into the run, not when it?s done.. You should not, under any circumstances, wait for the exit based on message forums or where it may end up,but what your principle and adequate profit margin is..There are many factions to realize in this and one of course is your trading commission and the other,which probably many times is overlooked is your tax obligations..A good rule I use is the 35% takeout for taxes on the profit (capital gain)..After realizing what your profit margin,after taxes,then is it time to consider getting out..Some may be happier with a small net profit others want more,but the important thing to remember is not to forget the capital gains..So many times traders will move in and out on trades like it's nothing to only realize when the statement comes due they owe more than they made in the whole ordeal..Also day trading is a nightmare come tax time,but there are softwares available for just this endeavor...You must fill the trades in at the time of execution or you will go nuts if you wait until the end of the year..
Remember, in day trading, there is no room for greed...Or that word GREED should be highlighted or ended with!!!!Many traders use 'trailing stops' to exit a position..This is similar to what I mention to one of our posters here on the board..These are positions that you place on a particular stock when a price hits or getting out before it falls..It's basically a safty net like the deadmans switch on runaway train from speeding to fast and then crashes.
There can never be enough emphasis placed on controlling a stop or GTC. When a trader is in a losing position and they don?t take the stock out when it hits their stop, they are taking the risk of adding to the amount of losses that they may take. A position should not be held with the hope that it will turn around tomorrow or whenever..When in doubt,get out!!!At least here you can minimize your loss,but to hold will only maximize your grief..
Discipline is a key factor to the success of a day trading. With no discipline or no control, a trader can be out of business in no time. You know how I feel about pennies and this is what I am addressing here,not your solid NYSE or Mutual Funds.. Day trading is realizing a cash position at the end of the trading day.
One term I didn't discuss is Focus..Focus on what you are doing while trading, you should have no distractions.Before you move into a trade,get the feel on your exit and does it have the potential gains to give you this..One of the major problems is that many just don't buy the correct amount of shares to even make a potential gain where they could sell at a profit..Just because a stock is selling for a nickle or a penny doesn't mean it will fly..So number of shares is key and does the stock have the ability to move..There is no room for error when you are day trading.Once you lock into a trade remember, you must be able to sell it as well.
So in closing, develop your own trading strategy,each of us have different approaches and needs,not one strategy may work for others..So be individual and make adjustments as they come about to suite your own temperament..Many traders set daily goals,just like a business..When you reach that profit goal during the day,walk away and take a breather.Your goals can be augmented as you move forward and become more comfortable with your trading..The key is make slow and steady gains and adjust accordingly.. If you find you?re in a trend of making good trades, analyze what you have been doing that is working for you and of course make changes when it isn't working.Analyze what you doing that is not working and make the necessary corrections,don't continue with the same program..
Well that's it and solid investing and see you all on the trading floor....
On November 16th I put 2 picks up this board and I pleased to announce that if you took the offer,which closed the 14th at .002 for LBTT closed yesterday at .035 and MSITF was .002 and closed yesterday at .007 with a run to .009..Msitf is still a very viable pick for a near-term gain..
I will have another pick posted soon..
Have a good day
ET
With day trading you must treat this aspect on investing as a business..There is no such angle in day trading as a get rich quick scheme..Many are confused what is involved in day trading and the notion that you can get rich quickly is further from the truth..It's easier to lose your money than make money,but it doesn't have to be this way with a proper program..
It requires discipline and a strategy and the ability to make a buy or sell based on market criterions,not emotion or anxiety..The latter is the most prevailing problem and will always result in loses.
Now most of you understand the difference between a market order and a limit order..On the OTCBB and pinks many brokerage houses won't allow a market order and prefer limit orders on buy and sells..Market orders you're at the mercy of the Market Makers and limit,as it means, that you have the control..Control is the key word here..You must be the one in control,don't allow your emotions to control your decision making..
Entry and exit are two very critical stages in day trading,your emotions will at times get the best of you but must be controlled. Never chase a stock,because when a stock is moving fast in either direction you could be entering or exiting when its done with its run..This is part of control that requires discipline.
When you have bought into a position have your exit strategy in place,don't wait for the run to end.The right approach is to exit a position into the run, not when it?s done.. You should not, under any circumstances, wait for the exit based on message forums or where it may end up,but what your principle and adequate profit margin is..There are many factions to realize in this and one of course is your trading commission and the other,which probably many times is overlooked is your tax obligations..A good rule I use is the 35% takeout for taxes on the profit (capital gain)..After realizing what your profit margin,after taxes,then is it time to consider getting out..Some may be happier with a small net profit others want more,but the important thing to remember is not to forget the capital gains..So many times traders will move in and out on trades like it's nothing to only realize when the statement comes due they owe more than they made in the whole ordeal..Also day trading is a nightmare come tax time,but there are softwares available for just this endeavor...You must fill the trades in at the time of execution or you will go nuts if you wait until the end of the year..
Remember, in day trading, there is no room for greed...Or that word GREED should be highlighted or ended with!!!!Many traders use 'trailing stops' to exit a position..This is similar to what I mention to one of our posters here on the board..These are positions that you place on a particular stock when a price hits or getting out before it falls..It's basically a safty net like the deadmans switch on runaway train from speeding to fast and then crashes.
There can never be enough emphasis placed on controlling a stop or GTC. When a trader is in a losing position and they don?t take the stock out when it hits their stop, they are taking the risk of adding to the amount of losses that they may take. A position should not be held with the hope that it will turn around tomorrow or whenever..When in doubt,get out!!!At least here you can minimize your loss,but to hold will only maximize your grief..
Discipline is a key factor to the success of a day trading. With no discipline or no control, a trader can be out of business in no time. You know how I feel about pennies and this is what I am addressing here,not your solid NYSE or Mutual Funds.. Day trading is realizing a cash position at the end of the trading day.
One term I didn't discuss is Focus..Focus on what you are doing while trading, you should have no distractions.Before you move into a trade,get the feel on your exit and does it have the potential gains to give you this..One of the major problems is that many just don't buy the correct amount of shares to even make a potential gain where they could sell at a profit..Just because a stock is selling for a nickle or a penny doesn't mean it will fly..So number of shares is key and does the stock have the ability to move..There is no room for error when you are day trading.Once you lock into a trade remember, you must be able to sell it as well.
So in closing, develop your own trading strategy,each of us have different approaches and needs,not one strategy may work for others..So be individual and make adjustments as they come about to suite your own temperament..Many traders set daily goals,just like a business..When you reach that profit goal during the day,walk away and take a breather.Your goals can be augmented as you move forward and become more comfortable with your trading..The key is make slow and steady gains and adjust accordingly.. If you find you?re in a trend of making good trades, analyze what you have been doing that is working for you and of course make changes when it isn't working.Analyze what you doing that is not working and make the necessary corrections,don't continue with the same program..
Well that's it and solid investing and see you all on the trading floor....
On November 16th I put 2 picks up this board and I pleased to announce that if you took the offer,which closed the 14th at .002 for LBTT closed yesterday at .035 and MSITF was .002 and closed yesterday at .007 with a run to .009..Msitf is still a very viable pick for a near-term gain..
I will have another pick posted soon..
Have a good day
ET
