Day Trading Basics

Day Trading Basics
By
www.CandlestickForums.com

Anyone who wants to make money day
trading needs to learn day trading
basics.

Day trading basics are whether you
engage in fundamental analysis or
technical analysis of stocks,
commodities, or futures.

Which equity market to trade in is
important, as is how much to invest per
trade.

Managing investment risk involves
deciding when to trade and when to
stop.

Day trading basics start with the old
adage that ninety percent of life is just
showing up.

Day trading takes time and patience
from which come skill and wisdom.

From the days of rice traders in ancient
Japan technical analysis tools such as
Candlestick chart analysis have worked
well for those who learn and practice
them.

Just as ninety percent of success in life
comes from just showing up the most
important factor in success stock
trading,

commodity trading, options trading, or
futures trading is the amount of time
you spend learning and practicing day
trading basics.

Knowing where to direct your attention
means following commodity prices, the
futures markets, and the stock market
news.

Knowing where there will be market
volatility will save time and put you
where there will be more potential for
profits.

Doing fundamental analysis of
commodities will help you decide which
equities to look at for signs such as
Candlestick pattern formations.

Allotting a minimum amount of time
every day for research, planning, and
trading stocks, commodities, or the
options markets is the first step toward
success.

Some traders just do better day trading
some markets than others.

There is absolutely nothing wrong with
trading just one or two equity markets
and leaving the rest alone.

Although technical analysis software
should work just as well with the stock
market as the futures market your
results may not be the same.

An essential of day trading basics is to
know and understand the psychology of
trading and the psychology of investing
as it applies to you and to other traders
and investors.

The markets do not deal in right and
wrong and they do not deal in shame
and guilt.

The markets deal in profit and loss.
Knowing and believing this fundamental
aspect of trading will help you avoid
being a slave to both market psychology
and your own.

There are ideal times to trade and ideal
situations.

There are also times when the best that
anyone can do is to make enough to pay
commissions on their trades.

For example, if option volatility is very
low it may be better selling puts and
selling calls than buying them.

In a very quiet market the odds of an
equity going of down is small.

Thus the potential for profit from buying
options, either puts or calls, is low. On
the other hand selling options always
means you collect the premium.

In a quiet market the odds are against
the equity moving so that the option
buyer will likely not exercise the option
and you will pocket the premium.

Thus in day trading basics knowing when
and where to trade can be more
important than the details of technical
indicators.

Online Stock Market Reviews presented
live via the internet by Stephen Bigalow

Day Trading Basics

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