Day Trading - 100% Losses Guaranteed

Day Trading - 100% Losses Guaranteed

Forex day trading is simply one of the best ways to lose your money and the logic it is based on is absurd and common sense should tell anyone why it doesn't work. Yet year after year day traders trade and lose using day trading methods. Lets look at why.

Before we look at why day trading doesn't work lets first look at all the systems that supposedly make money on the net. They don't make money in real trading though it's all simulated made up track records using past data.

If you see a day trading system which claims that it makes money simply look for the following in the small print at the bottom:

"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".

The above disclaimer simply means nothing in terms of future profitability. Why?

Because if you want to make up a track record using past history - anyone can do that.

If we all knew prices in advance we would all buy the bottom and sell the top and never lose any money - in fact we would all be multi millionaires. Shame it's not that easy though!

We have to trade without knowing what will happen and that really is a lot harder

Day trading is a good story and marketing companies know this so why not write some hyped up copy to appeal to greedy traders, make up a great track record and then sell it to the unsuspecting trader?

That's what happens and time and time again the novice trader falls for it - He thinks he is going to make his fortune by handing over a few hundred bucks and then he gets his lesson in reality his equity is lost.

So let's look at why day trading is a loser's game

The reason day trading doesn't work is that the logic it is based upon is absurd - think about this:

We have millions of traders, all with different motivations and forex trading systems and day trading is supposed to allow you to gauge what this vast diverse mass of emotional beings will do so you can enter trades on a tick chart?

Its common sense this cant be done and that's why over the longer term day traders lose.

All volatility in daily time frames is random, support and resistance levels cannot be used and you cannot get a trading edge so you will lose.

If you can't get the odds in your favor you will lose period

Avoid forex day trading unless you want to lose your money and lose it quickly.

accurate forex signals trading

Formulating a Trading Plan

Formulating a Trading Plan

To formulate a trading plan, you should first go through all your charts to get an overview of the markets. An excellent way to do this is to review the chart section and the charts of each stock on our bulletin. During that time, you should be looking for stocks that are trending higher and stocks that are setting up nice base/consolidation patterns to breakout of. For pullback entries, look for some "against the grain" moves; those intermediate trends that go against the longer term trend. This can alert you to stocks that might be nearing a support level and may soon bounce and resume the primary trend.

Try to select the stocks that appear to have the greatest potential to move in the desired direction and place your order entry about 30 minutes into the trading day. Do not trade with stop or limit orders in the first 30 minutes. Doing so will result in many whipsaws due to the opening volatility. Let the markets or stocks settle down and determine direction before rushing your entries.

How will you know which stocks have the greatest potential? Our bulletin is chock full of the potential movers you are looking for. Of course we realize each individual can't trade every stock on the bulletin but there are many choices depending on each individuals trading style. There are breakout plays, there are pullback plays, there are good day trading stocks on the bulletin as well as swing trading stocks. There are even stocks that would be great long term buy and hold investments.

Whatever your style is, the bulletin is a great place to start when looking for stocks to trade as you formulate your trading plan. For example, I use the bulletin not only for stocks to swing trade, but also use it for stocks I want to day trade. I select those stocks that have the strongest chart patterns and greatest potential to make a quick move.

Besides the good chart patterns, I'm looking for momentum stocks that may be news driven or perhaps stocks in a hot group where momentum is taking the whole group higher. I will also look at stocks that have the most consistent daily price ranges, a range sufficient enough for me to take my piece of the action out of the market and profit.

Beware that we are not looking for stocks that have too steep a rise. When a stock has gone up in a parabolic curve, this too steep of a rise often signals that the end of a move is near. Prices that break out too fast and go straight up rarely give us a 2nd chance to get in. If we missed it, we missed it and there is no sense in chasing.

If prices have been going up steadily, and suddenly that angle steepens and goes parabolic, the stock is giving us a warning that the move may soon be over. When shorting stocks in down markets, you can allow a steeper angle, because often a stock will move down a lot faster than it moved up. The most conservative entries are those in nicely trending stocks that are making a retracement (pullback from the highs to a support level on decreased volume) These are the best entries as far as risk/reward.

It is important to note that trading must be done by formulating a plan the night before. Do your homework every day once the new bulletin is updated to the website. The only way to know when an important breakout or beginning/continuation of a trend might occur is to perform your daily analysis. We do most of the work for you if you use the bulletin, but ultimately, the decision to buy and sell will be yours based on your style of trading/investing.

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Learn Currency Trading - 5 Common Deadly Mistakes

Learn Currency Trading - 5 Common Deadly Mistakes

If you want to learn currency trading you need to get the right forex education and avoid the mistakes of the losing majority. The mistakes below are common ones but there easy to avoid and you must do so if you want to enjoy currency trading success.

1. Following a Vendor Blindly

One of the most common errors is to think someone else can give you success - they can't.

Most systems sold are junk - but even if you do find a good one, how can you follow it with discipline if you don't know how it works?

You cant to have discipline to follow a system you must have confidence in it so you need to take the time to develop your own trading system or have total confidence in someone else's logic.

2. Trading News Stories

We have more news at our disposal than ever before and all those stories are very convincing - but that's all they are stories. The news reflects the greed and fear of the crowd and they lose longer term - try and trade news stories and you are guaranteed to lose as well.

The best way for any novice to trade is to simply follow the reality of price action on a forex chart and trade it - your trading the truth not an opinion and that is the only way to win.

3. Day Trading

Simply the dumbest way to trade.

It doesn't work as all short term volatility is random and you can't get the odds in your favour.

Don't believe me?

Try and find a forex day trader with a real ( not simulated ) track record that's made real dollars over the long term. Let me know if you find one I have been searching for 25 years and still not found one!

Avoid day trading at all costs!

4. Trying to Predict Forex Prices

If you try and predict prices in advance you're hoping or guessing and that won't get you anywhere in life and certainly not forex trading.

You must not predict wait for momentum to confirm a turn and you can look up how to do this in our other articles - it is essential to confirm a price turn, rather than simply guess when it might come.

5. Markets are Scientific

It's amazing how many people buy into this myth yet it's obviously not true.

Why?

Because if prices did move to a scientific theory, there would be no market, as we would all know the price beforehand and there would be no market. The reason a market moves is because we all have different opinions of where the price may go.

The far out investment crowd love scientific theories and like to follow the works and methods of gurus such as:

Gann, Elliot and Fibonacci.

Well they made no money with their theories in forex trading and neither will you.

So if you want to learn currency trading correctly avoid the common mistakes enclosed and work and getting a simple forex trading system which will help you trade the odds, you can understand and can apply with discipline.

If you learn currency trading the correct way ( and 95% of traders don't ), then you can enjoy currency trading success and create a life changing income - good luck!

get start day trading

Forex Trading Guide For Beginners

Forex Trading Guide For Beginners

This is my official forex trading guide for beginners. I want to help all the new people to this business become better and more profitable traders. It really isn't that difficult to learn, you just need to remain open minded and not over complicate things in your head.

The first piece of a advice you need to take to heart is controlling your emotions. We as humans are emotional. It's part of our instinct that are designed to help us survive, but this is forex trading. Emotion in this business is detrimental to your wellbeing. Your emotions can leave your bank account empty if you're not smart about it. All the gut feelings you have, no matter how right they feel, need to be ignored. You need to turn from an emotional creature into one of logic. The only moves you make are the ones where you crunch the numbers and they look good.

The next thing you need to understand is about the concept of a "good buy". As consumers, we're always looking for a good buy. You have to remember we are in the business of trading. It's not the buying price that counts, it's the exit price that counts. It doesn't matter how cheap a currency is if there is no foreseeable exit. Why buy if you can't sell for more later? There is no reason. Understanding and identify where a currency will exit is how to bargain shop.

Lastly, you should get software like Forex Killer since it is a pivotal tool for all traders. It can help automate your trades, so you don't have to sit in front of the computer watching currency graphs all day. You can free up your time for doing more profitable things.

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Forex Online Option Trading

Forex Online Option Trading - The Basics Explained

Forex online option trading is a brand new opportunity as of 2007 for individual investors to trade options on world currencies. Offered through the Philadelphia Exchange world currency options are traded in exactly the same way as any other option. Currency options offer a major benefit to those interested in FX trading.

Up until 2007, the only way to trade in currencies was through futures, and through forex market makers. Both involve a much greater degree of difficulty than simply trading in forex currency options. In futures, there is a great deal of risk. If your position moves against you, your loss can be potentially unlimited. In both futures and spot FX markets, you are tied to your trade 24 hours a day, watching and guarding against constant fluctuations. While you still have to keep an eye on your positions, world currency options are traded only when the stock market is open.

Forex online option trading is available through almost any online broker that deals in options. Just like a stock, you simply need to know the symbol to find the option chain or chart. For example, in Forex, the Euro/US dollar currency pair is called the EURUSD. In forex online option trading, the symbol is XDE.

Currency option trading is as simple as identifying the direction of the trend and buying a call if you think it's going up, or a put if you think it's going down. You can buy an option for a month, three months or more.

Using forex online option trading gives you a few major advantages. Your risk is limited to the price of the premium - and you can easily employ a stop, further limiting your potential for loss. With FX currency options it's much easier to take a position and hang onto it for the longer duration of a trend. Your risk is limited and your potential for profit is virtually unlimited.

The one thing to remember in currency option trading is that of the six pairs that are available with options, four of them are reversed if compared to the FX currency pairs. All of the currency option pairs are settled in the US dollar.

formulating trading plan

Is This the Right Way to Invest in ETFs

Day Trading ETF - Is This the Right Way to Invest in ETFs

ETFs have become a popular trading tool for many people over the past few years. There are now ETFs for basically any sector or index you can think of: ETF oil, ETF gold, ETF energy, ETF Dow, and so on. The list is a mile long. The basic thing about ETFs is that they allow you to cling to a portfolio of stocks or bonds and save you the time and the risk of handpicking stocks.

There are many trading styles which can be used when trading ETFs. Day trading is merely one of them. But is day trading ETFs such a good idea? Is Day Trading really suitable for the ETF tool?

The value of an Exchange Trade Fund (ETF) is a weighted average of all the stocks that are in it. This means you're less exposed to risk, but it also means that Exchange trade funds tend to move in lower oscillations than regular stocks. An average is always lower than its highest member and higher than its lowest. That's mathematics.

Day trading is basically trying to find stocks or bonds which move in one direction or another. But the shift in price needs to be enough to warrant the trade and make you more money. The lower the shift, the more transactions you need to make a substantial profit.

But we've already established the Exchange Trade Funds shift less radically than specific stocks do (this isn't always the case, but it's only to be expected). So, Day trading ETFs isn't actually that suitable as a rule. It's better to day trade specific stocks. Sure, you can still make money by day trading Exchange Trade Funds, but this investment tool wasn't made for this.

Personally, I don't believe in day trading in general, but if you're going to trade ETFs, you might as well do it in the right way and not the wrong.

Stock market trading through trading stock options

Stock market trading through trading stock options

The stock market is the place where the buyers and sellers converge to trade stocks. The key agents that are involved in the buying and selling of stocks are the investor, stock broker, and the buyer. Whenever an investor has to sell his stocks he can either do it directly if he knows a particular client that is offering to sell the stocks at the investor’s price. Otherwise he can consult a stockbroker who has all the information as to who is the right buyer on the stock market, which will provide the right purchasing price on which the stocks are to be sold.

However investors are not able to find the right price of trading the stocks because they have to decide from an option of stocks that they currently have. Once an investor is able to procure various prices of the stocks that are being sold out, he can choose from an alternative of stocks which will enable him to get the best purchasing price in the stock market.

Stock market mechanism

The place where the buying and selling of stocks takes place between stocks investors is called the stock market. To a general layman the visit to the stock market can seem extremely chaotic for them to understand the mechanism. However the stock market operations can be listed with the following points:

* Trading
Stock investors can make a profit by selling the stocks either at a lower price or at a higher one. In order to illustrate this point, there is a stock investor A who plans to sell his stocks. However, currently the particular stocks that he wants to sell are being sold at a lower price. What he can do is sell the stocks to the buyer at the lower price and buy it from him at an even lower price when the stocks dip lower. This technique of selling stocks is generally termed as being bearish on the stock market price.
* Day trading
The trading of stocks that is done before the stock market closes is called day trading. During the day, stocks have to be sold at the optimum market price so that investors can make a good profit out of it. But this depends upon the knowledge of the stock market, which continuously fluctuates during the day. In order to get the best information of the market price it is necessary to consult the services of a stockbroker, who provides information into the right time and price that the stocks would be sold at.
* Options trading
There might be more then two stocks with stocks investor then it is necessary to weigh the profit margin from one stock to another that will provide the stocks at a suitable price.

One can utilize the services of stock trading through stock trading companies. These companies provide stockbrokers, which can also be consulted for online stock trading. Trade stock options can be facilitated through stockbrokers who provide a better outlook of stock market operations. However before consulting any stockbroker it is necessary to view their stock quotes.

For years now we have been using our successful strategy to place trades day in and day out. We have mastered a system that scalps the market whenever there is any price movement, and its 100% programmed and ready to begin trading for you. It’s true…. The IvyBot is one of the most revolutionary automatic robots to hit the market.