shimlasharma82: Day Trading Stocks Online

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Day trading is popular in stocks and bonds. A lot of people want to know whether they have to day trade in Forex also. Trading Forex like day trading in equity markets is prevalent but a lot of people prefer not to. This is mostly because day trading forex would involve sitting in front of the computer terminal all day long and the forex market operates 24 x 7. The other concept is to trade in the forex market on end-of-the day basis, a concept in which Mr. Bill Poulos has a long and thorough experience. He is a past master in forex trading business. His forex profit accelerator course provides an excellent insight into trading in the forex market.

Trading on end-of-the day basis has the same potential of instant profits as day trading but needs less time and is less stressful. Many rules that apply to day trading do not apply to end-of-the day trading and you need to look for a program designed specifically for this type of trading.

Day trading in Forex requires you to take instant decisions and there are time pressures on all activity including order entry, placement of stop losses to meet targets of instant profits. Day trading can be very stressful indeed. At the same time those who are new to the forex market should be aware that if they cannot make profits by trading Forex on end-of-the day basis they would hardly fare better in day trading.

By studying the charts of six major currency pairs you will be able to recognize the trends and the potential of instant profits in the short term as revealed by the chart. The reality is that day traders make fast but small profits and that too after a lot of stress. End-of-the day traders, on the other hand, can take home larger profits and that too without stress as patience is the basic mantra of this strategy.

Day trading Forex is not the only way of making instant profits in the forex market. End-of-the day trading yields similar or rather better profits and it requires you to devote very little time, often not more than half an hour daily. To know more about forex before you start trading it would better to refer to the notes and guidelines written by Bill Poulos. His forex profit accelerator course has been designed specifically for beginners. It will do you good to you to know more about it. His course is intended for managing risk in this highly volatile market and to make your profits run.

Frequently Asked Questions

QUESTION:
Does anyone have some good advice for trading stocks online?
I have never traded stocks online but I would like to start. What site is best for trading? How do I pick stocks? Where can I find good fundamental and technical analysis? Are there any sites out there that seem to pick consistent winners?
- ANSWER:
  I can tell that you are a value investor. You want to ask 3 questions for the price of 1... well, here you go.
  
  What site is best for trading?
  Every one has different needs. If you're new and don't keep much money in your brokerage account, then Scottrade is probably good for you. They're real time charts are pretty good, but no CD's are available, the cash account only pays about 0.5%, and they charge pretty heavily for mutual funds. If you want to leave money sitting in a MM that pays 5% while you're out of the market, like a choice of no load, no fee mutual funds, has an excellent site for research, want to buy competitive CDs on line, all in one place, then you might like fidelity. It's what makes you happy. If you don't like the sevice, then you can always change.
  
  How do I pick stocks?
  An answer would take volumes to provide, so let me suggest some literature:
  
  I would recommend William O'Neil's "The Successful Investor" as a good starting point. Follow that up with Peter Lynch's "Beating the Street". That should provide you with two strategies that you can learn from in building your own investment strategy.
  
  Other good books include "The Motley Fool Investment Guide" by Tom and Dave Gardner or "Real Money" by James Cramer.
  
  I have read all these books and many others and devised a strategy that adopts a bit from each one.
  
  Another thing you can do is invest using a fictional portfolio. Let that run for a few months to see if you are ready to start trading with real money. In the meantime, invest in mutual funds. Once you are ready, sell the fund and invest on your own.
  
  Remember, the time spend learning about investing is far less then the money lost by not being prepared.
  
  Where can I find good fundamental and technical analysis?
  You're on your own for this. There's a multitude of excellent sites out there, where you can get fundamental ratios. Try Zack's, Yahoo Finance, MSN finance, and a multitude of others are out there for free. As far as technical analysis, you need to research and find what works for you. As far as charting goes, Bigcharts is a good free site. Personally, I like Telecharts, which has a fee, but well worth the 50-75cents per day for the sorting capability, fast way to cycle thru many charts, and the ability to write your own personal critera.
  
  Are there any sites out there that seem to pick consistent winners?
  No. And anybody that says they can is a liar.
  ///
QUESTION:
Hod do you learn to become a day trader? Can you really make alot of money trading stocks?
Is it possible to trade stocks online and make an obsene amount of money as a day trader? How do you learn to do this? How much does it cost?
- ANSWER:
  Go try Forex, it's the biggest market in the world traded by about all countries. Search google for more information. It's also unknown to most because it started in the 1970s and gained public on 1990 or something like that. Most brokerages has demo accounts where you can actually practice. Anyway....follow these rules and you should be fine.
  
  1. Have descent trading system...Simpler the better.
  2. Risk 1-3% of your account for each trade..
  
  3. Money management.
  4. Money management.
  5. Money management
  6. Money management.
  7. Money management.
  8. Money management.
  9. Money management.
  10. Money management.
  
  The reason people fail because they don't follow these simple rules and are toooo greedy. Like myself but I'll be sure to come back and follow.
QUESTION:
How much money should a beginner start out with before investing online?
I want to invest in stock online. How much money should I start out with? How many different stocks should I buy? Whats the best online trader? Is day trading difficult to do? Thanks
- ANSWER:
  Your best bet is to get some education and experience before you start putting your hard-earned money on the line. Read a book (Investing for Dummies is a good starting point) or take a course to learn how the markets work, how brokers work, what types of investments you can buy etc. Find a website that will let you create a free "practice account". This is basically "pretend" investing where you enter buy and sell transactions of real stocks but you don't actually own them. You can see how your "investments" react over time and whether you made or lost money and then learn from your successes and failures.
  
  As for how many different stocks you should buy, there's no rule and it's completely up to you but a good piece of advice is to spread your risk around so that your money is not tied up in the fortunes of just one company. The best way to do this is with mutual funds and ETFs. Mutual funds look like stock in that you buy shares at a particular price and then it either goes up or down and you make or lose money based on that. The difference between mutual funds and regular stock is that a mutual fund owns stock in many different companies, so when you buy mutual fund shares you're actually buying shares in lots of different companies rather than just one. ETFs, or Exchange Traded Funds, are the same idea except that they are usually tied to an index or a commodity. For example, you could buy an ETF that is tied to the movement of S&P 500 index or one that is tied to the price of oil or natural gas futures contracts.
  
  Whatever you decide to do, don't ever invest more money than you can comfortably afford to lose. And don't be in a rush to sink your money into something you don't really understand. Learn as much as you can first, get some practice experience and seek out the advice of professionals or people you trust who have some investment experience before stepping onto the investing roller coaster. I rushed in when I had some extra cash sitting around and I promptly turned ,000 into about 00 by not knowing what I was doing and making rash, emotional decisions. I've learned a lot along the way and my investments are slowly recovering, but I sure wish I hadn't gotten my education the hard way! lol
  
  Good luck!
QUESTION:
Who buys your stock when you sell in a day trade?
In day trading, when you sell your stock ownership using an online broker, does the broker sell this shares back to the company or it looks for buyers in the market?

If the broker only sells to buyers, then is it not possible to sell shares back to the company? Thanks for your inputs in advance.
- ANSWER:
  When a stock is traded on an exchange or in the OTC market, the issuing company in never involved in the transaction.
  
  The market is very fluid, that is, there are always buyers and sellers, or there are always individuals bidding and offering the same stock,
  
  Firms very seldom buy back their shares in the active market, most of there trades are handled by prime brokers or buy the floor or market makers/specialist rather than go the retail type of order executions
  
  It doesn't matter whether you use an on-line broker or a full service broker, it doesn't matter whether you buy/sell as an investor or as a day trader, the orders to buy and/or sell are all routed to the same place, and the person on the other side of your trade couldn't care less what type of investor/trader you are.
QUESTION:
Best online stock broker for day trading?
I've been doing a lot of research and I think I'm ready to begin day trading. What is the best online stock broker for day trading? I'd be making a ton of transactions and would need minimal to no processing times for my orders. Can anybody help?

Thanks.