is day trading a good way to make money with the proper education?
what do you guys think about day trading? please your honest and objective opinion
There are a lot of computer programs from the big investment banks now day-trading like crazy in the stock market. Up to 70% of trading volume in US stock exchanges comes from these day-trading programs called High Frequency Trading programs. And if you try to compete against such programs. Then eventually you might end up loosing your money.
Technical analysis that worked in the past might not work now because computer programs are now creating the stock price patterns and not human traders.
http://market-ticker.denninger.net/archives/1259-High-Frequency-Trading-Is-A-Scam.html
http://www.nytimes.com/2009/07/24/business/24trading.html
http://www.investmentu.com/IUEL/2009/August/high-frequency-trading.html
Comments
There are a lot of computer programs from the big investment banks now day-trading like crazy in the stock market. Up to 70% of trading volume in US stock exchanges comes from these day-trading programs called High Frequency Trading programs. And if you try to compete against such programs. Then eventually you might end up loosing your money.
Technical analysis that worked in the past might not work now because computer programs are now creating the stock price patterns and not human traders.
http://market-ticker.denninger.net/archives/1259-High-Frequency-Trading-Is-A-Scam.html
http://www.nytimes.com/2009/07/24/business/24trading.html
http://www.investmentu.com/IUEL/2009/August/high-frequency-trading.html
References :
I was a stock broker and knew what I was doing, but I couldn’t make any money at it. I guess being a stock broker it helped me to not lose a lot of money. I even paid for a program to help me pick stocks, but still no luck.
This was many years ago, I tried later and saw how fast stocks were moving and couldn’t even keep up with it so I just gave up, of course I was older and didn’t thinks as fast as when I was young, but I still don’t think making money day trading would be anything but gambling today.
References :
Yes you can make money trading, but you need more than just a trading or market education.
More important here are some of the most essential items that you need
1- A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. And you must have the discipline necessary to follow it.
2 – Sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you trade/invest.
3 – A written money management program in place. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested.
4 – A full and complete understanding of the rules & regulations of the industry.
Here is some reading material that you should consider, it will at least get you started
What Works on Wall Street by James O’Shaunessey
Beating the Street by Peter Lynch
One Up on Wall Street by Peter Lynch
Trading For a Living by Alexander Elder
Mastering the Trade” by John Caster
How to Make Money in Stocks” by William O’Neil
24 Essential Lessons for Investment Success by William O’Neil
The Disciplined Trader by Mark Douglas
It takes years for someone to be sucessful at day trading, you know when you’ve made when youy make money in both good markets and bad, when you no longer have a household bills (including the mortgage).
If someone is willing to put in the time and effort they can be successful, if not, they’re just wasting time money (theirs).
There’s no quick fix, no magic system, no gimmicks, no formulas, just one’s own brain power.
So don’t depend on red light, green lights, or "special" services that will make you rich – they don’t work
It’s going to be hard work, but it’s not impossible and if you make you will be very successful.
Good luck on your journey but you don’t need luck, you need skill
References :
from the street
February 20th, 2010 at 11:58 pm
Day trading has to do a lot with technical analysis of the market, experience, and pattern recognition. There are speculators out there that have a lot of experience and can make money trading the market by identifying certain patterns and picking the right stocks to trade.
However, you shouldn’t think that day-trading is easy. It’s actually a lot and hard work if you want to be able to make a career out of it. Most traders out there got lucky and will sooner or later fizzle out. The really good ones spend a lot of time developing their system and figuring out how their psychology impacts their trading in different markets.
If you come across get-rich-quick programs through stock market investing… run (away).
Ari Kiev’s "Hedge Fund Masters" may be helpful in exploring your trading interests a step further.
Also, if you want to get a better sense of what’s going on in the markets or if you’re interested more in fundamentals investing, check out: http://www.bandofanalysts.com/blogentries
References :