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10 Tips for Day Trading Success: Part 1

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10 Tips for Day Trading Success: Part 1

10 Tips for Day Trading Success: Part 1

When Day trading, you are buying and selling stocks very quickly. Most stocks will be traded one or more times during a single day. Looking for small changes and taking advantage of these changes can be a very rewarding, but it must be done correctly. Stick with these 10 tips and you’ll be on your way to Day Trading success.

However while there is good opportunity to make money Day Trading, it can also be vey challenging and end in a loss for those who are un educated in the strategies involved. It takes a certain skill set that not everyone is cut out for.

Day Trading Tip #1 Know Your Stuff

As a day trader it is not enough to simply have a general knowledge of trading. To be successful day trading you need to be up to date on stock market news and current events that will cause changes in the stock market. It will be very valuable to you You will be ahead of the game if you are well informed about any changes or foreseen changes in the US economy as well as foreign economies.
Pay attention and spend some time with research if you want to be successful. A good strategy would be to make a list of stocks you may want to trade so that you might be able to pay close attention to changes in these market. Read or Listen to the news. Maybe consider joining twitter.

Day Trading Tip #2: Give Yourself a Cushion

Having a cushion of funds will let you fill confident as you make trades. Knowing what you are willing to risk will help you be more successful. A good range of risk for Day trading is around 1%. Lets use a .5% risk in an example:
Let’s say the trading account has $40,000. If we decide to risk .5% on an individual trade with a $40,000 account, then our maximum loss for this trade would be $200 (0.005 x $40,000).
When trading you have to set aside money and be aware it is a risk. You don’t have to be happy losing money on a trade, but must know it is a possibility. Having money set aside to trade will help you be comfortable and successful.

Day Trading Tip #3: Give it the Time it Deserves

Don’t move forward with Day Trading unless you are willing to devote some serious time. Most of your day will be involved with watching the markets and making trades. It is not something to do during your lunch breaks. To be successful you need to move quickly on trades is a major strategy. Also, as we discussed earlier, market research is so important and can be time consuming in its own right.

Day Trading Tip #4: Baby Steps

If you are just getting started with Day Trading, it is wise to not spread yourself too thin. Try focusing on one or two stock per session until you get the hang of it. This will allow you to really learn and analyze what is going on.

5. Less isn’t Always More

It’s not a bad idea to look for low stock prices and deals, but we don’t suggest using penny stocks. The low risk does not outlay the low chance of making large profits. Penny stocks are often times illiquid as well which is not ideal when day trading.

Stay tuned! 10 Day Trading Tips: Part 2 will out next week. contact us at daytradefeed.net with any questions on tips 1-5.

How Much Money Can I Earn Day Trading?

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HOW CAN I MAKE MONEY DAY TRADING?

How much money can you make day trading? Great question.

Day traders are not required to disclose their trading results to anyone but the IRS and because of this it is tricky to come up with an average of how much you can make. There are many strategies in trading. This, along with how much capitol traders are working with, must be taken into account.

In their 2011 research paper “The Behavior of Individual Investors,” Professors Brad M. Barner and Terrance Odean at University of California, Berkeley discuss how those who traded without diversified portfolios usually saw an average loss of money. There are also fees with transactions, so it is really important to have that proper education before attempting to make money during day trading.

HOW CAN I MAKE MORE THAN I LOSE?

The best way to assure that you are making money day trading and not losing money is to set stop/loss points as well as profit taking points. It’s important to not make too much of a gamble for an individual trade. The goal is to never allow one bad trade to ruin out your account.

Many full time day traders suggest that to make money day trading you should not risk more that 1% per trade.

Therefore, if you are looking at an account with $30,000 in it, the most you should be risking on a single trade would be $300. Using this 1% strategy will lessen your losses. This takes practice and discipline and will help you to make more money day trading.

A QUICK EXAMPLE

Let’s expound on the above example to see what setting stop/loss points looks like.

If we stick with a $30,000 account,  We are able to risk a maximum of $300 for a single trade. Let’s say the stop/loss is $0.04 and if the share price below $16 ($120,000 buying power/7,500 shares).  With this, we can take 7,500 ($300/$0.04) shares per trade to and stay within our $300 allowed.

Keep in mind this does not include Broker commissions.

FINAL THOUGHTS ON MAKING MONEY DAY TRADING

It would be wise to first ask yourself what you want from Day Trading. What kind of time are you willing to put in?
Using a Broker is a wise route if you and unexperienced, but they do take a commission which will cut into your net profit.  They are a more secure route, but even with a broker we don’t suggest looking at day trading like a hobby.
Day trading takes some serious discipline and training. The strategies are not 100% and there is always a risk. There is no guarantee that you will make money day trading or be able to predict your average rate of return over any period of time.
There are, however, some solid strategies. Mastering these will help you make that extra money you’ve been dreaming of. Contact us at DayTradeFeed If you are ready to commit to learning the strategies that can lead to success in making money day trading. Our personal Coaches can answer whatever questions  you may have.

Huge Mistakes Made When Choosing a Day Trading System | Part 7

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Black Box or Robot Trading

Why Black Box or Robot Trading systems can be attractive.

These automatic trading systems can be connected to Americans and the type of people they are becoming as a whole.

When it comes to investing, the obvious, perfect choice would include little risk, almost no required effort and high returns. Unfortunately, this perfect system doesn’t exist in today’s market. If you come across something or someone promising this type of return, it’s likely to hurt all involved.

As the world’s technology advances, so does the market’s. Predictions and promises regarding artificial intelligence and its capabilities are a dime a dozen. This is perhaps why “Black Box” or “Robot Trading” is rapidly becoming the most popular form of trading.

The playing field is leveled, even for Black Box or Robot Trading systems.

In 2008, the S&P 500 hit record lows. Due to these lows, just about every automated system in existence became completely irrelevant.

This was obviously a difficult time for many. However, in the overall scheme of things, times couldn’t be more exciting. Why? Because the playing field had once again become level.

Trading floors, stock advisors and day traders alike were forced to reevaluate their trading systems. Those who were depending on automated systems quickly learned how difficult it was for these robots to adapt to new market conditions.

The worst part? It all should have been expected, as the markets were showing patterns no one had ever seen before. The industry had changed forever.

What else makes Black Box or Robot Trading systems unreliable?

Most creators of these systems include very little live testing in their development. Some even go out of their way to avoid it.

What does this mean? Unfortunately, it means these systems are created using old data and past results. While this makes them look more attractive to potential clients, it’s very detrimental in the long run.

It’s easy to make a system based on old data look profitable. A few tweaks can make a world of difference. However, the 2008 market change we just discussed forced computers to begin adapting at an exponential rate.

So how do Black Box or Robot Trading systems keep up?

Honestly, we’re yet to find one of these systems capable of adapting at the necessary rate.

While systems based on back tested results are easy to find, it’s rare to find ones based on long term running data. Because of this, one of two things usually happens:

Option A – The system stops running correctly. Profits cease and the system halts

Option B – The system loses so much money so quickly that it’s impossible to halt before zeroing out.

When you hear of a trading system attached to the terms Black Box or Robot Trading, think of it like you would a wolf in sheep’s clothing. For example, someone running a ponzi scheme could easily promote it as this type of automated trading system.

Why? We just went over it. Profitable systems based on back tested data are incredibly easy to falsify and recreate.

I recently heard of a man who claimed to run an automated, robotic trading system. However, he was actually trading the money himself. Why would he do this?

Because of what Americans are becoming as a people. Consumers seem to flock to these systems because they promise little risk and high reward. But true traders know their own system is more reliable.

Please understand that  I’m not saying a legitimate Black Box or Robot Trading system can’t exist. But if it does, chances are it’s too expensive for any single trader to use.

In conclusion, beware of Black Box or Robot Trading systems!

When you come across these systems, see what the long term plan is. Make sure you’re not being used to test a faulty system before it’s sold to trading floors, institutions or wealthy private investors.

Find Day Trading Information Through DayTradeFEED.net!

This article is the final part in a series aimed at helping day traders understand what mistakes to avoid.

First Mistake: No Ongoing Support/Education

Second Mistake: No Specific Way To Replicate Results

Third Mistake: Repeating Key Entry and Exit Strategies

Fourth Mistake: Paying for Trading Seminars, Books & Videos

Fifth Mistake: Make Money Day Trading (System Not Compatible)

Sixth Mistake: Pitches that Win Now, Lose Overall

Six-and-a-halfth Mistake: Poor Relationship with Brokers

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    Huge Mistakes Made When Choosing a Day Trading System | Part 6.5

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    Poor Relationship with Day Trading Brokers

    Obvious Facts About Day Trading Brokers

    This may sound obvious, but when a trader doesn’t trade, they don’t make any money. What you may not think about is the fact that their broker doesn’t make any money, either.

    The best, most successful trading systems are usually accompanied with an incredible relationship with a broker. These relationships are key indicators of how successful a system can be.

    If the relationship is strong, it usually means the broker is happy. If the broker is happy, it usually means the trader is making profitable trades, putting money in the broker’s pocket.

    While the above scenario is true in most cases, there are still brokers who will want a relationship with traders regardless of how many trades they make. They’ll even go as far as making sure to portray inactive traders in a positive light and offer low rates in an attempt to gain client referrals.

    What To Look For in Day Trading Brokers

    When researching a system, there are specific things to look for to determine credibility.

    For instance, some educators make more money charging you as an Introducing Broker as opposed to monthly fees. Most brokers set aside a certain amount of money for these Introducing Brokers, who in turn, are registered to profit from client referrals.

    The biggest problem with this scenario is that many of these educators have relationships with brokers who pay the most for referrals, instead of brokers who will best meet the needs of clients.

    Experience in this area has shown it can be a double-edged sword. One way to recognize an Introducing Broker system is to determine how conservative they are in their marketing. Everything these individuals do is monitored and regulated, so the more conservative, the more likely.

    In contrast, educators who aren’t Introducing Brokers will usually identify the best places to trade because they have no incentive to lead you elsewhere.

    Additional Overlooked Factors When Choosing Day Trading Brokers

    Books, videos and seminars which offer full courses on trading tips and techniques are a very common education tools. Unfortunately, a lot of these resources fail to reference the steps necessary for setting up a broker account.

    Additionally, it may surprise you that even some of the largest trading platforms on the planet don’t offer phone or email support.

    If you’re researching a system and the educator doesn’t provide videos, ongoing support or live help in regards to setting up a broker account, the education likely won’t translate into actual trading.

    That being said, the industry as a whole is getting better in this regard. Most online brokers now offer support options, but even these don’t typically cover all the bases. Before making any type of payment, make sure you’re getting more than just a generic education.

    Day Trading Brokers on Taxes, Retirement Planning and Interest

    You may find it difficult to locate any type of information on taxes, retirement planning and interest in day trading.

    Taxes are a big part of trading. Tax implications can be significant for trader, depending on how their account was set up of course.

    To combat this, many traders set up corporations to trade with. This may or may not be the right step for you. As you’re choosing a system, make sure you have information to help you navigate this.

    Retirement planning goes hand-in-hand with taxes. There are a lot of ways to integrate your account with Traditional IRAs, ROTH IRAs and other tax beneficial strategic investments.

    Brokers work with their type of accounts, but often neglect to mention this integration capability.

    Be aware that most of these accounts require higher minimum balances to start.

    Find Day Trading Brokers Through DayTradeFEED.net!

    This article is only part 6.5 in a series aimed at helping day traders understand what mistakes to avoid.

    First Mistake: No Ongoing Support/Education

    Second Mistake: No Specific Way To Replicate Results

    Third Mistake: Repeating Key Entry and Exit Strategies

    Fourth Mistake: Paying for Trading Seminars, Books & Videos

    Fifth Mistake: Make Money Day Trading (System Not Compatible)

    Sixth Mistake: Pitches that Win Now, Lose Overall

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      Huge Mistakes Made When Choosing a Day Trading System | Part Six

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      Day Trading Education – Pitches that Win Now, Lose Overall

      After a number of years in the trading industry, it’s difficult to avoid criticizing every little detail of various education systems. At a certain point, it seems as though you’ve heard it all in regards to companies selling their systems (and the questions that come from potential customers of said systems).

      You even begin to see an almost political sense of loyalty begin to form between traders and THEIR system. Rarely does a trader admit, openly, to the flawed practices which they adopted at one point or another.

      I recently heard a pitch so convincing that the educator didn’t even really sell an actual product. His system consisted of making live trades and explaining why certain decisions were being made and why.

      Most “educators” who follow this model have 12-20 years of experience in trading and, as mentioned previously, cannot actually replicate their system because it made up mostly by personality traits instead of technical coding.

      Day Trading Education – Buzzword: “Accuracy”

      “Over 75 percent accuracy,” the salesman says. Your eyes light up as you wonder whether or not he’s telling the truth. Surprisingly, the answer is most likely yes.

      But beware of the word “accuracy,” which will always be used as a tool in selling a system because of its ability to be manipulated.

      For example, you may find systems that are only actually accurate 15 out of every 100 trades. These systems still claim higher percentages because their trade structure outweighs the 85 losing trades with the 15 winning trades.

      The opposite can also be true. A system can be successful on 95 out of every 100 trades, but still lose money overall because the trade structure outweighs the 95 wins with the five losses.

      After hearing the word “accuracy,” the best practice is to always make sure to see what the actual overall profit/loss is.

      Day Trading Education – Buzzword: “Guarantee”

      Another buzzword traders often hear as they research trading systems is “guarantee.” This is obviously in regards to pricing or satisfaction quality, as it is neither legal or ethical to make future guarantees on profits.

      Again (just to be clear),there is only one type of establishment which can promise specific returns: federally regulated banks. Not one mutual fund, 401k, stock or trading account in existence can guarantee future profits.

      Day Trading Education – The Total Rip Off

      Occasionally a potential trader can come across a trading and education system that is a total and complete rip off. While this becomes more and more rare as time passes, it’s still a possibility.

      In most cases, these systems promise huge profits on little effort from the trader. Money is exchanged, likely never to even be invested.

      There are certain safeguards which are continually being put into place to help guard against this type of fraud, including federal laws requiring risk disclaimers on all trading websites and online entities. However, it’s still important to keep this in mind when searching for your system.

      Day Trading Education – Beware of Salesperson

      “Even a monkey could trade this,” is something a presenter might say while showing you a trade system demonstration. This may sound like they are trying to convince you, but in a sense, they could be right.

      A study was conducted years ago involving a human and a monkey. Both sat in front of a computer and asked to trade for a specific duration of time. By the end of the experiment, the monkey had made more money than the human.

      Obviously, results from the case above are rare, and should be taken lightly due to it being a single instance of the experiment. If it were run 1000 times, results would surely differ.

      The main takeaway here is that education salespeople will do anything to make trading look easy, which the reality is that it simply is not. In certain cases, new traders can remain profitable for a short period of time, but that doesn’t mean their strategy is perfect.

      A good thing to remember for new traders is to practice trade execution for a minimum of one month prior to increasing leverage and trading substantial funds.

      Conclusion: Day Trading Education

      In conclusion, day trading education is not something to take lightly. While many people learn and make a living day trading, others make their living by selling faulty and outdated education products. Here at Day Trade FEED, we’re doing our best to make sure everyone who is interested can learn to day trade without navigating all the tricks of the sales trade. 

      When choosing a day trading system, make sure to use the product as much as possible before paying for it. Do this by using free demonstrations, trial periods and other forms of test drives.

      Remember, if an education system doesn’t allow you to try before investing, it may not be worth your time.

      Trading is something that is difficult enough without trading platforms and software companies misleading you.

      Find Day Trading Education Through DayTradeFEED.net!

      This article is only part six in a series aimed at helping day traders understand what mistakes to avoid.

      First Mistake: No Ongoing Support/Education

      Second Mistake: No Specific Way To Replicate Results

      Third Mistake: Repeating Key Entry and Exit Strategies

      Fourth Mistake: Paying for Trading Seminars, Books & Videos

      Fifth Mistake: Make Money Day Trading (System Not Compatible)

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        Huge Mistakes Made When Choosing a Day Trading System | Part Five

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        Mistake: Make Money Day Trading (System Not Compatible)

        Make money day trading. Don’t kill profitability with a lack of funds.

        Two things that have nothing to do with a trading system itself can affect trading in a significant way:

        1. Liquidity

        2. Market Being Traded

        Some systems claim to see the same results regardless of  liquidity or which market is being traded, but the only way for this to be true is for the trader to have a significant account funded from the beginning.

        The truth is that profits are capped by these two principles in every market. On one hand, Forex market caps are traded in billions of dollars. In contrast, traders being capping out at around $5,000 in futures markets.

        How to make money day trading, even with Forex caps.

        Around $3 trillion is exchanged in Forex markets on a daily basis. Because of this, many traders will never have to worry about caps in terms of profitability. However, minimums balances do still exist, albeit usually at a relatively low rate.

        Many brokers offer what is called a “micro account.” These allow traders to open a trading account for as little as five dollars. These offers usually charge more in spreads, but make trading available to just about anybody.

        Typically, brokers prefer a normal account to start around $500. These accounts offer lower pip spreads, but keep in mind that profits are taken at the beginning by setting you however many pips behind your entry to pay the spread difference.

        How to make money day trading, even with Futures caps.

        The Futures market isn’t for everyone due to a required minimum standard balance set by the Commodity Futures Trading Commission (CFTC).

        First, it’s important to remember that most brokers will not allow you to open an account with less than $5,000. In addition, contract margins can vary from $500 to $6,000 per contract traded. These parameters are set to prevent losses that traders aren’t able to cover.

        The Futures market is also a little more unreliable in terms of liquidity. Take the S&P 500 vs. Silver Futures for example. The S&P involves many more traders, which means there is more opportunity in the market to make profits without “slippage.”

        “Slippage” is defined as a change in price which occurs due to a lack of participant reaction instead of an abundance of it. When these markets slip and there isn’t enough traders participating, your trade must wait until the prices moves far enough to pull you out completely.

        In turn, this can result in huge losses and/or little profit.

        Conclusion: how to make money day trading.

        In conclusion, while Futures markets remain a great place to trade, please make sure you have the correct knowledge and experience to correctly navigate the practice. A good place to start is to make sure you know about specific trade times and overnight margin requirements.

        The best type of educator of trading system will already have direction on which market fits your individual financial situation and the leverage at which you should be trading.

        How to make money day trading with DayTradeFEED.net!

        This article is only part five in a series aimed at helping day traders understand what mistakes to avoid.

        First Mistake: No Ongoing Support/Education

        Second Mistake: No Specific Way To Replicate Results

        Third Mistake: Repeating Key Entry and Exit Strategies

        Fourth Mistake: Paying for Trading Seminars, Books & Videos

        Subscribe below to be notified of future editions.

          Huge Mistakes Made When Choosing a Day Trading System | Part Four

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          Mistake: Paying for Trading Seminars, Books & Videos

          Day Trading Seminars Can Be Misleading

          Above all, if you learn nothing else from reading this chapter, please remember the following fact:

          In most cases, day trading seminars are the equivalent to really expensive (albeit live-action) YouTube videos.

          What this means for traders is that the same information and strategies being used and taught in most of these seminars can be found, for free, on common sites like YouTube.

          In a recent experience, I came across a seminar which charged $3,600 for a six-hour introduction class. Further research showed the class’ curriculum covering general market facts alone.

          Students attending class received really fancy-looking binders, a catered lunch and the smug feeling that only comes from knowing “the secret.”

          What these students did not receive was any information whatsoever on how to trade.

          There’s a reason these seminars have the negative reputation that they do. The entire seminar model itself is basically ideal for scammers and should immediately trigger multiple red flags.

          This model includes three basic steps:

          1. Show up in a town for a couple days.

          2. Collect lots and lots of money.

          3. High-tail it out of town with no real way for unhappy customers to contact you.

          Can you think of a better scam?

          A good way to sniff out these scams is to remember the following:

          A company’s pricing model directly reflects how it intends on maintaining its future relationship with you.

          For example, if a company charges you everything up front, chances are there’s a high amount of risk involved in the product. If the charges are incurred on a monthly basis, chances are the company is banking on you being satisfied with the product.

          Trading educators that charge monthly fees generally offer a higher level of support and concern for your success. To put it simply, if you’re not successful, they stop making money.

          Tip: Be cautious of large up-front costs.

          You’re Clear on Day Trading Seminars, But What About Books?

          Books remain a great, inexpensive educational resource for those looking to learn about the markets.

          Unfortunately, if a trader wants to actually make money in the market, it requires a lot more (even for the most avid readers) than simply reading some material to get started.

          Another issue with these books is how quickly they become outdated. With trading platforms and software evolving so rapidly in recent years, books on a specific subject become useless if more than two years old.

          Tip: Avoid books surrounding a specific trade strategy that are more than two years old.

          In my experience, I’ve found the most beneficial reading material for traders often has nothing to do with the actual act of making trades. Instead, books dealing with psychology and mental readiness in trading have made the most difference in my trading.

          Many traders believe this aspect of trading to be irrelevant. In contrast, I believe it to the driving factor behind 75% of your trading success.

          Tip: Not a big reader? Listen to the audio version in the car or at the office.

          We’ve Covered Day Trading Seminars and Books. What About Video?

          It’s easy to see technological advances in education, television and digital media becoming more and more interactive by the day. Due to this, videos are becoming a faster, more efficient way to consume trading education material.

          However, prior warnings in this chapter still apply.

          This may seem obvious, but if you come across a system that doesn’t include education videos in its curriculum, it’s likely outdated and faulty. This is clear indication of the system as a whole.

          As we previously discussed, there’s more free trading education videos on YouTube and other streaming sites than you can imagine. But know the information in these locations can be repetitive, and even incorrect at times.

          If you’re diligent in your research, it will quickly become clear to you which video sources are reliable.

          Day Trade FEED’s Picks for Day Trading Seminars

          Here at Day Trade FEED, we have a specific way of choosing which seminars have the correct information to incorporate into our day trading system. After years of research and trial/error, we’ve found some really great seminars that provided information that would fit perfectly into our trading system. We determine this by making sure the information is a good fit for traders using Kevin Jones Day Trading Indicators.

          Traders have been using these indicators for more than 20 years, and so far they’ve worked perfectly for us in our trading.

          If you’d like to learn more about Kevin Jones Day Trading Indicators or how they work in our trading system, contact us!

          We were also careful to make sure these seminars were safe, reliable and properly vetted prior to receiving our endorsement. To receive a list of Day Trade FEED’s picks for Quality Day Trading Seminars, contact us or fill out the form below.

          This article is only part two in a series aimed at helping day traders understand what mistakes to avoid.

          First Mistake: No Ongoing Support/Education

          Second Mistake: No Specific Way To Replicate Results

          Third Mistake: Repeating Key Entry and Exit Strategies

          Subscribe below to be notified of future editions.

            DISCLOSURE: While these methods may have worked in the past, past results are not necessarily indicative of future results. While there is a potential for profits, there is also a risk of loss. A loss incurred in connection with trading foreign exchange currency contracts can be significant. Carefully consider whether such trading is suitable for you in light of your financial condition since all speculative trading is inherently risky and should only be undertaken by individuals with adequate risk capital.

            Huge Mistakes Made When Choosing a Day Trading System | Part Three

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            Mistake: Repeating Day Trading Entry and Exit Strategy Mistakes

            Three Questions to Remember When Choosing a Day Trading Entry and Exit Strategy

            While researching trading systems, many traders run into different strategies that are obviously going to fail.

            I recently had an experience with an education company claiming to have made hundreds of thousands of dollar with it’s own proprietary trading system. For a fee, the company was willing to teach me this strategy via their own education system.

            While looking into this company, I made sure to remember the following questions:

            1. If someone decides to make a trade, what do they stand to gain?

            2. What do they stand to lose?

            3. If a company was fishing for a good testimonial, but couldn’t actually deliver on its low-risk guarantees, could it inflate results to mislead consumers?

            A Bad Day Trading Entry and Exit Strategy Can Mislead You

            One of the main ways a company can inflate results is through what is called a hedge. A hedge is an opposing trade of equal value that offsets any profits or losses accrued by a previous trade.

            So, if a trader sets up two accounts, places a buying trade with one and a selling trade of equal value with the other, they are hedging. The profits of the first account will even out the losses of the other and only the winning trades are displayed.

            This is only one of the many ways these “educators” are enticing customers to use their programs.

            How to Spot a Faulty Day Trading Entry and Exit Strategy

            Remember that if you only see a couple of trades on a statement, it’s likely faulty information.

            Now, let’s say you see a statement with over 100 profitable trades. Your first instinct may be to trust the system. However, it’s important to make sure a stop loss was in place before going with this instinct.

            Traders with millions in their account are able to trade the market on the smallest level with no stop loss. This means they are able to hold onto their trade regardless of which way the market swings.

            This isn’t how a typical trader attacks the market, so why would you want a system that isn’t tailored to fit realistic trading parameters? In these systems that don’t use a stop loss, one bad trade can outweigh more than the 100 good ones and wipe out an entire account.

            The typical trader would have a stop loss set and an exit strategy in place. Make sure these are part of your trading system if you haven’t already.

            Day Trading Entry and Exit Strategy Red Flag

            There is no such thing as a perfect trading system. It is impossible to trade without taking at least a few losses here and there.

            Another issue that has been seen is the lack of continuing education surrounding margin. Some education systems even purposely leave margin curriculum all together. This allows the company to show flexibility in their system when a trader is margined out and is looking for someone to blame.

            Margin requirements should be clearly and thoroughly taught before the trader experiences it with a loss.

            A good way to spot margin issues with a trading system is to make sure margin requirements match up with stop loss positions. If the margin would kick a trader out far before the stop loss, it  may simply just be an oversight by the educator. However, if they get this basic step wrong, what other compromising practices will they teach you?

            What to Look for When Choosing a Day Trading Entry and Exit Strategy

            The final topic to be discussed relating to entries and exits is how long or short to make them.

            When identifying an exit strategy, remember that almost every strategy has many variables going into the equation. This can make it hard to plan ahead, which is why some educators determine their exit strategy at random.

            For new traders, it’s important to focus on the winner-to-loser ratio instead of the length. If this ratio is profitable, it shows the system works regardless of its exit strategy.

            Day Trading Entry and Exit Strategy: The X Factor

            At a certain point during their day trading education, each beginning trader finds themselves at a crossroads.The choice facing them? Whether to choose a scalping method (short exits and stops) or a long term strategy (long exits and stops).

            The main thing to consider when making this decision is whether you’re financially capable of practicing this method in your trading. Many think scalping involves less financial commitment than long term trading. However, the truth is the exact opposite!

            Personally, we suggest trading short term systems. The uncertainty of world economics, along with unsteady market conditions in recent years make scalping the safer choice between the two. This is due to the limited amount of time spent in the market as opposed to long term trading.

            Day Trade FEED’s Day Trading Entry and Exit Strategy

            Here at Day Trade FEED, we have a specific way of choosing which entry and exit strategy to use in our day trading system. After years of research and trial/error, we’ve come up with a great way of determining this and adopted it into our trading system. We determine this using Kevin Jones Day Trading Indicators.

            Traders have been using these indicators for more than 20 years, and so far they’ve worked perfectly for us in our trading.

            If you’d like to learn more about Kevin Jones Day Trading Indicators or how they work in our trading system, contact us!

            This article is only part two in a series aimed at helping day traders understand what mistakes to avoid.

            CLICK HERE TO READ PART ONE

            CLICK HERE TO READ PART TWO

            Subscribe below to be notified of future editions.

              Huge Mistakes Made When Choosing a Day Trading System | Part Two

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              .Mistake: No Specific Way to Replicate Results

              The Begging Trader’s Day Trading Indicators

              If you’ve been exposed to trading for less than two years, most still consider you a “begging trader.” Every trader has made their way through this awkward phase. It can almost be considered a right-of-passage.

              But while each trader has to go through it, each trader also has to overcome it.

              Success by Day Trading Indicators

              If you currently fall into this “begging” category, please understand that merely signing up to use trading software is not what will help you find success moving forward. Simply knowing basic indicators and how to buy and sell does not make you a professional trader. While this software can be a vital part of trading strategies, it should never make up the entire strategy on its own.

              What type of returns do you expect to see if you’re only using free indicators and trading tips? Instead, these resources are best used in addition to other resources that make up a trader’s personal strategy as a whole.

              Different Types of Day Trading Indicators

              As you begin your search to find the best set of trading indicators, you’ll likely find only a few reputable companies offering proficient systems compatible with modern, updated charting software. Some of these companies even customize their indicator software for individual customers.

              It’s important to remember that while this sounds like a perfect scenario, success can never be guaranteed. That being said, these companies can at least help you come closer to finding a way to replicate results.

              Free or “Lagging” Day Trading Indicators

              There are countless trading companies offering basic indicators that have been around for a long time. These include Moving Average, MACD, Bollinger Bands and Fibonacci Retracements.

              However, advanced traders consider these to be “lagging” indicators due to how easily it is to take advantage of traders who use them.

              Another issue with these “lagging” indicators is a slower response time to the signal. This is because many advanced, savvy traders have built upon them to create and innovate modern methods to stay ahead in the game.

              This can be frustrating for “begging traders,” but the truth is that even with custom-designed indicators, replication is still a distance off. Traders may see consistent success, but it’s near impossible to develop indicators that can replicate specific trades based on specific market conditions.

              The true success of a trading system can be measured and replicated only to the point that others are willing to test its validity.

              Fibonacci and Retracement Day Trading Indicators

              Fibonacci’s retracement principles are now common among traders. These principles have been rebranded often for sales, but the main function remains the same.

              Some of these attempts to rebrand include Pivot Point, Prediction Points, Sing Marks, Buy/Sell Levels, Trade Levels, etc. Watch out for these old and free techniques rebranded as modern when developing your own system.

              All warnings aside, Fibonacci’s tools can greatly benefit traders if used correctly and in addition to other resources.

              There are enough uneducated traders willing to “donate” their money to the market. Let them.

              Other Enticing, Potentially Destructive Trade Tools

              Some traders use trading announcements as the deciding factor on each trade. Making trades based on the assumed market reaction to currently unfolding events is likely the oldest trading strategy there is. However, it may also be the most dangerous.

              The issue with trading announcements is inconsistency and unpredictability. Many have witnessed announcements with similar context to past announcements, but significantly different results.

              Some of these announcements can be traded on their own (slam dunks). But remember that it can take years before a trader is experienced enough to differentiate between market reactions.

              Just like other tools, announcements can be beneficial when used in addition to their other indicators. Making trades based solely on these announcements can pay off, but the numbers are against anyone making the attempt.

              Trade Systems Based on Results

              It is perhaps most difficult to find a trading system based on actual results. You may find systems that work with announcements and others that work with indicators. The question to ask yourself is if they are making money.

              This question may be harder for you to answer than you realize. It is best to take testimonials with a grain of salt. There are some outlying trading companies that even claim to base their trades on the moon’s gravitational pull. Even these companies will have testimonials from “clients” who claim the system works for everyone.

              It is likely you’ll experience at least some success in each system you encounter. This success is common and hard to take with a grain of salt. But to truly avoid the scams, make sure to do your research. Give each system you experience the time and preparation necessary to determine actual credibility.

              Day Trade FEED’s Day Trading Indicators

              Here at Day Trade FEED, we use a specific set of indicators in our day trading system. After years of research and trial/error, we’ve incorporated Kevin Jones Day Trading Indicators into our trading system.

              Traders have been using these indicators for more than 20 years, and so far they’ve worked perfectly for us in our trading.

              If you’d like to learn more about Kevin Jones Day Trading Indicators or how they work in our trading system, contact us!

              This article is only part two in a series aimed at helping day traders understand what mistakes to avoid. Subscribe for future editions.

                Free Day Trading Classes

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                Free Day Trading Classes by Day Trade FEED

                Free day trading classes are now available for everyone!

                With summer here, planning vacations and little getaways has become pretty common. Unfortunately, with that planning comes the anxiety and insecurity that only financial uncertainty bring. Look, we’ve all been there. And it’s no secret that we all wish we had a little bit of extra income to give us the financial breathing room to actually enjoy these trips. Well, look no further. Starting now, Day Trade FEED is offering free Day Trading Classes!

                Whether you’re a day trader who has been day trading for the past ten years, or simply wanting to find out about some different options to help you out financially, this is the opportunity you’ve been waiting for.

                For more information on these free day trading classes, contact us or register for a free, no-strings-attached day trading webinar.

                We understand if you’re a little unsure, but rest assured our proprietary indicators and tried-and-tested education program can and will make you successful.

                If you’re STILL not convinced these free day trading classes are effective, here is a little proof…

                 

                Free Day Trading Classes can be confusing, so Day Trade FEED wants to help you understand the Day Trade My Money Program!

                We’re absolutely positive you’ll see what you like at these free day trading classes, and we’re even willing to put money on your success!

                One of the main offerings you’ll learn about at Day Trade FEED’s free day trading classes is the new Day Trade My Money Program. Basically, we trust this system so much that anyone who is willing to learn it, live it and love it enough to give it the effort required will be eligible to have an account funded by their corporate office… and yes, you read that correct.

                They will GIVE YOU MONEY TO TRADE.

                Many people ask themselves why a company would do this instead of just trading their own accounts to make profit?

                “Every trader hits a limit where the risk is more than they are willing to take on individually. If we traded accounts totaling millions, taking a loss could be very significant.

                However, if we let others trade our money, it is more protected. Some are buying, some are selling. Some are in the Euro, others in the Pound. Some taking a loss, others winning. Overall, diversifying our investment funds brings in better returns than typical investment vehicles.”

                Interested yet? Contact us!

                 What do these free day trading classes teach?

                The answer is simple: free day trading classes teach you day trading 101.

                While most traders we deal with decide to trade the EUR USD forex market, we do see the occasional trader decide to jump right in and trade futures markets. The reason many traders decide initially to trade forex is because the market in general is slower moving, meaning more time to make decisions and a smaller chance at taking losses.

                …BUT the beauty of these free day trading classes by Day Trade FEED is that they focus on the individual! We recognize that no two traders are the same, in fact, we love the diversity! That’s why when a trader tells us they want to trade futures markets, we don’t even bat an eye.

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