Methodology Of A Day Trader
At Penny Pay Day we offer the building blocks to successful trading by identifying stocks that are under promotion and are likely to have upside momentum and volatility. These hot penny stocks possess the potential to offer exponential returns.
Short-term, or day, trading means that the trader generally does not hold positions overnight and trades in a shorter time frame using shorter term tools like 15-minute or a 5-minute charts with volume and simple stochastic, combined with some simple trading rules improves your chance of success.
Day trading is popular for several reasons, especially its simplicity once the skill has been mastered. It is a business with very low start-up costs and a potentially unlimited upside. Although there is the possibility that individuals can lose more than they fund an account with, brokerage house monitoring tools have evolved to protect the trader. But it all comes back to the tools you use and the methodology you develop for yourself which get you through the tough times in each trading day, month and year. This is a race of endurance not speed, and it is mental not physical.
For many beginners day trading is the way they were introduced to trading, and brokers and dealers rely on a steady flow of new account holders coming through their doors. Day traders generally trade more shares than do position or swing traders because they trade smaller time frames. The larger trade size means they can take smaller bites out of the market and make just as much as the longer time-frame traders make, only over a shorter period.
The same techniques for distinguishing between trend and counter-trend setups and the use of stop placement that is based on percentage of the account and chart structure apply to day trading. Day trading is very much a microcosm of position trading and swing trading. The only difference is that in day trading one must be aware of scheduled economic releases and other world or financial market developments that can affect price movement over the short term or intermediate term. This combined with simple trading rules and the awareness of what markets to watch on a given day are the first steps to a repetitious method. Discipline and familiarity for price patterns and market awareness are the building blocks for any successful trader.
At Penny Pay Day we offer the building blocks to successful trading by identifying stocks that are under promotion and are likely to have upside momentum and volatility. This is an important piece of the puzzle and our website is one of the few who incorporate this into our trading strategy. We welcome you to our family of traders.
Sign up today for free at : http://www.pennypayday.com, to become an exclusive Penny PayDay member and to start receiving our emails on stock ideas that we feel has great money making potential.
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