Wednesday, September 24, 2008

How To Be a Day Trader - Trading Stocks Online For a Living

Online Trading

Its a well known fact that most, about 80%, of all day traders struggle to beat the market or even make a profit trading stocks. There are many, many different types of trading techniques that are taught and talked about. Most day trading techniques involve studying stock chart patterns, setting up preset times to sell and times to buy a certain stock.

Study Different Techniques - Before you start trying to trade for a daily income, it's important to study all of the types of techniques that are available. Once you have read a few books and studied a few types of techniques, decide which trading style fits your personality best. Start with small trades and practice trading before you slowly build up how much money you are trading with.

Try a Demo Account - Some stock trading companies offer demo accounts that allow you to practice trading stocks without using real money. Thats a good way to try out the new techniques you have learned.

Study The Actual Companies Fundamentals - Since day trading can be so risky, it's important to learn as much as you can not only about trading techniques, but the fundamentals of the companies you are trading with. My personal preference is to only trade with companies that I know enough about to invest in long term, that way if I'm not sure whether or not I should sell a stock, I can be comfortable just walking away from the stock with confidence that it will probably do well in the long run.

Choose a Low Cost Online Broker - As a day trader, keeping your costs low with each trade is important. If you choose a trading service online that is charging too much for each trade, that cost can eat up too much of your profits. Choose an online trading broker that has discounted online trading.

By L. Sampson

Check Out the Related Article : Do You Really Know About Online Trading?

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1 Comment:

Management Warrior said...

The ease of online stock trading draws the attention of new investors and investors looking for an alternative to the old methods of trading. However, before getting carried away, investors should look into the basics of stock trading strategies to help protect themselves.

"Online Stock Trading - Stock Trading Strategies

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