Posts Tagged ‘daytrading’

Why Do Day-Traders Fail?

Thursday, June 16th, 2011

It is estimated that 97% of new day traders will fail. That means if you are just starting out, the odds are not in your favor. Even still, the profit potential is so great that people are willing to bet against those odds. So why is it that so many day traders fail? I have 3 words for you. Lack of knowledge. Too many newbies jump in head first without taking the time to learn the ins and outs of the day trading business.

By taking the time to learn the intricacies of day trading you will be pushing yourself closer to the 3% who actually succeed and make a nice profit in the process. Though very risky, day trading can also be very rewarding for those who have the proper knowledge and the proper mindset.

When you are first starting out you will hear of two trading styles. Technical and fundamental. Technical is the way you want to go. With technical analysis you will be able to look at historic price data that will help you better predict that movement of the market. Most successful day traders have an in depth understanding of technical analysis.

They also have exceptional money management skills. As a day trader you will manage money. And how well you manage that money will determine your success. That’s why you must understand things such as stop losses and puts. Knowing how to use these options will help you protect your profits.

All in all, day trading is a very rewarding business to get into. The amount of money that you can make is unbelievable. But only if you take the time to educate yourself first. Otherwise you will end up like the 97% who never make a dime.

If at all possible, consider getting a mentor. Having a mentor will shorten the learning curve and help you get a better understanding of how the markets work. You should also attend a few trading exhibitions if you can.

All of these things will work together to speed up the learning process. I would also encourage you to start off trading with a practice account. This way you can experience day trading live and in action without losing any money. And then, once you get your confidence up and your feel more comfortable with a few trading styles, you can start using real money to make trades.

Learn the worlds best future trading secrets and How We Predicted The 2008 Crash Before It Happened. Join Our FFT Trading Club & See Where You Should Be In The Market Next Week! Visit: http://www.forecastfortomorrow.com/Trading-Club.

China Enters Futures Trading Market.

Sunday, April 4th, 2010

The positive response to the announcement could signal China moving towards a full-on futures marketplace.

On March 26th’s breaking news from Shanghai Chinese blue chip shares hit their 8 week highs.

The Yuan is up to 6.8263 to the U.S. dollar, above than Friday’s close 6.8273.

Shanghai Composite Index closed at 3,124 which is up over 2% from the close on Friday.

The Shenzhen Composite Index went up to 1,201 1 percent increase.

According to analysts the 3,100 point level is an important psychological benchmark for the market. The benchmark being met with higher trading volume is a definite plus.

Ping An, Securities analyst Li Xianming of Shenzhen said, “With the introduction of the stock futures, investors refocused on blue chip shares, as their previous performance has lagged behind the market.”

Chinese lenders, auto manufacturers, and brokerages are among the big gainers.

Better-than-expected annual earnings last week were reported by China’s three largest banks.

Bank of China Ltd. rose 3.1 percent to 4.36 Yuan Industrial & Commercial Bank of China Ltd. rose 2.5 percent to 5.02 Yuan China Construction Bank Ltd. rose 2.3 percent to 5.71 Yuan

The two largest brokerages were gainers as well. Haitong Securities Co. gained 2.8% to 17.07 Yuan Citic Securities Co. rose 3.5% to 28.36 Yuan

The auto makers surge as well. Zhejiang Geely Holding Group signed a deal Sunday to buy Ford Motor Co.’s Volvo Cars. SAIC Motor Co. Volkswagen AG (VGC), the local partner of General Motors Co. at 20.45 Yuan climbed 3.7% Ford Motor Company partner, Chongqing Changan Automobile Co. at 6.97 Yuan increased 1.2%

With the announcement and China’s Blue Chips increasing on it looks like capitalist principals are taking deeper root. It is highly unlikely that the surge in the sectors of auto manufacture, lending, and brokerages is mere coincidence.

James Horne has been a securities analyst for over 10 years. He is CEO of Pure Reason LLC, the home of Shadowtraders. His voice has been heard by hundreds of students learning to trade the Futures Market with Shadowtraders online day trading strategies. Before you buy any trading software, make sure you attend Shadowtraders Monday Night Webinar, and hosted by Barbara Cohen

One of the Most Important Trading Strategies for Trading Emini Futures Contracts

Friday, April 2nd, 2010

To understand the essential nature of pivot trading, you’ll need to first of all understand that the stock market is controlled. Perhaps it could be best said that the Stock Market is entirely controlled and if it were not, then millions of Futures contracts and millions of shares of stock could not change hands each day so competently.

If you don’t believe that the market is controlled, then examine this example of how control might work. Towards the end of May 2009, Treasury Secretary Tim Geithner traveled to China and met with Chinese economic officials. The Chinese admonished Geithner, the conversation went, probably, like this…the Chinese telling Geithner that they have thoroughly invested in the U.S. stock market and in the U.S.Treasury bonds. Yet they are willing to withdraw from the US. Market if the stock market does not go up soon.

Geithner knows that could literally crash the U.S. economy, an economy held together with bobby pins.

Can Geithner and his buddies in the Treasury do anything? Geithner’s meeting with the Chinese takes place at the END of May. Upon his return, the Dow goes from 8,200 to 8,800 in two weeks, a 600-point spike. This is a market that had not moved for over two months, hanging around 8,000. How could the stock market move 600 points in two weeks if it hadn’t moved in over 2 months? In July and August, the stock market went up almost 1,000 points. Look at the Dow chart for the last five years. You can see that May through August are always thought to be summer doldrums. How, then, could the market go up 1,300 points in just over one month?

How does control make you a 12-minute trader? That’s easy. The market is controlled. The market’s “movers and shakers” know where they are want to take the market and they how fast to get it there. Movers and shakers abide by very controlled trading rules, a most important one being Futures Pivots. In order for you to become a 12-minute trader, you must learn the movers and shaker’s rules…buying when they buy and selling when they sell. You’ll need to truly become a market shadow.

What then, are pivots? Pivots are support and resistance price levels that allow the insiders to control daily highs and lows during any given trading day. There are in actuality 17 Futures trading pivots — eight intraday (occurring in just one day) and nine inter-day (occurring over more than 1 day). Futures Market insiders use Futures Pivots and stock market insiders use Stock Market pivots. To be a successful 12-minute trader, you need to have the pivots to appear on your technical analysis charts. It is very difficult to trade without pivots because you won’t know where the market may turn on a dime.

Want to uncover more about being a 12-minute trader? Want to learn more about Futures Market pivots and technical analysis? Attend a Monday night webinar on trading the Futures marker put on by http://www.shadowtrader.com. You’ll see for yourself the 17 pivots in action on the current day’s technical chart. Shadowtraders always demonstrates the current day’s chart, not some chart from several weeks or months earlier.

Before you buy another trading course, make sure you attend one of Barbara Cohen’s excellent free Monday night Webinars

Shadowtraders Delivers New Technical Analysis Indicators For Ninjatrader

Sunday, March 28th, 2010

In addition to their existing technical analysis indicators, Shadowtraders has just announced its latest indicator, Fractal Geometry. With Fractal Geometry, traders gain a better understanding of where the Futures Market is set to go, helping daytraders become more consistent. You can find out about Fractal Geometry at Shadowtraders website, http://www.shadowtraders.com.

Shadowtraders Fractal Geometry is designed for daytrading both the Stock Market and the Futures Market. With this exciting new indicator, determining entry points with consistency, no matter if they are long or short, is more accurate than ever before. Traders are always looking for accuracy and consistency. Fractal Geometry provides just that.

ShadowTraders is very enthusiastic about adding Fractal Geometry to its growing list of technical analysis indicators. After monitoring Fractal Geometry effectiveness with helping individual traders identify entry points, no matter if they are daytrading stocks or futures, Shadowtraders knows it built a new winner.

Shadowtraders specialty is teaching clients daytrading the Futures Market. Many traders used to feel that trading the Futures Market was risky. But with the leverage you get in margins, individual investors can become consistent Futures traders even if they start with a small account, as little as $2500.

All of Shadowtraders indicators, including Fractal Geometry, run on Ninjatrader’s technical analysis charts. Shadowtraders specifically chose Ninjatrader because for Ninjatrader provides free charting. And for the Futures Market, even the real-time datafeed is free. That’s huge because so many charting packages are expensive, running anywhere between $125-250/month depending upon the package.

To assist Shadowtraders new customers learn to use Fractal Geometry to its max, Shadowtraders provides both a self paced trading course that can be done over the internet 24/7 as well as an intensive 4 day trading seminar. The intensive 4 day trading seminar event is delivered as a Webinar, online. Traders learn to trade Futures in the privacy of their home, wearing their pajamas if they like. Shadowtraders always states…”Be forwarned…the 4 day trading seminar is NOT your typical trading seminar”.

Shadowtraders is far more than just an educational trading company like so many others that train daytraders to invest in S&P 500 E-Mini Futures. Shadowtraders teaches their customers to take full investment advantage using a variety of distinct Futures contracts, from treasuries, such as the the 30 year bond and 10 year note, energies, such as crude oil and natural gas, Forex Futures, including the US/Yen and US/Euro, etc. This separates Shadowtraders from its competitors, those companies that only lecture on the S&P 500 E-Mini. Shadowtraders teaches the Futures contracts to trade that yield the greatest liquidity and volatility. The versatility of the mathematical Fractal Geometry technical indicator assists investors daytrade these Futures contracts and others.

On Monday nights, attend Shadowtraders introductory webinar. Shadowtraders sponsors a 2 hour Webinar. In the Webinar, they show their latest technical analysis indicators against the day’s technical chart on Ninjatrader. Traders can register for the free trading Webinar, and just for registering, attendees receive a set of free trading tips. Traders can register for free at http://www.shadowtraders.com/webreg.php

Read Shadowtraders blog while looking over their website. You will discover controversial editorial comments about the Stock Market, the Futures Market, current day economics, etc. http://www.shadowtraders.com/futuresblog/

Shadowtraders trains new traders to trade the Futures Market providing an online self paced trading course and a 4 day trading seminar. Before you purchase any trading course or seminar, make sure you attend Shadowtraders Monday Night Webinar, and hosted by Barbara Cohen, CIO