Rookie Day Trading System example essay topic

High tech trading Stock trading has been a very pronounced and reputable profession throughout history. Ith as evolved today into a thing for the average American. Thanks to the computer or even more specific the Internet Stock trading has just infiltrated the American home. Stock trading has been around for a long time but just recently in the past 10 years it has become very popular with the common man. It has become apparent that the average American has become educated enough to enroll him or her self in the act of trading. Millions of people all around the world have found that stock trading on the Internet is avery lucrative investment.

Altho e there is not a 100 percent chance that a return will be made there is still a very devoted following (The Washington Post), Nov 14, 2003 pE 1 col 1 (25 colin) but it is not just as cut and dry as one thinks. Day trading is a very fast passed activity and involves finding very short term opportunities, sometimes lasting only minutes. this can get pretty intense and tempting at times. This is why it is very important that the investor is up to date on all the activity going on in the trading world. It is not hard to become educated.

The internet has become the place to be when trading. There are many sites that are equipped with the right information that is need to make educated investments. at any time of the day. (bol linger) Novice traders have a 95% failure rate if they are not informed. For individuals to become involved with day trading on the Internet it take a few simple steps. First of all the individual has to become familiar with the system. The Internet is a great place to do this. Sites like Google and MSN are very common for people to start there education with. to start you day trading you find a trading state. you can do this by tying in "day trading" on a search engine. this gets the ball rolling.

A web site that is very widely use is web This is a site that allows a beginner user to find out pertinent information about day trading. the web site allows the individual to get charts and graphs on stocks they might be interested in. They can look up past histories of there desired stock and see if it something they are interested in. (e signal. com) Another common tack tick used in trading is what the professionals call "paper trading". All this means is you are not using real money. Your are on a dry run.

The his desired stock and simulates the stocks actions. he followed it untill he feels the system this a good way to learn the system and how it works. They next ste p is to find a broker. This is also easy. The individual can use the site Mentioned above to start there trading account. Most people start of there Portfolio with amount of money which is on average 500.00 dollars. This money gets you into the trading world.

The individual st rats to build his portfolio with stable stocks that are predicted to give the most return in a short amount of time (Etrade. com). It is essential to have a stable portfolio to start off to ensure that you do not take to much of a loss at the beginning of your trading corridor. When trading with real money some individuals realizes it is much harder than paper trading. The fundamentals and concepts are the same but now you are dealing with your hard earned cash and you are emotionally involved. (. com). A first time trader has to to take a loss at the beginning almost 4 out of every 5 lose on ther first 20 transactions, this is to be expected. (Etrade. com) Day & Stock Trading is NOT always predictable and when you think you have it figured out it will turn against you.

Be ready to take a loss and move on (because you WILL lose on some of these trades! ). If you have used a 'stop loss order' properly, as explained in the Rookie Day Trading Guide / System, you can minimize your losses and maximize your gains. Using this concept and technique you can be right or wrong 50% of the time and still make money because if you limit your losses to 1/8 - 1/4 and your gains exceed those limits a 50/50 success rate will most always put you ahead! When you have 4 - 5 - 6 successful days in a row you begin to think this is really easy and you lose your FEAR FACTOR. FEAR is GOOD for a successful Day Trader!

There ALWAYS will be the NEXT day which will turn against you and without FEAR you forget all you have learned in this Rookie Day Trading System. Make that one fatal mistake - whether it is NOT putting a STOP on a stock or GREED - you will lose. Be emotionally prepared to LOSE by unloading a stock should the market turn or the FEAR FACTOR sets in and you are afraid to enter into an execution because your common sense and your training SAYS NOT TO.