Daytrading techniques help?

h.b123

Newbie
2 0
I am learning to trade intraday CFD's and swing trade CFD's. How can you make money like day trading or keeping these stocks for a short period of time?Obvously you cant trade on financial strenght (balance sheets etc.) as that is for long term trading. What factors should I look at? Recent news??

Thanks
 

Brumby

Established member
593 139
I am learning to trade intraday CFD's and swing trade CFD's. How can you make money like day trading or keeping these stocks for a short period of time?Obvously you cant trade on financial strenght (balance sheets etc.) as that is for long term trading. What factors should I look at? Recent news??

Thanks

The best way to keep your money is to stay away from intra day trading. There is an inverse relationship between time frames and experience i.e. the less experience the greater the time frame.
 

comparebroker

Junior member
22 0
Seriously, I agree. If you are not a pro. Keep away from day-trading. It's really a dangerous game and can be one-sided if you are a newbie.
If you want to seriously consider the possibility, I would advice to go and look at the requirements. I heard you should have $25,000 in your trading account if you are a pattern trader meaning if you make more than 5-6 intraday trades.

Check out all the stuff before giving your money to the market.
 

timsk

Legendary member
7,388 2,170
I am learning to trade intraday CFD's and swing trade CFD's. How can you make money like day trading or keeping these stocks for a short period of time?Obvously you cant trade on financial strenght (balance sheets etc.) as that is for long term trading. What factors should I look at? Recent news??
Hi h.b123,
Welcome to T2W.

The information you provide about yourself is too little - and the questions you ask are too broad - to be able to offer any useful or meaningful answers I'm afraid! You'll need to provide more detail about the markets and timeframes you intend to trade and narrow down your questions. If you're unable to do that yet because you're very new to the game, then I'd say forget about trading CFDs for now and just soak up as much information as possible. CFDs are a sophisticated and highly leveraged derivative product which could result in you blowing your account in double quick time if you don't know exactly what you're doing.

Start by checking out the first two links in my signature and follow your nose from there. Also, check out the Trading FAQs forum as that covers most of the basics. You mention using news stories and formulating a trading strategy based around them. Trading the market's reaction to news stories (i.e. after a story's released) is a possibility - trading the news itself (i.e. ahead of an announcement or during one) is almost certainly a very bad idea for novice retail traders. It's very much the domain of industry pros with state-of-the-art kit, deep pockets and heavyweight intellectual muscle on top of their own extensive knowledge and experience of the markets.

The comments by 'comparebroker' regarding the $25k pattern day trader rule applies to day trading U.S. equities via a direct market access (DMA) account with a U.S. broker. It doesn't apply to derivative products such as CFDs or to spread betting here in the U.K. Equally, it doesn't apply to other markets so, for example, you could day trade equity indices with an account funded with a mere $1k. Whether or not you'd be wise to do so is another matter entirely!
;)
Tim.
 
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David Rickylee

Newbie
5 0
Before you invest in daytrading knowing about the techniques for that process is a good thought,as we know trading is of ups and downs. Firstly you should always be updated about situations of trading.Always check which trade is going down and see that you were not of that trade. Though the daytrading is the quick approach, the chances of taking risks is more when compared with the other legitimate ones. I was not in this currently. Anyone experienced with this, please produce some tips for smoother running in this. Thanks in advance.
 

h.b123

Newbie
2 0
Hi guys, thanks again for all the really great feedback. I really appreciate it. As a novice I am trying to take in as much information as possible and have even tried my hand at paper trading on the city index demo account platform.

My only question would be; "what is the best element to look at in terms of picking a potential winning stock" and also is there any alternative to trade over a short time period (1-3 weeks) as I would like to try and make trading an income (if successful) as I am a student and have no job. I have £1000 start capital.

Again, I really appreciate all your feedback and this I probably sound very very naive and stupid thinking I could make £50-100 in 1-3 weeks. If this is possible could anyone suggest any possible online sources that I can look at in order to form some personal strategies to when picking potential "winning" stocks

Thanks again
 

timsk

Legendary member
7,388 2,170
If this is possible could anyone suggest any possible online sources that I can look at in order to form some personal strategies to when picking potential "winning" stocks.
h.b123 - Re-read my earlier post, paying particular attention to the 1st two sentences of the 2nd paragraph. Oh, one other thing, don't start any more threads on the same topic! Before starting any new thread, do a search to see if there are existing threads that either answer your questions or that you can contribute to.
Tim.
 

neil

Legendary member
5,167 747
Hi guys, thanks again for all the really great feedback. I really appreciate it. As a novice I am trying to take in as much information as possible and have even tried my hand at paper trading on the city index demo account platform.

My only question would be; "what is the best element to look at in terms of picking a potential winning stock" and also is there any alternative to trade over a short time period (1-3 weeks) as I would like to try and make trading an income (if successful) as I am a student and have no job. I have £1000 start capital.

Again, I really appreciate all your feedback and this I probably sound very very naive and stupid thinking I could make £50-100 in 1-3 weeks. If this is possible could anyone suggest any possible online sources that I can look at in order to form some personal strategies to when picking potential "winning" stocks

Thanks again

You have to realise that you have an awful lot of reading ahead of you (Start with the list TIMSK has given you); it will take a lot of time, maybe a couple of years or so.
Here is yet more reading (approaches to trading -Not a general overview of trading) others may add to the list.

http://www.trade2win.com/boards/discretionary-trading/145656-price-action-trading.html

http://www.forexfactory.com/showthread.php?t=2331

http://www.trade2win.com/boards/forex/123288-3-ducks-trading-system.html

Read a live trading thread(y)

http://www.trade2win.com/boards/discretionary-trading/139984-live-trading-general-chat-lounge.html

Read some books - "Pring on TA," for example.

Soak up info. Learn to separate snake oil from good advice. YOU WILL NOT MASTER TRADING IN A FEW WEEKS OR MONTHS - despite what some will tell you. Get the basics first -that takes a long time-observe price action-remember that indicators are lagging by their very nature.

Demo, experiment,keep a diary, keep reading,and debate.
Good luck
:)
 

David Rickylee

Newbie
5 0
Investors are holding a record amount of Fixed Income in their portfolios. It’s no wonder. Four years after the financial crisis, shell-shocked investors have continued to flee to bonds in order to lower their exposure to volatility and risk; and to capture yield. Of course, typically investors pile in to an asset class at the wrong timeNew public policy may add clouds of doubt for dividend investors. White House proposals to raise the dividend tax rate to the higher personal income tax rate of 39.6% have some talking of an end to the party. If this proposal becomes reality, investors in dividend-paying equities may see values erode. And even if the tax hike doesn’t come to fruition, keep in mind what would likely happen when the stock market heads south again.
Alternative investments remain mysterious to some investors. Endless amounts of articles have either celebrated their virtues or warned of their risk. The fact is that there are a wide array of alternative asset classes and alternative investment strategies from which to choose. There are some benefits of these as Access to Asset Classes with Independent Return Characteristics,Low Correlation to Stocks and Bonds, The Potential to Enhance Returns and the Ability to Reduce Risk of Overall Portfolio.
The purpose of alternative strategies is to enhance diversification and mitigate risk. In a dramatic drawdown period such as 2008 for example, the traditional equity market was down 37%.Alternative strategies have the ability to help manage risk within a portfolio, because they have different risk characteristics associated with them compared to traditional investments.
 

Brumby

Established member
593 139
Investors are holding a record amount of Fixed Income in their portfolios. It’s no wonder. Four years after the financial crisis, shell-shocked investors have continued to flee to bonds in order to lower their exposure to volatility and risk; and to capture yield. Of course, typically investors pile in to an asset class at the wrong timeNew public policy may add clouds of doubt for dividend investors. White House proposals to raise the dividend tax rate to the higher personal income tax rate of 39.6% have some talking of an end to the party. If this proposal becomes reality, investors in dividend-paying equities may see values erode. And even if the tax hike doesn’t come to fruition, keep in mind what would likely happen when the stock market heads south again.
Alternative investments remain mysterious to some investors. Endless amounts of articles have either celebrated their virtues or warned of their risk. The fact is that there are a wide array of alternative asset classes and alternative investment strategies from which to choose. There are some benefits of these as Access to Asset Classes with Independent Return Characteristics,Low Correlation to Stocks and Bonds, The Potential to Enhance Returns and the Ability to Reduce Risk of Overall Portfolio.
The purpose of alternative strategies is to enhance diversification and mitigate risk. In a dramatic drawdown period such as 2008 for example, the traditional equity market was down 37%.Alternative strategies have the ability to help manage risk within a portfolio, because they have different risk characteristics associated with them compared to traditional investments.

Is there a mistake? Maybe this is meant for another thread.
 
 
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