I’m an entrepreneur so I’m certainly no stranger to taking big risks on a frequent basis. It’s part of the job description and I’ve not only learned to tolerate it but embrace it.

But when I look at taking risks in business and gambling, they feel nothing alike. In Vegas, the house wins… always. In business, however, I can stack the odds in my favor and make it far more likely that I win.

Okay, I’m rambling. This article is supposed to be about day trading so let’s get to that. The way most people play the day trading game is like most people gamble in Vegas. They get a “feeling” that next big score is coming if they just stick with it. However, professional day traders don’t trade on whims and feelings. They take calculated risks where the odds are in their favor. While only 5% of day traders ever make money, those who do it well, can make a fortune.

Low Risk Day Trading

If you want to becoming a day trading winner, then read on and I’ll give you three simple low risk day trading strategies to put you in the 5% that do succeed.

1) Get A Clearer Picture Of The Market

A lot of people get a little too myopic when they’re entering their trades. Let’s say you’re using 5 minute intervals to enter trades. You should also be looking at 30 minute and 1 hour intervals as well to make sure you can see what’s happening.

2) Try Again Tomorrow

I love this quote. “Sometimes courage is the little voice at the end of the day that says I’ll try again tomorrow.” You need to make sure that you’re not risking too much on a single trade that could potentially prevent you from being able to “fight another day.” Professional traders never risk more than 2% on a trade and always have a stop loss in place. Learn from them and do the same.

3) Trend Trading

Scores of millionaires have been created using this very tactic. It’s how you get rich in day trading. Follow the trends and ride them until they reverse. Sounds simple, right? Don’t let the simplicity fool you, it works if you just follow a proven system.

Learn how to use trend trading to get 12.8% returns per month with low risk day trading or 6.43% monthly returns in just 5-10 minutes a day after the markets have closed by getting this free trend trading pdf report

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Suppose you could improve your golf driving accuracy by 40% or well you get my point. What if you could do anything at all with a 40% advantage to you?

In this case it is about money, and an opportunity to do just that, to make a 40% profit legally, in a single day. A profit I didn’t take advantage of!

As a day trader and someone who manages the Canadian Stock Alerts blog I am always looking for opportunities in the Canadian stock market. And I have narrowed my strategy by only following stocks that have higher than usual volume, higher volume for any reason at all. If the volume is there, then the stock is “in play”.

Personally, I use the Stock Research Portal to look for all the drilling & discovery news releases in real time. Now enter Pele Mountain Resources Inc. They had a press release on Tuesday August 11, 2009 that came out at 10:19am. I skimmed through it, and didn’t deem it to be too note worthy. Boy was I wrong!

I totally missed this line … “a high value of 34 g/t over 2 m was located in the central channel associated with a 0.3 m wide quartz vein.” … shame on me, how could I miss that!

I checked the stock on my Level 2 and not much was happening after the news, so basically I put it on the back burner. A quick check after lunch, and it was .12 or 20% higher than the open. Well, it just kept getting away from me, and closed at .14 on 1.8 million shares traded. That’s a 40% gain that I missed!

A missed opportunity that could give you a 40% profit in a single day is not to be taken lightly. So what lesson did I learn here, that I hopefully won’t repeat? Obviously, read the drilling discovery news results more thoroughly and then watch the stock volume on Level 2 very closely.

The nice thing about the Stock Research Portal site is that it consolidates all the mining drilling news releases into one page on their site. They make finding the real-time news easy, now I just have to make reading it properly a bigger priority.

Ah yes .. to be human.

And by the way, you can join the Stock Research Portal for free, in exchange for your email address. Well sir, this day trader is happy to give them his email address in exchange for all the great free resources they provide.

About The Author: Mike Perras is a former media executive and faculty of business professor. Today he is a freelance writer and also manages the Canadian Stock Alerts blog. It is updated weekdays in real time, and the primary focus is to find stocks with higher than usual trading volume. Mr. Perras doesn’t advocate buying the stocks he mentions. Nothing in this article is either designed to meet readers personal financial situations, or intended or taken to be investment advice.

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(1) Not Having a proper Trading Plan in place : Most people start trading without any kind of plan in place. That is a very serious mistake to make. Every business is built on and thrives on proper planning. A trader should know in advance how much risk capital they are willing to trade with. Traders must stop looking for the Holy Grail and try to get good at one or two setups and execute them religiously. Traders must plan to cut losers off quickly and hang on to winners as long as possible. By not planning their trading, traders set themselves up for failure.

(2) Failure to Preserve their Trading Capital : Trading Capital is the most essential element in the trading business. Without it one cannot trade to make the profits one wishes for. Hence, it is very critical for the day trader to preserve their trading capital. Trading Capital Preservation will ensure a trader of his or her survival in the long run. The best way a trader can do this is by taking small losses and moving on to the next trade rather than try to make up for losses in one trade.

(3) Improper Risk Management : Managing risk is the number one priority, goal and job of the successful day trader. This is done by proper position sizing. A trader must have a decent sized account to focus on and trade the instrument of his choice. This means the account should be able to withstand a number of losses in a row without wiping out the trader’s account or draining the trader mentally and physically. A trader must not use up all the margin available to him or her in a single trade. And a trader must definitely avoid the trap of over-trading the account.

(4) Not having proper Discipline : Discipline is a very important virtue that needs to be possessed by all traders. It is probably the most common virtue possessed by successful day traders. Discipline can be in many forms. A trader must be disciplined in his approach to trading. Discipline starts off by having a solid plan and following that plan during live trading. A trader must have the discipline to accept losses when they come and take profits when called for in the plan. Fear and greed can cause a trader to have total disregard for discipline. Discipline is the art of dealing with the stress that comes with the loss of trading capital. It is very difficult to trade and succeed without proper discipline.

(5) Not using Trading Stops : Using proper trading stops is the key to success in trading. Trading stops go hand in hand with managing risk and capital preservation. A trading stop helps the trader get out of a losing position without thinking too much. It is a part of most execution platforms today. A trading stop tells a trader that their analysis of the market move was wrong. A trading stop can be based on the amount of money a trader is willing to pay the market to find out if he or she is right about their analysis. Having stops placed automatically helps build confidence in a trader as they know they will not have to think too much when the market moves against them by a certain amount. They know they will get taken out of the position automatically when the stop is triggered. After all, the first loss is usually the smallest loss.

Please visit http://www.invictatrader.com to learn more about the Watts Trading System from the Watts Trading Group and how it can be used to profitably scalp, day or swing trade stocks, futures, forex or any other liquid market and any time frame. It is the only system out there that we believe offers a lot to traders who want to succeed at trading for such a low price.

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Day trade margin really is too broad a term – as there are several layers of account protection for both the trader and the broker. The broker establishes the rules for the day trade margin account and the trader funds it with cash, securities and or other collateral to ensure the ultimate liquidity of the trader’s positions should things go horribly wrong on his or her trades.

Before we go too much further we need to define some terms related to day trade margin. Each of the following types of margin rules must be followed in order to maintain good account status. Failure to do so may result in liquidation of assets (an outcome to be avoided at all costs). A few definitions:

Minimum: Refers to the amount of capital or collateral a trader must have placed with his or her broker prior to trading. Rules state it must be at least the lesser of $2000 or the cost of the trade.

Initial: This varies based on the type of security traded, but basically is a percentage of the purchase price of the assets bought. Maximum for stocks is 50%(2:1 leverage), bonds range from 25%-50%, and currency can be as little as 0.25% (yes… 400:1 leverage).

Maintenance: The amount of equity below which a trader must not allow his account to fall. Falling below this level results in a call on the account – which could be cause for asset liquidation – a devastating blow to an account.

The best bang for the buck on a day trade margin account is by trading forex (learn more here).

For more information including sample trade computations, please review this margin account rules piece.

Best of luck to you in all your investments.
Steve B. Wise

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One big advantage of swing stock trading over day trading is that you do not have to stay glued to your stock-screener awaiting the right time to sell. Another is that you will pay fewer commissions when swing trading stocks.

To look at it another way, the old “buy and hold” model of stock investing is where an investor buys a stock, holds it indefinitely, and rides the waves of increases and decreases, hoping that down the road the stock will end up higher than it was when it was bought. Swing stock trading allows the investor to ride the swings up and down, cashing out profits at each swing point, allowing the investor to then buy another stock at a swing low point and sell at its swing high point.

In today’s volatile market, a savvy investor can earn 10 to 20 times the returns as the buy and hold method. Investing in the stock market takes patience, knowledge and practice. It also involves risk. Regardless of your skill level in swing stock trading, there are lots of opportunities to make solid profits swing trading stocks if you know the correct methods and techniques.

Alex Barrett is a Stock Investor Adviser that writes and publishes articles about stock investing for today’s market with low risk, high return investments. More information is available at http://www.SmartStockMoves.com

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We all know the value of the dollar is constantly changing. We hear this on the news that the value of the dollar is going up or going down. Currency trading can be a great part of a diversified portfolio for investing. Most people already know, or believe they know how the stock market works. However there are some distinctions between forex and stock or option trading.

To be successful at learning the currency trading basics otherwise known as forex, information is king. It has been said that the closer you are to the information the better the information it is. The major benefit of trading forex is this information you know about a given currency or other inside information can be used for your benefit.

In short you can be an insider trader and take advantage of it when you find out about a given event or nonevent as it so happens. With stocks, bonds, and options you cannot trade or influence others based on what is called “insider information” or information that is not yet public knowledge. In some cases in the forex markets facts may be leaked days before the information is made public.

Brokers for stock and options traders make money on commissions from each trade that you make. The commissions vary from broker to broker and can be much higher for a full service broker or broker-assisted trade. Commissions for currency trading for the brokers is much different in that they make the difference between the bid price and the ask price.

For a beginner trader forex trading may not be the best choice to learn without some training and a basic working knowledge of how it works. For technical analysis a trader, chart reading ability is a must. If you new to all of this there is hope to get started making more relatively fast if you have the proper training or a good mentor that can be there for you when you need help.

“It has been said that the most expensive advice is bad advice.”

Finding a mentor that will teach you the currency trading basics will put you months and years ahead of others who try to learn on there own. Remember you don’t want to be cheap in the market. When you buy cheap things what do you usually get? A heap of junk and you have to spend more money to fix the problem. Cost should not be your first consideration in any market. Instead look for the best value and the dividends will pay you fortunes.

One great place to find a good forex signal service is 1st FX Services. He has over ten years experience and has been trading for a living for 3 years. A lot of people claim to be great traders but they don’t do it is a full time job, and make full time money consistently.

Check out for yourself, you can start the first 2 weeks free to try it out. This is the only forex call service I found that will let you try it for free!

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Learning the Trade Before Jumping in

This is a very important step. You see, the reason most people quit trying to day trade before they see real success is because they jump in too soon and lose money. This would not have happened if they would have taken the time to slow down and absorb some information on it first.

There are tons of stock trading books out there that will explain any strategy you can imagine to you in incredible detail. Think about it this way, a book will cost you $20, but the information you get from it will make you $1000’s if used correctly!

Starting Small and Building up to Bigger Profits

Another big mistake many beginner day traders make is trying to jump in with to big of a splash. Listen to me, you are going to be new at this. You need to take your time and make sure what you are planning is going to work.

Start with small investments. Better yet, make an imaginary portfolio. Use this time as a time to learn what is going to work for you and what is not going to. Do not worry, we are going to start making the big bucks before you know it!

Make Goals and Selling Once You Have Hit Them… (Stop Being Greedy!)

It is very tempting to make a good trade and instead of selling, you think you can let it keep going up. The problem with this is that you will likely be wrong. When you have hit your goal, just take your earnings and split. Again, do not worry, those earnings will continue to grow in our next investment!

These are just a few tips that I wish I had known when I started day trading. They have been a huge help to me and I know they will help you as well. learning how easy day trading for a living is can be very surprising for a lot of people, but with persistence and the will to succeed, you can do it without doubt.

You can find some great tools I use to day trade all the time here: http://www.pennystocksmadeeasy.com

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More likely, though, we are missing opportunities in the market on a daily basis.

If you have the characteristics of a successful trader, taking the reins and participating in “etf trend trading” may be a better option. Let’s quickly take a look at what the characteristics of a successful trader are so that you can begin to discover what style of investing may be right for you.

First of all, you need to be willing to follow the system of “etf trend trading”.

A person who is too engaged, who wants to jump at every perceived opportunity and who cannot rein in their impulse to click their mouse is probably not going to find success.

Another characteristic of successful traders is preparedness. Having all your ducks in a row will make the process quick and smooth. If you are well prepared, there is no need to spend hours at your computer puzzling out your next move.

Another point which corresponds to one’s ability to stay the course is emotional detachment.

Thinking with your head and not your heart and seeing the long term, “big picture” benefits of a system will make you successful. Along with this, successful traders have the courage of their conviction.

With “etf trend trading”, you must know that you deserve prosperity and stay the course to that goal. Finally, successful traders have had successful mentors.

Look for someone who has done well in the market who can coach you along the way and encourage you to continue on track.

Characteristics needed for successful “etf trend trading” are part personality, certainly, but many of the needed skills can be learned if one is willing to apply themselves.

Do your research carefully before you dive in to the market. Seek advice from those you know to be successful.

Finally, look to people with proven systems, like the folks over at trendtradingadvisor.info. If you think you may have what it takes to trade successfully, now is the time to evaluate your options and start your journey to the prosperity you deserve.

“As Seen On Bloomberg, CNN, and CNBC”

For a free guide to financially successful ETF Trend Trading, go to:http://www.trendtradingadvisor.info.

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The Bullish View

Abby Joseph Cohen, the Goldman Sachs senior market strategist, said yesterday that “We do think the new bull market has begun.” The Wall Street Journal says she is calling for the S&P 500 to reach 1050 to 1100, based on an improving economy and corporate profits.

The Bearish View

On the other hand, Paul Tudor Jones, celebrated hedge fund manager, has a decisively different outlook. He categorizes the rally off the March 6th lows as a “bear market rally.” As reported in the CNBC Stock Blog, the Tudor Investment Corp. sent a letter to clients saying, “The bottom line is that we are not inclined to aggressively chase the market here. ”

The Dilemma

How does the average trader reconcile two fundamentally divergent predictions from two recognized experts in the industry?

The best answer to this dilemma is to accept neither expert prediction, but to rely on your assessment of the markets.

Expert Predictions are Usually Wrong

We know from numerous studies that expert predictions – particularly predictions about the future behavior of financial markets – are usually quite inaccurate. Enlightening studies from behavioral finance have had expert panels give forecasts of a wide array of financial metrics and economic indicators. In most instances, the expert panels were off by a significant margin. In one study, the expert panel actually did worse than students.

It reminds me of the WSJ article that surfaces periodically comparing expert stock managers against dart throws. Guess who usually wins!

Listening to expert opinion runs contrary to good trading and good trading psychology. Based on the evidence, the odds of winning with expert opinion is low, perhaps exceedingly low.

How it Affects our Trading Psychology

Although we all like to be right and may believe that others must know more than we do, when it comes to the markets, this is just not true. When we listen to others we are affecting our own trading psychology in negative ways. We are relying on others to make decisions for us, rather than on our own knowledge, skills, and abilities. Trading is a game of independence; listening to expert predictions leads us into an unhealthy dependency that keeps us from developing sound trading skills.

What you can do

Expert predictions are just more of the noise of Wall Street. It’s really best not to listen. Instead, ask yourself what would it look like for the market to begin falling back into a bear market? What would it look like for the market to continue the current rally? Develop your own understanding of bear and bull moves and then put yourself into the position of being able to anticipate (rather than predict) both. If you spend time anticipating what both would look like, you will be in a position to act appropriately when you see one or the other occur. This, and not following an expert, will help you develop a true psychological edge for trading the markets.

Keeping current with advances in the field of trading psychology will help your trading. You are invited to visit Dr. Gary’s blog where cutting edge research and techniques to develop your skills are discussed: http://www.tradingpsychologyedge.com/blog

When it comes to trading, the technical side is only part of the picture. The mental side is just as important. For a free, seven-part e-course on developing your trading psychology skills, you are invited to visit http://www.tradingpsychologyedge.com

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Yet once you actually sign up for the newsletter, all you get is half-baked information and uneducated picks. You try to cancel your “trial,” and you find getting your subscription cancelled is nearly impossible. As unscrupulous as this sounds, this type of day trading newsletter story is all too common in the day trading world.

Yet finding a good stock trading newsletter can pay you great dividends. Not only do you get stock picks by a trader with a proven track record, you practically get to look over the shoulders of a proven pro and analyze how he thinks and why he makes his picks.

The trick, then, is in finding the profitable and reputable business. The best way to make sure you’re signing up for a legitimate day trading newsletter is to get a recommendation from a trusted source – A recommendation by a leader in the industry, or being quoted by a well known financial publication, or even a testimonial from a fellow trader, for example.

Whatever the case, it’s usually best to not give too much credit to what’s written on the sales page. While there are legitimate day trading newsletters that publish testimonials and track records, unscrupulous newsletters can also reproduce these are ways to build false credibility.

Get your ETF Trading System and sign up for my free weekly online trading system newsletter here at: Click Here Now

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