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David interviews Mark McRae about why he does other things besides simply the business of trading.

Mark: I remember there was a friend of mine who wanted to get into trading, and he wanted to know if it was hard or difficult, and I said to him, “I’m actually psychic. I’ll prove it to you, I’ll show you how easy this market is.” It was the first Friday of the month, and it was 8:30, New York time, and I put him down on the market and said, “In thirty seconds, this market is going to shoot up — or down, but it is definitely going to go one way”, and he said “I don’t believe you.” Continue reading ‘Lifestyle Behind the Business of Trading’ »

The following strategy is used to get into trades intra-day that have shown a propensity to move in a certain direction. In other words, they have momentum. While this is a day trading strategy, it can be used to enter longer-term positions at an intra-day point where the stock (it also works with other markets) is showing it is continuing to carry momentum in the given direction.

Here is the strategy:

Buy (sell) a momentum stock after it has moved higher (lower) than its morning high (low) after the first pull back from the morning high (low) has taken place. Trades should not be entered in the first 15 minutes of the market open with this strategy. All trades should be in the direction of a longer term trend. Continue reading ‘Day Trade Momentum to Maximize Profits With This Strategy’ »

Financial Spread betting is a kind of financial speculation that enables global market traders to make profits regardless of whether the market prices move up or down. Those who trade in individual shares, bonds, stocks, crude oil, currencies as well as precious commodities like gold can use spread betting to increase their chances of getting profits.

There are many benefits associated with financial spread betting. One, the profits you get through this type of trading is completely tax free. Secondly, you do not have to pay any unnecessary commissions. However, you will be required to pay some money to the betting company based on the spread, that is, the difference between buying and selling price.

Another benefit is having access to most of the global markets 24 hours, 7 days a week. You can do your stock trading in multiple markets through only one account. You also get to choose the currency you think is most appropriate for you, thus you will be saved the trouble of having to pay for currency exchange. Financial betting allows you to bet on movement of the market prices. You can go long or short, but either way, you can make a lot of profit if the market prices move on the direction of your bet. Continue reading ‘Introduction to Financial Spread Betting’ »

There are a variety of answers to this question, but the simplest answer is to never risk more than 5-10% of your account on a given trade. I enjoy watching YouTube videos where the traders are trading hundreds of contracts at a time, and the videos always show them making a great return on a one or two point move. Oddly enough, the videos of these high rollers never show them getting blown out of the bottom side of a trade. I have to assume that they ALWAYS pick winning trades since those are the one type of trades they publish.

And that is the silly thing about videos showing traders making $10000 a trade. In my world, you would need about a 2 million dollar account to risk that sort of capital on a single trade. Now there are plenty of traders out there with far more capital than two million, but they aren’t posting their trades on YouTube. Why would they? Continue reading ‘How Many ES Or YM Emini Contracts Should I Trade’ »

Trading well in the stock markets is left to those with the best discipline.

And the Art of Scalping could be the most under rated form of day trading discipline.

The day trader who scalps for no more than 10% and then sells regardless will never go broke, he or she won’t ride the big waves of course, but think of it this way Continue reading ‘Canadian Stock Alerts – The Art of Scalping’ »

If you are day trading and looking for the highest return investments one often overlooked alternative is the binary options trade. In its simplest form the binary option pays out typically at least sixty percent return on investment. Given the holding period on these trades is less than an hour the equivalent annual yield on such a trade is not even calculable. There are risks associated with these investment positions, such as the possibility of an entire loss of capital on a trade – but then again what stock doesn’t pose that risk these days?

Day Trading Options in the Binary Option Market Makes for One of the Highest Return Investments Continue reading ‘Day Trading Options For the Highest Return Investments’ »

A day trading course can turbo charge your path to profits. Or it can bankrupt you faster than you ever thought possible. The problem with a bad course is not the initial money spent. It’s the potential to lose 10’s of thousands in the market in a very short space of time.

What you are really buying when you purchase a day trading course is TIME. Most people don’t have the cash to bankroll the time needed to learn the markets. Continue reading ‘Day Trading Course – How to Avoid Nuclear Fallout by Selecting the Right Course at the Beginning’ »

Trading without a good day trading system is like jumping out of an aeroplane without a parachute. No matter what you’ve heard, you’ll never make it out alive. The only question is whether you’ll suffer a quick death (best) or suffer a long drawn out obliteration of your trading account (not so good because it tends to encourage future gambling tendencies).

Why do you need a good day trading system? Because only a good system will help you to navigate the following critical obstacles:

1) Trading the wrong commodity/currency. ETFs, forex, options and futures all have very different ways of behaving. Unless you are willing to spend years getting to know each one intimately you are best to get some training from an expert. Continue reading ‘Day Trading System – Get This Wrong and You’ll Be Jumping Off Buildings Without a Parachute’ »

A stochastic shows a stock’s (or any trading instrument) ability to trade in the upper or lower part of its price range relative to the analysis period. Stocks that are in the upper part of the range (above 70) and the lower part of the range (below 30) are exhibiting signs of strength and weakness respectively, in relation to recent performance. This strength or weakness can be exploited by short term traders.

While a stochastic reading at these levels (above 70 or below 30) is often considered overbought or oversold, strong stocks will spend more time in the upper half of their range and weak stocks will spend more time in the lower half of their range. This means that we can take advantage of strong or weak stocks at points when they are showing above average strength or weakness. I call this movement a “stochastic follow through”.

The Strategy: In an up trending stock, buy when the slow stochastic line crosses above the 70 level with the fast line still pointing up. Sell a down trending stock when the slow stochastic line crosses below 30 with the fast line still pointing down. Cover longs when fast line crosses below slow line, and cover shorts when fast line crosses above slow line. Continue reading ‘Stochastic Strategy For Day Trading Stocks & Forex’ »

Day trading signifies buying and selling stock within the market day. The market day is the time period between the opening and closure of markets. Traders find this activity extremely profitable because of the financial leverage and rapid returns that accompany day trading.

Online day trading requires good dependable equipment. A good computer for trading, with a memory capacity of 1024mb RAM is required. Experts are divided about the number of monitors required for this activity. Some believe that 2 -3 monitors are needed for effective online transactions while others believe a single large size monitor is sufficient. A high speed broadband internet connection is required for speedy inflow of real time quotes and charts. A good UPS or unlimited power supply is also required for effective trading at the computer. Direct access software will help the trader to place orders and get the orders executed faster.Online day trading requires a good broker who gives instant information. Continue reading ‘Tips For Day Trading Online’ »