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Day Trading "Money Making" Machine

By: Leroy Rushing
Submitted: 2008-06-23 17:21:32
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Day trading can truly be a money making machine. Many experienced day traders can make more in a few seconds than what most people make in a week. This also comes with some risk, but for the trader armed with technical analysis and proven strategies, producing profit can result in consistent income.

Technical Analysis for Quick Trading
Technical analysis is to day trading as birds are to flying. Day trading is not so much investing as it is buying and selling based on price differences, rather than a fundamental difference in the company. Technical analysis will help spot price movements without a fundamental catalyst, giving the day trader an advantage over others.

Proven strategies, such as moving average crosses or using your own custom indicators, can significantly lower the risk with day trading. Modifying a relative strength index to 17 might help you smooth out the bumps you incur on a 14 period chart, while giving more flexibility and trades than a 25 period RSI.

Strategies for gapping up are very profitable for day traders and thus used by many. Also, strategies for gapping down work nicely, but keep in mind that some securities are hard to sell short, thus these aren’t used as readily as a gap up trade. Proven strategies such as gap ups and downs are loved by day traders, who are happy to make a quick few cents on a gapped candlestick pattern.

Reach Your Daily Goals
Reaching your trading goals is easier for a day trader than for a long term investor. The day trader only has to make say .1% - .3% per day to sustain themselves and make a living, while the long term investor may need a series of huge wins. It is possible to improve your trading by taking each win in small bites, and a modest return does well over the long run.

Setting your trading goals day by day helps a trader keep a better perspective on what kind of returns must be achieved to generate a profit.

An online, live coaching solution can provide you with much of the information you need to know about reaching trading goals and sustaining a profit. Many mentors have a virtual library loaded with information that can be used and integrated into your own strategy. A live trading room will let you test out your picks without risking any money and see how your portfolio would have fared in the real world.

Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a provider of educational trading products and services that are available worldwide. Trading EveryDay has complimentary/FREE products, a Tools of the Trade eBook and a Trading Room Report, that are downloadable for your convenience.

Article source: Expert Articles

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