Before you go on a holiday you plan, before you build a house you plan, before you build a successful business you plan. Well guess what friends trading the financial market is not different. Please we do not advise that you trade any financial market unless you have a trading plan in writing.
Don't get taken over by greed and start trading just because you have opened a trading account with your local broker. First we want you to review your current situation.
Let's review the following steps:
Ask yourself these questions and write down your answer in paper. We are not joking here please grab a piece of paper and a pen...
1) What cash do you have available to trade with?
2) What do want to get out of day trading?
3) Do you want to trade for a living?
4) How much time can you devote to learning how to trade?
5) How often do you think you would like to be in a trade?
6) Do you currently have any shares?
The amount of cash you have available to trade with will determine the price of shares you will buy. Let's assume you only have $7,000 in your account we would not recommend you to buy $45.00 dollar shares. Let's do the math (7,000 div 45 = 155). With only 155 shares of a particular stock the movement of the share will have be significant for you to gain any profit and on top brokerage and transaction fees.
We want you to seriously consider what you want to get out of technical trading, as for this is not a mean to gambling nor is it for increasing your ego or looking for adrenalin rush. If you wish to gamble go to the casino, if you are looking for adrenalin rush go to hawaii and bodysurf giant waves. :)
Technical trading in a nutshell is just another investment vehicle for generating profits. If you don't commit yourself to learn technical trading, don't expect to make any profits.
Don't go into a trade with wishful thinking and hope that everything will turn out the way you thought it would. Sometimes you hear people say " I just want to make 20 % to 30% from my trading". Hey, there is nothing wrong with thinking positively, all we are saying is that you must also remember that the market will do whatever it has to do and your outcome can only be two : win or lose.
We will teach in the advance section when to take profits based on your technical analysis of trends, support, resistance and volume.
All successful traders know that before they enter a trade they know exactly what price they are going to exit the trade. They know that this is when they are paid. If their trading plan does not work out for that particular trade at least they protect their trading capital and wait for another opportunity to present itself. Learn well what we will teach you on this web site you will be amazed as to how many trading opportunities there are each day.