Beginning Day Trading

As I mentioned in previous article, a key to success in day trading is to minimize the size of your loss while maximize the profit for each trade.

Since day traders have to keep their losses small, hence, they will get stopped out often. This causes their win/loss ratio of their trades to be low because it is hard to maintain a high percentage of profitable trades.

Therefore, the trading plan for day traders is to pick the most promising opportunities. Simply stated, enter a trade while the price is most likely to move in the direction of the trend with maximum range.

In order to accomplish this, the security we look for must have room to run. Before enter a trade, consider if there is a good portion of the range available for making profit.

Most traders tend to take their profits prematurely because they get nervous when the price makes its normal pullback. Letting your profit runs by staying frozen and watching the price pulls back before it makes new high is harder than it seems. The emotions get in the way when you start thinking about the money.

So, you have to understand the normal characteristics of price movement. The more proficient in this will help in maximizing your profit per trade in price movement.

Let get to another part: small losses. This is the part where you have the most control. If you are able to manage your losses, you will gain more profits even with average security selection.

The difficulty is it takes discipline and the proper mental attitude to determine your stop levels and execute it as your plan.

When it comes to real trading, what usually happens is traders determine a stop loss level but when the price gets to the stop level. They hesitate to pull the trigger. Maybe, it is because they see the price reverse and they hope that the price will start to move in the same direction as their position. However, the price move in another direction offers them a bigger loss.

This is forbidden territory for day traders. If you keep taking bigger losses, you have to increase the size of profit on your wining trades and also the win/loss trade ratio.

Controlling your profit is hard; it is easier to control your loss side. It is better to take the judgment out of your hands by placing stop order immediately after you enter a trade. It will protect you from your emotions.

Taro is an experience trader who trades in stocks, futures, forex. He strongly focuses on technical analysis, trading systems and money management.

If you would like to find more articles on MetaStock Tutorials, MetaStock Formulas, Trading Systems and Money Management. Please go to MetaStock Trading System.

You would also find the list of recommended books for trading & investing at The Investing Books.

Understanding Fibonacci Trading

As a significant person making his name known all throughout history, Leonardo Fibonacci, an Italian Mathematician made sure that his name will remain plastered in almost all business and math related books all throughout the world. Sure enough, his great accomplishments are all acknowledged, especially his system of understanding and interpreting valuables in its most efficient form, through Fibonacci Trading.

Fibonacci Trading System is a form of trading in its simple form wherein in a series of numbers, the values are arranged with the first two numbers equates to the number following them in the sequence. This system is simple and easy to understand, despite the complex looking variables and grids it forms as you use them. What is more comforting is that by using this system, you will be able to easily distinguish significant variables and predict the trends in your trades, and perform necessary actions for its improvement.

Most often, Fibonacci Trading system is best viewed through graphs. The fluctuating figures immediately present many possible results you could conjure up, and act accordingly. Further, by using Fibonacci’s principle in your accounts, you will be able to see which areas deserved to be given focus on and which should be avoided.

With the present situation where everything is possible in computers, you are now able to apply Fibonacci’s system even in online trading. Fibonacci software is available for almost all businessmen and traders’ benefits, in an effort to help make work more efficient and reliable. Further, there by using the software instead of attempting to do it traditionally, you will be able to execute actions in order for you to easily view all possible results. In the event that you want to learn more on the trading system Fibonacci presents, on the other hand, there are also Ebooks which you could conveniently find online to read and learn about.

As a trading technique, it is important to learn its principles, theories, its applications and what benefit Fibonacci technique could bring you and your business. By doing so, you would be able to exhaust all uses this certain technique offers to your advantage, without risking your investments and trading. At the end of the day, remember that the most important thing you should keep in mind is that as a businessman and a trader, you should be brave enough to try and take the risks in entering transactions, while at the same time ensuring that you will produce good results in favor of your trades.

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Share Trading Defined

A company issues shares of its company stock as a means to earn more capital. This is a normal activity of most large-scale companies. Share trading is the trade or exchange of these stock shares. This share trading is done between brokerage firms or individuals. The shares of a company are only considered to be valid if they are registered with the National Association of Securities Dealers Automated Quotation System or what is more popularly known as NASDAQ and also the New York Stock Exchange or NYSE.

Regulated share trading was first done in 1698 during the creation of the London Stock Exchange. The London Stock Exchange was founded by John Custaing in a not so glamorous setting or more particularly in a coffee shop. It began with only a small number of commodities and stocks. Since then, quite a number of stock exchanges have been created all over the world.

The main purpose of shares trading for a company is to improve the value of their security. The value of the shares of a company is affected by many factors such as global happenings like a war, flood, death of a politician, natural disasters and so on. If anything majorly bad happens anywhere in the world, share trading also gets affected. Share trading is also affected when the value of the share is affected by company reports. Negative company reports affect share trading negatively while positive company reports affect shares trading positively as well.

The main goal of share trading for an individual is to earn a profit. The trick in share trading is to buy the share at a low price and then selling it at a higher price. This is why it is important to be constantly updated on the movements of the constantly changing stock exchange when you engage in share trading. You have to know when the value of your share has risen so that you can sell it at a higher value from when you bought it.

Share trading affects the market positively as well because it creates liquidity in the market. Liquidity is the ability for conversion from security to cash. Shares trading also determine the value of a company. The higher the value of the shares of a company in share trading, the more valuable that company is. It also increases their chances of getting more financing for their company. It can be said that the value of the shares of a company is partly responsible for its success.

Jaron Jack is a freelancer writer who writes different trading and investment articles including Forex Trading and CFD Trading.CFDs are a financial instrument that give you leveraged trading power and flexibility.

2010-11 New York Islanders NHL Predictions and Odds

There are two ways to look at the New York Islanders current situation. There is the positive of an 18-point increase from the 2008-09 season to last year, but a third straight Atlantic Division last-place finish also lets you know just how far the Islanders have to go.

Under GM Garth Snow the Islanders have been moving in the right direction over the course of the past few years. Even with the positive steps that have been taken the Islanders still have a long road to travel and tangible postseason results are still off in the distance.

The first overall pick in the 2009 draft, John Tavares, is the unquestioned future of this team. He scored 24 goals last season including 11 power-play goals, best on the team. He finished with 54 points and another major step forward in his career should be expected this season. Matt Moulson scored a quiet 30 goals last season to lead the team and winger Kyle Okposo is another young talent with a lot of potential.

The offense was not exactly great last season (21st in the NHL), but it was far from the Islanders biggest problem. Allowing 3.15 goals per game last season, New York finished a dismal 28th in defense in the league.

The goalie situation is also an area of concern. Rick DiPietro is as fragile as they come in the NHL. The Islanders still want him as the goalie of the future, but until he proves he can last an entire season, or at least half a season, New York will lean on 40-year old veteran Dwayne Roloson. He played in 50 games last season, considerably more than the Islanders wanted to. However, they had no choice.

Scott Gordon is in the final year of his three-year contract and he may not see the next calendar year if this Islanders season starts the way so many before it have.

The New York Islanders schedule is tough enough considering 24 of their games are against Atlantic Division rivals: New Jersey, New York Rangers, Philadelphia and Pittsburgh. In addition to that the Islanders play 12 of their first 17 games on the road, an unbelievably tough stretch for a team who went 11-23-7 on the road last season.

Offseason Moves
The key moves this offseason were aimed at bolstering the third worst defense in the NHL. The Islanders signed Mark Eaton, formerly of Pittsburgh, and dealt a draft pick for James Wisniewski, a four-year veteran fresh off a career year (30 points in 69 games) with Anaheim. They will join veteran holdover Mark Streit as leaders of a defense that at the very least will be an upgrade from last season.

The Islanders parted ways with backup goalie Martin Biron (New York Rangers), which could come back and bite the team if Roloson or DiPietro are forced to miss extended time. There is no other goalie on the roster with NHL experience. Former Lightning enforcer and highlight of most hockey fighting compilations, Zenon Konopka, is another noteworthy addition to the Islanders. He led the NHL with 265 penalty minutes last season.

New York Islanders Predictions: Outlook
Another 30-goal season seems to be a lot to ask from Moulson, but Tavares and Okposo are capable of taking that next step in their development. The defense will improve, but the goalie situation has the potential to deteriorate and derail this season.

New York Islanders Futures Odds
The Islanders NHL betting odds for season wins total ‘over/under’ is the lowest in the NHL at 32.5. They are long shots to win the Atlantic Division (+2500), the Eastern Conference (+5000) and obviously the Stanley Cup (+10,000).

NHL Predictions for New York Islanders
Give credit to the Islanders for having a plan and sticking to it. If Snow and Gordon are given time the Islanders could make another step in the right direction this season, but a drastic improvement off of their 13th-place Eastern Conference finish last season should not be expected. If New York is blessed with healthy goalies they should be able to surpass 32.5 wins.

Doc Moseman is one of the pioneers of the NHL handicapping industry. Check out his Web site for up-to-the-minute NHL Odds and his famous winning hockey picks.