| If you should go back to the olden days, you would | | | | good trading system in place, you may just end up |
| realize that trading was never such a complicated and | | | | with 50% or even 100% of profits, provided you |
| difficult-to-grasp business as it is today! Terminology | | | | hold stocks for a longer period of time! |
| like stocks and securities, stock market day trading, | | | | (6) In contrast, if you have not learned to discipline |
| currency trading and so on, did not even exist in | | | | yourself and your trading system is all haywire, there |
| those days! In fact, your generation would term the | | | | goes your investment! And if you have poured in a |
| people of those days as totally impractical by nature! | | | | large amount of money, you may even end up in |
| If you are part of the trading community today and | | | | debts. |
| do not have a clue about how to deal in stocks and | | | | (7) Also, it is not possible to win everyday. There will |
| bonds, you too face the possibility of being looked | | | | be days in stock market day trading when the |
| down upon just like your forefathers did! | | | | situation seems to be totally out of your control. So |
| The suggestions given below should help you out! | | | | "pitfalls" can occur. |
| They especially deal with stock market day trading- | | | | (8) What are the pitfalls or downsides that can occur |
| (1) What exactly is meant by "stock market"? It | | | | during stock market day trading? |
| refers to trading inside a company's stocks, plus the | | | | (a) Failure of the online broker (web site) to respond, |
| derivation of the same (listing on the stock | | | | resulting in an incomplete transaction of a trade in |
| exchange's securities and the private trading). | | | | process. |
| (2) If you opt to venture into day trading (takes | | | | (b) There could be a locked or crossed process since |
| place within 24 hours), you will have to learn to plan | | | | the trade was not completed. |
| out strategies that will minimize risks. After all, it is a | | | | (c) The online order is temporarily put on hold. |
| gamble that you are taking, day after day! Keeping | | | | (d) If real time data receives a setback, you could |
| track of current market trends and going along with | | | | get a wrong picture of the actual market trend. |
| the flow will ensure more gains and less losses. | | | | (e) A stock symbol could be accidentally misplaced |
| (3) Stock market day trading can "make" you or | | | | while inserting the order on the web site. |
| "break" you within just one day! So it demands a lot | | | | (f) Too many orders could result in wrong tracking. |
| of self-discipline. Impulsive actions are a strict "no no"! | | | | (8) The best way to avoid these pitfalls and learn |
| (4) Regarding the amount required for stock market | | | | how to minimize risks, is to spend some time in |
| day trading, the bank allots an amount between | | | | acquiring knowledge about stock market day trading. |
| $5000.00 up to $50,000.00 for a particular stock day. | | | | It is entirely dependent on you. How much zeal do |
| But if you wish to go for a smaller number of trades, | | | | you have to educate yourself, so that you can |
| you will not need to invest a large amount of money. | | | | always expect a better outcome? After all, only 20% |
| It would be advisable to get some idea of the | | | | of your success is dependent on your investment; |
| "position sizing" beforehand. | | | | the remaining 80% lies with your skills to handle the |
| (5) Returns on your investment can be unpredictable, | | | | situation! |
| for there are risks involved. However, if you have a | | | | |