A Few Tips For Day Trading The Stock Market By Markus Heitkoetter, Rockwell Trading inc. Day the stock market involves the rapid buying and selling of stocks on a day-to-day basis. This technique is used to secure quick profits from the constant changes in stock values, minute to minute, second to second. It is rare that a day trader will remain in a trade over the course of a night into the next day. These trades are entered and exited in a matter of minutes.
The main question that most people ask when it comes to day is simple: ‘is it necessary to sit at a computer watching the markets ALL day long in order to be a successful day trader?’
The answer is no. It’s not necessary to sit at a computer all day long. There are a number of factors to consider, but generally the rule of day is to trade when everyone else is trading. In other words, trade in the morning.
As with all financial investments, day is risky – in fact, it’s one of the riskiest forms of out there. The stock prices rise or fall according to the behaviour of the market, which is entirely unpredictable. Day traders buy and sell shares rapidly in the hopes of gaining profits within the minutes and seconds they own those particular stocks. Simple to do in theory, harder to do in practice.
If you are constrained by a small amount of capital, you may not be able to buy large amounts of a stock, but buying only a small amount can add to the risk of a loss. And, obviously, it is impossible to predict with certainty which stocks will result in profits and which in losses. Even the best of traders must learn to accept both outcomes.
It’s also important to know that in day trading, it is the number of shares rather than the value of shares that should be the focus. If you day trade, you WILL face losses, but even for the more expensive stocks, the loss should be marginal, because prices do not usually fluctuate to an extreme degree over the course of just one day.
The day industry deals in a large variety of stocks and shares. Here are just a few:
Growth-Buying Shares – shares made from profit, which continue to grow in value. Eventually, these shares will begin to decline in price, and an experienced trader can usually predict the future of this type of share.
Small
I had to laugh... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>I stopped for gas today at a Shell gas station and had to chuckle as I filled up my car.</p><p>A sign on top of the pump urged me to sign up for a Citi Mastercard that gives 10 percent back on all Shell gas purchases. On the sign, in big, black type, the sign says "Earn 38 cents/gallon." Then underneath it in much smaller print, the sign says, "@ $3.82/gallon."</p></div>
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And in more restaurant news... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Raleigh's Rocky Top Hospitality has reopened its Michael Dean's and Bogart's restaurants for lunch service during December. Both had gone to evening-only hours this past summer. Michael Dean's on Falls of Neuse Road in Raleigh is open for lunch through Dec. 24. Bogart's on Glenwood South will be open for lunch through the 19th. Both are serving from 11:30 a.m. to 2:30 p.m. daily.</p></div>
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Urban Food Group expanding to Charlotte... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Raleigh's Urban Food Group is expanding to the Queen City. The company behind Porters, Frazier's, Vivace and the newly opened Coquette in North Hills is planning a new Vivace location at 1100 Metropolitan Ave. The restaurant will open in the summer.</p></div>
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<div class="field-item"><p>If you need to send flowers this week, 1-800-FLOWERS is offering free shipping or no service charge when you pay with a MasterCard and use the promotion code M33. But the offer is only good through Sunday.</p></div>
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OpenTable for iPhones... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p><img src="/sites/projects.newsobserver.com/files/images/iphone3sm.thumbnail.jpg" alt="" hspace="7" vspace="7" width="83" height="100" align="left" />If you use the OpenTable Web site to make restaurant reservations, you might be intested to know that there's now a free OpenTable app for iPhone users.</p><p>The system will allow users to check real-time availability in restaurants, make reservations and get directions. Find out more on the OpenTable Web site <a href="http://www.opentable.com/mobile/">here</a>.</p></div>
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<div class="field-item"><p>If you missed the coupon that ran in the paper a few weeks ago, Walgreens has put its new prescription transfer coupon online as well. The deal is that you get a $25 Walgreens gift card when you transfer your prescription to a Walgreens pharmacy. These coupons can be a great way to get a little extra if you have a monthly prescription that you fill. However, I always caution people that this is not a good strategy if you take several medications that could have weird interactions. Fair warning. You can find the printable coupon <a href="http://walgreens.shoplocal.com/walgreens/Default.aspx?action=detailbrowselarge&storeid=2504303&title=$25+Walgreens+Gift+Card+&img=http://akimages.crossmediaservices.com/dyn_li/600.0.90.0/Retailers/Walgreens/081012_01DD_1CPN.JPG" target="_blank">here</a>.</p></div>
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<div class="field-item"><p>In Clayton, the Christmas Village & Tree Lighting is happening tomorrow (Thursday), beginning at 6 p.m. The tree lighting will take place just before 9. If you are interested in going, there's a schedule of events <a href="http://downtownclayton.blogspot.com/2008/12/2008-christmas-village-tree-lighting.html" target="_blank">here</a> and a map <a href="http://downtownclayton.blogspot.com/2008/12/map-of-christmas-village-tree-lighting.html" target="_blank">here</a>. And, if you happen to live in the area, you should know that Main Street will be closed from Smith Street to O'Neil Street between 5:30 p.m. to 9:30 p.m. for the event.</p></div>
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How's this for a BOGO deal? <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Buy one get one free deals are usually pretty good bargains, but most of the time they're on things like cans of soup. It's time to think much bigger.</p><p>Florida car dealers, who have seen sales plummet this year, have taken to offering BOGO deals on vehicles. Seriously! <a href="http://blogs.moneycentral.msn.com/smartspending/archive/2008/07/29/buy-a-gas-guzzler-get-a-second-car-for-free.aspx" target="_blank">MSN reports</a> on one Chevy dealer offering a free gas-efficient vehicle when you buy a SUV or truck. And check out <a href="http://www.universitydodge.com/specials/index.htm" target="_blank">this ad</a> from a Dodge dealer offering a BOGO deal on Dodge trucks. Feel free to place your bets on what the next big BOGO deal will be. Jet planes? McMansions? </p></div>
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Here's the deal... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>If you are a fan of this blog, here's something that may interest you... The News & Observer has started a weekly e-newsletter for women called <strong>Here's the Deal</strong> that compiles information from Taking Stock as well as other N&O blogs. In the newsletter, which is e-mailed Wednesday mornings after Wednesday Deals is posted, you'll find information on deals, fashion, food and more. And as you all are well aware, it pays to be in the know!</p><p>You must be a registered user on newsobserver.com to get Here's the Deal. <a href="http://www.newsobserver.com/heresthedeal/" target="_blank">You can sign up here</a>.</p></div>
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<div class="field-item"><p>Outdoor superstore Cabela's is offering $20 off orders of $100 or more on its Web site through midnight on Dec. 8 (Monday). Of course, there's always a catch. To get the deal, you need to give up your e-mail address. And by entering your e-mail, you will be signing up for the Cabela's e-newsletter. But it's still a good deal and probably worth it, especially if you are shopping for an outdoorsman or woman. <a href="http://information.cabelas.com/cabelasrebates/offer.jsp?cmCat=email&cm_cat=3964&cm_ven=email-nl&cm_pla=HA-0100&cm_ite=offer.jsp&eid=8451667&cmp=I081203A&seg=AN1&cnt=3964&ctb=offer" target="_blank">Check out the details here</a>.</p></div>
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Wednesday deals... <!-- Begin check for Blog Icon -->
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<p><img src="/sites/projects.newsobserver.com/files/images/coupon%20cart-sm.jpg" alt="" hspace="7" vspace="7" width="106" height="160" align="left" />Well, it?s a mighty fine deals week out there! The pharmacies are busy promoting holiday sales, and Harris Teeter has gone all out to promote its latest initiative involving lower prices on several store brand products and an expanded Unreal Deals selection. There are good deals this week on razors, candy and medications, and there are a few good ones that make the item free after rebate or coupon or both.<br /> <br /> And don?t miss the special Walgreens flier in today?s paper, which has a coupon to get $5 in Register Rewards (good like a $5 bill on a future Walgreens purchase) when you spend $25.<br /> <br /> Happy shopping!!<br /> <strong><br /> Deal of the week</strong>: At Harris Teeter this week, Fiber One toaster pastries are three for $5 and there was a 70-cent coupon on Nov. 16. That will double and make those 27 cents a box.<br /> <br /> Click ?Read more? to see the list! And remember, if the store has a loyalty card, you?ll need it to get the sale price. </p> <div class="node-blog-teaser-footer">
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Galleries staying open late... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>If you're a fan of Raleigh's First Friday events, you'll be happy to know that 10 downtown art galleries have declared every Friday in December First Friday and are planning to stay open late for shoppers. Dates include Dec. 5, 12 and 19.</p><p>Most galleries will be open until 9 p.m. Participating galleries include:<br /><br /><strong>Adam Cave Fine Art</strong> - (<a href="http://www.adamcavefineart.com" target="_blank">Web site</a>)<br /><strong>Artspace</strong> - (<a href="http://www.artspacenc.org" target="_blank">Web site</a>)<br /><strong>The Collectors Gallery</strong> - (<a href="http://www.thecollectorsgallery.com" target="_blank">Web site</a>)<br /><strong>Flanders 311</strong> - (<a href="http://www.flandersartgallery.com" target="_blank">Web site</a>)<br /><strong>Lee Hansley Gallery</strong> - (<a href="http://www.leehansleygallery.com" target="_blank">Web site)</a><br /><strong>Lump</strong> - (<a href="http://www.lumpgallery.com" target="_blank">Web site</a>)<br /><strong>M Street Gallery - (<a href="http://www.mstreetgallery.net" target="_blank">Web site</a>)<br />Nicole's Studio & Gallery</strong> - (<a href="http://www.nicolestudio.com" target="_blank">Web site</a>)<br /><strong>Rebus Works</strong> - (<a href="http://www.rebusworks.us" target="_blank">Web site</a>)<br /><strong>Visual Art Exchange</strong> - (<a href="http://www.visualartexchange.org" target="_blank">Web site</a>)</p></div>
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What are people searching for? <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>Google has created a fun Web site that shows what the top 10 searches are in certain categories, including toys, food and cold weather clothes. I totally enjoy the fact that "ugly christmas sweater" made the list. You can <a href="http://www.google.com/landing/holidayshopping08/gifts.html" target="_blank">check it out here</a>. </p></div>
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<div class="field-item"><p>If you like surfing the Web for online coupon codes, you might like <a href="http://www.nytimes.com/2008/11/27/technology/internet/27coupon.html?_r=1&adxnnl=1&emc=eta1&adxnnlx=1228238295-1lXLq8ojvpQ7iAzAS68uBA" target="_blank">this New York Times story</a> on the topic. The story lists several Web sites, including a few of my favorites. Share your favorites if they're not included! </p></div>
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Cashing in your points... <!-- Begin check for Blog Icon -->
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<div class="field-item"><p>I got an interesting press release this weekend from American Express about how more consumers are using their credit card rewards points for holiday purchases this year. I'm particularly interested in this because I've found a lot of people will just sit on piles and piles of points because they don't know how to redeem them or they are waiting to make some huge purchase in the future.</p><p>What are you doing? Have you redeemed points this year, and what did you buy? Or, are you saving up 10,000 points for some big-ticket item? </p></div>
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Caps – shares of companies which are on the rise and show no signs of stopping. Although these shares are generally cheap, they are a very risky investment for day traders. You’d be safer to go with large caps and/or mid-caps, which are much more secure and stable thanks to a premium.
Unloved Stocks – company stock that has not performed well in the past. Traders buy these shares in the hopes of generating profits if and when the stock rises in value. As with small caps, unloved stocks can be a risky choice for day traders.
These examples are NOT your only options when it comes to day stocks. The best way to determine which type of stock is right for you is to invest some time for careful research, a knowledge of market patterns, a solid strategy, and a disciplined plan.
The key to successful day is to be prepared. Know as much as possible about the industry before you begin actually trading. You need to learn to trade ONLY when the market gives the right signals, and ONLY when the volume of activity in the market supports a successful opportunity.
Markus Heitkoetter is a 19 year veteran of the markets and the CEO of Rockwell Trading. For more free information and tips and trick how to make consistent profits with online daytrading, visit his website www.rockwelltrading.com.
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