What is a good step-by-step process to day trade?
Chosen Answer:
If you’re a rookie in investing or stocks, go to
www.finance.yahoo.com.
Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.
That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.
Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to Scottrade.com. They’re excellent for beginners.
by: Max M
on: 20th April 10
know your stock fundamentals ,technicals well to pick.
trade in the direction of its trend and overall mass psycology
for the stock.
The one thing that will always propel a stock higher or lower is earth-shaking news. First thing each morning, I scan my picks list, looking for juicy news tidbits that I think would likely move the share price considerably higher. If it’s an OTC stock, I place several orders pre-market on a laddered pricing schedule, including low ball offers as well as likely accepted bids. This is necessary as there’s no pre-market trading allowable.
If I’m holding a position for more than a day and have a deep enough position to withstand letting go of a partial sell while expecting a steep uptrend, I’ll also set up some ridiculously high sell points to take advantage of irrational exuberance.
News will always account for inter-day and intra-day fluctuations because the only time fundamentals exert great influence is when the quarterlies come out. Even then, it’s the news of the SEC filing and results that will push things forward.
After finding the major news, I then think about the pick’s fundamentals and quickly scan to see if something has come up that voids the value of what I already know about the company.
Still, many times I’ve found a piece of startling news at http://www.marketwatch.com, looked briefly at the stock’s quote information and then set up a couple of buy orders based on that alone. I usually make out profitably although not a whole lot because I’m not willing to risk a lot unless I know the company fairly well. When GE and BOA hit the skids last year, I went whole hog into both and did really well. I screw up too, but on average am pleased and wouldn’t consider other work.
Len
If you’re a rookie in investing or stocks, go to
http://www.finance.yahoo.com.
Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.
That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.
Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to Scottrade.com. They’re excellent for beginners.