HITMANROCCO asked:


Ok..Im getting audited so help me out.

I shorted XX for $40 with a limit to close at $44. This happenened in one day so I lost $4000.

I also had a limit order to buy at $44 which kicked in so I then purchased $44000 in stock. By the end of close the stock was back down to $40 so I sold out and lost another $4000.

The next day I shorted again at $40 and three days later closed the short sale at $44 for another $4000.

It is my understanding that while this is a good trading strategy it still results in a $12,000 loss. Is this correct ? I’m having a hard time getting the same anser from anyone.

skahhh asked:


If you knew that the fed was going to cut interest rates, you would obviously act on the stocks that had been beat up the most by the lack of affordable liquidity. So you would have bought calls on those companies, mortgage bond insurers, subprime lenders, home builders, companies that would see a rosier future as a result of the reverse of poor possibilities for their products to be bought and defaulted on in the near future.

How far in advance of these trading moments would you have prepared that strategy? How are you preparing your next strategy to deal with the next upside or downside possible overall market or industry surprise?

se d asked:


Currently Im betting EURvsUS for the long run
but I want to know if u can refer me to a page where I can learn more about scalping and other strategies
im using oanda.com fx game for practice , in the process of opening an account

Anyone who knows anything about stock trading or day trading has heard the term ‘trading strategy.’ A trading strategy is a simple concept – it’s basically the roadmap that a trader follows while trading the markets. A trading strategy is governed by a set of rules that do not deviate for anything other than market action. Faithfully following a sound trading strategy will provide you with your greatest weapon against your worst enemy – your emotions. With a trading strategy, you’ll know exactly when to buy and when to sell, regardless of what the market does or what your emotions are telling you.

About Day Trading Strategies

Every profitable trader will tell you that the key to trading success is an effective, reliable trading strategy. You, as a trader, need to identify a winning system, implement it, and have the discipline to stick to it. Though it would be possible for you to develop a unique trading strategy, it probably wouldn’t be that practical. The best – and most efficient – approach would be to adopt an existing strategy, one which has been used by other traders in the industry and which has already proven to be successful.

Just remember, whether the strategy you’re using is your own or someone else’s, it is critical that you have a thorough understanding of it, especially its entry and exit signals. Do not fall prey to the pitfalls of following untested trading “advice,” especially the free advice available in numerous trading forums and chat rooms. Advice that you receive in these types of venues is likely to be opinion rather than fact, and in the market, opinions are not worth anything. What you NEED is a proven and effective trading strategy, one that will work in any market, under any market condition.

Because of this need for solid strategies, more and more traders are looking for trading success through technical approaches to the markets. One of these approaches is Welles Wilder’s RSI indicator. The general idea behind using the RSI is to buy when the RSI crosses above 30 and to sell when the RSI crosses below 70. As you can see, these rules are clearly defined and don’t leave much room for interpretation. This is EXACTLY what you want from a trading strategy. In trading, you’ll need to make big decisions in mere seconds. There’s simply no time to rethink, or try to interpret the unknown signals and information that come your way. Following a set of simple, easy-to-understand rules – and having a trading strategy that regulates all of your signals and indicators efficiently – is the major key to trading success.

Though the rules of trading are very important, they are not the most essential element of trading success. The most essential element is YOU. The best trading strategy in the world will be useless if you lose your head in the market and panic. You need to remain calm at all times, executing your trading strategy efficiently, without hesitation.

How to Find a Good Day Trading Strategy

So, you’re convinced that trading strategies are important. Now, how do you find one that works for you? Obviously, day trading strategies don’t grow on trees. You’ll need to do some research and either develop a strategy yourself, or find one that is easy to understand and has been proven to be successful. Take your time and do your research. Your strategy is an important step towards financial success, and it’s more than worth the investment of time and energy. There are plenty of books and helpful websites to guide you along your way.

Also, be on the lookout for scams. There are a lot of “educational companies” out there, each selling their own trading systems and strategies, and each claiming that their system works better than their competitors’. Be wary of these companies. Don’t fall into the trap of believing that you can buy a solid trading strategy for $97 and then make thousands in a short period of time. This is a lie.

More recently, some of the “educational companies” mentioned above started offering “free local workshops” in nice hotels. These free workshops, which are typically advertised in late night infomercials, are another danger sign. Most of them are merely a sales pitch for the company’s actual product, and the learning that takes place at the “workshop” is minimal. You’d be better off spending that time researching the trading market on your own.

To avoid scam artists and faulty systems and strategies, you need to educate yourself. Your trading education should focus on exploring and familiarizing yourself with several different strategies; these ought to teach you to take advantage of price direction. You won’t be able to get a solid education after reading only one book or watching a single 60-minute webinar on the Internet. True education takes more time and effort than that.

Fortunately, there are many ways to get a good trading education these days, and your best source of trading information and research is online.

Education and training play a vital role in the molding of a successful trader. If you want to be profitable in the trading market, you shouldn’t be cheap when it comes to high-quality trading education. Find a company that has a proven track record. Check the Better Business Bureau (BBB) to learn about their reputation. Research the internet for company information, especially handy sites like www.ripoffreport.com and www.badbusinessbureau.com.

Get Researching So You Can Get Trading!

Day trading is a very risky venture if you have limited knowledge, weak discipline, and/or poor money management. However, if you approach day trading correctly, armed with extensive knowledge, a sound strategy, and the drive to succeed, it can become one of the most lucrative business ventures you’ve ever embarked upon!



By: Markus Heitkoetter

About the Author:

lxvnrsw asked:


I’m just starting forex trading and was wondering what tracking program would be best for me to begin to do Technical Analysis with. It would be nice if I could use a free program or at least a low cost one but if I need to I’ll spring for a program to help me track currencies and develop a trading strategy. User friendliness is key because I’m a totally novice trader. Any reading materials for learning better TA or websites are also greatly appreciated.

BizAnswers asked:


I just read the book and find it very interesting. Surely there is a good place to find info on good stocks and ETF’s to use that work well with the strategy. Please don’t respond with a link to www.aim-users.com. I’ve already checked it out and am looking for whatever else might be out there that is helpful. It may be that aim-users.com is the best there is and if that is your experience i would appreciate confirmation of that. Also, if anyone has positive or negative experiences with the strategy, I would love to hear about those as well. Thanks.

Chris D asked:


I am very eager to start an account on E-Trade or similar, and basically use the money I have now, invest it, and create more funds in this way.

Before starting I would like to know what I am doing, and know what things like stocks, futures, options, bonds, and brokerage mean. If anyone could just give a brief explanation on these sorts of terms I would really appreciate it. Thanks.
I know you can buy a certain stock at a price, and then preferably sell it at a higher price. But how does it work with how often you can buy/sell? I know that there are some kinds of limitations and requirements to stop the manipulation of markets and so on. Thanks.