5 Day Trading Tips for Success

Written by Mike Reed

If someone tells you that you can get rich quick day trading...run forrepparttar hills! There are no overnight successes, unless you are very lucky!

Day Trading isn't easy, but with experience, dedication, self- control and hard work, you *can* become a successful day trader.

1. How to Treat Gap Openings. A gap up or gap down open is an emotional move, and it often will reverse course and turn in to "trap open". Gaps that are less than 4 points onrepparttar 148013 SP Future tend to get filled inrepparttar 148014 same day, especially Tuesday through Thursday. Turns will occur within 20 to 40 minutes afterrepparttar 148015 open. A trader must be onrepparttar 148016 lookout for a reversal as soon as early momentum is lost.

A gap into a good support /resistance zone is almost always a good "fade" - with stops no more than 1 point on other side ofrepparttar 148017 support /resistance zone. (A "fade" is simply entering a position opposite ofrepparttar 148018 direction ofrepparttar 148019 gap. Ifrepparttar 148020 market gapped down, a "fade" would be entering a long position (buying) in torepparttar 148021 selloff.)

2. Whenrepparttar 148022 Market Moves Against You, When Do You Exit a Trade?

The way I trade, I exit as quickly as possible. There's no sense in waiting around for your "stop-loss" to get triggered whenrepparttar 148023 perceived edge is gone. I like to stay in control of my trades, and ifrepparttar 148024 market doesn’t do as anticipated, I don't wait for my stop to get hit. When there is no longer a high probability situation, exit and take a second look.

3. When Are The Best Times ofrepparttar 148025 Day to be Trading?

For me,repparttar 148026 best times ofrepparttar 148027 day for trading arerepparttar 148028 first hour andrepparttar 148029 last 2 hours. Here's an old rule of thumb (and this used to work like clockwork inrepparttar 148030 "old days", and although it has diminished a bit, it still happens):

"The Minor Time of Day"- frepparttar 148031 Market opens higher, then there tends to be a pullback withinrepparttar 148032 first 20 to 40 minutes. Ifrepparttar 148033 pullback is weak, there will probably be a continuation of rally intorepparttar 148034 early afternoon. But, ifrepparttar 148035 pullback is sharp, then you've likely seenrepparttar 148036 high forrepparttar 148037 day and you'll want to be sellingrepparttar 148038 bounces.

How To Start Investing For Financial Independence, Part 2

Written by Chris Anderson, PhD

Last week, we started a multi-part series about how to go from being a beginning investor to being “financially independent” in a steady and predictable way. Many, many people want to overly complicate this process so let's briefly, let's recap that discussion. The bottom line steps that I suggested inrepparttar last article was: 1) Look for an opportunity that will return at least 150% in 2 yrs or less; 2) Be mentally and financially prepared ifrepparttar 147922 investment does not work out; 3) Have VERY good reasons why you don’t think you will lose money…… You may not make as much as expected, but you would rather not lose money at this stage. 4) Be patient. This single result should not either make or break you but it is crucial to a longer term plan. I gave an example where a hypothetical person had gone through this process and ended up with a profit of $43,000 (before taxes) and $36,000 of after tax profit. When this profit was combined with their original investment, they now had around $55,000 of operating capital for Step 2. Before we get to Step 2, let's take a step back. For a lot of people, if I told them that somebody made $43,000 on a quick investment, they would think these people had "struck it rich". Kind of like winningrepparttar 147923 lottery, right? NO! Inrepparttar 147924 grand scheme of things, this investment will do very little to impact their financial independence. That is, it will take discipline to now use these profits to go intorepparttar 147925 next investment, and then use those new profits to go intorepparttar 147926 3rd investment, etc. So, in our opinion, this first investment was merely a stepping stone towards a much bigger objective. In Step 2, most savvy investors will now realize they have just been given some extra monopoly money, or money that was not originally theirs, to work with. Inrepparttar 147927 investment and trading world, this is referred to asrepparttar 147928 "market's money"; i.e., money that you got fromrepparttar 147929 market that you can then use to generate revenues above and beyond what was possible with your original investment. Quality traders can use this concept to produce huge % returns in a year while risking no more than 10% of their original portfolio. So let's sayrepparttar 147930 investor now decides to repeatrepparttar 147931 process and buy two more preconstruction lots in a different development. Inrepparttar 147932 two years sincerepparttar 147933 first investment was made, suppose now that property has escalated. In addition,repparttar 147934 investor finds a good deal on two lots and each is $250,000 to purchase. Now,repparttar 147935 investors visits their check list to see if this makes sense: 1) Look for an opportunity that will return at least 150% in 2 yrs or less -- yes, they have reason to believe this will occur for their down payment amount; 2) Be mentally and financially prepared ifrepparttar 147936 investment does not work out--yes, they don't think it will happen but if they lose their entire 10% down payment, they are ok with this.

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