Day Trading Checklist Written by Trader Jack
Here's a bunch of important things you should know about day trading before you start. First off, can you daytrade if you don't have requisite $25,000 plus? Yes. You can start Day Trading with as little as $750 if you decide to trade using a spreadbetting account rather than a standard broker, allowing you to ignore most day trading regulations about trading frequency. To day trade stocks using a standard brokerage account (8 round trips or more per week) you will typically need more than $25,000 in your account as per Uncle Sam's regulations designed to stop newbies blowing up. You don't necessarily need a 'mega PC' and a direct access account either. The average spread betting firm will give you access to a day trading system that runs happily in browser of any low end PC on a dial-up internet account. Just remember that better your initial setup is, easier you will find it. You will NOT enjoy seeing your internet connection crash just as you try to pull off a perfectly timed exit, so it pays to have alternatives for everything you use in trading. For a list of best spreadbetting firms, consult www.traders101.com .Is day trading most dangerous form of trading? No. The press is full of stories about how dangerous day trading is. This is pure scaremongering by misinformed, because day trading simply means not holding any position beyond current trading day; i.e. closing all outstanding positions by end of session putting you 100% into cash overnight. In reality, day trading can be one of SAFEST form of trading, because you are not exposed to unforeseen events that happen out of hours (like fall of Enron, Tsunamis in Far East etc) and accompanying gigantic losses that can happen during hours when you cannot trade. Many day traders only hold positions for a few minutes - and less time your cash is in play in market, less chance something will go wrong. Anyone claiming to be day trading who holds positions overnight is fooling themselves - remember this. Build up your day trading skills with training - practise paper trading till it is second nature to you (for more on paper trading, head on over to www.traders101.com)! Day trading is like running any other kind of business. Adequate training, experience, capital and dedication is always required. Over time, you may find that day trading becomes relatively easy, but you will still have to 'put in your time'. Day trading is a full time job - you need to be ready to trade whenever market shows you a great opportunity. If you have limited time to trade, you should consider swing trading instead of day trading. Preserve your capital at ALL costs. Limiting your losses when day trading is by far more important than making big profits. Day traders go bankrupt because they lose money, not because they don't make enough of green. When day trading, set yourself a limit on how much you are prepared to lose on any particular trade, and set your stoploss at that level. NEVER move your stop wrong way (i.e. if you are long, and price starts to fall, NEVER lower stop). If stop is hit, take containable loss on chin (rather than a bankroll-busting loss later!). Over time you will get better at placing stops on your trades. Remember that you can make a fortune day trading being right only 30% of time, as long as you cut losses on your 70% losers so that profits on your 30% winners outweighs them. If you reach 50-50, you should be making money, and if you get above 50% winners, well... welcome to club! It is also wise to set yourself a daily limit - if you lose this much in a day, quit trading till next session. It really isn't possible to 'force' profits from market.
| | Increasing Your Credit ScoreWritten by T.B. Collins
If you are planning on purchasing a new home or buying a car then you have to check to ensure that your credit score is as high as it can be. The credit score is a calculation of points based on entries compiled on your credit file, these point are used to determine your creditworthiness, and your ability to repay debt. Because your credit report is an important part of many credit scoring systems, it is very important to make sure it's accurate before you submit a credit application, but you have to know what factors determine credit score.The credit score is based on information about you and your credit experiences, such as your bill-paying history, number and type of accounts you have, late payments, collection actions, outstanding debt, and age of your accounts. This information is collected from your credit application and your credit report, and use to determine your score. Using a statistical program, creditors compare this information to credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points -- a credit score -- helps predict how creditworthy you are, that is, how likely it is that you will repay a debt, and make payments when they are due. Your credit report influences your purchasing power, as well as your chances to get a job, rent or buy an apartment or a house, and buy insurance. A history of timely credit payments helps you get additional credit. Accurate negative information can stay on your report for seven years, and a bankruptcy can stay on your report for 10 years. The fact is that percentage of consumer purchases that are completed through use of cash transactions is steadily declining, and trend in spending has been linked to use of credit. With so much at stake, it is very important to take necessary precautions to maintain a clean credit report. Many people learn hard way that it is much easier to maintain good credit from beginning than it is to repair credit that has been damaged. However, if you find yourself on wrong end of credit score, don’t despair, because there are measures that can be taken to increase your credit rating. But, you have to be willing to put forth effort needed to restore a good credit score, and this requires time and patience that is needed to deal with consumer reporting agencies. Although repairing your credit yourself is often recommended, another option is to hire a credit repair organization like Millennium Credit Service whose website is located at http://www.millennium-credit.com.
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