Stock Market Day Trading
Stock Market For Beginners:
Begin Your Stock Market Day Trading Career
The term stock market day trading has been around since the late 1990-early 2000.
This is when the stock market was experiencing a huge bull run and everyone who knew something or another about the stock market was making
money.
I guess this was the easiest time to make money in the stock market because many people quite their jobs and started
trading from home. Oh the DOT.COM days, what a joy ride that must have been. Then as the old saying goes, everything that goes up must come down.
With the rise in online stock trading companies, many investors saw the opportunity to place trades with the click of a mouse.
This is what gave rise to the pursuit of self driven wealth in the stock market.
So what exactly is a Day Trader or a Retail Trader?
Stock market day trading plays a very important role in the liquidity of the stock market’s daily activity.
Those of us who call ourselves day traders contribute to the market in ways that institutional buying cannot.
Because day traders are involved in continues buying and selling
throughout the day, they provide the constant movement of stocks in either direction the whole day long.
Institutional buying or selling takes place in a longer time frame. For example: If a mutual fund manager has a client who requires them to
buy 500 000 shares of ABFR stock at a price no higher than $10.30,
then the fund manager will go out into the market place and start acquiring the shares in little increments.
The first buy of 50k shares will be between $10.05-$10.20. As day traders, we will see the sudden movement of the stock and
jump onto the band wagon. We as day traders take advantage of the moves that the big whale is making.
The stock will then rally up to $10.50 because you and I as day traders are buying the stock, anticipating that the move that
the big whale has made will yield us some profits. We then exit the stock for a small profit and then the stock retraces.
Remember, the fund manager has to acquire all their shares at a price no higher than $10.30. This is an order from their client.
So, as soon as the stock advances higher the big whale will back off buying the shares and wait for the stock to become cheaper.
As soon as the stock goes down to $9.90, the big whale starts buying another 50k worth of shares.
This will happen through out the day, until the fund manger has fulfilled their clients buy order of 200k shares of ABFR stock.
Your job as a stock market day trader will be
to spot the buying signals that the big whale makes and just ride the trend, along with the big whale. Nothing else, nothing more.
If you can grasp this easy concept of day trading you will have a far better opportunity to make money in stock market day trading. All you have to do is recognize
institutional buying or shorting opportunities in the market and ride the profit wave.
Easy Enough? Well it is really easy, however, difficult to implement without a solid trading place and without stock market basics.
You will need to understand where and how to find these buying and shorting opportunities in the stock market daily.
However, not to worry we have you covered. Read the second part of stock market day trading to discover an easy trading plan.
How
to Invest in Stocks : Daily Tips and Learning
The goal of this website is to bridge the gap between the learning and the stock trading experience.
To make that gap easier to bridge for all who participate in stock market for beginners,
we advise for all new traders to acquire the Basics of
Stock Market Investing....read more
|
