Before getting started in any of the many strategies and variations of stock trading, there is one concept that must be understood by any novice trader, and should be reaffirmed by those that are not getting the results that they desire. This plain and simple concept, or better yet rule that will undoubtedly save you from many sleepless nights and will hopefully keep more of your money in your pockets and not the other guys. This concept is that TRADING IS NOT INVESTING!
I have seen some individuals who were incredible day and swing traders, consistently making mountains of money in the last few years only to be set back by making extremely poor investing choices. The expertise and psychology needed for trading is considerably different than those needed for investing. I have seen those who hold MBA’s from the Wharton school of business fail miserably as a day trader, and a garage mechanic with a GED make all the right moves. The garage mechanic however, as a day trader would have little idea of the fundamentals that someone proficient in investing would deem significant.
Trading stocks over the past 15 years has become much easier for the beginner to participate in. Electronic execution systems have become one stop shopping, containing not only the execution system but giving the user enough information to make well informed decisions. Commissions for trading stocks and especially day trading have dropped to point that makes trading for smaller amounts profitable, where as in the past, a trader may have eaten up much of his gross profits on commissions.
We hope that on this website you will find some informative material on day trading and other trading strategies that will help reduce the learning curve and make you a better more profitable trader.