Forex Day Trading Tips You Need to Know

The popularity of forex currency trading system continues to grow as more and more people have realized the potential income that they can earn from forex trading.

With a massive daily profit of $1.5 trillion, forex trading has definitely surpassed the combined profits of bond market and global stock market. This is probably the main reason why many people were enticed to try forex trading.

Along with the massive growth of forex trading comes the forex day trading. As its name implies, forex day trading mainly refers to the actual selling and buying of various foreign exchange currencies all throughout the day. Its main purpose is to come up with no net variation in place at the last part of the day. In other words, for every forex currency bought, there should be one currency sold.

In order to see the profit or the deficit, one must look into the discrepancy between the current values of the currency being sold to the purchase amount. The main incentive of this method of trading is to lessen the burden of maintaining a position during the night.

Normally, the "open price" may have considerably altered from the earlier day's final currency value. Hence, forex trading that involves traders who are dependent on the currency's performance during the day is known as forex day trading.

In essence, forex day trading is not as dangerous as the other types of forex trading activities. But then again, the usual employment of margin purchases such as utilizing funds on loan increases the deficits and profits. So to speak, the potential shortfall and returns may happen in very little time.

For this reason, experts say that it is normal to expect that nearly 90% of forex day traders will lose profit. Hence, it would be more enjoyable on the part of forex day traders to gamble their money that is not important to them.

The main point here is that even if forex day trading aims to provide you with the right amount of money that you need to gain, it should still be separated from the psychosomatic point of examination and trading activities.

To know more about forex day trading, here are some tips that you need to know, or you can read about forex futures trading.

1. You should know that forex day trading is course oriented

This means that forex day trading is focused more on the development. Forex day traders are expected to identify what comprises the "winning trade." By the time you have already identified the outline, you will have more confidence in taking the trade.

This means that you will easily make good decisions without feeling regretful. In addition, at the end of each transaction, you will be able to feel good about your decision.

2. You are bound to lose before you can gain something

Forex experts say that every successful forex traders has definitely lost some hefty amount of money before they were able to achieve something. In fact, they say that this is the primary factor needed in order to gain success in forex day trading.

However, it does not necessarily mean that because you are bound to lose money at one point or another, you should expect loses all throughout. It is still important to remember that as a forex day trader, you must do everything just to win the game.

This can be done by speculating positively at all cost, taking risks without uncertainties. Of course, losing is part of the game. But remember that losing is not a major issue in one's success.

Fail if you must; that is, if you will think that losing is inevitable. Yet, one should also keep in mind that these loses are relatively small and will only take few minutes of your time to make those errors.

And lastly, it is important that you know what you are doing. Do your homework and find out more about forex day trading. In this way, you will learn the basic safety measures of forex day trading. You will also learn the important steps you have to make if ever the unforeseen circumstances take place.

So the next time you want to start a career in forex day trading, it is important that you start on the insides first. Know what the client wants. From there you can already make a fresh start in trading.

For more information and tips about forex trading [http://www.forextradingspot.net]. Visit us at [http://www.forextradingspot.net].

Article Source: http://EzineArticles.com/?expert=Kenny_Yong

Remember! There Is No Crying In Baseball And There Is No Whining In Day Trading!

Traders, you have to stay positive!

If you are thinking of entering into the "day trading business", make sure to check any negative attitude you may have at the door.

Day trading is tough enough even for the most optimistic people, but, I for the life of me, don't know what some people are thinking of when they enter into trading (or any "trade" for that matter) with negative thinking.

I see it all the time. We offer a free two-week trial membership, and so many people come into the room with a predetermined mind set that is so negative that I don't know how they can function in life itself, let alone in investing in or trading the stock markets. The ones with negative mind sets rarely last very long.

Trading is no different than anything else you do; you have to have the proper attitude and stay positive. There are thousands of books on the power of positive thinking, so I'll not go there. But when it comes to trading specifically, there are a few things to think about.

The first thing to get ingrained in your mind is to forget about the indices! It really does not matter if the Dow Jones Averages or the NASDAQ index is up 200 or down 200. Oh sure, you have to pay some attention to the index just so you know what you may expect as far as what the overall "tone" of the market. But there is no such thing as an up day or a down day based on the Dow or the NASDAQ as far as a Day Trader is concerned. There is only profit and loss.

No matter whether the markets are going up, down or sideways, there are always stocks to trade both directions! That's important to remember. A lot of stocks you will be trading are going to be driven by news specific to the individual stocks. That news is going to play a more important role in where the stock is going than the over all market itself.

The Dow can be off 200 points but if news breaks that XYZ stock just discovered a new and exciting treatment of cancer, that stock is more than likely going to move up regardless of what the Dow is doing, even if it is a Dow component.

Trading down markets can actually be quite lucrative. The obvious way to play down markets is to "go with the flow" as they say, and look for stocks to short. Shorting stocks, contrary to some beliefs, is not a negative or anti-American thing. Those that think so need to readjust their thinking. Shorters have been around since before the meeting under that Buttonwood tree that gave birth to the New York Stock Exchange. (See: "What Does A Buttonwood Tree Have To Do With the New York Stock Exchange" at this source).

On the other hand, most traders and investors do not short stocks. They are looking for stocks to trade to the upside. If and when good news hits an individual stock in a down market, it is likely to attract a lot more interest. Depending on what stock it is and how good the news is, it may even give a boost to the entire market.

Too many traders let bad news put them into negative frame of mind. I know it is difficult to do, but you have to be able to shake off the negative and focus on the positive.

I see it all the time where there is bad news for specific stocks or stocks overall, and it sets off an avalanche of negative thinking.

For instance, way back when Enron, WorldCom and others came unwound, New York Attorney General Spitzer was out trying to dig up dirt on every company on Wall Street. So many traders fell into the mode of "well, they are all crooks" or "every stock is a scam" or "every analyst is a liar". They were coming up with conspiracy theories one after another and wallowing around in all sorts of crazy stuff, all of it extremely negative in general. When a stock moved against them, they would simply apply one of the above excuses and whine about it

No one is going to be successful trading with this mind set.

Another thing I see traders doing it listening to CNBC, Bloomberg or some market guru. All of sudden there is any number of critics making negative remarks about the commentator or reporter or the guru! Whining about what was said and who said what serves no positive purpose whatsoever. Talk about hanging the messenger!

Jimmy Dugan (played by Tom Hanks ) said in the movie, A League Of Their Own, "Are you crying? Are you crying? ARE YOU CRYING? There's no crying...there's no crying in baseball."

And...there is no whining in day trading!

You have to stay focused, and you have to stay positive. I don't care how negative the news is. If the market hasn't taught us anything, it has shown us time and again that it has an uncanny ability to sooner or later shake off bad news and go on.

As a day trader or an investor you have to be able to do the same thing, and stay positive!

Happy trading!

No permission is needed to reproduce an unedited copy of this article as long the About The Author tag is left in tact and hot links included. Questions and comments can be sent to floyd@TraderAide.com.

Floyd Snyder has been trading and investing in the stock market for three decades. He was on the forefront of the day trading craze that swept the nation back in the late 1990's, both as a trader and as the moderator of one of the Internet's largest real time trading rooms, http://Daytraders.com. He is the owner of [http://www.TraderAide.com] and Strictly Business Magazine athttp://www.sbmag.org

Forex Day Trading

Money is a fundamental product. Anytime anyone buys or sells products and services in a foreign country, foreign currency trade comes into play. This is simply exchanging of one currency for another. Many people trade currencies for speculative purposes. Because hundreds upon thousands currency transactions go on every day, the foreign currency exchange market, also known as "forex" or "fx" market, is the largest market in the world. If you combined all of the U.S. stock markets, forex would still be bigger, with a daily trading volume larger than that of all the world's stock markets put together. Trillions of foreign exchange dollars are traded every day, and the forex market is growing at a phenomenal rate.

The Internet has played a gigantic role in the growth of forex trading. Before the Internet came along, only corporations and wealthy individuals could trade currencies in the forex market through banks. To open an account, you needed more than $1 million. Today, because of the Internet, investors can spend as little as a few thousand dollars and have access to the forex market 24 hours a day.

If you are in to trading, forex provides an alternative to the stock market. You can choose from thousands of stocks, but currencies are different, as there are only a few major currencies to trade like the Dollar, Yen, British Pound, Swiss Franc, and the Euro. Forex trading provides more leverage than stock trading, and the minimum investment is lower. Another advantage is forex-trading goes on 24 hours a day, so you can trade any time that is convenient for you - day or night.

Day Trading provides detailed information on Day Trading, Forex Day Trading, Stock Day Trading, Online Day Trading and more. Day Trading is affiliated with Futures Trading Software.

Day Trading Strategy

It is necessary to plan business and prepare a proper strategy for achieving success at day trading. If you want to take advantage of every available market opportunity and want to maximize the potential profit - striving for quality and gaining precise information at the right moment is absolutely necessary. Remember to increase the returns and learn the art of limiting the risk by trading the right number of shares or contracts in regards to your account size and risk tolerance capacity. Furthermore, it is necessary to find the optimal settings to reach your trading goals. Be cautious about over-optimized trading systems and try to prevent curve fitting at all costs.

Another strategy may be to exploit winning and losing streaks, in addition to evaluating trading using detailed performance statistics that properly account for equity. Trade equity curves crossover four different ways to increase returns and reduce risk. You must assess the sensitivity of your trading results to trade order.

'Market System Analyzer' analyzes (in short MSA) ""market systems"" (e.g. the Euro market trade with a moving average crossover system) in terms of their profit and loss records. This program is designed without any complicated programming or lengthy data input requirements. The program allows extracting the maximum amount of information using the minimum amount of input data. Moreover, all analysis features in MSA are easily accessible to both individual and professional traders. The familiar Windows Operating System interface makes the program user friendly. The help feature is detailed and available if needed, to explain how to use each analysis feature of the software.

To get started with this software, all you need is a list of trade results for the trading system or the method you want to improve.

Day Trading provides detailed information on Day Trading, Forex Day Trading, Stock Day Trading, Online Day Trading and more. Day Trading is affiliated with Futures Trading Software.

Online Day Trading

Investors who trade online have instant access to their accounts and near instantaneous trade tractions. Because of this, it is important for traders to understand how to protect themselves when the market is moving fast. Fast-moving markets.

When you trade online, you have to know what you are buying and what risks you are taking to avoid problems that many investors face. You have to do your homework about what investments you should make - what to buy and what to sell. Trading only takes a few seconds online, but investments should take as long as the traditional way. You have to be very careful when making investment decisions

You must also remember that online trading is not always immediate. If you're online at a particularly busy time, or if your computer and/or modem are particularly slow, you could be in for serious problems. Likewise, if you have a broker who has inadequate software your orders may not reach an online firm. Always have a backup plan for placing a trade if you are not able to access your account online. Alternate plans can include telephone trades, faxes, or talking to an agent over the phone.

You must also make sure that when you place an order you check to see that it has gone through. Many times people either lose an investment or invest twice because a purchase or sell either went through twice or did not go through at all. If you cancel an order, make sure the cancellation worked before placing another trade.

Day Trading provides detailed information on Day Trading, Forex Day Trading, Stock Day Trading, Online Day Trading and more. Day Trading is affiliated with Futures Trading Software.

Stock Day Trading

In order to trade stocks during the day, you need to know what to look for in the stocks you are buying or selling. The attributes that you should be concerned with are liquidity, volume, volatility and price transparency.

Liquidity is important to a trader who requires fast executions a predictable prices, It is based on factors such as the volume of transactions in the market, the number of shares outstanding, the breadth of ownership and the number of market makers.

Any stocks on NASDAQ and the NYSE usually have a sufficient degree of liquidity to make them potential day trading candidates, especially those included in the major indexes such as the Dow Jones Industrials or NASDAQ 100. On the other hand, relatively few small-cap companies would have sufficient liquidity to be attractive to most day traders.

Volume and volatility are also important considerations. Volume can be measured in terms of a good day trading stocks should be around 500,000 or more shares. High volume stocks allow for buying and selling without affecting the price. Volatility is the up or down movement of the price of stocks. If a stock isn't moving, it isn't considered a good day trading stock.

Finally, price transparency is the ability to get information of the flow of any particular stock. It is also known as market depth. The NASDAQ II quote system gives a good picture on bids and the quantities of stocks being offered. Day traders often have NASDAQ Level II quote screens available to help assess strength and weakness of a particular stock.

Day Trading provides detailed information on Day Trading, Forex Day Trading, Stock Day Trading, Online Day Trading and more. Day Trading is affiliated with Futures Trading Software.

Day Trading

Day traders are people who buy and sell stocks all day long. The goal of a day trader is to buy stocks that fluctuate in hopes that the value goes up and the trader earns money Day traders can make profits very quickly. A day trader will hold a stock anywhere from a few seconds to a few hours, but will always sell all stocks before the close of each day.

There are different types of day traders. The scalper buys and trades stocks very quickly - within minutes. The goal is to earn profits per share with little risks. Momentum traders buy stock that is moving up or down during the day.

At the end of the day, the dream of any trader is to increase the value of the stocks that they own. NYSE (New York Stock Exchange) and NASD (National Association of Security Dealers) have absolute rules that impose minimum, margin requirements for day traders.

A day trader needs to enjoy paper trading, money and risk management. There are a lot of techniques found for money management. A trader is always on the look out for increases or decreases in earnings. Traders should absorb information in a timely manner, consistently and thoroughly. They keep informed by reading stock exchange periodicals.

Keep in mind that you don't become an experienced day trader overnight. It takes time and practice. If you are serious about becoming a day trader, practice on a trading web site to get down the techniques, and read everything you can about day trading as a career. Above, all learn from your losses and never allow profits turn into losses.

Day Trading provides detailed information on Day Trading, Forex Day Trading, Stock Day Trading, Online Day Trading and more. Day Trading is affiliated with Futures Trading Software.

Day Trading Commodities

Day trading has its own value in the marketing world. While increasing and decreasing values and levels of risk can fluctuate between maximum and minimum, many people indulge in day trading to make some money.

Trading in stocks on a regular, day-to-day basis increases the value and level of success. Sometimes risk factors may affect the success levels. However, it is an optimistic and realistic process with a goal to increase profits.

Many young college students indulge in day trading. Senior citizens practice day trading as an option to supplement their income when they retire. Typically, investments of a significant size are intended for peoples to learn quickly. Trading is learned by osmosis, and ample time and opportunity to monitor the stock market is a necessity. The traders often offer advice to clients when called. There are lots of placement procedures found in day trading. There are few career options available for undergraduates, graduates, and perhaps management students as well. The undergraduates are recruited as analysts on a full time basis.

The analyst programs are standard and last approximately two to three months, especially in New York. The course provides an added advantage to a person who wants to become an analyst. The training program includes bond math and basic accounting. Various managing directors have officials from the company conduct training in specific areas of course studies such as credit derivatives, corporate bonds and listed stock. When the training program ends, the analysts are fully equipped with the knowledge of stock market and stock trading. The pay scales of analyst are usually less than management students. Trading business has its own commodities and specific value for the other world.

Day Trading provides detailed information on Day Trading, Forex Day Trading, Stock Day Trading, Online Day Trading and more. Day Trading is affiliated with Futures Trading Software.

Forex Day Trading Systems

Usually, we associate trading with purchasing a commodity, bringing it home or to our business premises, and then selling it. Similarly, we purchase stocks and shares in the stocks and shares market, hold them until their value increases and then sell them off.

Times have changed, and now trading can be done on a daily or even hourly basis in the stocks and shares market, and also in the foreign currency markets. This has become possible due to the forex day trading services, also called intra day trading.

Due to intra day trading or day trading, people can make money on the trading day itself. Day trading, despite differences in times zones throughout the world, is also popular because the forex market remains open 24 hours a day.

Another reason that attracts people to day trading is the fact that the forex market is the most liquid market in the world. The moment your transaction is executed, your profits are credited to your bank account. This has become possible due to the decentralized clearing system, which allows the market to remain liquid day and night.

Another advantage of day trading is that you don't need to invest a lot of money to make profits. You don't have to incur huge losses either. This is, of course, if you pay attention to the guidance provided by your brokering company about the entry and exit times. There are many forex-trading companies that can train you for day trading so that your transactions are not reduced to gambling. These companies provide you with trading strategies and data charts that guide you when to buy or sell. They also teach you to interpret forex quotes, and also how and when to buy and sell the currencies by interpreting various technical and analytical studies.

Forex Trading Systems provides detailed information on Forex Trading Systems, Forex Currency Trading Systems, Forex Day Trading Systems, Online Forex Trading Systems and more. Forex Trading Systems is affiliated with Forex Trading Tips.

Day Trading Securities - How to Make Money Day Trading Online

What is day trading?

Day trading is an extremely risky way of investing in the stock market. Day trading is carried out by day traders who rapidly purchase and sell stocks over a single day period in the hope that for the very short period over which they hold the stocks (ranging from just a few seconds to a couple of hours) the value will continue to climb or fall thus allowing day traders to secure quick profits.

How do you make profits?

The method of buying and selling stocks over a very short time period can create huge profits or losses for the day trader in just a couple of minutes or hours. Statistics show that 80-90% of all day traders make a loss at the end of each trading day. However day trading has become an increasing popular form of trading in recent years as a result of the internet and increased access to information. So while day trading used to be a marginal form of stock trading reserved for the most part to financial firms professional traders and an elite group of private investors it is now also very common method of trading among casual traders.

What do day traders look like?

Day traders are defined as traders who place four or more round-trip orders over a five day time period and the total trading activity over a day is 6% or more of the total value of all shares held. Brokerage fees for day traders can be substantially lower than fees for other types of traders. While margins for most traders are usually around 50% of the value in traders account, day traders can face levels as low as 25%. This means that a trader can by lets say, $1000 worth of stock from an account of only $250.

Tips for surviving and thriving as a day trader

The five most common strategies adopted by daytraders who seek to make are profit are * Trend following - used by all trading firms this strategy assumes that stocks that having been rising steadily will continue to rise.

* Playing news - this strategy is to buy stock in a company which has just announced good news

* Range Trading - this is where stock that has been rising and falling is bought near the low price and sold as it hits the high price range.

* Scalping - it is commonly defined as a very quick trade.

* Covering spreads - To play the spread or the make the spread simply means to buy stock at the Bid price and sell the stock at the Ask price. The difference between the bid price and the ask price is known as the spread. Because there is an historical tendency for the stock market to rise profit can be expected for this form of trading.

To learn the 1 secret to picking the best stocks for daytrading click here.

For more free tips on becoming a better trader visit http://www.daytradingpennystock.net/

Exploring The World Of Day Trading

Are you looking into a career in day trading? In the past, the tools for day trading were available only to professionals. But thanks to the power of the Internet, everything you need to get started is now conveniently online. If you have a nose for business, guts and a sharp instinct for how the market shifts, the maybe day trading is the job for you.

What is day trading? Basically it is daily, online stock trading with very short investment. The individuals who do this day in and day out are called traders, not investors in the traditional sense. A day trader is someone who will buy a stock that has high volume and liquidity and will sell that same stock within a few minutes up to a few hours.

Day trading happens only during the day. Those who do day trading usually stay glued in front of the computer and monitoring which stocks have a fast turnover. During the day trading, they quickly buy a large number of stocks at a time and sell it once they see the stock gain within the day. Day traders will make a purchase of a stock, hold it for only minutes watching constantly for the stock to go up or down, selling if it goes down only two or three cents and holding if it goes up to about five or six cents and selling. The stock is almost never held over night as there are many other opportunities and a stock that takes hours to move is not worth holding.

Day trading can be a very high paced and stressful lifestyle. There are millions of day traders across North America but it can be a very fast way to lose everything. Some people are making over $5000.00 a day but it takes months and sometimes years to learn and master day trading.

The broader meaning of the term day trading includes those who trade daily from their homes or offices, through Internet brokerages. These day traders might buy and sell stocks in minutes, but might also hold some overnight or longer. The latest buzzword for this is "swing trader," those who keep a stock within in a few days before finally selling them. To some, particularly the so-called bandits, day trading is just a numbers game. They do little research and just watch for moving stocks with good spreads. Others are more scientific about it, relying on news and technical analysis to catch everyday price fluctuations.

Day trading requires a certain amount of capital. Generally, day trading should have enough trading capital to buy at least 1000 shares of any given stock on any particular day. There are very few stocks priced under $20 that have the degree of liquidity necessary to make them suitable for day trading. This means that a novice day trader should normally have day trading capital of at least $20,000 to start. In addition, the new day trader should treat this as 100% risk capital and should not have to unduly worry that the whole amount of this capital may be lost very quickly.

You must also be aware that not all stocks are suitable for day trading. Day trading should never trade unlisted or thinly traded (low volume) stocks. These stocks have poor liquidity and hence a higher price volatility. This may make it hard for you to exit your day trading position quickly at a fair price. Trade only high volume, well-known stocks.

About The Author

Michael Sanford has a wealth of trading knowledge available at http://www.everything-trading.com. 

Facts of Day Trading

Are you thinking of entering the fast-paced world of day trading? Arm yourselves with the information from this fact sheet on day trading.

What is day trading?

Day trading is an investment tactic that does online daily stock trading with a relatively short investment. Those who do day trading usually buy and sell securities during the same market day and, as a general rule, do not hold stocks overnight. Many day traders make dozens of trades every market day hoping to capture profits that arise from small intraday price fluctuations.

How is day trading different from swing trading?

Day trading relatively holds the stock for only the day. After the stock market closes, a day trader has no stock in his hands. Swing trading holds a stock for at least a few days, waiting out for the best price before dumping it back to the market. Day trading is much more stressful and requires guts and a keen business sense. Once you get good at day trading, you can earn up to $50,000 from your initial investment.

How much capital would you need for day trading?

You need an investment equivalent to buy 1000 stocks. That is roughly around $20,000. Because the chances are small that you will find a marketable stock with a price of under $20, this is enough to get your day trading underway. However, you must remember that this is a 100% risk capital so do not worry too much if you lose this amount very early.

What are the general rules for day trading? 

Always trade with the trend.

Cut losses short

Never get emotionally involved in your trades.

What are the most suitable stocks to trade for day trading?

It is advisable to trade high volume stocks. Go with the trend with the popular stocks available. It'll be easier for you to sell those stocks at the end of the day trading.

How does a usual day trading transaction occur?

For example, at 10:00 AM a day trader might buy 1000 shares of stock XYZ just as the price begins to rise on good news, then sell it at 10:04 AM when it's up by 1/2 ($0.50). The day trader makes $500, minus commission. With today's cheap commissions of $29.95 or less per trade, that's a quick $440.10 or better, excluding taxes.

Most people who deal with day trading spend all of their time in front of the computer, watching the slightest change in the stock price. As the prices go up and down, the day trader must be alert as to when to sell his stock or wait for the moment to hold on it. This can be a very stressful lifestyle as a mere second could mean an increase of half the stock price and missing that moment for any person engaging in day trading could mean a loss on his investment.

Day trading is not a get rich scheme. It is serious business where you could lose everything within minutes because of wrong information. Before jumping into day trading, remember to do your homework first. Go to seminars on day trading, use simulations if possible and practice reading market indicators. To be a successful day trader, don't just need luck. Knowledge and experience counts. Welcome to the world of stock markets and investments!

About The Author

Michael Sanford For More Information and articles about day trading check out http://www.forex-trading-center.info

Emini Futures Day Trading : Fundamentals And Simulated Trading System

Fundamental Analysis

Fundamental analysis is a methodology for analysis of a company as a viable stock that you want to hold for long term. Fundamental analysis is more widespread in the world of investing since you are going to hold your companies for 10 to 20 years, you do not wish that your companies go bankrupt the next day. Some of the common ratios used are P/E ratios (price earnings ratios) which measures the relative price of the stock to the earnings of the company, the EPS (earnings per share), the debt equity ratio and tons of other ratios.

Although I have spent considerable time studying such ratios I discovered that you do not really need such information to be successful in day trading. I repeat, fundamental analysis plays a marginal role in day trading. In fact, most of the time, I don't follow it at all. If you still have reservations about ignoring fundamental analysis, I recommend trading ETFs (exchange traded funds) such as QQQQ which mirrors the movement of the NASDAQ 100. In essence, you are actually trading the index like a normal stock. Indexes usually have a huge number of stocks in them, making them less susceptible to company specific news. However if you are paranoid, then you might still want to follow the news of the major companies in the index.

here is no lack of information and no end to analysis. Knowing the fundamentals might seem cool when you discuss company so and so over a cocktail party, but it will not help you rip money off Wall Street in day trading. Being able to remove fundamental analysis from the decision making process is also one of the reasons why I recommend trading Emini index futures.

Paper Trading: Don't Ever Underestimate it!

Paper trading refers to trading with virtual money, you do not use real money. You jot down in your notebook when you bought at what price and why. When you sell, you record in your notebook again why you sold and calculate the profit or loss associated with the trade.

If you cannot make money by paper trading, you can forget about making money in real trading. Always test a new trading idea with paper trading first before using real money. Also start with paper trading after a long period of break, to help you get back in touch with trading.

Although there is very little difference between paper trading and real trading in Emini, real trading is subjected to slippage and psychological factors come into play when you are using real money. Do not underestimate the impact of psychological factors on your trading. After you have a reasonable method and money management techniques, it is the psychological factors which will determine whether you make a profit or loss.

Some traders have created software to paper trade. You hit the buttons like you are doing real trading but only virtual money is involved and no real cash is used. The system will record down the time, price, symbol and the position opened or closed. This saves you the trouble of keeping a paper record.

About The Author

Michael Taylor is a professional trader and webmaster of http://www.daytradeemini.com. He regular updates his trading blog athttp://www.daytradeemini.com/blog with educational articles and trading records.

Currency Day Trading

The buying or selling of a currency within the same calendar day is known as currency day trading. In this case, all trades are completed in the same day and nothing is held overnight. The United States passed laws six years ago that enabled small investors and common men to participate in currency day trading; previously, only large banks and financial institutions and millionaires were engaged in the practice.

Industry analysts believe that currency day trading is a well-kept secret of the rich and powerful who have the power to control all the banks, corporations and foundations throughout the world. In currency day trading, the traders have vast buying power. For instance, it enables traders to use $1 to control an investment worth $200, and $500 to control $100,000.

The professional day traders are divided into two primary categories, those who work alone and those who work for a larger institution. Most of the traders work for a larger institution as they are given access to greater resources. Large amounts of capital and leverage, expensive analytical software, and a direct line to a dealing desk are some of the facilities given to the trader who work with big companies. On the other hand, individual traders mostly manage other people's accounts or just trade their own. As these people have limited resource access, it prevents them from competing directly with institutional day traders.

There is a lot of software with which a person can learn currency day trading practices. One needs to be a keen learner with an Internet connection. Websites such as Blackjack Trader.com, Choice Daytraders and CompuTrade are some of the portals through which a person can learn more about currency day trading.

Online Currency Trading provides detailed information on Online Currency Trading, Foreign Currency Trading, Currency Day Trading, Currency Trading Seminars and more. Online Currency Trading is affiliated with Online Currency Trading.

Day Trading Your Way To Success

If you are interested in day trading you first need to know what it is all about and to understand the basics of day trading. For starters, a day trader is a person who is very active in the stock market and makes several trades a day in an attempt to make quick gains by buying and selling stocks in a short time span.

As the market is never the same day to day, no one particular day trading strategy will work each time. To be successful, you first need to understand how the market works and get a feel for the market.

This includes recognizing the stocks' basic trend, the long and short setups, when to enter a trade, and where to place stops. Another very important basic is how to protect your profits and minimize losses.

Once you have learned the basics and are ready to try your first day trade, here are some tips and guidelines you should keep in mind that is essential to your success as a day trader.

Being a day trader requires a lot of time and practice before you get used to the everyday volatility in the market. Do not expect to become an expert day trader overnight. No matter how many books you have read or day traders you have watched, that will not make you an immediate expert.

There are day trading websites that simulate trading. Practice with their trading platform first before trying out the real thing. It could save you a lot of money and you will learn the ropes faster this way.

If you are ready for real live trading, do not be scared by the thought of losing money. There are ways to minimize your loss such as with stop orders.

If you lose money, do not worry, as some loss is to be expected. Just remember, with increased experience and sensitivity to the market, you will start turning a profit soon.

If you profit large sums of money, stop trading. Do not gamble it away by trying to gain even larger profits. You can always trade another day.

Sometimes the market will not perform as you expected. When you encounter this situation, it is best that you do not trade at all.

Once you gain more experience in day trading, you may be able to predict the direction of a stock price. However, try not to pick top stocks or bottom stocks. This is one of the most common mistakes of a beginner.

If you cannot predict where the market is heading, it is best if you stand aside and wait, or you can always go home and trade again another day.

It is a good idea to record all of your day trading results. This way you can learn what works and what does not, and be more effective in trading.

Observe good traders. Look at how and when they sell or buy. Generally, good day traders often buy on bad news and sell on good news.

Beginners often get emotional in their trades. Avoid this at all cost, stay emotionally detached and professional.

Learn to trust your instincts. Relying too much on analysis may mean letting a few good trades slip away from you.

As you gain experience, you will see that different day trading strategies are required on different days and required on different stocks. Be flexible.

Bad day traders often focus on too many stocks that are not manageable and often lose track on where each stock is heading. It is wise to limit your stocks in manageable numbers.

With patience and practice, you can be successful in day trading, and as your experience grows so do your profits. Everyday you can learn new day trading strategies in the market, which you can use to your advantage.

For a more in-depth look at day trading drop by Susan's site at Day Trading Strategy [http://www.expert-daytrading.info/sitemap.php]. Susan also enjoys writing on a variety of topics at Health and Fitness Hub.

Day Trading Tips For Beginners

When primitive people have invented money, all they have in mind is to find some means to solidly show the actual exchange of goods or services between two persons or groups. Since then, any exchanges of goods have been centered on money, bearing the most tangible form of trade.

As time pass by, trading has significantly evolved in different industries where money is not the primary agent. Trading becomes a profitable venture; and had created a remarkable spot in the economy.

Today, there are many kinds of trading. Every type of trading depends on the kind of exchange that will take place. For instance, FOREX or foreign exchange trading focused on foreign currencies.

Among the many trading types, day trading has slowly etched a name in the industry. With its remarkable turn of profits, day trading has quite gained a good reputation.

What is Day Trading?

Day trading generally stands for the system of selling and buying financial tools such as bonds or stocks throughout the day.

In other words, day trading is a series of material exchanges that all happens within the day. Hence, in day trading, every piece of stock bought has its corresponding sale. The profit or deficit is identified on the discrepancies between the goods and the trade price.

The main concept of day trading is based on the premise that all of the transactions are carried out within the day to ensure that there are no changes on the current closing price.

Changes usually take place overnight, where the preceding closing price will be changed depending on the result of the day's trading activities.

Sounds easy? Guess again.

Day trading may not sound complicated and may not even look perilous to one's financial status. However, trading experts say that more people tend to lose during the day trading. Statistical reports show that nearly 90% of day traders spend more money without gaining something in return.

For this reason, it is important that every day trader should know how to deal with the matter intelligently. It takes some wits and quick thinking just to overcome any probable loss in day trading.

Here are some day trading tips for beginners:

1. Chop down shortfalls quick

The secret is to regain back what you have lost. Try to handle the situation positively and maneuver the condition to a constructive one. There is no use to cry over spilled milk. What you need to do is to reduce the losses with quick, sharp moves.

2. Go with the flow

Like traffic, taking the counter flow is not advisable in day trading. It would be better if you will just go with the flow. This means that you have to focus on the high-selling stocks and sell those that fall under "short-selling" stocks.

This is based on the belief that the development of stocks will continue to rise. Luckily, 8 out of 10 day traders find this strategy effective.

3. Control your emotions

Some day traders tend to be emotionally involved with their dealings.

In reality, day trading can really create hype. Hence, emotional people tend to act on impulse. Any good news will immediately alert day traders to expect a positive turnover of stocks. Hence, if you are too emotional, you may get excited and act without even evaluating the situation.

To avoid trouble, it would be better to control your emotions and analyze each condition first before making a move. If you lost, analyze the situation and identify where you have been wrong.

Do not take your defeats seriously. Keep in mind that an open mind is important to overcome problems encountered in day trading. This will help you achieve the profits that you want.

For a breakthrough approach to trading in any market, please visit http://www.day-trading-guide.info/

Day Trading Indicators and Indicator Trading

Did You Begin Day Trading As An Indicator Only Trader?

Did you start day trading after buying a book on technical analysis, and getting a charting program - probably a free one that you found online - in order to save money? While reading your book you learned about trading indicators which could 'predict' price movement, and what do you know, the 'best' indicators were actually included in your free charting program - let the games begin.

Now that you have all the day trading tools that are necessary, the book for education AND the free charting program with those 'best' day trading indicators, you now need a day trading plan so you can decide which ones of those 'magic' day trading indicators you are supposed to use. This really is a great book, besides telling you how to day trade using indicators to 'predict' price - it also said that you need a trading plan to day trade.

So what should this plan be? The book told you about trend following using an indicator called macd, and it also told you how it was possible to pick the top or bottoms using an indicator called stochastic; my guess is that you picked the stochastic indicator to start your day trading - this must be the 'best of the best' since this indicator was going to ensure you of entering your trades with the 'best' price. Amazing, simply amazing how easy this day trading stuff really is. In fact, why even bother taking the trades, each time your indicators give a signal - just call up your broker and tell him to stick $100 in your account.

My book was Technical Analysis of the Futures Markets. My charting program was TradeStation with an eSignal fm receiver; that was the one that if you hung the antennae wires just right, and you put enough foil on the tips, you might even get quotes. I had sold a business before I started trading so I did have some capital - isn't that how everyone gets into trading, you either sell a business or you lose your job? My indicator was the macd as I had decided that I was going to be a 'trend follower' instead of a 'top-bottom picker'. I also decided that I was going to be 'extra' clever, if one indicator was good than two indicators must be better, so I added a 20 period moving average. My first trade was a winner, then after many months of extensive therapy, I was finally able to forget the next twelve months - ahhh the memories 

Learning To Day Trading - The Learning Progression

Beginning to day trade, or learning to day trade, as an indicator trader is very typical. This is also logical when you consider - HOW are you supposed to initially learn how to trade? Trading indicators are available to anyone who has a charting program, and simply using line crosses, or histogram color changes, provide 'easy' signals to understand. If you will also take the time to learn the arithmetic behind your indicators, as well as learning what each indicator is specifically intended to do, not only is this a logical way to begin, it is also a good 'step' in your learning progression - understanding the WHAT you are doing, instead of attempting to create 'canned' indicator only trading systems, without any regard as to WHY you are trading this way.

This does become one of the 'sticking' points in your learning progression, as you come to find out that you are unable to profitably trade indicators as signals only - now what? Now what - you 'can't' develop your own indicators, so you start doing google searches for day trading indicators and start buying your 'collection' - they don't 'work' either. Now what - you buy a mechanical trading system - what does hypothetical results may not be indicative of real trading or future results mean? Now what - you start subscribing to signal services OR you start joining the 'latest and greatest' chat room - am I really the only person using the signals who isn't profitable?

Now what - you never learn how to trade.

I began trading as an indicator trader, and I did try to learn everything that I could about the various indicators, as well as trying to combine indicators that were consistent with how I wanted to trade - I just could never develop a mechanical day trading system from what was available to me. I read a couple more books that didn't really help me, so I then started looking for someone who could teach me. From what I now know about gurus -vs- teachers, I am very lucky that I got involved with a money manager-trader who taught me a tremendous amount, but I still couldn't get profitable, in part because there was also 'pressure' to learn how to trade using real money. As well, any discussions or thoughts about trading psychology and the issues involved, especially to beginning traders, was non-existent.

Now what - learning but losing - I stopped trading. 

Learning to trading using real money, and 'scoffing' at trading psychology as simply individual weakness, really was something that I now regard as misinformation. I always mention this as I now feel that this cost me as much as a year of time, and was very close to costing me my trading future, as stopped trading was VERY close to quitting trading. How can't trading psychology be real to a beginner, when you consider that you are risking losing money at a very fast pace as a day trader, and when you further consider that you are also doing this when you really don't know what you are doing - this is NOT by definition being weak. And if trading psychology is real, how are you going to learn to make 'good' trading habits with real money while you are fighting the implications?

Now what - not trading and not ready [quite] to quit - still studying and searching.

Probably the single most important 'thing' that got me to a next step in learning how to trade, was the concept of a trading setup, and that a setup and a signal were not the same. This was extremely meaningful to me, as it also led to an understanding of how to better use trading indicators for the information that they can provide, but not to use them as trading signals - in essence I began learning about trading method where discretion could be consistently applied -vs- trading system that was mechanical and arithmetic rules.

Traders who are indicator only traders, are also what I refer to right side only traders, that is they are always looking at the right side of their charts for an indicator signal. BUT what about the left side of the chart, what about price and patterns, what about market conditions - WHAT about the relevant 'things' that are 'moving' price, instead of indicators only as an arithmetic derivative of price, and thus, one that is dependant on the time frame that you have chosen to trade from? These 'thoughts', along with the concept of trade setup, became instrumental in the development of a trading method, and how I came to turning my trading around.

When I think about the steps in my learning progression - I would list them as follows:

2/95 - 6/96

indicators only

teaching service that included signals

learning to trading with real money and trading psychology issues

stop trading

6/96 - 3/97

understanding of trading psychology issues

learning about trading setups concept

trading method -vs- trading system

trade setup - trade trigger are not the same 

method development

understand the importance of the left side of the chart and what is happening 'across' the chart

related trading setups and how/when they triggered

indicators + pattern

indicators + pattern + price

indicators + pattern + price + market conditions

3/97 - 11/97

able to paper trade profitably

able to real money trade profitably

able to trade for a living

Indicator Only Day Trader - Setup Including Indicators Method Day Trader

I have attempted to discuss the way I started day trading, and the way I think many-most traders typically begin. Along with this, I have pointed various issues and problems that I had - those regarding how to learn to trade, and then progressing into a profitable trader. My experiences have been both personal, as well as those of many traders that I have worked with over the last 8-9 years through Tactical Trading - that a very large number of these problems are due to day trading only with indicators, the specific indicators used, along with trying to turn these indicators into a mechanical trading system. This is not to say that this can't be done - I simply couldn't do it. However, I would strongly suggest that anyone who is in the early stages of day trading, or struggling with their day trading, consider these things that have been discussed.

This discussion, along with chart examples of various trading indicators and trade setups, is continued at http://www.tacticaltradingmethod.com/indicator-trading.html As well, additional discussions about trading psychology and trading method can be found at The Tactical Trader, [http://www.tactrading.com]

FOREX Day Trading - Do it and Lose Your Money Quickly!

Day trading is a mugs game - in FOREX currency markets, traders who make day trades instead of following the long-term trends, are making a serious mistake - risk/reward is terrible by comparison.

The Internet is full of brokers and vendors encouraging traders to day trade - and offering "sure fire" day trading systems - which is no surprise, as they mostly have a vested interest - they are making more commission!

Don't get sucked in by the hype surrounding currency day trading.

You make the big money from the big trends - it's the big trends that yield the big profits.

There are several day trading FOREX myths, and here are the most common ones:

1. You can keep losses small

Sure you can - but on the other hand you won't have enough winning trades to compensate for your losses, and you will end up losing in the long run - you simply won't be in the move long enough to cover your inevitable losses.

2. Spreads and commissions impact

Commissions and slippage add up in FOREX day trading, and impact on your profits and losses even further.

Lets say, you win 50% of your trades and lose the others, (a highly respectable hit rate) - this means the profits in the day are going to need to be at least 2 to 3 times as big as your losses, to make meaningful gains - and this is extremely difficult to achieve.

A long term trend following system can make money, based upon a far lower hit rate than 50 - 50, as the profits will (if the system is soundly based) be far bigger than the losses.

3. FOREX day trading systems can and do put the odds in your favour No they don't! - The fact that people think that they can predict market movement in such a small time frame shows a lack of knowledge.

Any currency price has a basis on the following:

Supply and Demand + Human Psychology = Market Price

The supply and demand, and human psychology equation needs to be measured over the long term - and cannot be accurately predicted in short time frames such as a day.

Why? Quite simply there is not enough information to base your trading on, in short time spans.

Currency markets are all about probability, and it can be measured more accurately by looking at the long term, as there is a greater quantity of reliable data to look at.

Currencies trend longer term, and the amount of data, and reliability of trends in this period make long term trend following the way to make money, and has several advantages:

1. You have a greater quantity of reliable data, and can calculate probability better.

2. The winning trades by their nature will be far bigger than in day trading.

3. Commission and slippage will not impact as greatly on your profits.

FOREX Day Traders don't make as much as Long Term Trend Followers

Fact is, the odds are in favour of the long term trend followers, who target the big profits from the big moves - NOT Day traders looking for profits (that by their nature tend to be small) - as the profits are being chased in a severely limited time window, which leads to losses over time and high transaction costs.

FOREX Day trading is a mugs game - don't fall for the hype - the reality is losses.

New! A valuable FREE Currency Trader CD containing 9 critical trading reports, tips, strategies and FOREX trading info. Visit our web site now and grab your CD http://www.tradercurrencies.com

Swing Trades, Day Trading, Stock Picks - The Difference Between Day Trading and Swing Trades

Both styles of trading hope to make money from short term fluctuations in the market. They are trading styles. You have to have a steady focus and healthy heart.

Swing trades differ from day trading only in their flexibility. Day trading proponents get out every day. Swing trades may finish in a day, but are just as likely to last for a few days. There is potential to earn more from swing trades, but there are risks.

While day trading has no overnight risks, swing trades are at the mercy of news and earning reports that occur outside of the trading day. This news can affect the stock picks poorly, totally beyond the control of the swing trade schedule.

When you like to do swing trades, you'd better have a good source of stock picks. How you create your criteria for stock picks can be a real mix of philosophies, but the most important thing is to stick to your formula.

Because of the quickness of short term trades, there is little time for indecision. This is where swing trades must have clear guidelines, stops and losses. When the stock hits the number, you're out.

It is possible to trade a few stock picks on a regular basis, and shift them out as they become less predictable. It helps to have a list of 'to watch' stock picks to rotate in. If you have a reliable stock pick resource to start with, it gives you a head start in find new stocks.

However you do it, establish your criteria, for both the swing trades parameters and new stock picks, away from the emotion of the trading process. The emotions run high, even in the coolest swing trades.

Stephanie Mundle is the managing editor of http://www.MoneyMasteryForum.com an informational forum site for the average investor. Take a look. Information on forex, debt, money management, investing and business.

Come check out the forum at [http://www.MoneyMasteryForum.com/forum.html].

Day Trading Forex

This is a fascination. Here is a wide open field that almost anyone can take advantage of. It use to be only for the mega rich people, the big corporations and banks. They are trading foreign currency's..

Can you imagine this is a 1.2 trillion dollar a day being traded. Thats 1.2 TRILLION a day. 

Now with the Internet you you too can trade the foreign currency's. You can set up a account with as little as $300.00 up to whatever. Regular accounts usually start with $3000.00. You are able to leverage you funds 100 to 1. SO you will be controlling 10,000.00 or one lot in currency's for $1,000.00 and for every pip on movement you can make $100.00. With the mini account you will control 1 tenth of a lot. $1000.00 for $100.00 and your pip is worth $1.00. Just so you will understand a pip is what an increment movement in a currency is.

You buy it if you think it will go up and sell it if you think it will go lower. Of course there are charts and all kinds of ways to tell what is going to happen. It just takes learning the in's and out's, ups and downs.

There are a lot of different currency's but here are the main ones that are traded.

USA/YEN USA / Japanese GBP/USA British Pound

USA/EURO USA/ Euro is European USA/CHF Swiss Franc

USA/CAD USA/ Canadian EURO/YEN

There are no commissions and no fees only narrow Dealer spreads. These spread vary depending on the trades. Major pairs are 3 to 5 pips. You will learn more about all of this when you start out. The wisest thing to do is to start out with a demo account or what we call a paper account where you do everything as if it was real money but it is only on paper. So you get to learn the in's and out's and learn to read the charts and how to understand the fundamentals. These are the world events that effect the currency's.

There are many different strategies. Each have their strength's and weaknesses. They each deal with different ways at looking at the charts and their movements. Want some ideas? There are Scalping 

trades, surfing charts, sailing and many more. It fun and exciting, and sometimes a drag. Sometimes you will win 100 to 500 pips. Then there are times you will lose pips too. YOU will never win all the time. But thats where there account management comes in. You learn to control your risk taking. 

Usually the biggest sin or failure comes when you let your emotions become involved. EVEN the big shots sometimes let their emotions get involved. Most the time it doesn't work and will cost you.

So with good account management understanding the various charts you can take $300.00 and turn it into $6000.00 in 6 months or less.

Mike Pachuta Ready to learn more? Free e book Forex Freedom [http://www.successful-forex.com/forex.html]

The Advantages of Day Trading

Historically, stock trading has been the domain of professional traders. Trading has been in essence a "private club" with restricted access. Day trading has changed that. For the first time, amateur traders have the tools (real time quotes and order execution) to compete with the professionals. 

Speed advantage of day trading

The key advantage of day trading is its speed. Now the technology is advanced enough to afford day traders the ability to receive and observe real-time price quotes tick by tick and to send electronically an execution order directly to the NASDAQ market maker. Electronic order execution is fast. Confirmations are received in seconds. Exiting trades is as easy and fast as entering the trade positions. 

Control advantage of day trading

The other key advantage of day trading is the control of trading. Day traders are always in control of their own trading. They are their own brokers. They examine the financial data, ascertain the trends, and make their own decisions to buy or sell. Day traders do not have to worry about the price slippage. They monitor market prices tick by tick. During trading, at any point of time the trader always knows the stock's best BID or ASK price. 

Going home "flat"

At the end of the trading day, day traders close all of their trade positions and go home "flat". Day traders do not need to worry about a "long" or "short" position - because they do not have overnight positions. Without any open positions, day traders do not carry any overnight risk exposure.

About the author

Tony Reed is the author of The advantages of day trading, please visit his website Stock Trading & Day Trading for more information. 

This article is free for republishing as long as you leave the article title, author name, body and resource box intact (means NO changes) with the links made active.

What's Day Trading?

Day trading consists of the direct opening and closing of stock positions with major stock exchanges, either using a computer on the trading floor of a branch office of a day trading firm, or using one's home or business computer to access an internet broker. The keyword in this definition is direct. In day trading, a trader has direct electronic access to NASDAQ market maker or NYSE specialists.

The market makers are NASD brokers and dealers who buy or sell NASDAQ stocks for the accounts of others, engage in the securities business for their own proprietary accounts. In essence, the market makers are stock merchants. One NASDAQ stock will have many market makers who are continuously trading in that stock and thus making a market for that stock. On the other hand, one NYSE stock will have one assigned NYSE specialist. The role of the NYSE specialist is to maintain a fair and orderly market in that security. The specialist may act either as a broker and execute orders for other securities brokers or as a dealer in a principal capacity when trading for his or her wo0n account. The specialist will take on the role of a principal infrequently in order to maintain stock marketability and counter temporary imbalances in the supply and demand of that security.

The day trader does not need a stock broker. The trader is not using a telephone to call a stockbroker, and the broker is not relaying that order to the brokerage firm's order desk. The clerk is not routing that order to the market maker. Day trading firms eliminate all that. Consequently, day trading firms have eliminated time delays and most of the expenses associated with middlemen processing trade orders. The day traders are their own brokers, and their order executions are fast and affordable.

The day trader can simply key in the stock symbol on a computer that has specialized trade execution software, press the appropriate function key, and buy or sell shares of stock on a major exchange. The software used by the day trading firms for order execution is relatively user-friendly7 and provides an efficient interface between the stock exchanges and the day trader.

About the author: Tony Reed is the author of " What's day trading", please visit his website stock investing & day trading for more information.

Day Trading With The Camarilla Equation

Discovered in 1989 by a semi-legendary bond trader called Nick Stott, it is allegedly a secret day trading formula that will help your day trading reach new heights of accomplishment, with the bare minimum of risk. Or so the story goes.

Origins of the Camarilla Equation

Discovered while day trading in 1989 by Nick Stott, a successful bond trader in the financial markets, the 'Camarilla' equation uses a truism of nature to define market action - namely that most time series have a tendency to revert to the mean.

The equation produces 8 levels that are meant to predict these reversal points allowing the trader to profit from them. The equation uses nothing more than the previous trading day's open, close, high and low levels and some interesting mathematics to produce these supports and resistances.

Trading the Signals

Now these levels are numbered L1-4 for the supports and H1-4 for the resistances but it is really the L3, L4, H3 and H4 ones that are most important.

When the price level reaches the H3 level the theory behind the Camarilla Equation says that there is a strong resistance at this point and that a SHORT trade should be made with a stop loss at the H4 level.

Conversely, when the price drops to the L3 level there is a strong support and a LONG trade is the recommendation with a stop loss at the L4 level.

Breakout Possibilities

While the H4 and L4 levels should normally be reserved for setting stop losses on the above trades, occasionally there will come a point when these points are broken through. If this breakout is maintained for a significant amount of time and the price is still on the move then a LONG or SHORT trade should be entered respectively.

These trades are not so common but could provide massive profits (or so the Camarilla Equation suggests)

Choosing entry point with Camarilla Equation

There are two entry points that you may like to consider when using the Camarilla Equation. Firstly you could trade as soon as the market reaches either the L3 or H3 level and go AGAINST the current trend but there is more of a danger that the trend will continue and you will lose out if this is your preferred method.

The alternative is to wait after the market has broken the L3 or H3 level until the reverse actually occurs and enter the trade just as the market passes the respective level once again. This allows you to trade WITH the trend which should prove a safer option.

So does it Work?

If you are interested in whether or not the Camarilla Equation provides a viable trading method then you may wish to follow my experiment which is testing the given levels for the FTSE 100, Dow Jones and DAX 30 stock markets.

Steve Waller has learnt much since he first took up financial trading over a year ago. His experiment on the Camarilla Equation is being blogged daily at http://camarilla-trading.blogspot.com