DRAD
Custom Search
Thursday, July 23, 2009
Market condition
We should start to take most or all our profit now. The market keep raising in these couple days. We should see market correction soon.
Wednesday, July 22, 2009
How to be a successful Day Trader
There are strategies can be used to profit from the market on a regular basis. We just need to find our own paths to beat the market.
Step 1
Better to have at least $25,000 to become a pattern day trader (4x buying power). Stock market is risky. Please do only trade what you afford to lose.
If you make four or more day trades in a rolling five-trading-day period, you will be considered a pattern day trader no matter you have $25,000 or not. If your account equity falls below $25,000, a day trading minimum equity call will be issued on your account requiring you to deposit additional funds or securities.
Step 2
Open a stock brokerage margin account:
TradeKing
Etrade
TD Ameritrade
Step 3
Learn how to read candlestick chart and its pattern.
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis
Technical analysis is the soul of day trading. Please take time to get familiar with all the tools you can use. Basically, you will just need to know simple average lines: 20 day and 50 day moving average line, MACD, RSI, and Volume.
Step 4
Rules to follow:
1) Everyone makes mistakes, cut loss early if you make a mistake.
2) After enter into a trade, do not buy more, just watch it rise and sell if you are happy with profit or hold it for 5 to 25 min. If you add more positon, bad thing would happen. Day trading is just like a thief stealing money from the stock market quick and once at a time, if you go back to steal more, they will catch you.
3) Day trading means quick profit, do not hold stock for more than 25 min. You can always sell with profit if it starts to fall from top, and then buy it back later if it turn out going upward again.
Step 5
You should develop your own system of day trading. Because each of us has different personality and a particular trading strategy might not fit for everyone. Happy trading and never stop learning!
Step 1
Better to have at least $25,000 to become a pattern day trader (4x buying power). Stock market is risky. Please do only trade what you afford to lose.
If you make four or more day trades in a rolling five-trading-day period, you will be considered a pattern day trader no matter you have $25,000 or not. If your account equity falls below $25,000, a day trading minimum equity call will be issued on your account requiring you to deposit additional funds or securities.
Step 2
Open a stock brokerage margin account:
TradeKing
Etrade
TD Ameritrade
Step 3
Learn how to read candlestick chart and its pattern.
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis
Technical analysis is the soul of day trading. Please take time to get familiar with all the tools you can use. Basically, you will just need to know simple average lines: 20 day and 50 day moving average line, MACD, RSI, and Volume.
Step 4
Rules to follow:
1) Everyone makes mistakes, cut loss early if you make a mistake.
2) After enter into a trade, do not buy more, just watch it rise and sell if you are happy with profit or hold it for 5 to 25 min. If you add more positon, bad thing would happen. Day trading is just like a thief stealing money from the stock market quick and once at a time, if you go back to steal more, they will catch you.
3) Day trading means quick profit, do not hold stock for more than 25 min. You can always sell with profit if it starts to fall from top, and then buy it back later if it turn out going upward again.
Step 5
You should develop your own system of day trading. Because each of us has different personality and a particular trading strategy might not fit for everyone. Happy trading and never stop learning!
Tuesday, July 21, 2009
Monday, July 20, 2009
Sunday, July 19, 2009
How to become an equity trader working for a Proprietary Trading Firm
Have you ever want to work full time as an equity trader with high leverage ratio and day trading lesson that you can get from a proprietary trading firm?
Step 1
Ask yourself: Are you currently an experienced day trader that can make profit consistently or a beginner but eager to learn how to day trade?
For experienced day trader, initial capital contribution is required but you can trade remotely or in their office.
The ratio for a beginner to survive is very low (I think only 1 out of 30 people can succeed at the end).
Moreover, almost all proprietary trading firms don't pay you salary. You only get paid if you make profit in your trading account and share the payout ratio with them. Most of them require initial capital contribution but they do provide training.
Please keep in mind that most beginner will fail and never see their initial capital contribution again (I think minimum is $5000).
This business is hard and is not for everybody.
Step 2
There are a whole bunch of proprietary trading firms on East Coast New York and Chicago area that you can choose from.
Proprietary Trading Firms Directory:
http://www.traderslog.com/proprietarytradingfirms.htm
The one I recommend is
•World Trade Securities - WTS Proprietary Trading Group LLC, is a privately owned proprietary trading firm based in NYC, New York and a member of the CBSX and is SEC registered.
http://wtsprop.com/index.html
They have three structures in place for traders and keep it very simple and clean no matter if your experienced or new you get to pick what structure you want.
-Structure 1: 90% payout / .0005 (.50 cents per 1000 shares) - capital contribution
-Structure 2: 99% payout/ .001 (1.00 per 1000 shares) - capital contribution
-Structure 3: 50% in-house training program, no capital required. Must pay $1,500 for training course. When you build your account to $5,000 your payout goes to 75-90%
Step 3
Key things to find out for a good proprietary trading firms:
- Leverage: 6:1 or 10:1 or 60:1
- Sponsorship: Series 7
- Mentoring: What the level
- Community: Are top traders gathered at this firm
- Pricing: .01/share or .007/share or .005/share, also other fees
- Tech: Execution Speed, Routing, Charting Tools and etc
- Payout: 90% or 95% or 99%; Weekly, Monthly; Direct Deposit or Check
- Selectivity: How difficult is it to get in
- Financials: Does the trading firm have plenty of capital or is it on shaky ground?
- Reputation: How well known is it
Step 4
Out of all these prop firms, some people say that the top 3 that offer a salary and provide good training are (but they are harder to get in):
1) Jane street Capital: http://www.janestreet.com/
2) SIG: http://www.sig.com/index.html
3) DRW Trading Group: http://www.drwtradinggroup.com/
Step 5
The only thing that works in this businss is these 3 little thing. And these 3 little things are the traders secret and what many do not understands.
1. Support and Resistance.
2. Cut your loss early.
3. Discipline
These are the only thing that works in this business. It’s what helps you stay alive in this business, and it’s what helps you make money in this business.
Step 1
Ask yourself: Are you currently an experienced day trader that can make profit consistently or a beginner but eager to learn how to day trade?
For experienced day trader, initial capital contribution is required but you can trade remotely or in their office.
The ratio for a beginner to survive is very low (I think only 1 out of 30 people can succeed at the end).
Moreover, almost all proprietary trading firms don't pay you salary. You only get paid if you make profit in your trading account and share the payout ratio with them. Most of them require initial capital contribution but they do provide training.
Please keep in mind that most beginner will fail and never see their initial capital contribution again (I think minimum is $5000).
This business is hard and is not for everybody.
Step 2
There are a whole bunch of proprietary trading firms on East Coast New York and Chicago area that you can choose from.
Proprietary Trading Firms Directory:
http://www.traderslog.com/proprietarytradingfirms.htm
The one I recommend is
•World Trade Securities - WTS Proprietary Trading Group LLC, is a privately owned proprietary trading firm based in NYC, New York and a member of the CBSX and is SEC registered.
http://wtsprop.com/index.html
They have three structures in place for traders and keep it very simple and clean no matter if your experienced or new you get to pick what structure you want.
-Structure 1: 90% payout / .0005 (.50 cents per 1000 shares) - capital contribution
-Structure 2: 99% payout/ .001 (1.00 per 1000 shares) - capital contribution
-Structure 3: 50% in-house training program, no capital required. Must pay $1,500 for training course. When you build your account to $5,000 your payout goes to 75-90%
Step 3
Key things to find out for a good proprietary trading firms:
- Leverage: 6:1 or 10:1 or 60:1
- Sponsorship: Series 7
- Mentoring: What the level
- Community: Are top traders gathered at this firm
- Pricing: .01/share or .007/share or .005/share, also other fees
- Tech: Execution Speed, Routing, Charting Tools and etc
- Payout: 90% or 95% or 99%; Weekly, Monthly; Direct Deposit or Check
- Selectivity: How difficult is it to get in
- Financials: Does the trading firm have plenty of capital or is it on shaky ground?
- Reputation: How well known is it
Step 4
Out of all these prop firms, some people say that the top 3 that offer a salary and provide good training are (but they are harder to get in):
1) Jane street Capital: http://www.janestreet.com/
2) SIG: http://www.sig.com/index.html
3) DRW Trading Group: http://www.drwtradinggroup.com/
Step 5
The only thing that works in this businss is these 3 little thing. And these 3 little things are the traders secret and what many do not understands.
1. Support and Resistance.
2. Cut your loss early.
3. Discipline
These are the only thing that works in this business. It’s what helps you stay alive in this business, and it’s what helps you make money in this business.
Saturday, July 18, 2009
How to Understand Technical Analysis Chart
What is the secret to make consistent profit in stock trading no matter you are day trading, swing trading, or long-term investing? The answer is technical analysis.
1) Trading in the stock market can be very profitable or painfully unprofitable. With understanding of technical analysis, it will allow you to make better decision on entering or exiting a position.
2) Learn to read charts
Learn how to use technical analysis effectively and profitably. Technical traders only trade when they see a particular indicator or pattern in chart.
ChartSchool
http://stockcharts.com/school/doku.php?id=chart_school
3) Candlestick Chart
Compared to traditional bar charts, many traders consider candlestick charts more visually appealing and easier to interpret. Each candlestick provides an easy-to-decipher picture of price action. Immediately a trader can see compare the relationship between the open and close as well as the high and low.
Introduction to Candlesticks
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_cand
Candlestick Pattern Dictionary
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:candlestick_pattern_
4) Support and Resistance
Support and resistance are considered critical indicators for price continuation, stalls, or reversals. These are visual charted tops and bottoms of a stock.
5) Be consistent with your rules for trading
This is essential for profitability. You must have systemic rules, rules for your trading game that you must follow. These rules tell you when to get in and when to get out. Follow these rules strictly even if it means taking a loss now and then.
Trading Strategies
http://stockcharts.com/school/doku.php?id=chart_school:trading_strategies
1) Trading in the stock market can be very profitable or painfully unprofitable. With understanding of technical analysis, it will allow you to make better decision on entering or exiting a position.
2) Learn to read charts
Learn how to use technical analysis effectively and profitably. Technical traders only trade when they see a particular indicator or pattern in chart.
ChartSchool
http://stockcharts.com/school/doku.php?id=chart_school
3) Candlestick Chart
Compared to traditional bar charts, many traders consider candlestick charts more visually appealing and easier to interpret. Each candlestick provides an easy-to-decipher picture of price action. Immediately a trader can see compare the relationship between the open and close as well as the high and low.
Introduction to Candlesticks
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_cand
Candlestick Pattern Dictionary
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:candlestick_pattern_
4) Support and Resistance
Support and resistance are considered critical indicators for price continuation, stalls, or reversals. These are visual charted tops and bottoms of a stock.
5) Be consistent with your rules for trading
This is essential for profitability. You must have systemic rules, rules for your trading game that you must follow. These rules tell you when to get in and when to get out. Follow these rules strictly even if it means taking a loss now and then.
Trading Strategies
http://stockcharts.com/school/doku.php?id=chart_school:trading_strategies
Friday, July 17, 2009
Subscribe to:
Posts (Atom)