The Importance Of Stock Trading Strategies

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Unlike other financial instruments traded, stock trading allows thousands of opportunities to trade specific stocks that that can set up and then trigger. Given the number, dozens of opportunities arise with stock every trading day, any time of the stock trading day. This article is about what it takes for troubled stock trader losers learning to shift to consistently profitable winners. The new point for day trading is find trading opportunities to win where stocks can produce $1 to 2 moves in price over a short period of time - just a few minutes. Like tennis, while the ball is in play, the focus is learning to win, not the purse, not the sponsorships, not any of the other income sources world class tennis players enjoy with their winning track record. So too it is with online stock trading - the focus is on winning each trade engaged - not the money. Winners, successful day traders look for stock in a tension state, which is simply a stock with a daily price movement substantially away from a price balance, technically speaking. That balance point is best represented with charts, technical analysis, particularly daily pivots. Daily pivots are software generated based on yeaterday's prices at the open and close, or the highs and lows. The center or "day pivot" is the tension balance point. A chart's price tension state is much like viewing a pendulum, that when the ball is pulled away from its neutral or rest state tension exists. When the ball is released, it tends to accelerates to its neutral state and beyond, due to gravity. Like the pendulum ball, stock prices tend to seek their balance state caused by buyer/seller activity many times with price momentum causing the stock price to exceed beyond the price balance state. Stocks, like the pendulum ball, tend to seek a balanced state, and like the ball, they return to balance and beyond, then fluctuate above and below the neutral position as they eventually return to some state of balance, or non tension state, above, below, or close to the in balance price point. Do stock prices behave this way while daytrading during the same trading day? Yes and no. Many stock have a price gap after the market opens (9:30 east coast), as an example. A gap represents the price difference above or below prior day's close (4:00 east coast). These "gappers" can remain in a tension state throughout the trading day, that is, without much change in price. Other gappers can partially fill with price moves toward the day's neutral pivot line. Others can completely fill the gap and then some. And there are stocks that just keep on moving in the direction of the gap open move. These gap stock present unusual opportunities for short term trading to have quick wins with big price moves.


As there is no way to predict how the price of a stock will behave after the market close, a sudden, major price move, like a gap open, can occur, that's why day traders avoid holding stock over night - and that's the distinction between day and swing traders and investors. Day traders, newschool day traders are out of their trades in just a few minutes, certainly before the market's close, while swing traders take on huge potential price risk, and investors are trading this way at excess risk. Day trading stock, we find, is also far more challenging and rewarding. The challenge is to find opportunities to win within a very short time frame that when triggered, price-wise, in either direction. It's rewarding where winning can be frequent and fun. The obvious rewards are financial, but the focus while trading must be on the winning not the money - again, just like it must be for world-class tennis players, golfers, politicians, and senior executives.  Why day trading as opposed to swing trading or investing? From the fall of 2007 throughout 2008 and part of 2009 were crises times for swing traders and investors, losing 50% of their retirement funds and investment portfolios overall value, whereas the short term day traders made a killing with their quickness and trading objectivity winning with both upside and downside price moves, applying new-school strategies based on the new rules of trading with far more objectivity than arrogance. Day trading stocks, buying and selling stocks within the same trading day, with no exceptions, is in our view the best day trading opportunity in the NYSE and Nasdaq stock markets. Done well, gaining online trading confidence and competence with a consultant / coach, like world-class tennis players with their coach, trading with a winner's as opposed to the loser's stock trading system, in a winner's stock trading room gives you a distinct trading edge. A trading edge that can bring you alive and soon wealthy as a consistently profitable winner. Good luck trading.

Helping troubled online stock trading losers (unprofitable or inadequate profits - making less than $100K/year) quickly become consistently profitable winners. The 3s of successfully day trading: * 3-minute trades * $3,000+/day * $300,000+/year * All, in just 3 months - day trading stock with your own personal coach, with winner's trading systems (consulting / coaching system, stock day trading system, stock trading room) You say you can no longer trust financial advisors, given what they did to destroy your retirement and investment funds back during 2000-02 tech bubble and again during the 2007-09 financial crises. Never let yourself be financially vulnerable again. Take charge! Learn to trade you own capital real time in your own home, so you too can become a wealth builder, and have one other


career - Philanthroper. Develop a lucrative stock trading career, a very profitable business, with our help Formerly - over 25 years of helping CEOs and other senior executives energize their businesses, careers, and relationships. Industries: banking, real estate, insurance, and high-tech - and, now, the stock trading industry. More information and a free 1 hour consultation: 949-218-4114 http://www.DayTradersWin.com http://www.DayTradersCoach.com John McLaughlin, Stock Trading - Consultant / Coach / Mentor

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

==== ==== For More Information About Trading Stocks and Options, I Highly Recommend that You Visit This Link Right Now: www.iz4mr.com ==== ====


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