Day Trading Stocks

Day trading stocks is a full-time job in itself, and I would urge anyone considering a part-time effort to reconsider.

Classification as a Day Trader means that you day trade 4 times in a rolling 5 business day period in a margin account. This regulation that governs pattern day trading requires that you have $25,000 to use the buying power in this account.

A Margin Account allows you to borrow money from your broker in order to purchase additional securities using your current holdings as collateral. A $2,000 balance must be maintained if you wish to borrow funds on margin.

It is critically important for a Day Trader to be "in the market" full-time. If you do not pay constant attention to the market, I guarantee that you will miss out on crucial information that will inevitably cost you money.

In fact, part-time day trading stocks will likely result in a net loss of capital and leave you further from your goal, than if you didn't trade at all. You are better off using a mid-term trading strategy like breakout stock trading system.

Does this scare you? If it does, then you shouldn't be day trading stocks.

Now having made those statements, day trading stocks in the short-term time frame is the safest time frame of all!

Why you ask? When the Stock Market moves into a state of panic and is unstable, the advantage during these times will always reside on the side of the short-term day traders.

Short term traders have the luxury of turning on the dime. They can bob and weave, switch sides with the speed of light and change stances.

When things are not going well, and an angry market seems determined to make you feel its wrath it may hurt. But know that long term stock traders always get hurt more. In today's new world of day trading online, short term trading is better.

And crucial to day trading success, is to have a keen awareness and understanding of technical analysis and Candlestick Charts.

And also most important when day trading stocks, is to understand stock trading psychology and exercise the appropriate risk and money management.

There are three Day Trading System courses I recommend you have a close look at, to help you become successful at this game and determine the right trading system for you.

Check them out here.




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Execution Tools

Successfully day trading stocks is heavily influenced by their order-placement methods. In fact, one of the most difficult parts of trading is determining the best way to get your orders executed.

For stock market day trading, direct access to the markets is crucial for success. Relying on a full-service-broker and a traditional online discount broker to route your orders for you is a formula for disaster. These are known as Level I quotes. Poor slow fills not only cost day traders money, but eliminate many trading strategies from the realm of possibility.

Direct access, also known as Level II, allows traders to route their orders through their broker's back office and on to the exchanges. They have trading platforms, which used in conjunction with various electronic order execution options, really gives the behind the scenes look for active day traders.

Direct Access Advantages

There are many advantages for direct access trading for the day trader:

• Enables extremely fast stock order fills (as little as 0.2 sec's)

• Quotes are real-time, no delay.

• Can quote stock prices in much finer increments than is possible using a regular discount broker.

EquityFeed offers a real time platform called TradeConnect that brings professional level real-time market information to individual investors and active traders.

EquityFeed Corp is an on-line provider of real-time market data and analytics for professional traders and individual investors for day trading stocks.. EquityFeed’s state-of-the-art trading platform covers the NASDAQ, OTCBB and Pink Sheet markets. Its tools are sophisticated, powerful and reliable, and yet simple to use.

EquityFeed’s tools give serious traders the newest-breed of powerful trading tools that are unmatched in the industry…tools that allow traders to filter markets in real-time and find trading opportunities that would otherwise be completely invisible.

The latest evolution of the EquityFeed platform provides its users with:

• Timely and actionable market data through an information platform that’s rock-solid in terms of stability, accuracy and as near zero-latency as possible. EquityFeed has achieved this through an algorithmic-grade ticker plant and proprietary client-side compression technology.
• Data that is clean and simple to use. Reducing clutter makes it easier for you to access the data you need to make trading decisions. Unlike others tools we’ve tried, EquityFeed places a strong emphasis on making their tools easy to read and interpret – the super-slick user-interface clearly reflects that.
• TradeConnect gives TD AMERITRADE™ account holders the ability to trade directly through EquityFeed’s proprietary trading platform.
• An unwavering commitment to innovation and education, with their video tutorials and weekly webinars.

You’re also encouraged to join EquityFeed’s community of traders -- other like-minded individuals who are making the volatility in this current market work them. Learn what EquityFeed can do to expand your portfolio’s value.

Next: Your Day Trading System