Day Trading How To Play The Margin | Binary Options

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Day trading is popular in stocks and bonds. A lot of people want to know whether they have to day trade in Forex also. Trading Forex like day trading in equity markets is prevalent but a lot of people prefer not to. This is mostly because day trading forex would involve sitting in front of the computer terminal all day long and the forex market operates 24 x 7. The other concept is to trade in the forex market on end-of-the day basis, a concept in which Mr. Bill Poulos has a long and thorough experience. He is a past master in forex trading business. His forex profit accelerator course provides an excellent insight into trading in the forex market.

Trading on end-of-the day basis has the same potential of instant profits as day trading but needs less time and is less stressful. Many rules that apply to day trading do not apply to end-of-the day trading and you need to look for a program designed specifically for this type of trading.

Day trading in Forex requires you to take instant decisions and there are time pressures on all activity including order entry, placement of stop losses to meet targets of instant profits. Day trading can be very stressful indeed. At the same time those who are new to the forex market should be aware that if they cannot make profits by trading Forex on end-of-the day basis they would hardly fare better in day trading.

By studying the charts of six major currency pairs you will be able to recognize the trends and the potential of instant profits in the short term as revealed by the chart. The reality is that day traders make fast but small profits and that too after a lot of stress. End-of-the day traders, on the other hand, can take home larger profits and that too without stress as patience is the basic mantra of this strategy.

Day trading Forex is not the only way of making instant profits in the forex market. End-of-the day trading yields similar or rather better profits and it requires you to devote very little time, often not more than half an hour daily. To know more about forex before you start trading it would better to refer to the notes and guidelines written by Bill Poulos. His forex profit accelerator course has been designed specifically for beginners. It will do you good to you to know more about it. His course is intended for managing risk in this highly volatile market and to make your profits run.

Frequently Asked Questions

1. QUESTION:
   Is day trading in the stock market rewarding?
   I am thinking about becoming a day trader. Does anyone know about day trading?

   • ANSWER:
     Yes trading in the stock market is very rewarding and I know about trading since I spend 40+ on Wall Street and have managed various brokerage operations including all types of trading functions..

     Before you can day trade you must first know how to trade and before you trade you must first know how to invest. You must know the products and the markets traded in those markets and more importantly you must know the rules that govern those products and markets, You need to address four major policies and have very strong discipline to follow them
     1 - You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don t try to out-smart the market, you ll loose but if you always take what the market is willing to give you, you ll be successful. Other words, you don t trade against the trend since the market is always right.
     2 - A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away - don't loose more than you need to and don't be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
     3 - You must have sufficient trading/investment capital. Use your own money, there s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
     4 A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them

     To be a success in trading it takes continuous hard work and long hours educating yourself. There's no shortcut to be successful. This is why most trader what-a-be's fail, they think they are smarter than the market and with their little education know it all.

2. QUESTION:
   what's a safe and free trading tool I can use to teach myself day trading?
   Are there good free trading tools that I can use for practice (not using real money) that are safe for my computer or that I wouldn't have to download? I'd appreciate any advice or additional recommendations. Thanks and Happy Holidays!

   • ANSWER:
     To be a trader you must first learn how to invest. You must know the products and the markets in which they trade and more importantly you must know the rules that govern those products and markets. So you must know what you re doing, why you re doing it, and how to do it. You should start by reading Investing for Dummies by Eric Tyson.

     Here s a list of books you should consider, at least read half of them
     Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
     How to Trade in Stocks, Jesse Livermore
     Millionaire Traders, Lein & Schlosberg
     One Up on Wall Street by Peter Lynch
     Reminiscences of a Stock Operator, Edwin Lefevre
     The Disciplined Trader, Mark Douglas
     Trader Vic-Methods of a Wall Street Master, Victor Sperandeo
     Trader Vic II-Principles of Professional Speculation, Victor Sperandeo
     Trading for a Living, by Alexander Elder
     Trading in the Zone, Mark Douglas

     And when you think you want to trade, try some paper trading to test your skills without spending you money http://simulatorinvestopedia.com/ http://www.moneyworks4me.com/
     and/or http://www.tradingsimulation.com/

     Before you enter your first order you need to address four major policies and have very strong discipline to follow them

     1 - You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don t try to out-smart the market, you ll loose but if you always take what the market is willing to give you, you ll be successful. Other words, you don t trade against the trend since the market is always right. And NEVER trade on emotions, once you let emotions in your trades you will loose

     2 - A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never go into a trade without knowing when and where you are going to get out of it. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away - don't loose more than you need to and don't be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.

     3 - You must have sufficient trading/investment capital. Use your own money, there s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.

     4 A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them.

3. QUESTION:
   Is there a 3 day settle in a margin account?
   I upgraded form a cash account to a margin so i can buy and sell 3-4 stocks per day and have the over the required amount in it. If i dont use any margin funds to help buy stock to day trade then does that 3 day settle come into play agin like it does with a cash account?

4. QUESTION:
   What is a good strategy to day-trade the e-mini's or other futures contracts?
   I am a novice trader of the futures market. In particular, the e-mini Russell 2000 because of its liquidity, low investment, and high potential gain. I have been trying to achieve a reliable and consistent strategy to pull even just a few points out of the market a week. My results thus far have been weak. I have had some gains, but my losses slowly eat away these gains and then some. Consequently, I see my account slowly decreasing. Does anybody that reads these things trade futures and have any advice or a decent strategy on how to consistently gain a few points a week in the futures market? Thanks in advance.

   • ANSWER:
     Wow, a "novice" daytrading futures, that's like riding a motorcycle 'flat out' on the first try. First, find a trend, and as a beginner, find a big trend (oil or corn perhaps) and go with the flow. (never buck the trend, never)

     The traders have all the news well before you do, so if you are trying to nickel and dime your way to riches by picking a little spurt to long here or a little sag to short there, don't--they've already done it and moved on by the time you spot it.

     Also, be very, very careful of the proportional share you trade with, compared to the larger account value. I was trading potatoes once, um, a while back, and some rich guys tried to steer away from a long-established trend. I got a margin call during one of their 'force it' moves and the brokerage confiscated my whole account value and sent me a bill for the rest. Instead of paying off my mortgage, I was paying on my debt for two years. Without the extra traffic, the general trend was right and I would have profited nicely--but I didn't have enough reserve for when it suddenly went radically against me. I do have one consolation, though, something like 90 millionaires got caught in a still larger default, and several dozen went to jail.

     Feel lucky that your account balance is "slowly decreasing"--things could be much worse. Check the charts for agricultural spreads and straddles, many of the patterns I used to rely on don't work any more, but see if you can find some of your own, then play it safe. If nothing else, go to currencies and short the dollar and go long on almost anything else. Good luck.

5. QUESTION:
   How do you get into Day Trading?
   I would love to learn how to become a good day trader and I'm wondering what the best way to go about doing this is? I have very little knowledge on the stock market and how it works. Any good online courses or books?

   • ANSWER:
     Before you can day trade, you must know how to trade, and before you can trade you must know how to invest. Before you spend [FAQ-ANSWER].01 on any investment you first must know what you're doing, why you're doing it, how to do it and the rules that govern what you're doing.

     As "Common Sense" suggested you should read how professional invest/trade, Here are some books that will help you
     Beating the Street by Peter Lynch
     Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
     From Riches to Rags, by I.C. Freeley
     Millionaire Traders, Lein & Schlosberg
     How to Make Money in Stocks by William O Neil
     24 Essential Lessons for Investment Success by William O Neil
     The Intelligent Investor, by Benjamin Graham
     Common Stocks, Uncommon Profits, by Philip A. Fisher
     One Up on Wall Street by Peter Lynch
     Stocks for the Long Run, by Jeremy Siegel
     The Interpretation of Financial Statements by Benjamin Graham
     Trading for a Living, by Alexander Elder
     Uncover the Secret Hiding Places of Stock Market Profits by Joel Greenblatt.
     What Works on Wall Street by James O'Shaunessey
     You Can Be a Stock Market Genius by Joel Greenblatt
     Your Money and Your Brain by Jason Zweig

     Becoming successful at trading is no easy task and does require work and continuous studying on your part.

     To be a trader you must first learn how to invest. You must know the products and the markets traded in those markets and more importantly you must know the rules that govern those products and markets, You need to address four major policies and have very strong discipline to follow them
     1 - You need a written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. Always use stops either to protect you on the down side or to lock in profits on the up side. Never trade on emotions, when emotions get involved walk away. Don t try to out-smart the market, you ll loose but if you always take what the market is willing to give you, you ll be successful. Other words, you don t trade against the trend since the market is always right.
     2 - A written money management program is essential. Remember never invest 100% of your capital into any one security and never have 100% of your capital invested. Never let a loss on a trade get greater than 8%-10%, always take you loss and walk away - don't loose more than you need to and don't be afraid to take the loss. Remember you never can get hurt taking a profit. Never average down, but you can average up.
     3 - You must have sufficient trading/investment capital. Use your own money, there s no need to go into debt so that you can trade and/or invest. Margin can be used but only with restraints, never let the account wall below 45% equity. Unless you fully understand margins you should not use it.
     4 A full and complete understanding of the rules & regulations of the industry. If your going to play in the game be sure you know the rules of the game and always follow them

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