Day Trading - Trade, Don't Gamble

There is one thing in common among winners and losers in any gambling game- they will continue to gamble regardless of what happens. And what are the commonalities between gambling and day trading? Simple, there are losers and winners, most of them are gamblers.

Despite the fact that gambling and trading are two very different things; many traders seem to behave as gamblers instead of day traders. In gambling the winner would like to believe that he has an unstoppable streak of good luck and will try to ride his momentum until he gives all his winnings back to the casino. The loser, on the other hand, will try to get out of their bad luck by risking all his money in belief that he will be able to win back all the money he's lost. In trading unsuccessful traders work in this manner.

True trading is not like gambling though. Unfortunately, most traders who have not reached maturity tend to act in this manner and over trade for the same objective as a gambler.

Theoretically, day traders should be able to get over the practices of a gambler. He must try to evolve from this point until he becomes a strategist. This can only be achieved though through developing the necessary skills, the discriminatory attitude and the realization that the market moves in a certain way and this way should be discovered.

There are no secrets to day trading though. Everyone should realize that the behavior of the market is a bit predictable by using indicators and patterns which have existed before. Everyone should also recognize the truth that the market works in a psychological way and one must only develop keenness to this reality. Also, everyone should acknowledge that skills take time to develop and once they start to build-up, the trader will also start to become more efficient in the trade.

Over-trading does not work in this business. Those who practice this technique either have no sufficient knowledge in this field or have not out grown the common attitudes of the amateurs which depend highly on their priorities.

The most common reasons why amateurs over trade are a) they trade to confirm that they are good and that their system works, b) they are stretching their limits to prove that they can make profits whenever possible, c) they try to get off with the emotional burden especially when they are losing their trade by selling or re-entering the market if the signs are good enough for them, and d) just like the gambler they only want to take advantage of their luck to win back their losses.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com

AFP - German Finance Minister Peer Steinbrueck is mulling a cut in the base income tax rate to 12 percent from 15 percent to help pull Europe's biggest economy out of a deep recession, a spokesman said Friday.

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Day Trading - Traits of a Day Trader - Part 2

There are certain characteristics in a person that separate the line between successful day traders and easy losers. Apart from having good emotional control, above average I.Q. and having a good reserve of risk capital successful traders also have other characteristics that are quite hard to develop for some but are readily available for others. Here are some of these characteristics:

They have a definite business plan

All business people, including day traders, should have a business plan. This helps define what decisions to take when faced with a certain condition. This plan helps them make the proper decisions that will lessen their chances of bankruptcy while increasing the probability of earning. A business plan is a guide, more like a personal manual, that allows a person to look at his business in its most important aspects. Day trading is a business and should be treated as such. As much as you won't open any other business without a comprehensive plan, you should not also enter into this kind of trade without a list of your objectives or realistic expectations backed by a business plan.

They are good mangers of their money.

This trade is all about the capacity to deal well with money, the risk management and tolerance level to risks that could threaten your shares. The main idea, of course, is to multiply the money at hand. Second is to keep your money in your pocket. Successful day traders should be able to protect their own money or accounts, treating them as if they are the single, most important thing in the trading world. Next, they have to increase the money they have by earning in the trade. They simply cannot trade tomorrow if they aren't able to protect their money today. Yes, they take risks but the risks should be small enough that they won't mess up their accounts.

They live through the day.

Many day traders enter the trade with all their money at hand and leave without a decent bill, sometimes even with a debt. This is a common scenario but this should not be the case. Successful people in this field choose their battles, they don't simply look at the charts, choose which they think is most lucrative and place all their money in one place. They are conscious of their actions and they think hard on them. They don't just make easy decisions, with fingers crossed hoping that the trend will go their way.

Miodrag Trajkovic is an expert on information related to Day Trading, Day Trading Mistakes, Day Trading Strategies, Online Day Trading and Day Trading Systems. For more information visit his website http://daytrading.explore-me.com

AP - Fiscal fitness is knocking weight loss off the top of many New Year's resolution lists, thanks to 2008's market drubbing. That often means casting off last year's worst-performing mutual funds for more promising alternatives.

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