Intelligent Stock Market Trading and Investment: Quick and Easy Guide to Stock Market Investment for Absolute Beginners, by AMS Publishing Group

Many people think that trading can be reduced to a few rules that they can follow every morning: always do this and always do that. In reality, trading isn't about “always” at all; it is about each situation that presents itself and it is about each individual trade.
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Short sellers profit when the price of the stock they borrowed and sold drops. Short selling is important because stock prices usually drop much more quickly than they go up. Fear is a more powerful feeling than greed. Therefore, short sellers, if they trade right, can make astonishing profits while other traders panic and start to sell off.
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An individual who wants to succeed against the giants must develop patience and eliminate greed.
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A new trader should start with trading one standard lot, 100 shares. One hundred shares is low-risk, and although it’s also a low reward for the trader, you need to start somewhere. New traders should start out with trading 100 shares.
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As an individual retail day trader, you must stick to your retail trading territory. You will not trade stocks that other retail traders are not trading or not seeing. The strength of retail day trading strategies is that other retail traders are also using them.
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Always ask, “Is this stock moving because the overall market is moving, or is it moving because it has a unique fundamental catalyst?”
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You may be surprised, but on almost every single day in the market, there's a stock having a big day because the company has released earnings, had a newsbreak, or had something bad or good happen to
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From when the market opens at 9:30 a.m. until around 11:30 a.m. New York time, is when the market will have the most trading volume and also the most volatility.
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The absolute maximum a trader should risk on any trade is 2% of their account equity. For example, if you have a $30,000 account, you should not risk more than $600 per trade, and if you have a $10,000 account, you should not risk more than $200.
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That is why I am looking at stocks with an average daily volume of over 500,000 shares. I also am looking for stocks that usually move in a good range for trading. That is why I look at Average True Range (ATR). ATR means how large of a range a stock has on average every day. If ATR is $1, then you can expect the stock to move around $1 daily. That is a good number. If you have 1,000 shares, you may profit $1,000 from the trade. But if ATR is only 10 cents, then that trading range is not attractive for me.
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Have gapped up or down at least $1 Have ATR of more than 50 cents Have average relative volume of at least 1.5 (the stock is trading at 1.5 times its normal volume) Have average daily trading volume of at least 500,000 shares
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Profitable traders usually make only two or three trades each day. They then cash out and enjoy the rest of their day.
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SureTrader opens accounts for as low as $500, but I would not recommend trading with less than $5,000.
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use DAS Trader (www.dastrader.com) as my trading platform. As their advertising states, the DAS platform is one of the most efficient execution solutions for online traders worldwide.
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Contact your broker and ask for the real time NASDAQ TotalView Level 2 data feed. You may need to pay a monthly fee for your data depending on the broker.
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A bid is what people are offering to pay for that stock at that moment; an ask is what sellers are demanding in order to sell it. A bid is always lower, an ask is always higher, and the difference is called the bid-ask spreads. Bid-ask spreads vary for each stock and even for the same stock at different times of the day.
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VWAP is the most important day trading indicator and needs to be easily and quickly distinguished from other moving averages.
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Use limit orders whenever possible. A limit order, in contrast to a market order, limits the price you are willing to pay for the stock. You specify the number of shares you want to buy and the price you are willing to pay.
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I use marketable limit orders for all of my day trades. I typically buy at the “ask+5 cents” and sell at the “bid-5 cents”.
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The volatility of the market, especially at the Open, can allow for huge profits if you can trade properly, but it can also result in significant losses if you fail to act quickly. Often, the proper use of Hotkeys distinguishes the losers from the winners.
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Hollow candlesticks, where the close is greater than the open, indicate buying pressure. Filled candlesticks, where the close is less than the open, indicate selling pressure.
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It is absolutely critical for every trader to be trading a strategy. Plan a trade, and trade the plan.
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Morning routine Develop my watchlist Organize a trade plan Initiate the trade according to plan Execute the trade according to plan Journaling and reflection.
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There are many consistently profitable traders around the world, trading different markets with different methods, but they all have one thing in common: they keep excellent records of their trades. It is a very tedious and boring task; but it is also a very necessary task.
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Let's get 1% better everyday

Intelligent Stock Market Trading and Investment: Quick and Easy Guide to Stock Market Investment for Absolute Beginners, by AMS Publishing Group

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50 SP = 103470.397100

100 SP = 206940.794200

250 SP = 517351.985500

500 SP = 1034703.971000

1000 SP = 2069407.942000