Day Trading Blog

Welcome to Day Trade The World™ day trading blog. Please click on an article to read it.

Blog del 13 Novembre

Top Ignored Factors That Could Affect Your Trading Performance

Top Ignored Factors That Could Affect Your Trading Performance – Introduction

As traders, we want to outperform the market and be consistent in our performance. We want to be good at what we do all the time. This is the main reason why we spend a lot of time reading and doing analysis on the market. As I have mentioned before, achieving consistent returns is not an easy thing. It is difficult and many people have tried and failed before. In this article, I look at some of the most ignored factors that could affect your trading performance.

  • Overconfidence

This is probably the leading factor that makes many traders fail. When they make trading decisions, they become so overconfident that they are not willing to change their decisions. For example, a trader will buy a currency or a commodity and when the thesis fails, instead of exiting, they will continue to hold it. Of course, this does not happen to small-time traders alone. We have seen it play among big hedge fund managers. For example, David Einhorn made an investment in SunEdison. The company performed poorly and instead of him exiting the trade, he held on into it. Later, he lost all his money when the company declared bankruptcy.

  • Fear

Fear is not good in any profession especially, in trading. When you open a trade, you want it to be successful. But, before it achieves this success, chances are that it could move down. To succeed as a trader, you want to be able to hold on to the trade even when it goes south without fear. When you are fearful, you will close the trade before it matures. To prevent fear from taking over, I recommend that you always have a stop loss at a place where you are comfortable losing money.

  • Internet

As a trader, you want a good access to the internet. You want internet that is fast and reliable. Having an internet connection that does not meet this criteria can be what separates you from being successful. Essentially, you want an internet provider that is not very expensive but one who is reliable. For example, assume that you have just opened a trade and then the internet goes off even before you set up the stop loss. If this happens, chances are that you will lose your money. I recommend that you subscribe to a good internet and then have a mobile app as a backup.

  • Power

As a trader, you want to have the best source of electricity. You want power that is reliable and one that will not fail you. However, if you rely only on the power of the grid, chances are that you will often have outages. Assume that you have just opened a trade and then power disappears. If this happens, chances are that you will lose money. To prevent this, I recommend two things. First, you can buy a backup generator that will run automatically when power disappears. Alternatively, buy a powerful UPS to backup your power.

  • The Trading Office

The office that you trade in is very important. It can be the thing that separates your success and your failure. Most traders start trading in their bed rooms which is good. But as you grow, you will want to let your trading office grow with you. Essentially, you want a trading office that is conducive, silent, and away from distructions.

Top Ignored Factors That Could Affect Your Trading Performance – Useful Tips:

Blog del 6 Novembre

Update: DBOT Gateway

We encourage users to use this new gateway “DBOT” on the OTC markets and take advantage of it’s great fill rates and low gateway fees.

DBOT is a fully automated, Alternative Trading System (ATS) that provides an electronic platform for trading Over-the-Counter (OTC) equity securities. The below destinations are available:

  • DBOT ATS – Direct access to DBOT, no routing away.
  • DBOT SOR – Ping electronic MM’s prior to routing to DBOT as book only, ping Global OTC, and then post at DBOT
  • Post GlobalOTC – Direct access to GlobalOTC (ARCE), no routing away
  • GlobalOTC SOR –  Ping electronic MM’s prior to routing to Global OTC as book only, ping DBOT, and then post at Global OTC
  • HighTouch MM – Ping High Touch OTC MM (non-electronic) and wait for execution
  • OTC SOR1 – Ping electronic MM’s prior to routing to DBOT and Global OTC as book only, and then spray the balance out to DBOT and Global OTC
  • OTC SOR2 – Ping electronic MM’s prior to routing to OTC Markets as book only, ping Global OTC and DBOT, then post at OTC Market
This gateway charges a flat fee of 0.0004 per share.For more information about this gateway, please refer to their official site and our Order Type Reference Guide.

Business woman are checking exchange rates by using mobile phone

The Ideal Guide to Scalping Trading Strategy

The Ideal Guide to Scalping Trading Strategy – Introduction

To make money in the financial market, there are many strategies you can follow. You can be an investor like Warren Buffet or you can be an algorithmic trader like James Simmons or an event-driven investor like Ken Griffin. You can also become a private equity person like Leon Black.

The fastest way to make a fortune is by being a trader. For example, if you had $1,000, you can make a bigger return by trading it than by investing it. This is because investments take time to mature and realize a good return. One trading strategy that you can use is called scalping.

The scalping strategy is simple. It involves opening a trade and exiting it within a short period of time after making a profit. In this case, the profit will not be big, but when you perfect the process every day, the profits will be high. I have seen many people who have made millions by opening and closing tens of trades every day.

To be good at scalping, you need to do several things.

First, you need to understand the dangers of opening multiple trades a day and how you can minimize the losses. Since trading is a risky business, the more times per day you trade exposes you to more risks. It also presents you to more opportunities to profit. To achieve the latter, you must learn on how to minimize your risks.

Second, you need to identify the assets that you will be trading in. Often, I find many traders who are struggling to become successful. They understand the basics but often fail where they want to trade everything. For example, a trader will have three open positions of EUR/USD, GBP/USD, and JPY/USD but if you ask them the relationships between the three pairs, they will never tell you.

To succeed, you need to identify the assets that you will trade in. In this, I recommend that you select a few currency pairs, a few stocks, and a few commodities, master them, and then trade them. Avoid trading in so many assets. As they say, too much of everything is poisonous.

Third, you need to have a set of parameters that must be met before you open or close a trade. Mostly, I recommend that you use technical analysis when using scalping strategy. This analysis involves using technical indicators like moving averages, resistance and support points, and relative strength index. This is because, in the intraday, prices of financial assets move up and down because of technical reasons. For example, you can create a strategy where you only enter a trade when a combination of indicators are reached.

Fourth, I recommend that in every trade that you enter, you have clearly thought out stop loss or take profit points. This is because, no matter how good your analysis is, often, the trade will not work out fine. Therefore, to protect your trades, you should always have a stop loss which will come to effect when the trade goes in the negative territory. A take profit ensures that you take profits when a certain level is reached.

Finally, ensure that you don’t let your trades don’t run overnight. If you are a scalper, this decision can be costly. You want to open trades and close them within a few minutes or hours. If you let them stay overnight, it could have bad implications especially when you don’t have a stop loss.

The Ideal Guide to Scalping Trading Strategy – Useful Links:

Blog del 6 Novembre

Top Times You Should Stay Out of the Market

Top Times You Should Stay Out of the Market – Introduction

To professional traders, trading is interesting and addictive. To them, trading is the most interesting thing. I know people who always wonder why the financial markets are usually closed during the weekends. To cope, they have now embarked on trading cryptocurrencies because their markets are usually open during the weekend. But amidst all these, it is always important to stay out of the market at certain times especially when you are an inexperienced trader. In this article, I explain times that you should do this.

  • Emotionally Disturbed

Life happens and we all go through its motions. Today we might have a good day and tomorrow the worst might happen. A friend or family member could die. A road accident. Your market picks could underperform. A company you shorted could be acquired. A close friend or family could fall ill.

This is life. And it happens to everyone.

Consider the events of this weekend. A prominent Saudi Arabian prince and one of the richest men on earth was arrested. At the same day, another prince was involved in an aircraft accident where he died.

So, when life is not going on well, remember that you are not alone. Such things happen to everyone.

When such things happen, I highly recommend that you don’t trade. Trading at such a period will be disastrous to you because your emotions will not be able to process what is happening in the market.

  • When your analysis is not adding up

Several times, your analysis will not add up. If you are a technical trader who uses several parameters, often, these parameters will not add up. For example, if you only enter a buy trade when the asset is oversold using both the RSI and Stochastics, and when the price is below its moving average, then you should always stay out of the market if these conditions are not met. This is important because many people are constantly under pressure to initiate trades that are not justified by their thesis. Always stay out of the market during such times.

  • Before the data

Earning season and economic data release is one of the most profitable periods. This is because the market tends to make huge moves after the data is released. Unless you are a very experienced trader, I recommend that you stay out of the market during such a time. Experienced traders know how to trade and allocate money on their trades during this time. But, if you are inexperienced, chances are that you will lose a lot of money if you trade before the data is released.

You can however learn how to trade during this time by learning the concepts of options, buy and sell limits, and buy and sell stops.

  • In your time off

I have advised traders in this platform to regularly take their time off. They can do this during the weekend or during the days they plan to do so. It could even be a Monday. During this time, I recommend that you stay out of the market. This is because your mind is probably somewhere else. You could be spending time with your family. Or having fun with friends. Just stay out of the market until the time you have set.

  • After a Big Loss

In the past, I have advised traders to minimize their losses by having a risk-calculated stop loss. The stop loss gives you a chance to limit the amount of loss you can make per trade. But, some trades you initiate might go the wrong way which can be hurting. When this happens, you might be tempted to initiate a trade in the opposite side. This is known as impulse trading and its results are often tragic. When you make a big loss, I recommend that you stay out of the market for a while before you start trading again.

Staying out of the market helps you in many ways. It will help you avoid impulse buying and making costly mistakes. It will also help you be relaxed so that you can make the right decisions.

Top Times You Should Stay Out of the Market – Useful Tips:

 

mobile finance

TA 2017-034: NASDAQ BX Fee Change

On Wednesday, November 1, 2017, NASDAQ BX was making changes to their fee for removing liquidity for securities priced at or great than $1. Please see the details of the change below.

NASDAQ BXOver Dollar (>=$1)
Liquidity flag RCurrentNov 1
($0.0003)($0.0001)