Day Trading

Is Day Trading gambling? Lot of people think of it that way and for many it’s daily 9-5 job. There are different types of investors and traders for different markets. There is long term investing, there are swing traders – people who buy/sell stocks for a few days to weeks – and then there are day traders who buy and sell stocks multiple times in any given day.

Large hedge funds, banks and institutions that have day trading as part of their strategy to invest and make money for their clients. High Frequency Trading is nothing but Day Trading. Continue reading

Buying Stocks with Paper Money and Performance

paper money

Simple Investing Summary: learning through paper money is important but don’t always expect the same results in funded account with real money.

Investing in the market with paper money a.k.a simulated accounts, the performance is phenomenally different than with real money. Real money meaning money with which you can buy things, pay rent, travel, and more.
I’m a fan and proponent of getting a new investor/trader started with a simulated account first for a few months. This allows them the opportunity the learn about the markets, trading system to place orders, reactions to company announcements and news, etc. Continue reading

Importance of Volume in Stock Investments

Simple Investing Summary: volume provides an additional dimension in selecting investing opportunities.  Price and volume should always be considered simultaneously when making investment/trading decisions.

Volume is that total number of shares, contracts (Futures), etc. that is traded (bought or sold) in the market. There are four price levels for analysis on the chart: open, high, low and close. Volume provides an additional perspective for the analysis. Combine these five values over time different frames (5 minute, 15, minutes, Hourly, etc, Daily, Weekly, etc) and one get a somewhat full picture of what is happening with the stock or whatever you are trading. Continue reading