Most day traders or short term swing traders make certain that any position they have entered for a market session is closed out prior to the closing bell, for that day. This trading action assists the traders in controlling any potential unexpected losses due to news that could come out, whether on a particular stock or other market effecting news, after the closing bell for that market day.

Certain short term investors will analyze a particular stock, determine a potential entry price as well as, a potential exit price, based on their expected gains for any one trade. At the same time, an informed trader will also set a pre-determined stop loss in an attempt to control their losses.

At no time should any trader, short term investor, day trader or swing trader ever prepare to enter any position without a pre-determined stop loss. To do so, is just plain foolish. Why would any trader, in their right mind, even think of entering a position without having a stop loss in place?

Now long term investors, generally seasoned investors, are prepared to lose their entire investment because most will only risk capital they can afford to lose. In reality, any trader, day trader, swing trader or short term investors should only ever trade with capital they can afford to lose. A key note for anyone considering investing, whether long or short term, is the issue of investing in a short sell position. When you invest in a long position, there is only so far to the bottom. However, when you invest in a short selling position, there is no ceiling as to how far a stock can go up.

So, to sum it up, be wise in your investment decisions. When your money is gone – it’s gone!

Basically, it appears that September should actually be a good month to sell short. During the month, many parents for example must sell their securities to pay for their tuition bills for children returning to or going to private schools and college, thus a downhill trend in the financial markets.

 Another way to look at September is that many investors take advantage of the lower prices and start to dabble in beaten down securities.

The definition of Selling Short a security is that the seller does not own a security thus; they borrow the security from the owner, through their broker, in anticipation that the price of the security will go lower. Margin accounts are generally required for a Day Trader to Sell Short. Short sellers presume that they will be able to buy the security back (Buy to Cover to exit the position), at a lower amount than the price at which they Sold Short, resulting in a profit. Many day traders refer to Selling Short as ‘betting that a security will fall’ because in reality, that is what the Short Seller is doing. The Day Trader will enter a position on a Stock, Futures Contract or Forex Contract (Sell Short) if the security appears to moving lower. Remember, there is great risk when Selling Short since there is no ceiling as to how high the price of a security can go.

Exiting a Short Sale position is also known as Short Covering, ‘buy to cover’ or ‘buy back’ a position. Remember, Short Covering (exiting) is the method of purchasing a security to close an open Short Sale position. For a Day Trader to realize profit, the short seller must cover the short by purchasing the security below their original Short Sale (entry) price.

An example of Short covering for a Stock:
A trader sold short 100 shares of XYZ stock at a price of $10 per share, the price of the Stock moves down to $9 per share and the trader is profitable by 1 point on their 100 shares.

Another trader sold short 100 shares of XYZ stock at a price of $10 per share, the price of the Stock moves UP to $11 per share and the trader has a loss of 1 point on their 100 shares.

At no time should a novice investor or novice Day Trader initiate a Short Sale for any security unless they have demo-traded the method for a month or more, prior to risking actual trading capital.

Day Trading can be a successful livelihood for many individuals but, it takes a great deal of time, dedication and training to be successful. A majority of failed Day Traders are a result of jumping in the market, with no training. Actually, it’s almost a ‘given’ that, individuals who fund an online trading account and start to trade without developing a trading strategy and fail to participate in any Day Trader Training will lose their trading capital within 2 weeks to a month. Of course this depends on the size of their trading capital account but, it will not take long to be out of the Day Trading game, fast.

Determining the realistic amount of money you need to make to survive is job #1. Remember that, once you decide to Day Trade, the work has just begun on your new career and the success with it. We cannot emphasize enough the importance of training.

Day Traders determine their projected profits in various ways. Some Day Traders calculate the percentage of money they invest per trade for their projected return on their investment per trade. You will have Day Traders who project the number of points or portion of points needed to gain per trade, based on number of shares traded. Because there is no way to determine what any stock will do, some Day Traders do not project profits on a per trade basis but, on an undetermined number of trades’ basis. Basically, beginning during their personal training period, in demo mode, a trader will place trades (demo or real) and after learning to read charts etc., they take the profits realized and tally up profitable trades, subtract losses and fees for a grand total of realized profits (both in demo then during live trading).

There is no individual that can tell you specifically, how much money you can make by day trading, it is not an hourly wage job. The amount you make is up to you, your experience and your trading success experienced while you practice day trading in demo mode, without risking your trading capital. Furthermore, your success while trading live will take time, profitable trading is not going to happen, every trading day. While practicing trading in demo mode, you should keep track of your demo profits/losses in an effort to determine your profit potential while live trading. Remember, demo trading is extremely valuable to assist you as the trader in developing a successful trading strategy however; live trading is very different than demo trading. You will not obtain the same success while live trading, that you did while demo trading.

As there is no limit to the amount of money you can make while day trading, you can lose all your trading capital if you do not take the necessary steps to insure you have received the appropriate training by utilizing a professional Training Program.

One method many traders will revert to is, reducing lot sizes for trades they make, during the summertime doldrums. By reducing the number of shares traded, whether it is Stocks Trading, Futures Trading or Forex Trading, the individual trader reduces their financial risk and is able to widen their stop losses per trade. By widening a trader’s stop loss per trade, this enables the trader to remain in a trade for a longer period of time and avoiding sweating every tick or every pip. The widened stop loss also allows the trader to potentially trade a more volatile stock, futures contract or forex contract that they are more than likely ‘not’ trade. A day trader or swing trader is allowed the opportunity to learn how certain stocks, futures contract or forex contract react to the current days market action.

Traders need to be more selective on positions they may consider taking over the summer months. During the trading day while in the summertime doldrums, traders should ‘learn’ what time periods are more risky to their individual style of trading than others especially, when those specific time frames were generally not as risky, during off-peak summertime doldrums times. Traders will see that, while in summertime doldrums, trading volume may drop significantly during the afternoon hours. The selective trader may wish to hold back on questionable trades, per their individual trading strategy during the afternoon hours, especially if they are looking at an already low trading volume stock, futures contract or forex contract.

Some traders trading strategy need to be seriously converted, during the summertime doldrums. Some traders who normally practice gorilla style trading methods may need to adapt to another trading method during summertime doldrums due to a reduction in normal average trading volume.

Remember, there is no need to throw in the trading towel during the summertime doldrums, simply alternate your normal trading strategy to deal with the lower trading volume. Professional traders remain in the markets, regardless of the time of year the market is dealing with. The various trading experiences can widen the scope of potential profits for the smart trader, who learns to deal with ‘what the market is willing to give them’. No trader should ever expect for the market to react the same way, day in, day out regardless of the time of year, the holiday season or, the day of the week for that matter. Just as summertime doldrums create a different trading atmosphere, so do the individual trading days of the week. Experienced traders are fully aware that trading on Monday is a whole new ball game than trading during mid-week.

Summertime doldrums is a great time to partake in our Training Program since the new trader is more apt to not have an alternate trading strategy already in place. In addition, if you are a new trader facing this time of year for the first time, be smart and switch to demo trading (or practice trading) until you develop a different type of trading strategy. There is no need to foolishly risk valuable trading capital until you have a system that is profitable and that system can change, day to day just as it seasonally does as well. While demo-trading is far from the real deal, demo trading does allow the day trader the opportunity to test various trading techniques without risking real trading capital. No trader should ever view demo-trading as a waste of time.

If you answered ‘NO’ to more than one question, it’s up to you but, wouldn’t you rather spend the time and a mere $750 to possibly assist you in making profits instead of continuously throwing money away on trades you make because you don’t have the key tool to successful trading – meaning – professional day trader training? Most new day traders will lose multiples of $750 many, many times over before they have to throw in the towel because they run out of trading capital. So the question is why would you?

Many want-to-be traders throw some money in an online account and fire away at the first stock they see moving. Usually, within a few days or weeks they are closing down their trading account and crying the blues because they lost all their money. If you cannot afford a three hour Training Program for $750 from the professional’s at Millennium-Traders, you should definitely not be day trading, period.

Do you know that not only do successful traders have stop losses on each trade they make; they also have a stop loss on a daily basis as well?  Basically, they don’t keep losing money on any given day and just keep on trading. That sounds rather foolish to keep losing money on a consistent basis, doesn’t it?

A key to successful day trading is that the day trader has the ability to demo-trade (or practice trading) prior to risking any real money by live trading when they haven’t a clue what to do. While demo-trading is far from the real deal, demo trading does allow the day trader the opportunity to test various trading techniques without risking real trading capital.

Some traders think it’s a waste of time and money to participate in a Training Program while those who do participate in a Training Program reap from the knowledge provided by those who have ‘been there, done that’. Training Program’s provide various trading techniques that the new want-to-be trader is totally oblivious to such as just a few for example: trailing stops, exiting on market into the run, etc.

Ask around. Ask trader friends who have taken a Training Program for Stocks Trading, Futures Trading or Forex Trading if it helped them. Ask trader friends who didn’t take a Training Program how much they lost, in the beginning. Remember, until you have ‘been there and done that’ you really don’t know what to expect.

At Millennium-Traders, ‘Our Objective is to lead Active Traders to Success in the Financial Markets’. For our team of expert Moderators to assist a day trader with becoming a successful, profitable, disciplined trader – is our goal. The team of expert Moderators at Millennium-Traders focus on assisting potential day traders to mold their skills with the knowledge they maintain aiming for, profits while day trading.