Stock day trading systems are systems by which canny investors learn to time their buy and sell orders; depending on who you ask, they're as reliable as the tides except in the cases where they aren't.
We're going to look at how traders make money with stock day trading systems.
First of all, we're going to define a few terms.
Day trading means buying and selling stocks within a period of about 24 to 48 hours, and sometimes, when the market is turbulent, in tighter time frames than this.
All of the archetypal "driven stockbroker doing day trading" images you may think of - the people who are shouting on the trading floor trying to buy and sell stocks - are doing day trading.
What's changed is how automated the process has gotten.
It used to be that one of the major holdups on day trading as a job was being able to reach your broker in a short time frame.
Now, a lot of trading brokers use automated systems that will buy or sell stocks when they hit pre-programmed thresholds.
This has had hard to quantify changes on the volatility of the stock market, and has caused the various regulatory bodies to shut down the markets when automatic trading programs threaten to make a panic.
While automatic purchasing agent software is fairly common, what's new on the scene are automatic analytical tools that can run on a high end desktop PC.
These stock trading systems collect data from multiple sources and give you, as a day trader, an analytical graph to consider; they free up a lot of your time to do fundamental research on how the market (or the segment that you're investing in it) is moving.
While the stock market is an inherently chaotic system, there are trends within it, and the point of analytical tools are to keep you from swimming in data to the point where you're so busy looking at numbers that you can't see the overall trend.
Trend spotting is one of the fundamental things that day traders make their money at - they need to be able to guess, near the opening of the market, whether the stocks they care about are due to go up or go down on the day's trading volume, and plan accordingly.
(While it's counterintuitive, it's quite possible to make money out of stocks that are going down, but it takes planning and expertise to do it - look up 'short selling' as a technique.
) It's this expertise that makes a stock trader valuable and helps him make money on day trading, and that expertise comes from treating this as a job.
And that's where a lot of the stock day trading systems fall short, at least with the way they're being promoted now.
They're telling people that automated tools have taken all the guess work out of day trading.
They haven't - they've enabled day traders to make a lot more money with a lot less work, but there's still a need for day trading expertise, no matter what pattern or stock market 'rhythm method' you're following.
We're going to look at how traders make money with stock day trading systems.
First of all, we're going to define a few terms.
Day trading means buying and selling stocks within a period of about 24 to 48 hours, and sometimes, when the market is turbulent, in tighter time frames than this.
All of the archetypal "driven stockbroker doing day trading" images you may think of - the people who are shouting on the trading floor trying to buy and sell stocks - are doing day trading.
What's changed is how automated the process has gotten.
It used to be that one of the major holdups on day trading as a job was being able to reach your broker in a short time frame.
Now, a lot of trading brokers use automated systems that will buy or sell stocks when they hit pre-programmed thresholds.
This has had hard to quantify changes on the volatility of the stock market, and has caused the various regulatory bodies to shut down the markets when automatic trading programs threaten to make a panic.
While automatic purchasing agent software is fairly common, what's new on the scene are automatic analytical tools that can run on a high end desktop PC.
These stock trading systems collect data from multiple sources and give you, as a day trader, an analytical graph to consider; they free up a lot of your time to do fundamental research on how the market (or the segment that you're investing in it) is moving.
While the stock market is an inherently chaotic system, there are trends within it, and the point of analytical tools are to keep you from swimming in data to the point where you're so busy looking at numbers that you can't see the overall trend.
Trend spotting is one of the fundamental things that day traders make their money at - they need to be able to guess, near the opening of the market, whether the stocks they care about are due to go up or go down on the day's trading volume, and plan accordingly.
(While it's counterintuitive, it's quite possible to make money out of stocks that are going down, but it takes planning and expertise to do it - look up 'short selling' as a technique.
) It's this expertise that makes a stock trader valuable and helps him make money on day trading, and that expertise comes from treating this as a job.
And that's where a lot of the stock day trading systems fall short, at least with the way they're being promoted now.
They're telling people that automated tools have taken all the guess work out of day trading.
They haven't - they've enabled day traders to make a lot more money with a lot less work, but there's still a need for day trading expertise, no matter what pattern or stock market 'rhythm method' you're following.
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