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Day Trading Commodity Article
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Day Trading: Learn About the Different Strategies to Become a Successful Day Trader
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Day trading is the practice of buying and selling financial instruments like stocks, stock options, futures contract, and currencies. The transaction in day trading usually ends in the same trading day before the market closes.
Day trading can really make you a lot of money. It is known that there are people who are successful in day trading and some even made more than a million of dollars in a year of day trading.
However, day trading, like other kinds of trades in the market, has its risks. It is a fact that day trading can really bring you money but you should also remember that day trading can also cause you to suffer severe financial losses.
Day trading is considered to be a very risky kind of trading. It is known that many people have been bankrupted because of day trading.
Day trading is only recommended for people with the time, experience and sufficient funding. You should realize the fact that almost all day traders suffer financial loss during the first months of practicing day trading. And, most of these people never really recovered their losses and just gave up day trading.
You should know that even experienced brokers and traders have suffered financial losses by day trading.
If you want to day trade, you may want to minimize the risk and increase the possibility of you being able to profit from a trade. You want to be a successful day trader. To do this, you should consider the following strategies in day trading and learn from it in order to give you the skills you need in day trading.
There are six basic strategies day traders use to make a profit. These six strategies are:
• Trend following
• Playing news events
• Scalping
• Range trading
• Covering spreads
• Technical trading
In trend following, a day trader who uses this strategy buys stocks that are rising or, short-sells it if it is falling. They always expect that the trend of the stock (rising or falling) will continue.
In range trading, a day trader who uses this strategy buys stocks at a low price and sells it at the high. They assume that once a stock hits a high, it will eventually fall back to low and continue in that direction for some time.
Playing the news strategy is the basic and most common strategy that most day traders do. They will buy a stock that has announced good news and will sell a stock if it announced bad news.
Scalping is a strategy where day traders establishes and liquidates a position very quickly. This strategy usually takes place within minutes or even seconds.
Shorting stocks strategy is when day traders assume that the stock they purchased will rise. Another shorting stocks strategy is that they tend to borrow stocks from brokers and sells it hoping that the price will go down and buy it again.
Day trading is not an easy thing to do. You need to have the following qualities in order to be successful in this kind of business.
Firstly, you have to consider that day trading is mentally and psychologically challenging. You should always be focused on the trades. You should also know how to decide what to do quickly when you see a trend in a particular stock.
Secondly, you have to know how to manage your money. Many people who have failed in day trading didn’t manage their money well enough. They tend to spend a lot of money more than they can afford in order to make a huge profit.
Always remember that day trading is not easy on the first months. This is why you should expect losing when you are just starting to day trade. Also, you will need enough capital in order for you to be successful in day trading.
Day Trading Commodity Specific links
Day Trading Commodity News
Oil Set for Biggest Weekly Drop Since March 2003 on Demand Slip - Bloomberg
 Reuters | Oil Set for Biggest Weekly Drop Since March 2003 on Demand Slip Bloomberg - ``In our view OPEC will cut production by another 1-1.5 million barrels a day on Dec. 17,'' Tobias Merath, head of commodity research at Credit Suisse ... Oil prices waver on skimpy crude inventory report Gold Falls To Two-Week Low On Stronger Dollar |
The Wizetrade Group Leverages Akamai Technologies and Microsoft ... - MarketWatch
The Wizetrade Group Leverages Akamai Technologies and Microsoft ... MarketWatch - "We were the first online TV network to provide 11 hours of live-in-the-market programming to Wizetrade customers each trading day. ... |
Wheat sells off to 1-1/2 year low; corn, soy dive - guardian.co.uk
 CEP News | Wheat sells off to 1-1/2 year low; corn, soy dive guardian.co.uk, UK - The commodities sell-off, led by a $3-a-barrel drop in crude oil, dragged the commodities benchmark Reuters-Jefferies CRB index to a six-year low. ... CBOT Soy Outlook: Seen Lower On Global Economic Woes US Wheat Outlook: Seen Down 2c-4c On Tech Selling, Outsides CBOT Soy Outlook:Lower On Outside Mkts, Lack Of Fresh Support |
Gold, other commodities fall on demand concerns - The Associated Press
CEP News | Gold, other commodities fall on demand concerns The Associated Press - Massive interest rate cuts by several European central banks earlier in the day — further proof that the economic slump has spread to other parts of the ... Gold, other precious metals prices fall |
Australia Stocks, Japan Futures Slump on Commodities, Currency - Bloomberg
Australia Stocks, Japan Futures Slump on Commodities, Currency Bloomberg - The yen appreciated against the euro to as much as 116.37 from 117.98 at the close of stock trading in Tokyo yesterday, while rising against the dollar to ... Asian markets close mixed; Nikkei sheds 1.4% Asian Stocks Fall as Manufacturing Declines; Woodside, JFE Drop |