Thousands a Day – Day Trading Stock

Day trading stock, at this level of profitability, is obviously unique.

Unlike other individual financial instruments traded, there are thousands of stocks to choose from, any one of which can provide day trading opportunities (otherwise known as big money wins) – any trading day, at any time of the trading day.

This makes stock day trading exciting, and for those who know how, extremely rewarding. For those who master the new stock day trading game with a coach in a winner’s stock trading room, the opportunities for learning, not just stock trading, and wealth building are unlimited.

What is the big payoff that everyone seeks?

To become a successful day trader, with profitable business performance, where they can make thousands a day, any trading day.

What’s required to generate this kind of money in the stock trading business?

Of all the success factors, it comes down to three key elements:

First, you must stop trading on your own and start trading with a world-class stock trading coach (like a world-class tennis player learning and performing with a coach to get to and stay at the top of the game)
Second, you need to be playing (trading) a winner’s game (system) that your coach recommends, not an old-school game, but a stock trading game big money winners play
Third, you need to gain the confidence, competence, and performance results consistent with those of a stock trading winner, again, facilitated with your own personal coach at your side.
Here’s a look at one aspect of stock day trading, from a winner’s perspective.

While day trading, it’s the job of the winning day trader to find stock trading setups – stocks that present opportunities to make substantial money – what we refer to as stocks in a “tension” state.

A stock in a tension state is simply a stock with an intraday price movement substantially away from its price balance price or the price at yesterday’s close, technically speaking, when you view stock trading charts.

Viewing a stock in a tension state would be much like viewing a pendulum with the ball pulled far away from neutral enough that, when released, it’s movement tends to accelerate toward its neutral position and beyond.

Stocks, like the pendulum ball, tend to seek a balanced state as well and like the ball, they return to balance and beyond, and then fluctuate above and/or below a neutral price as they eventually return to a state of neutrality, balance, or non-tension state – above, below, or close to the point of beginning, price wise.

This is the price action winning stock traders live for and thrive on, day by trading day.

This new-school trading makes winners feel both fulfilled and alive. Let’s take a look.

The winner’s focus is to trade this action to win (not the money involved) one or more trades during the trading day – that can generate $500 to $2,000 and more per trade, depending on lot size (the number of stock shares traded). This form of trading to win, that is, absent the focus on the money while trading, is not to be confused with gambling which is what losers love to do at Las Vegas and while day trading stock or any other financial instruments.

Trading on your own, without a coach, using any of the hundreds of old-school, gambler’s stock trading systems, lacking stock day trading confidence, competence, and a history of success while day trading is precisely why we say that 98% of all traders are losers – not profitable and otherwise dissatisfied traders.

Thus, only 2% of traders worldwide fall into that category of day trader – winners, consistently profitable winners.

Winners own the game – the rules, the software (with algorithms reflective of losing trader knowledge and trade execution patterns), when they make markets and stock prices move the most.

We designed our game to ride the coat tails of the 2% (who are intent on “killing” the crowd, the 98%), for our fair share of the action.

So, there are three games being played in the stock market, options, commodity, Forex, or any other markets: the winner’s game, the loser’s game, and our game. (We only trade stocks.)

Day trading stock this way, we find, is a far more interesting and relatively stress free approach to the day trading losers are accustomed to experiencing.

Stock day trading involves the performance of an individual company or companies, many times with familiar products and services exchanged locally and globally, in many instances involving companies managed by recognized leaders in their field.

Both technical and fundamental data influence stock investors, swing traders, and day traders execution decisions.

Each stock has both a technical (long and short-term price action history – charts) and a fundamental (financial performance – balance sheet, profit and loss statements, and earnings histories). This opportunity to trade the price action on any of thousands of stocks, any trading day, and time of the trading day, makes trading stocks far more interesting, and frequently more challenging than other form of day trading.

So, what we do as stock day traders is far more interesting, exciting, and very financially rewarding.

Our system is also quite simple as we only focus on only 20% of what losers watch, trade a fraction of the time and thus experience a fraction of the trading stress, and as such, we have the energy to trade well when opportunities present themselves.

The game has changed, so have we, and so can you – should you qualify.

John McLaughlin, Stock Trader Consultant / Coach / Mentor

Helping online stock trading losers (unprofitable and otherwise dissatisfied traders) quickly become consistently profitable winners.


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Dispelling the Myths of Day-Trading

As a trader that utilizes both short-term and day-trading strategies, I have been given a unique insight into the true benefits and disadvantages of both. As a teacher of trading, I have also had the opportunity to hear many oft quoted expressions in regard to trading that are firmly believed, but simply do not hold up under scrutiny. Many of these center on the subject of day-trading. If you are interested in day-trading, then it behooves you to know what is true and what is not.

Myth 1 – Day-trading is risky, much more than short-term trading or investing.

Without doubt, the risk is greater for short-term trading. In any single trade you are risking far less in a day-trade than in ether a short-term trade or long-term investment. What gives the appearance of greater risk is that you are typically taking more trades. Even on my worse day I have never lost as much as I have short-term trading. Yes, that is right. Even on my worse day combining all of those day trades I still have not matched what I have lost with some of my short-term trades even though they are just one single trade. My own experience demonstrates that short-term trading and investing often proves riskier than day-trading. Surprised? You shouldn’t be, it is a matter of common sense. How much do you risk on a day trade as opposed to a short term trade? If a short-term trade has so much of a greater potential loss than any day trade what is going to be the naturally outcome when trades go bad?

Myth 2 – Day-trading is gambling

Any trading is gambling if you trade without a plan or allow emotion to control your decisions. The key difference is whether you are putting the odds in your favor or not. If you are doing so then the trading, whether you are talking about short-term, investing, or day-trading, becomes a business. If you can’t put the odds in your favor then all of them can be considered gambling. None have an advantage over another.

Myth 3 – Day-trading ties you to a computer all day

I have to laugh at this myth. My typical day is an hour and a half in the morning and two hours in the afternoon, with a two hour lunch break. Even when I am trading I don’t watch the market all the time because I am waiting for set ups to develop, so often I am playing a game on the computer or watching television while waiting. There are limited times when a market trends during the day, the most profitable times to trade. Most of the time it just consolidates. During these down times when the market is in consolidation there is no need to watch the markets like a hawk. There are very simple ways to alert you when it is time to prepare for a trade. Frequent breaks should be the norm, not the rarity. I don’t know of any other career that can pay you as much and yet give you so much free time.

Myth 4 – Day-trading is too stressful

Any trading is stressful if you are losing money, just as any trading is easy if you are making lots of profit. It isn’t the type of trading, but how well you adapt to it and whether you are successful or not. The stress of day-trading typically results from two things; poor trading and the inability to adjust emotionally to the fast pace. Day-trading requires much faster responses because they are made in real time. There isn’t much time to analyze and then reanalyze a situation before making a decision like a person might do with short-term trades. So a trader needs to know their trading method well, to the point that it is almost second nature and they also need to keep their emotions in check. While it may be difficult to initially do this, many of us have already mastered other endeavors that require real time critical decisions, such as driving an automobile. To acquire such ability is a simply matter of practice, practice and then more practice.

Myth 5 – The Biggest money is made on longer term moves lasting weeks or longer

A day-trader can double, triple, quadruple, and more beyond that of a person trading the longer term trend. This is because a market will naturally weave up and down as it develops, allowing for repeated profits covering the very same range. Having done both I know firsthand that a successful day-trader can blow away any short-term or long term investor when it comes to profits. The only time a short-term trader will manage to make more profit is when a market gaps overnight, but even with this figured in a successful day-trader will usually be rewarded much more handsomely over the long term.

Myth 6 – When you day trade you miss out on the big profits generated by overnight gaps

You also miss out on the overnight losses as well. Gaps indicate high volatility and in many cases the market will swing violently both ways. Day-trading protects you from that overnight risk. But here is the surprising twist about overnight gaps; it is not uncommon for a market to close an overnight gap during the day, giving a day trader a chance to capture the profit generated by overnight trading anyway. There are of course some markets that are not well suited for day-trading, while others are. So market choice can make a considerable difference when it comes to this issue. Trading a market that is inclined to overlap itself during the day will more than make up for any overnight gaps that occur.

While there are many more myths that could be dispelled here, it is also important to be balanced and consider the other side of the coin; the negative aspect of day-trading. While day-trading is a great way to make a living when you are consistently profitable, it can also be the worse career choice if you consistently lose. This is true of any type of trading, but in day-trading an individual typically has given up a regular job and of course, a regular income. Also, more is demanded emotionally. This latter factor is one that most assume is personally of no concern and yet often proves to be the one issue preventing their success. There is an inherent weakness of emotion that everyone has and yet most refuse to believe they personally could have an issue with it. So they often fail to ever address it correctly and it continues to plague them.

However, if a trader does learn to trade profitably on a consistent basis and they also learn to control their emotions then day-trading is absolutely one of the greatest means for making a living that anyone can pursue. The freedom to work when you want to, the amount of money that can be made, and the lifestyle it provides is truly amazing. It really is all that is promised; the dream job. Although it takes a lot of work to reach that goal, do not be swayed by the myths about day-trading. This one is for real.

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