Have you thought about day trading but thought it wasn't for you, or even given it a try and given up because you lost money, thought it took too much time, or felt like you couldn't compete with the sharks when you are just a little fish?
Guess what, you would be wrong, because you CAN make money day trading with relatively little time invested, and starting with as little as $5,000!
New traders go bust because they force themselves to trade when there isn't a good reason to do so. You can avoid many of the new trader pitfalls by learning my methods and step-by-step processes to understanding profitable day trading, even with just 1-2 hours a day or a couple of days a week.
You will learn when to enter and when to exit, and understand why. Learn from me, Todd “Bubba” Horwitz, through face-to-face and online workshops, and join me for live trading on the 3rd Friday of the month when the monthly jobs numbers come out.
Tomorrow, you could begin doubling your account every single month starting with one letter.
The letter will come from a 20-year trading professional named Ian Cooper. He says, “In 2017, following my trades you would be doubling even tripling your account some months. Let me show you how.”
He will show you exactly what to do... and he’ll give you the blueprint for just $1.
Mastering the fundamentals of any sport, business or other activity is important if you expect to succeed. Before going out on the PGA tour, players learn how to hold a golf club, address the ball, improve their swing, and a myriad of other game fundamentals. It is no different when trading. Trading is a business, and it is up to you to learn the fundamental aspects of that business if you expect to be a winner.
What are the fundamentals of trading? Contract specifications, market behavior, exchange trading hours, money management, risk-reward parameters, and market analysis to name a few. And, of course, order entry. The types of orders available and how they differ, what to expect when placing orders, and how to enter orders properly are fundamental to the art of successful trading. That does not mean knowing proper order procedure will make you a great trader, just as knowing how to dribble a basketball does not make you Michael Jordan. But, not knowing how to place orders properly could have a negative impact on your trading results.
Trading can be profitable; trading can be fun; trading can be a huge ego booster. Trading can also produce the opposite of those positive effects. The difference is not luck. The difference is mastering the trading business through learning and experience, the same way we would expect to achieve positive results in any new venture. We have tried to present this information on order entry in a straightforward, easy to follow format, and we hope that it will add to your fundamental knowledge about trading successfully.
One of the most important aspects of successful trading is learning to enter orders correctly. You can analyze markets, subscribe to the best trade recommendation services, and learn to employ sound money management techniques, but if your order goes in incorrectly, you will not get the position or market action you expected. Proper order entry is one of those basic, fundamental actions that should become second nature to you. You must enter your orders properly each and every time, and all orders must contain vital pieces of information.
Identification: Identify yourself with your account number. When entering an order by telephone or computer, the first information conveyed is your account number. A brokerage firm will not execute an order if the company cannot identify the trader. The receiving computer, the phone clerk or the broker will use that number to identify you and determine whether or not there is enough equity in your account to cover margin requirements for new positions.
Market Action: Buy or sell. The broker must know whether to buy or sell for your account. Remember, if you hold a short position and are liquidating, or covering that position, your order is to buy, not sell. Under stressful conditions a trader might think, “I have to get out of my short position right now,” and enter an order to sell the position. Instead of offsetting the short position by buying it back, such a mistake would actually double the short position.
Quantity: Number of contracts to buy, sell, or spread. Keep in mind that it’s possible to receive a partial fill when entering multi-contract orders, such as entering a 5 lot and getting filled on only 3 of them. It is also possible to receive different fill prices, such as a 4 lot order where 2 are filled at $3.00, 1 is filled at $3.10, and 1 is filled at $3.20.
Contract, Month and Year: This is a description of the option being traded. Identify the month and year in which the option expires. When entering orders by telephone; say the description and month. When entering the order by a computer, follow the instructions on the screen (usually choosing the description, then proper month and year from a pull-down menu).
Opening or Closing a Transaction
Placing an option position in your account (either buying or writing) is an opening transaction and adds to the option’s open interest calculation by the exchange. Removing the option position is a closing transaction.
Most computer trading systems will ask you specific questions about the topics discussed above and will display a list of answer choices. Using an example, assume that you are on-line and entering an order to “SELL 5 DECEMBER 510 OEX PUTS at 30 to CLOSE”. The on-line program will require you to:
Identify yourself with an identification number and log-in number to gain access to the system. It will then take you through the proper sequence for entering an order.
Buy or Sell = Sell
Quantity (or Number of Contracts) = 5
Month and Year = December, 2013
Contract = Strike Price “510”, Contract “OEX”, and “Put”
Type of Order = “Limit Order”, Limit Price “30”
Open or Close = Close
The screen will display your order in printed form and give you the opportunity to make any corrections. If the order is correct, many systems will then display the order as it looks on an order ticket, at which time you activate the order and send it in. The receiving computer will reply as follows:
Order Log for Account 12345
(Account Number)
Sell 5 OEX Dec 510P @ 30 Close
(Order) (Open or Close)
Approval Status: Approved
(Order Confirmed)
Last Tic: 27
(Last Trade)
Tic Time: 14:33:26
(Actual Time of Quote)
Your order is not valid if you do not receive a confirmation from your brokerage firm.
And, never assume anything. The brokerage firm computer receives information and instructions that you provide and can not know that you want the order to trade several sessions (open order), or that you really meant to place a stop order.
When entering orders through a trading desk, keep in mind that you are giving instructions to a phone clerk who may not know anything about what you are doing. If you are short the market and want to get out of your position, the order is to “Buy” it back. But, if you mistakenly say “Sell” the clerk will write “Sell” and will not know that you are covering a short position and that you should have said “Buy”.
When entering orders through a live broker you must take the time to do things correctly. Always be careful! And keep records!
PLEASE READ: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC’s website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading.
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6) Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. TradeWins makes no representations or warranties that any account will or is likely to achieve profits similar to those shown.
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