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INTERNET AND DAY TRADERS
RESOURCES This page is an overview of the requirements and resources for day trading mainly in Australia but also for international markets. LATEST ADDITION CMC Markets is Guppytraders.com's preferred CFD provider. Find out why.
Interested in trading more than once a day? Learn how to be profitable in this fast paced market and learn about Swing Trading.
If you're looking for a trading plan, have a look at trading-plan.com. Trading-plan.com is designed to assist people develop a trading plan that is right for them. Active Online Stocks Trading and Investment Online Trading - Stock Market Investing, Financial Aid
Everything For Traders provides information on Trading Books, Trading Platforms, Online Community Traders, and Online Brokers. Visit this website to find everything a trader needs!
The Finance Section of Linkdelivery.com provides Finance Related Reciprocal Link Building Services, where you can get your website listed with your keywords in the major search engines. If you have a finance related website, they can build you great links at a price you can afford.
Within the Learning About Trading website, you'll find many links, articles and products that will help you find the perfect trading system. Regardless of whether you are a day trader or swing trader, into commodities or currency, you'll be able to find an array of information at this valuable website! Visit it today!
ManusRisco has practical and easy to use money management software using proven business models designed to manage your trading just like a successful business. This creates a professional business structure, which enables you to make educated, confident and profitable trading decisions. Software is designed for day traders and over night or long term traders.
The tradejuice site has a large collection of free articles on day trading techniques, along with other interesting resources.
Day trading, or short term trading, is not just position trading on steroids. It requires additional skills and approaches. These are detailed in Snapshot Trading by Daryl Guppy. This is the first book on short term and day trading written for Australian conditions.
The updated edition of Day Traders Advantage is an invaluable introduction to the world of day trading and includes new Australian material by Daryl Guppy. Other books include The Electronic Day Trader, How to get Started in Electronic Day Trading and Secrets of the SOES Bandit. Read reviews of these books.
People considering day trading need five groups of resources.
Most day trading decisions are based on end of day analysis. The trader spots the developing opportunity using end of day charting, and prepares his trading strategy for the next open of trade.
The most reliable end of day data is provided by dedicated data suppliers. These include Just Data, Paritech, Almax and Norgate. Also from online Broker as such as Sanfords. These suppliers provide software and full support in getting their data into your chosen charting program.
End of day data is also provided by some Internet providers, including Paritech, and some brokers sites. Some people have experienced problems with the accuracy of this data, and with the way no trade days and holidays are treated.
Charting software reads the end of day data and uses technical analysis indicators to understand what is happening in the market. Most day trading opportunities tend to be fairly straightforward using chart set ups and momentum style indicators as discussed in books like Day Traders Advantage, or books in the traders reading list including Investment Secrets of a Hedge Fund Manager and Street Smarts. For pure day trading purposes the charting software does not absolutely require 100plus indicators.
Charting software such as the Guppy Traders Essentials charting pak, Metastock, and for Mac users, Personal Hotline are all suitable for end of day analysis in preparation for day trading. The software must be easy to use, and ideally it should take up only a small amount of memory when it is running. Day traders run multiple programs, switching between the end of day chart, the live tick data and chart, and the depth of market information. Memory hungry charting programs mean a loss of computer performance in this situation.
Access to real time data is essential for day trading. This includes tick data, charting, and market depth information.
Tick data This is information about every trade, and every twitch in the market, and in the stock you are following. The most common display is as a ticker running across the screen. This is usually limited to details of the stocks you have chosen to follow.
One of the most effective and comprehensive suppliers of this for equities and futures is Marketcast. Here the information covers the entire market and the ticker runs vertically. Every trade made on the market is shown. Valuable information can be gleaned from the speed of trades and direction. Explore this in more detail in the attached article by Daryl Guppy. Your choice is to have tick data is delivered via the SBS television signal, or via an internet provider. I find a most effective arrangement is to dedicate one computer just to the uninterrupted tick data supply. This computer is used to manage the open day trading positions.
Live tick data is also available from Sanfords and AOT-online trading. Screen shots are collected on this web page. These data streams are not as comprehensive as the suppliers above.
Singapore and Malaysian real time market data is available as a sub-screen on your browser. Other sites also provide Singapore and KLSE live real time quotes with level 1 depth of market, but without internet trading. Real time charting Traders using tick data also benefit from real time charting. Marketcast provides real time charting screens with about 20 available indicators. Indicator parameters can be adjusted. These charts can be adjusted to show tick data, 3 minutes, 5 minute, 30 and 60 minute tick data. Several chart windows can be opened at once, so traders can quickly switch between various positions or opportunities. AOT On Line provide live tick data charting, along with adjustable moving average overlays. Etrade also provides a charting facility.
Some other providers, such as Williams Noalls, ETrade and Sanfords, also provide tick data, but this is limited to the particular stocks you are watching. This may be up to fifty or more on the screen.
These all provide live daily and intraday charting facilities. Browse screen shots to decide which may best suit your needs. Some, such as Noalls, are stand alone programs, while others, such as Sanfords, are internet delivered applets.
Real time charting for the Kuala Lumpur Stock Exchange is available via the KRIS system and via the Singapore and Malaysian Internet sub screens.
Some live internet charts should be approached with caution. These are often simple chart constructions which cannot match the level of accuracy available with end of day charting. In particular users need to be fully informed about the way the data is handled by the chart, what types of moving averages are used, and how the various indicators are calculated. Short cuts can be critical. Depth of market Market depth has three levels.
Level 1 is a summary of buyers and sellers as shown. This shows 3 buyers at 3.50 and 4 sellers at 3.51. Snapshot screens of these details are available with Parklane. They also pass as depth of market information on some of the more popular www sites.
Level 2 is a consolidated total of buyers and sellers as shown. This shows 3 buyers at 3.50; 2 buyers at 3.49; 1 buyer at 3.48; 6 buyers at 3.47. Some screens limit this to 5 bids above and below the last traded price. Etrade provide this depth of market in real time. Parklane provides this on a snapshot basis. Sanfords gives users a choice of real time or snapshot screens.
Level 3 is the most useful for day traders and shows the individual orders at each level for up to 20 bids above and below the last traded price as shown. This allows the day trader to see who is bidding and in what size. Individual buyers and sellers are not identified, but we can judge if the orders are institutional buying and selling, or if they are strong support from mums and dads. It helps to know if the order for 1,000,000 shares is made up of lots of little orders, or if it is 3 orders, with the largest being for 990,000 and two small orders of 5,000 each
This full depth of market information for your chosen stocks is available from Marketcast. Snapshots are provided by Parklane and Sanfords
Day traders look for one thing in choosing a broker - speed of order execution. This is followed by system reliability, then the way the order is placed, and finally the cost of brokerage. The novice looks at brokerage costs first and fails to realise that a single poorly executed order may cost thousands in lost profits. Day traders usually know exactly what they want to do, so they are not interested in brokerage research and analysis.
Fast order execution with a direct internet connection to SEATS is provided by Etrade. Both AOT on Line and Sanfords will provide this direct market access. Execution risk is a greater threat than the comparative cost of brokerage so choose carefully.
Some other brokers offering an internet trading service pass the internet order onto another dealer who places it on the SEATS system. This may take 10 or 20 seconds. When choosing an internet broker for day trading it is a good idea to find out how the internet order is processed.
Day traders can phone their broker to place orders. If the broker sits in front of the SEATS screen this does make for very rapid order placement. The disadvantage is that on a busy day you may have to wait some time before you can get to your broker. This process is OK for occasional day trading ventures.
Some of the new bank sponsored brokerages offer very low fees but their order execution can be very slow. Phone orders are passed from the broker to a SEATS operator and may take 3 to 15 minutes to be entered on the system. This is no good for day trading and is the least effective brokerage solution for day traders.
A further factor to consider in selecting a broker for day trading is the arrangements for the transfer of funds. Some brokers require you to establish a cash management style account with their preferred provider. Personally I prefer to have all my trading capital resting in a single account accessed by as many brokerages as required. I do not like to have packets of funds spread around financial institutions. The choice is yours but while money is resting out of the market it should be working hard to get the best interest rates and in this case, size does count. How fast is your brokers' trade execution? Compare them with US internet broker speeds. This is updated every week.
The tradejuice site has a large collection of free articles on day trading techniques, along with other interesting resources.
This is an interesting collection of articles on internet trading. Site provides information on a range of online investment options.
This Contracts For Difference site provides an excellent background of this trading instrument.
This site is a good introduction to financial spread betting and its use as a trading instrument.
Overseas markets are different. They have different trading rules, different screen displays, and different order structures. The US sites Electronic Day Trader and Day Trading Stocks provide lists of direct access brokers and information for short term traders. Understand how these operate and you have less chance of being 'mugged' in direct US trading from Australia. You really cannot afford to trade the US without understanding the mechanics of this market.
This Stock Trading page is an interesting short term trading site. It sells Stock Trading Software for short term swing trading, but includes other free information as well. Includes a trading record. It has some interesting ideas.
Day-Traders.com - For the Active Trader Looking to Increase their trading profitability. Many resources including live trade alerts.
One Shot - One Kill Trading provides a FREE NASDAQ 100 and S&P 500 index trading newsletter, tips, tactics, market calls, trading services, books, and trader education. Trading methodology is that used by hedge fund manager John Netto.
BestDayTrader.com has some interesting professional level day trading tactics and information and a swing trading newsletter. TradePro offers direct access day trading using the RealTick trading platform. They cover equity, options and futures. Investigate some day trading strategies in real time for the DOW. This is updated every day. This is a very useful guide to the techniques required for day trading. Short term currency trading strategies from a New Zealand perspective also provide good examples of day trading techniques. This is an interesting day trading link - www.daytrading.nu
This MILLENNIUM-TRADERS.COM website provides a variety of subscription based services for the professional day trader and short term investor. Featured service is our Live Day Trading Chat Room for Stocks; Forex Trading and Futures Trading chat rooms also available. Additionally, a Weekly Swing Trading stock picks service with superior performance.
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