Brian Heyliger

Your day trading computer should either run Windows natively or else simulate the Windows environment well enough to run the day trading software you need (virtually all the good trading software is PC-only). So get a second monitor (or even a third monitor). To support this, buy either a video card that will support two monitors simultaneously, or else a second (or third) one-monitor card. A stable and reliable broadband Internet connection.

Let's start with how much money you need. Remember: risk capital means money you can afford to lose. If you break this rule you're guaranteed to fail in day trading. I day trade futures contracts myself. I feel you'll need at least $5,000 in risk capital available, (preferably $25,000) to execute most futures trades with your own money. A small account limits you to trading the higher dollar cost stocks and that's not good. Of course, you can get some leverage by day trading options on stocks.

Swing trading (also known as momentum trading) exploits price uptrends or downtrends by entering the market during brief counter-trend pullbacks to ride the trend's momentum. So you might think that the main difference between day trading and swing trading is the timeframe, right? After all, swing trading seems like a longer-term form of day trading. Some of the best day trading opportunities comes from counter-trend trading whereas swing trading must always go with the trend.

Swing trading is sometimes known as ‘momentum trading' because it takes advantage of price uptrends or downtrends. Swing trading is not high-speed day trading which seeks to exploit minor price fluctuations each day. A swing trade is typically held for days or even weeks as a given stock, stock index, futures contract, etc. makes higher highs or lower lows. An additional advantage of swing trading is that it works well for part-time traders, especially those trading while at work.

Swing trading is not as well-known as other types of trading such as day trading. So let's cover swing trading basics... Uptrend: This is when a market is making a series of higher highs and higher lows. Downtrend: This is the exact opposite of an uptrend where a market makes a series of lower highs and lower lows. The previous low in the trend often acts as resistance for the pullback.

If a formerly profitable day trading system isn't working in real life you're no doubt worrying about dollars and losses instead of carefully following your system. So here are some key ideas to help you reduce stress, improve your trading psychology and ensure your day trading system works in real life the way it did on paper: Find or create system that produces high-probability signals and which gives you an excellent win:loss ratio in comparatively few trades.

Are you frustrated with day trading and your lack of day trading success? That day trading strategy is counter-productive. Coming up with enormously complicated (or high-frequency) trading methods is not working smart. It's working hard. The high-probability nature of such trading means you will make money if you follow the trades consistently.

If you're a beginner when it comes to trading the markets, you're wondering exactly what day trading is all about. Fortunately, day trading is actually fairly simple to explain. By taking many day trading opportunities, you can generate a stream of regular day trading profits in quick succession. However, day trading isn't as easy as it looks and there are some disadvantages to making money by day trading.