The Pitfalls Of Day Trading Stock Online

<h1>The Pitfalls Of Day Trading Stock Online</h1>Author: <a title="Jimmy Cox" href="http://www.articlesbase.com/authors/jimmy-cox/3189.htm">Jimmy Cox</a> An intelligent trader once said, `The only difference between gambling at a cassino and day trading stock online is that you have to serve yourself drinks when sitting at your home computer.` 
Sure… some day traders have made some decent money through day trading stock online. But these are the exception, not the rule. Most day traders lose in the long run and that `long run` aint too long at times!
You see, the trouble is… most day traders are seeking a `quick fix`. Their persona isn`t suited to mid term or long term trading. They quite likely have lost money in the past, either through gambling of some sort, or through losing patience with longer term trading strategies that turned sour. They most likely don`t have a large capital base, especially if they`ve been wiped out a few times in the past. And so the concept of… day trading stock online is incredibly appealing.
Unfortunately, far too many traders who`ve either made the switch to day trading – or who are brand spanking new to it and thereby lack basic risk management skills, embark on a journey they`ll never forget… for the wrong reasons!
For one thing, seduced by the apparent simplicity of it all, many traders approach the whole thing of day trading stock online without really knowing what they`re doing. Secondly, they have little or no concept of the underlying risks involved. Thirdly, as I`ve already alluded to, they often find themselves `horribly undercapitalized`. Fourthly, and most definitely a deal-killer…
They play with borrowed funds!
Not a good move… and a breach of fundamental trading basics to boot!
So, is it even possible to make a living from day trading stock online?
Yes it is. But the odds are stacked against you from day one. You absolutely positively HAVE TO HAVE A PLAN… or you`ll lose… simple as that.
For starters… you have to know your entry and exit points BEFORE entering the market. It`s no good waiting until the market has moved so far against you that you`re too frightened to take the loss! When you participate in day trading stock online you have to leave your emotions at the door and follow your plan like your life depends on it (which some might argue `it does`).
Suppose you buy 1,000 shares of abc-xyz at $1 per share – on a day trading basis… and you notice that the stock rises 30 cents a share before lunch. The left-side of your brain coolly advises you to `get out and pocket a massive $300 profit`. Hells bells… 30% in a morning is a good earn!
However, you also have this other side of your brain which has no basis in logic. It is commonly referred to as the `emotional side` or right-side of your brain. It also has a deeply embedded relationship with every gambler`s nemisis… `Greed`. Accordingly, you decide in your professional lack of wisdom to… `Just hold on in there a little longer… it`s bound to go higher`.
You go out and make some lunch, have a coffee… and smile…in the knowledge that you`re a day trading wizard who is on the brink of making a fortune. And it`s all so damn easy!
1.45pm…
The stock has reached intraday highs of $1.37… `Maybe it`ll hit $1.50 by closing bell?`
2.52pm…
News comes out that the company`s patent is invalid… the stock plunges to $0.60 in three minutes… 
For you, the dream has not only been shattered, but the sky has just fallen in… and your $1,000 investment has reversed a $337 profit into a $400 loss… and it`s still falling.
You find yourself hurled into a maelstrom of helplessness, fear and chaos…but with no plan in place, you simply hang on in there. 
3.30 pm…
Trading in the stock is suspended. The last trade went through at $0.42. You are so stunned you can`t even shed a tear. Your day trading career lasted precisely 6 hours, 22 minutes and 8 seconds…
`Welcome to the frenetic world of… day trading stock online`.
For some of you, this article may very well bring back some rather painful memories. For others, let it be a warning…
If day trading stock online is something that you are serious about and want to succeed in, then at least show you`ve got the intelligence, emotional control and discipline to survive the bad hits as well as bagging the big profits!
There are over 10,000,000 web pages in Google dealing with courses and coaching on the subject of day trading stock online. So, before you risk another cent… do yourself (and your bank account) a favour… and start researching the mentoring options out there… until you find one that suits.
 About the Author: <a href="http://www.becomeadaytrader.com/">Become A Daytrader</a>! We Have Uncovered One Of The Most 
Sought After Scientific Trading Approaches Of All Time ...
And It`s Yours Free!

... and it`s your FREE! Read It Now:
<a href="http://www.becomeadaytrader.com/"><a target="_blank" href="http://www.becomeadaytrader.com/">http://www.becomeadaytrader.com/</a></a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/non-fiction-articles/the-pitfalls-of-day-trading-stock-online-51721.html" title="The Pitfalls Of Day Trading Stock Online">The Pitfalls Of Day Trading Stock Online</a>

An intelligent trader once said, `The only difference between gambling at a cassino and day trading stock online is that you have to serve yourself drinks when sitting at your home computer.`

Sure… some day traders have made some decent money through day trading stock online. But these are the exception, not the rule. Most day traders lose in the long run and that `long run` aint too long at times!

You see, the trouble is… most day traders are seeking a `quick fix`. Their persona isn`t suited to mid term or long term trading. They quite likely have lost money in the past, either through gambling of some sort, or through losing patience with longer term trading strategies that turned sour. They most likely don`t have a large capital base, especially if they`ve been wiped out a few times in the past. And so the concept of… day trading stock online is incredibly appealing.

Unfortunately, far too many traders who`ve either made the switch to day trading – or who are brand spanking new to it and thereby lack basic risk management skills, embark on a journey they`ll never forget… for the wrong reasons!

For one thing, seduced by the apparent simplicity of it all, many traders approach the whole thing of day trading stock online without really knowing what they`re doing. Secondly, they have little or no concept of the underlying risks involved. Thirdly, as I`ve already alluded to, they often find themselves `horribly undercapitalized`. Fourthly, and most definitely a deal-killer…

They play with borrowed funds!

Not a good move… and a breach of fundamental trading basics to boot!

So, is it even possible to make a living from day trading stock online?

Yes it is. But the odds are stacked against you from day one. You absolutely positively HAVE TO HAVE A PLAN… or you`ll lose… simple as that.

For starters… you have to know your entry and exit points BEFORE entering the market. It`s no good waiting until the market has moved so far against you that you`re too frightened to take the loss! When you participate in day trading stock online you have to leave your emotions at the door and follow your plan like your life depends on it (which some might argue `it does`).

Suppose you buy 1,000 shares of abc-xyz at $1 per share – on a day trading basis… and you notice that the stock rises 30 cents a share before lunch. The left-side of your brain coolly advises you to `get out and pocket a massive $300 profit`. Hells bells… 30% in a morning is a good earn!

However, you also have this other side of your brain which has no basis in logic. It is commonly referred to as the `emotional side` or right-side of your brain. It also has a deeply embedded relationship with every gambler`s nemisis… `Greed`. Accordingly, you decide in your professional lack of wisdom to… `Just hold on in there a little longer… it`s bound to go higher`.

You go out and make some lunch, have a coffee… and smile…in the knowledge that you`re a day trading wizard who is on the brink of making a fortune. And it`s all so damn easy!

1.45pm…

The stock has reached intraday highs of $1.37… `Maybe it`ll hit $1.50 by closing bell?`

2.52pm…

News comes out that the company`s patent is invalid… the stock plunges to $0.60 in three minutes…

For you, the dream has not only been shattered, but the sky has just fallen in… and your $1,000 investment has reversed a $337 profit into a $400 loss… and it`s still falling.

You find yourself hurled into a maelstrom of helplessness, fear and chaos…but with no plan in place, you simply hang on in there.

3.30 pm…

Trading in the stock is suspended. The last trade went through at $0.42. You are so stunned you can`t even shed a tear. Your day trading career lasted precisely 6 hours, 22 minutes and 8 seconds…

`Welcome to the frenetic world of… day trading stock online`.

For some of you, this article may very well bring back some rather painful memories. For others, let it be a warning…

If day trading stock online is something that you are serious about and want to succeed in, then at least show you`ve got the intelligence, emotional control and discipline to survive the bad hits as well as bagging the big profits!

There are over 10,000,000 web pages in Google dealing with courses and coaching on the subject of day trading stock online. So, before you risk another cent… do yourself (and your bank account) a favour… and start researching the mentoring options out there… until you find one that suits.

Become A Daytrader! We Have Uncovered One Of The Most Sought After Scientific Trading Approaches Of All Time ... And It`s Yours Free! ... and it`s your FREE! Read It Now: http://www.becomeadaytrader.com/

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/non-fiction-articles/the-pitfalls-of-day-trading-stock-online-51721.html

Article Tags: The Pitfalls Of Day Trading Stock Online

Related Videos
Related Articles
Ask / Related Q&A

Play

Learn About Day Trading

Play

Do You Feel Lucky?

Play

No Homeruns!

Play

How to Recover from a Bad Day

Play

Trading Is A Mental Game

Latest Non-Fiction Articles
More from Jimmy Cox

In Bible versus Quran: God wrestled with Jacob all the night

By: Prof.dr. Ibrahim Khalil | 10/11/2009
The Bible says that Jacob was left alone; and the Lord God wrestled with him all the night until the breaking of the day. In the Noble Quran, Allah does not wrestle, if He wants to do anything, He just says: Be and it is.

Keep your memory, Keep your sweet flower

By: Writing is happiness | 09/11/2009
Do you remember the moment when you receive flower from someone? Someone who is a special one in your life, your boy friend, your husband, your best friends or your family. Do you remember the feeling when he sends the flower to you and something you see in his eyes, the feeling when you touch flower, the gentle petal flowers, sweet smell and the happiness around you? That is a impression moment you can’t throw away and you want to keep it forever.

In the Quran: your sight on the Day of Judgment will be very sharp

By: Prof.dr. Ibrahim Khalil | 07/11/2009
The Quran says that your sight on the Day of Judgment is acute, it is very sharp and piercing and is able to perceive what you used to reject in the life of this world.

In the Quran: They and their wives are on thrones reclining

By: Prof.dr. Ibrahim Khalil | 01/11/2009
The Noble Quran says that the inhabitants of Paradise, they and their wives are on thrones reclining; reclining upon couches

Way Back To My Land

By: Jagmohan Kathait | 28/10/2009
Article about need of connectivity in rural areas.

Story

By: Shanaz | 26/10/2009
This is a story I wrote

MONDAY MORNING BLITZ

By: patrick ozah | 25/10/2009
This article or story is based on my experience on a certain monday morning.

In Bible versus Quran: When the Earth was divided?

By: Prof.dr. Ibrahim Khalil | 23/10/2009
The Bible says that: And unto Eber were born two sons: The name of the one was Peleg. For in his days was the earth divided. Eber and Peleg are not present therein in the Noble Quran.

An Easy Way to Remember the US Presidents

By: Jimmy Cox | 06/05/2008 | Self Improvement
Every American should know the names of the Presidents. First we list the Presidents and find substitute words for their names. Beside each president write words of similar sound. The degree of similarity in sound is an individual matter. For the person who relies greatly on the aid of sound, the substituted word must be very like that of the word to be memorized.

Two Ways to Make Money from Your Greenhouse

By: Jimmy Cox | 25/04/2008 | Gardening
Perhaps you are not particularly interested in making money from selling potted plants, bulbs, or seeds. Still, you want a self-supporting or profit-making greenhouse. Although a number of hybridizers use their greenhouses to hasten the growth of many plants, including iris and roses, there are many things you can do with your greenhouse.

Basketball Basics: Faking and Moving Without the Ball

By: Jimmy Cox | 25/04/2008 | Basketball
Two important skills in basketball are faking and moving without the ball. Both should be practiced well.

How to Keep Your Car Battery Like New

By: Jimmy Cox | 24/04/2008 | Cars
You'll not get caught with your charge down if you give your car battery reasonable care.

Diets for Your Inner Self

By: Jimmy Cox | 24/04/2008 | Nutrition
Diets can achieve amazing results if followed faithfully, and here are three excellent ones: a cleansing diet, a health diet and a reducing diet.

Defend Yourself Using Aikido

By: Jimmy Cox | 10/04/2008 | Martial Arts
The origin of Aikido can be traced back to the Jiu Jitsu School of Daito. According to the records concerning the secrets of marshal arts, the Aiki Jiu Jitsu, as it was called during the Kamakura period in about the 12th century, was founded by Yoshimitsu Minamoto.

Coaching and Strategy in Baseball

By: Jimmy Cox | 10/04/2008 | Baseball
School teams have one coach who directs all play, offensively and defensively. He usually sits on the bench and gives signals to the first-base and third-base coaches, who in turn pass them on to the batter or base-runner.

How to Research a Term Paper

By: Jimmy Cox | 10/04/2008 | Writing
In some courses, especially in your senior year, you may be asked to submit long pieces of writing that may be loosely classified as term papers or research reports. Typical among these are studies of an author's characteristics or surveys of literary movements in honor English classes or analyses in depth of various topics in your science or social studies courses.