Day Trading tips

Always use a limit-order. The shares you consequently buy will be for the asking price or less and when you sell you will receive the bid price or more.

An increase or decrease in market volume/ turnover signifies under normal circumstances that there are a greater or a lesser number of traders active in the market.

Did you know that the majority of FTSE shares are traded on the American markets. One of the foremost advantages of dealing in these shares via the American markets is that the brokerage costs are considerably lower than in England For up to 10.000 shares the brokerage fee for the transaction is only $10.99.

When Day Trading successfully, too many aids and support systems can be a hindrance.

Remember that you are in a learning phase. Do not commit all your capital and don't take unnecessary risks. Inexperience can prevent you from recognising in time the many traps and snares that lie in your path. Observe and allow your shares to breathe and find their level on the unfolding stock market. Give profit the opportunity to present itself. Patiently watch the minute to minute progress of the market, study the graphics, note the time and volume. These are the practical experiences from which you will learn.

Be cautious with your money. The quickest way to lose your money is to allow a buying frenzy to go unchecked. The object is not to hastily carry out a large number of trades but to gather as much knowledge as will bolster a successful trade. Do not expect to make much money in the first 3 to 6 months. It can be argued that to make a slight loss might be the best learning curve.

It can be said that Day Traders work in a twilight world. There are only numbers, graphs and streamers on a monitor. Traditionally, business is carried out face to face, under convivial circumstances. In contrast the electronic stock market is virtual and faceless, for hour after hour it's only you and the faint hum of the PC and the eerie light of the monitors.

You know what sort of trading day it has been once you tote up your profits or you end up licking your wounds.

The market can be considered a living entity that has something relevant to say and you are best advised to listen. It will indicate what your next move should be.

Amateurs dream of how much they can make. Professionals calculate how much they can tolerate losing.

Novice Day Traders generally are oblivious to how little they know but the worst are those who have dipped into a couple of books and read some articles but have no hands on experience. Arrogance can all too easily be their downfall. This I confess I was once guilty of and paid the price.

It's not the strongest day traders that survive or the most intelligent but those who adapt quickly to the changing circumstances.