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How Do You Make Day Trading a Career?

How Do You Make Day Trading a Career?
Stockscores Foundation for the week ending April 15, 2019

In this week's issue:




In This Week’s Issue:

  • Upcoming Events – Live presentations in Calgary and Vancouver
  • Stockscores’ Market Minutes Video – Will the Stock Market Crash?
  • Stockscores Trader Training – How Do You Make Day Trading a Career?
  • Stock Features of the Week – Abnormal Breaks

 

Upcoming Events

Live in Calgary on Wednesday, Vancouver on next Tuesday. Come say hi if you are in those cities!

 

Wednesday April 17 7pm MT – How I Trade the Stock Market, Live in Calgary

Click here to register (after registering the page will jump back to the Stockscores site with no confirmation but you are registered!)

 

Tuesday April 23 7pm PT – How I Trade the Stock Market, Live in Vancouver

Click here to register (after registering the page will jump back to the Stockscores site with no confirmation but you are registered!)

 

To see more upcoming webinars, Click here

 

Stockscores Market Minutes – Will the Stock Market Crash?

When will the stock market crash? This week, I take you through a simple method to know when market weakness is approaching. I also provide my analysis of the overall stock, oil, gold and bond markets and then go on a search for some stock trading opportunities. Finally, a look at the trade of the week on CTRM.

Click here to watch

To get instant updates when I upload a new video, subscribe to the  Stockscores YouTube Channel

 

Commentary of the Week – How Do You Make Day Trading a Career

This is the answer that I recently posted on Quora to the question, “How can one learn day trading and really make a good income?”

Day trading is simple, but not easy.

Like anything, it takes knowledge and practice to become good at it. Unlike most things, there are no significant barriers to entry so anyone can try. The result is that there are many aspiring day traders who lack knowledge and experience who fail quickly. These people then say that day trading successfully is not possible.

I have been trading for 29 years. When I started, it was not really day trading in the way that it is today. Fast, low cost order entry was not available. When I started, I had to call a broker on a phone to do a trade.

The easiest time to day trade was in 1999. Anyone with a computer and a heart beat could make money because volatility was so significant and the upward trend so strong. A lot of people convinced themselves that they were good traders but then lost everything when the market collapsed. They only knew how to make money in a market that was going up. Good traders will make money whether the market is going up or down.

Day trading today is more difficult because the market is more efficient. Humans are trading against computers and computers are faster and have no emotion.

Still, computers are predictable so a day trader who understands how the computers trade can take advantage of them.

To answer your question, here are the steps:

  1. Gain Knowledge. Either teach yourself or find a teacher who also trades. The market is constantly evolving so your teacher has to be trading every day or they can’t be teaching an approach that will work for you. There are trading approaches that worked even 2 years ago that don’t work any more.
  2. Make the Knowledge Your Own. Take what you are taught and understand it so well that it feels like you are trading your approach and not one that was just taught to you.
  3. Practice. The only way you can be really good at something is by practicing it a lot. Practice with either no financial risk or very low financial risk because making mistakes when you are learning is inevitable. The mistakes will be the same whether you risk a little or a lot of capital but the cost will be different.
  4. Make Capital Preservation Your Number One Goal. If you lose all your money, you can’t trade. Take time to build your capital base up by starting with a very low amount of risk per trade and only increase it when you are successful and increase your confidence.
  5. Enjoy It. Since trading successfully is very challenging, you must enjoy it. Without a passion for trading you will not put in the hard work, determination, focus and emotional control it takes to succeed. Trading is simple, but it is not easy.

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This week I ran the Abnormal Breaks scan and found the following two stocks that I think have good potential:



1. PE
PE is breaking out of a lengthy sideways trading range with strong volume support on the breakout. Support at $18.

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2. T.LUN
T.LUN is breaking its downward trend line this week and appears to be starting the next phase of its long term turnaround. Support at $6.50.

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References

Disclaimer
This is not an investment advisory, and should not be used to make investment decisions. Information in Stockscores Foundation is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The writers and editors of this newsletter may have positions in the stocks discussed above and may trade in the stocks mentioned. Don't consider buying or selling any stock without conducting your own due diligence.

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