Tips For Becoming A Successful Day Trader

Make your online day trading dream a reality.

Many people dream of becoming full time online day trading. In this day and age, anyone with an internet connection and a brokerage account can start trading stocks, commodities, Forex currencies, and futures from the comfort of their own home. However, statistically, most people who go into day trading fail.

It takes a lot of effort to become a successful day trader. You have to know the market, this only comes with experience. You have to be able to get control of your emotions to be able to see opportunities and act on them. The best way to get a leg up on the day trading competition is to have a mentor advice you through the early stages. Mentors are available for you. Unlike books and videos, mentors can answer questions and give you useful feedback. Mentorship is expensive but not as expensive as losing a small fortune on the stock market. Always make sure to look into the background of the mentor you get to make sure they are legit for the price.

When you are trying to make a living out of online day trading it is best to start out with money you can afford to lose. There will be a time for a day trader to use risk capital at some time in order to become successful however it is best to avoid the use of risk capital when just starting out as a full time online day trader. Remember that scared money being bet on the stock market never wins.

As a full time online day trader it is necessary for you to keep a journal of all your trades. This journal must be updated daily and contain all the trades you did that day as well as any relevant information concerning the future of those trades. By using a journal you will be able to keep track of your expense, strategy, and thought process associated with a day to day progress. It is an infinite learning tool as you can come back and examine your strategy and see what kind of results you were achieving. .Just like a business, you will be required to keep track of your expenses and keep them as low as you possibly can. This is mostly maintained by carefully selecting your brokerage firm. You might be able to cut expenses with your internet service provider and on computer equipment as well.

Agriculture Stocks Worth Looking At

At the moment hard commodities, tech and energy have been garnering the lion’s share of attention. A number of commentators have pointed out that, long term, the agricultural business looks like it can only go up. Jim Cramer on “Mad Money” has stated several times on his show that agricultural could be at the beginning of a twenty year bull market. Potash, Monsanto and Deere are commented on regularly on CNBC’s “Fast Money.” Here are some stocks and securities in the agriculture sector that I find interesting. All trade on the NYSE. Factual information is from www.schwab.com and was gathered after closing on 12/30/09 from each security’s chart.

Monsanto
Symbol: MON Price: 82.61 PE: 21 Div Yld: 1.29%
The main interest in Monsanto comes from their genetically altered seed business. Monsanto’s seeds enable foods to be grown in harsher environments and produce higher yields. As food demands increase
worldwide so should demand for Monsanto’s seeds.

Del Monte Foods
Symbol: DLM Price: 11.59 PE: 9 Div. Yld: 1.8%
Del Monte specializes in fruits and vegetables. Performance has been improving and several analysts have raised ratings on the stock the past few months. Many are still neutral. Continuing improvement should move more analysts into the buy column and increase the stock price.

Barclays Livestock Sub Index Fund
Symbol: COW Price: 27.99
This exchange trade fund tracks indexes of hog and beef futures. As other parts of the world become more affluent demand across the globe for these products should rise. Like most exchange traded funds it can be used as a trading vehicle, but also can be used as a long term sector investment.

Market Vectors Agribusiness Fund
Symbol: MOO Price: 44.04
More diversified than COW, Moo tracks the Dax Global Agribusiness Index. As a result it has holdings in a variety of subsectors. Potash, Deere, and Monsanto are amongst it’s top holdings. For the investor seeking to invest in a single security in the sector Moo looks like a viable candidate.

Deere & Co. (John Deere)
Symbol: DE Price: 54.77 PE: 27 Div. Yld: 2.04%
The leading producer of farm equipment, as world agriculture increases, so should sales of Deere’s equipment.

Potash
Symbol: POT Price: 109.07 PE: 13 Div. Yld: .37%
The leading producer of fertilizer. As world demand for agricultural products increases, so should demand for fertilizer. This would mean increased sales, prices and margins for Potash long term..

Dupont
Symbol: DD Price: 34.05 PE: 46 Div. Yld: 4.80%
Technically a chemical company, Dupont is a stealth play on agriculture. About 25% of their business comes from genetically altered seeds, similar to Monsanto. If you like both chemicals and agriculture, Dupont deserves your consideration.

Full Disclosure: I am not employed in any fashion by any firm in the securities industry nor do I have a business relationship of any type with the companies mentioned. As of this writing I do not have any holdings in Deere & Co or Del Monte. I hold less than 2 shares of the other securities mentioned to keep on their mailing lists. This is not an offer to buy or sell any security, nor is it a recommendation. These are simply my thoughts on these securities. Please consult your own investment adviser and research any security thoroughly before making any investment.

Knowing When To Sell Stock

For somebody new in the stock market, you will spend quite a lot of time researching on stock options that will give you good gains. Even with thorough care, there is still a possibility of having the wronginvestments for the stock market can be quite a rough place to be in. It is a place where you can earn a lot of money quickly, and a place where you can lose a lot of it, too.

Some stocks are worth keeping, especially if you have invested in a company that is well established and can stand variations and fluctuations from the economics of the market. These stocks have nowhere to go but up, and in time will probably have no way of returning to the value you purchased them at. This can serve as one of your retirement plans eventually.

There may be instances wherein you might have to sell short of your targeted goals for a number of reasons. One, of course, is that something may have happened to the company you invested in and it would be better to just sell short and still make gains.

Many will tell you that the simple rule is to buy low and sell high. Situations in the stock market may not be as simple as this. That is why information about what the company is, how it is run and managed, and how they fare in the market are just some of the factors you must learn to help you decide to invest in a certain company or not. Even companies with a good lineup of products may not be successful at a particular time because of certain economic situations. Too aggressive a management that will insist on expanding too fast and too much might also put your investment at risk.

Try to consult a financial analyst on how to plan out your investments. They will be the best guide you can have in choosing the proper stock options. Also, try to discuss with them the timeframe on which you expect certain investments to mature. They will be able to compute back on a more or less expected value by the end of it, and let you know if, at certain times, when to reinvest a certain amount of capitalization to achieve your goal. Careful planning and not too many hasty decisions will be an outcome for good results. So, if you are working on specific goals, the best approach would be a gradual one.