The vast amount of free trading information provided in the Day Trading Tutor website should give new traders a very good idea of where to start. Traders can also sign up for a free demo of the live t
June 8, 2006 (Press Release) --
Why do most day traders fail? It is really a no-brainer, claims CEO of Day Trading Tutor LLC, Dan Alvarez. He adds, “Most people start trading without a clear set of rules or conditions; in other words, without a plan or trading strategy.” He compares this with an architect trying to build the world’s largest building without having a floor plan first. The results would be disastrous.
When you think about it, having a strategy makes sense for just about anything – not just day trading. When a professional football team hits the field, they already have a specific plan of attack that they practiced over and over in order to beat the opposing team. No matter how good a new product is, its manufacturer always devises a strategy to market and distribute it in the most efficient and effective way possible. Why is this not the case in the financial world of trading?
“Because people are lazy and desperate,” says Alvarez bluntly. He claims that new day traders want to make millions in seconds, so they rush into opening a trading account and start pressing buttons to buy and sell almost randomly. Alvarez strongly recommends that even before newbie’s start looking for a day trading strategy, they learn the basics of the markets and order management. That’s why he created the “Seven Steps to Start Day Trading,” on his website, along with an abundance of other free trading information. “I always tell people, learn the basics of day trading before you dive in the market waters,” he says.
So what exactly is a “day trading strategy” and what should it consist of? Alvarez says that a strategy should be like a specific “to-do” list. It should precisely tell you when to buy, when to sell, how to deal with gains and losses, and how much to risk on each trade. Even though he says that traders can modify their strategy as they become more experienced, in the beginning it is important to follow the trading rules exactly. “If the strategy is too general – such as “buy when the market is strong” – traders are going to start messing up. Rules have to be specific; for example, ‘buy when the price of stock ABC surpasses its highest level in the last hour by X points and the XYZ indicator is above Y level.’ The strategy has to be objective – not subjective,” explains Alvarez.
While Alvarez claims that there exist many day trading strategies that work, he cautions new traders to stop looking for “the best” strategy or the “holy grail.” “There is no holy grail in day trading,” he sternly adds. “So many traders spend their lives looking for day trading secrets or miracle strategies. What a waste of time and money that is! Even though the strategy is important, even more important is a trader’s degree of discipline in implementing the strategy that he or she chooses.” Alvarez explains that a trader needs to be very patient and practice with a strategy for a long time before concluding that it does or doesn’t work.
Lastly, Alvarez adds that not all traders will be successful in implementing their trading strategy. “Day trading is not for everyone. There are psychological factors involved that might prevent certain people from becoming successful players in this field.
For more information, visit http://www.geocities.com/daytradingtutor/.
When you think about it, having a strategy makes sense for just about anything – not just day trading. When a professional football team hits the field, they already have a specific plan of attack that they practiced over and over in order to beat the opposing team. No matter how good a new product is, its manufacturer always devises a strategy to market and distribute it in the most efficient and effective way possible. Why is this not the case in the financial world of trading?
“Because people are lazy and desperate,” says Alvarez bluntly. He claims that new day traders want to make millions in seconds, so they rush into opening a trading account and start pressing buttons to buy and sell almost randomly. Alvarez strongly recommends that even before newbie’s start looking for a day trading strategy, they learn the basics of the markets and order management. That’s why he created the “Seven Steps to Start Day Trading,” on his website, along with an abundance of other free trading information. “I always tell people, learn the basics of day trading before you dive in the market waters,” he says.
So what exactly is a “day trading strategy” and what should it consist of? Alvarez says that a strategy should be like a specific “to-do” list. It should precisely tell you when to buy, when to sell, how to deal with gains and losses, and how much to risk on each trade. Even though he says that traders can modify their strategy as they become more experienced, in the beginning it is important to follow the trading rules exactly. “If the strategy is too general – such as “buy when the market is strong” – traders are going to start messing up. Rules have to be specific; for example, ‘buy when the price of stock ABC surpasses its highest level in the last hour by X points and the XYZ indicator is above Y level.’ The strategy has to be objective – not subjective,” explains Alvarez.
While Alvarez claims that there exist many day trading strategies that work, he cautions new traders to stop looking for “the best” strategy or the “holy grail.” “There is no holy grail in day trading,” he sternly adds. “So many traders spend their lives looking for day trading secrets or miracle strategies. What a waste of time and money that is! Even though the strategy is important, even more important is a trader’s degree of discipline in implementing the strategy that he or she chooses.” Alvarez explains that a trader needs to be very patient and practice with a strategy for a long time before concluding that it does or doesn’t work.
Lastly, Alvarez adds that not all traders will be successful in implementing their trading strategy. “Day trading is not for everyone. There are psychological factors involved that might prevent certain people from becoming successful players in this field.
For more information, visit http://www.geocities.com/daytradingtutor/.
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