Day trading forum australia
Diversification is the name of the game, particularly if you are gearing into your trades otherwise the risks can be substantial. You need to diversify across companies and across industries, so that if one sector falls, you limit the downside.
The Commsec product allows you to monitor movements as they happen, personalise your desktop for your trading style and place orders. In addition to this, many traders use software programs or toolboxes that reflect their trading style. Some programs are set "black box" programs which just provide you with a proprietary system that tells you when to buy and sell without explaining the reasoning behind the decision.
You are probably better with a program that gives you the flexibility to adapt it to your own needs. And this is where you need to educate yourself so you are in a position to make the toolbox your own and thus make wise trading decisions.
What you choose will depend on your strategy. The different strategies include charting, momentum trading, mispricing and fundamentals. Whatever strategy you choose you need to be disciplined in your trading to maximise your returns. So, for instance, if your rule of thumb is that once a share price grows by 10 percent, you will sell out, you should stick with it. Commsec, for instance, has a tool that automatically triggers a sale when you reach your target. The new product on the block is the contract for difference or CFD, where you can bet on whether a share will go up or down without physically owning the stock.
However, as CFDs are traded using leverage, if you misjudge the market your losses will be amplified. Another increasingly popular type of trading, according to Dan Semmler, associate director at Macquarie Equities Markets Group, is pairs trading where you go long in one stock and short in another but in the same market sector. Karen Robinson from Queensland gave up full-time work as a professional musician back in to concentrate on day trading.
Robinson is a chartist and so she chooses not to look at the fundamentals of the company at all bur rather the patterns in speculative stocks. Donec dictum pulvinar orci. Curabitur metus quam, dapibus quis, molestie ac, eleifend a, nisl. Vestibulum ante ipsum primis in faucibus. Dolor sit amet, consectetuer adipiscing elit. Vestibulum ante ipsum primis in faucibus ante ipsum ante ipsum consectetuer adipiscing.
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