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Due to the gaining popularity of technical analysis (analyzing stock charts) used by traders and investors, most daytraders these days use only their complex stock charts (aside from stock specific news) in determining when to buy or sell stock. For example, if the stock looks like it is going below the 200 moving day average, they sell. And if the stock lifts above the volume weighted average price for the day, they get long. Success...

An equity daytrader's goal is to profit off intraday price swings in invidivual securities. The greater the intensity of intraday price fluctuations (bigger stock price swings up and down) and the higher frequency of spotting these situations are a daytrader's dream. More volatility = More profits to be made! So how do you trade stocks in volatile markets? I trade with the same caution as I do in slow markets but I will try to trade...

Pairs Trading is a market-neutral trading strategy where a long position is matched with a short position in a pair of highly correlated securities, such as two different ETFS, stocks, commodities, etc. Some people refer to it as a statistical arbitrage or convergence trading strategy. The profit motive of pairs trading is to get long the security that is underperforming and to sell short the one that is overperforming. The trader's...

Every person I have talked to over the past two decades who have asked me for stock trading advice, I have always recommended them to read one book. And that is Reminiscences of a Stock Operator by Edwin Lefèvre: Why do I cherish this book so much? Because it accurately details what life can be as an equity trader. Even though the story takes place in the early 1900s, the physchological impacts of the stock market on Jesse Livermore...

A rule of thumb that I cannot stress more is: Do not do "overnights" if you are a daytrader. An overnight is a trade that has not been closed by the end of the trading day and held to the next day. Why? From my own personal trading and from what I have observed when I was at my prop trading firm, is that overnighting losing daytrading positions (trades where you are already losing your shirt) usually results in bigger losses. It's...