Day Trading Profit Like a Pro in an Hour a Day

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Joel Thornton
8 years ago
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2 Day Trading Profit Like a Pro in an Hour a Day Imagine- you could achieve any level of riches desired by spending just 1 hour per day in front of your computer trading the stock markets. No, you don t have to be an expert to become a successful day trader. And no, you don t have to have a ton of money to get started! The concept of day trading is riddled with controversy. If you have ever been the slightest bit curious in the concept, the question of whether you can actually profit using this strategy has likely crossed your mind. The resounding answer is YES- you can make money by becoming a day trader! All you will need to begin day trading like a pro is a broker, a trading platform, a reliable and quick high speed Internet connection, some starting capital (as little as a few thousand dollars) and a proven strategy to implement. Let s put things in perspective- let s say your goal is to become a millionaire via day trading at the conclusion of your 1 st year. Is that possible? Well, there are approximately 250 trading days in any given year. If you were to strive to net $4,000 per day using those trading opportunities, you would yield $1,000,000 in your 1 st year. Over the next few pages, we will not only show you that you can make money, but how to do so by investing only an hour per day. Did you know that the majority of all trading volume occurs at either the beginning or end of a trading day? This is a little known secret shared among profitable day traders. So, Rule #1-Spend your single hour per day trading immediately following the market s opening. Wealthpire, Inc. Page 2

If you have ever been the slightest bit curious in the concept, the question of whether you can actually profit using this strategy has likely crossed your mind.

3 Now that know when to spend your time day trading, let s explore how to make that single hour per day as profitable as possible. Volume Research As you consider individual securities, spend time examining its trading volume during the early and concluding trading hours of the day. Securities that experience significant activity during those hours often represent a strong opportunity to profit from slight price variations during that same period. To capture a great bargain, set limit orders at unusually high or low price levels for your chosen security in an effort to see if you can snag a deal following the market s opening. Leverage Limit Orders One method of trading in more sheltered fashion during the market s opening hour is to use limit orders. Limit orders enable you as the investor to establish the maximum price that you would be willing to sell or buy the underlying security for in lieu of selling at the current market price. For example, if you currently own stock XYZ and don t want to sell it for less than $24 per share, consider placing a limit order with your broker for $24. If the stock price triggers by falling to $24 per share, your holdings will be entered as a sale, enabling you to in a sense, protect possible losses at that price point. Limit orders essentially offer some protection for your trading capital, particularly if you aren t able to watch the markets constantly, and/or if an unexpected price occurs rapidly for a given security. Gap Trading Gap trading, or playing the gap, refers to an investment strategy whereby investors take advantage of gaps in a particular stock s price. Gaps are when a stock s price increases or decreases sharply on trading charts with little to no trading in between; essentially, these are gaps in the stock s normal pricing patterns. Wealthpire, Inc. Page 3

Securities that experience significant activity during those hours often represent a strong opportunity to profit from slight price variations during that same period.

4 There are 4 primary gap types, including: Breakaway Gaps- Occur at the end of a price pattern, often signaling the beginning of a new trend in the underlying stock. Exhaustion Gaps- Often signaling the attempt to reach new highs or lows, these gaps also occur at the end of a price pattern. Continuation Gaps- Occur in the middle of a price pattern, signaling the belief of a group of traders that the price will sharply rise or decline Common Gaps- These gaps offer little explanation in terms of patterns, but signal a gap in price and an opportunity for day traders. Each of these gap types can be observed in price charts; spend time learning how to read movements by studying prior trading day s activity levels. It is important that you learn how to recognize trends prior to leveraging this technique. Some things to keep in mind if you choose to trade gaps are as follows: Trade in the direction of the price movement Pay attention to earnings reports and announcements Once the price regresses back to the original starting point, the gap has been filled and the opportunity to profit has ceased. One of the best ways to profit using gap trading techniques is following quarterly earnings announcements after the close of a market. For example, if you purchased stock ABC for $25 per share, expecting it to rise to $30 per share following the announcement of positive earnings following today s market close, there is a $5 Wealthpire, Inc. Page 4

Continuation Gaps- Occur in the middle of a price pattern, signaling the belief of a group of traders that the price will sharply rise or decline Common Gaps- These gaps offer little explanation in

5 gap opportunity per share if you are correct as the opening price the following day would be $30 per share. To profit using the gap strategy, you must not only pay attention to the underlying stock s general price movements, but in particular, to the movements at the close of the market the day prior and immediately upon its opening the next day. While these above strategies won t guarantee that you will become a profitable day trader, following the principles along with some daily discipline can propel you into the same financial category as the day trading pros out there. So in no time, you too could join the ranks of wealthy day traders! For more tips on how to profit like a pro as a day trader, visit!!!"#$%&'()*%+%,-$./"0)1" Wealthpire, Inc. Page 5

and immediately upon its opening the next day.

A Message from author Dan O'Brien

A Message from author Dan O'Brien Hi there. As the head educator and a mentor here at Trading Advantage I am excited to be a part of one of the largest schools for traders in the world. Located at the