As we close out the year and look ahead to 2016, your focus is probably on a number of things, such as your amount of professional success, the current state of your finances, the wellbeing of your family, etc.
And one major thought that will almost definitely creep into your mind is, “How do I make more money next year?”
You’re not alone in this thought, but you’re one of the very few who have access to certain secrets that only Wall Street Informer can bring you.
And one such secret that could make you thousands in the upcoming year is how to easily become a successful day trader…
As a member of Wall Street Informer, you’re someone who knows that there’s plenty of money to be made in the financial markets. That alone is something that separates you from the majority of people.
But simply knowing that fact won’t make you wealthy.
You also need to uncover the specific ways to make money, systemize it, and use it over and over again to build up your income in this regard.
One way is to learn the secret of successful day trading, which is nothing more than being able to identify particular opportunities to make easy money in a very short period of time.
Here’s how to do so in 3 simple steps:
1. Recognize the overall trend
Seeing the trend od the market as a whole is slightly less important to day traders than traditional investors, but it can still hugely affect your performance. The direction of the stock market in general will push or pull the majority of individual stocks in the same direction, which means you have a significant advantage if you can apply some common sense and see if the market is heading up or down in general.
So step one is to identify which direction the stock market is heading. I recommend looking at the benchmark S&P 500 stock market index as your guide for this.
2. Pick out individual securities with certain characteristics
The next step is identifying the actual securities you’re interested in trading. A suggest picking out a handful to track, so you have options when it comes to pulling the trigger on a trade.
Here’s what you want in a security on your shortlist:
- A tendency to follow patterns,
- A recent history of relatively large intraday movement,
- A security you can trust, and
- Strong “walls”
By “walls” I mean sturdy price lines that the security in question greatly respects. When this is occurring, the price of the stock will be bouncing between two lines, forming a box of sorts.
For example, Stock ABC might be bouncing between $25 and $30. SO it will rise to $30, then bounce off and come down to $25, and then do it all over again.
Once you have several candidates that fit that bill, it all comes down to this…
3. Pull the trigger at a bounce point
The final part of this equation is recognizing when a security on your short list is reaching a bounce point. You want to know when Stock ABC is about to bounce up or down, right?
That way you can make a trade betting on a climb or fall in a short period of time.
So all you need is to set up an alert, whether it’s on your online brokerage account or your cellphone through a stock market app. This alert should tell you when the security you’re interested in day trading gets close to a bounce point.
For Stock ABC, you might set an alert to tell you when the security clombs above $29.50 or below $25.50. That way you have a chance to make a bearish trade by shorting Stock ABC when it hits $30 and bounces down, and vice versa for when it hits $25 and bounce up.
Following those specific rules of day trading will make success easy to find in the upcoming year.
