1st Place! Best Binary Broker 2020!
Best Choice for Beginners — Free Education + Free Demo Acc!
Sign-up and Get Big Bonus:
2nd place! Good choice!
a Complete Guide for Binary Options Trading
Daily Trader Club is a binary options robot created by Stephen Gilbert, who was just a regular guy from a regular neighborhood. Until one day of course, he gets to talking to his rich and self-employed friend, Mike who only worked a few hours a week and yet was absolutely loaded. Mike introduced him to the Daily Trader Club, created by four people named Jeff, Bojing, Richard, and Amrit. The first two whizzes were math geniuses while the other two were coding geniuses.
The program they created analyzes billions of trades every day and then ‘snipes’ the best ones for them, which results in their astounding 87% success rate. And now of course, there is a chance for you to be in the club!
So will the Daily Trader Club push you into the club of successful binary options traders? Or is it just another scam? See the answer below!
Software: 100% Automated
Max Returns: Up to 88%
Minimum Deposit: $250
Countries: All nations
- Nothing but stock images
- Faked testimonials, Twitter feeds, and Facebook account
- No longer operational
Not Reliable Service
What is Daily Trader Club?
Do we even need to reiterate this at this point? One look at the story of the everyman with a rich friend who lets him in on some proprietary money making software and you will know that this is nothing but a scam. That trope is tired and old, and the Daily Trader Club is a cheap and lame scam. In fact, it’s nothing but a rehash of another scam robot, BIT Options Society.
Anyway, the only money that these scammers appear to have spent on is for purchasing stock photos. Lots and lots of stock photos. In fact, of all the scam robots we have reviewed so far, Daily Trader Club might actually win some sort of award for the highest number of stock photos used in a scam robot. There’s not even one real person in the whole Daily Traders Club scam. As we mentioned, there are many other stock photos in used by the scam, all the way from fake testimonials to fake Twitter and fake Facebook accounts.
They even photoshopped fake Bloomberg and CNN articles! Too bad they forgot to use spellcheck for the Bloomberg one; we hardly think the Bloombeg editors would let ‘Daily’ to be misspelled as ‘Daly’ in a headline.
How Does It Work?
So you know by now (if you didn’t realize upon reading the first 2 paragraphs in this review), that the Daily Trader Club is nothing but a scam. And while most scammers don’t rehash the scam so blatantly, the business model remains the same.
You see, the binary options brokerage industry is absolutely cutthroat; there is very little to almost non-existent differentiation between the brokers and hence one way the brokers try to promote their services is via affiliate marketing. And while there are many legit ways that an affiliate can promote their partner broker, there are also many unethical and illegitimate ways to promote said brokers, and creating scam robots is one of them.
This means that the scammers earn their affiliate commissions the moment you fund your account through the robot; even before you even start trading! It’s no wonder that these robots are offered for free and are so hyped up; by the time you discover the truth, it’s already too late!
1st Place! Best Binary Broker 2020!
Best Choice for Beginners — Free Education + Free Demo Acc!
Sign-up and Get Big Bonus:
2nd place! Good choice!
In our case, the Daily Trader Club site was not able to redirect us to any broker. This is normal; these scam robots never stay up for very long, thanks to reviews like this one, and the scammers have likely moved on to their next scam.
The Daily Trader Club is nothing but a low budget robot that is in itself a rip-off of another scam robot. Instead of an 87% success rate, there is a more than an 87% chance of you losing all your money. Not even worth a second glance.
7 Binary Options
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The Daily Trader Club is a binary options application that claims to make you a millionaire within days. Since these promises are more than exaggerated, we decided to make a review and come with a recommendation for our readers.
Software: 100% Automated
Max Returns: Up to 90%
Minimum Deposit: $200
Countries: All nations
- The system is web-based
- The system is automated
- It has mobile trading versions
- The trading signals are poor
- The withdrawal procedure is complicated
- There are no positive comments
Not Reliable Service
What is Daily Trade Club System?
Daily Trade Club is a product developed by Stephen Gilbert. As if the ‘becoming millionaire’ story was not enough, the system claims it has a lot of bonuses and special offers. Well, we think that all of these claims are just marketing tricks and nothing really works as described on their sales page.
It is true that we could not collect much evidence that could demonstrate the system is a total scam. However, given that you can hardly find any positive comment, it would be smarter to stay away from this binary system at least for now.
As one could expect, the sales page or the official website generates the first impression. The same was true when we checked Daily Trader Club. We will be sincere with you – there are not some evident or blatant mistakes in relation to the website design, format, content, and so on. However, it doesn’t look solid either. First of all, the provided info is focused on how much profit you can make rather than how the system actually works. You may find it difficult to get an in-depth understanding of how you should use the system and what are the steps for applying it in your binary trading.
One of the main disadvantages that hit the Daily Trader Club’s reputation is the fact that the application does not work with regulated brokers. The brokers listed on their page are probably scams as well, and they all work together in tandem.
Another problem we could note is related to their customer support. You may be thankful that such a service at least exists. Well, in fact the customer service is available only via email, and it’s probably used to simply push their system and advertise it even more aggressively. There is no live chat or phone communication methods available.
Moreover, Stephen Gilbert, the so called developer of the system, has got his picture from another website, which makes us think he is simply a fake personage with a fake story. We would recommend our readers to stay away from binary brokers and binary robots that use such methods to promote their products. Even the testimonies are false. We could not find any real persons that have generated at least a few hundreds of dollars.
Even though the Daily Trade Club system is free after registration, you should still deposit money with one of their listed brokers.
How does Daily Trade Club Work?
There is not so much info on how the system works. We hear about promises, bonuses, high winning rates, but we don’t know what kind of algorithm stays at the core of this system. All we know is that this robot can generate binary signals in real time, so that you can use them on your trading platform. As you could expect, the system can trade on its own based on the signals it provides, so that you could focus on your daily activities without getting involved in the trading process.
If you really want to risk with Daily Trader Club, you should know that the signing up procedure is not complicated at all. You have to complete the registration page with your person data and you’re done with this.
Next, you can start trading with one of the listed brokers, but only after making an initial deposit. If you are successful and made some good profits, you may try using the withdrawal procedures. We anticipate that the last step is the most problematic, as the scam systems don’t return money to their clients.
Final Conclusion: is Daily Trader Club a scam?
Our final verdict is that Daily Trader Club is most likely a scam, as the developer has used a fake story. We recommend our readers to search for other binary robots that are reliable and have some years of experience in the market.
The Best Day-Trading Courses
When shopping for day-trading courses, you should consider only those that were created by someone with many years of trading experience: at least five and preferably 10. That way you know they have been through the ups and downs of markets and are a better trader for it. Many courses you find online, offered by people with only a year or two of experience, likely won’t be around a couple of years from now.
Experience isn’t everything, though. The course should be taught by someone who can convey information clearly and who has a passion for trading.
Here are some established, quality courses to consider if you’re starting your day-trading journey or have been trading for a while but need help. These courses have been vouched for by many traders, based on their own experiences. Course prices may have changed but were accurate at the time of publication.
Day Trading Academy
Day Trading Academy focuses on futures trading, primarily E-mini S&P 500 (ES) futures. DTA teaches a method of trading based on price action, so you learn how to read and anticipate market moves, allowing you to adapt to all types of market conditions. Some indicators are also used to help new traders see how the price action is unfolding.
The curriculum consists of four modules: Your Introduction to Day Trading, Learning & Understanding the Indicators, Congressive Strategy & Legacy Trades, and Transitioning Into the Live Market. Each module consists of multiple videos and exercises you complete that you can submit for review.
The course is $2,997 and includes (all online) access to the course, three months of one-on-one mentoring, weekly webinars/live trading classes, review classes, and video recaps showing the main opportunities (based on the strategy being taught) each day. Packages with additional mentoring time are also available.
Personal mentoring takes a lot of time and is an invaluable resource. You get to address your specific trading issues with a professional trader who has been through what you are going through and has successfully navigated past those issues.
If you are interested in learning to day-trade with DTA, go to its website and sign up for the free starter kit.
DTA was founded by Marcello Arrambide. He began trading in 2002 and started the DTA in 2020.
The Stock Whisperer
The Stock Whisperer offers a number of different services and courses. Join The Java Pit to watch Stefanie Kammerman, the Stock Whisperer herself, trade live. In addition to stocks, Kammerman trades options, futures, currencies, and cryptocurrencies.
The Java Pit is $9.95 for the first month and then $69.95 per month after that. You’ll learn a lot as you get tips from Kammerman and the traders in her office. Kammerman also records a Dark Pool Weekly Whisper video of her hottest trades for the week that’s available to Java Pit members.
Kammerman also offers day-trading courses. To learn more about them, you have to fill out an online questionnaire or call an 800 number to make an appointment to speak with a member of her team.
Kammerman began trading in 1994 and began teaching online in 2020.
If you are interested in trading stocks, futures, options, and currencies, TRADEPRO Academy has three different educational packages available: Swing Trader, Pro Trader, and Elite Trader.
The Swing Trader package is $129 a month and includes a weekly webinar and daily and weekly trading emails; courses on trading stocks, options, and currencies; and 24/7 customer support.
The Pro Trader package is $179 a month and adds on a futures day trading course and access to the live trading room from 9-11 a.m. Eastern Time.
The Elite Trader package is $219 a month and adds on a course in trading psychology, extended access to the live trading room, 24/5 access to the community trading floor, and monthly group coaching.
George Papazov is the founder of the academy. He started TRADEPRO in 2020 after having traded for more than 18 years.
Some Words of Caution
Even with the best education, most wannabe traders will still fail, because they don’t practice what they are taught or they choose to ignore some or all of the advice they were given. Trading isn’t easy, and unsuccessful traders are more likely to blame the teacher or the market for their failure. That means you’ll see negative reviews on all trading schools and courses. Pay attention to those reviews that offer thoughtful criticisms. Similarly, read the positive reviews, but don’t take everything that’s said at face value.
Being a professional day trader is like being a professional in other careers: It takes a lot of work, time, and dedication. Day trading can also feel like a battleground. In order to win, your skills need to be better than most of the other traders in the marketplace. You must be less affected by your emotions than those around you, and you should practice a reliable strategy for hours a day, for months, before you can expect to see consistent, profitable results.
If you opt to take one of these day-trading courses—or another one you select—ensure you make the most of it by engaging yourself in the process of learning, working hard, and practicing what you are shown.
The Balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
Why We’ll Never Recommend Day Trading
If youвЂ™ve ever watched cable financial news, youвЂ™ve certainly had to sit through commercials offering tips on day trading stocks or perhaps currencies. These flashy ads are certainly convincing. After all, who doesnвЂ™t want to earn excess profits and live a wealthy lifestyle?
Well, we all know the old adage “If it sounds too good to be true, it probably is.” There have been a number of scams concerning day trading over the years. ThereвЂ™s also been some debate as to whether day trading offers the type of profit potential for investors that those hyping it would have you believe.
Here at Investor Junkie, we’re skeptical of these hollow promises. In fact, we donвЂ™t recommend day trading at all. HereвЂ™s why.
What Is Day Trading?
First, hereвЂ™s a brief rundown of what day trading is. Investopedia defines it as “the buying and selling of a security within a single trading day. This can occur in any marketplace but is most common in the foreign-exchange (forex) market and stock market.”
By definition, day traders need to monitor the markets for the securities they trade on a continual basis. They also need to understand the market forces that impact pricing. And of course they need to execute trades based on an objective system versus letting their emotions govern their actions.
Huge Time Commitment
Day trading is not an endeavor that you can do on a here-and-there basis. Whether you are trading stocks, currencies, commodities or futures contracts, the trading should be done when the market for these items is open. Day traders have to develop a system and spend most of their time examining the market with a fine-tooth comb for signals that itвЂ™s time to buy or sell. So in order to be a successful day trader, itвЂ™s practically going to have to become your job.
I live in the Chicago area. Over the years, IвЂ™ve known a few traders on the various commodities and futures exchanges located here in the city. These are the ultimate day traders. Each of them impressed me as a professional who understood the markets they were trading in, as well as the impact of volatility (or the lack of volatility) on the commodities or futures contracts they were trading.
These were not people who took some course or who read a couple of books and then started trading one day. Becoming a good day trader isnвЂ™t a hobby by any stretch of the imagination. It takes a lot of time, skill and expertise.
Greater Capital Requirements
Day trading can result in rapid gains and lossesвЂ¦ in a single day. Typically, day traders will want to have sufficient capital reserves.
In the case of day trading stocks, the SEC (Securities and Exchange Commission) has set a $25,000 minimum margin requirement for a “pattern day trader.” The SEC defines this as:
Any customer who executes four or more “day trades” within five business days, provided that the number of day trades represents more than 6% of the customerвЂ™s total trades in the margin account for that same five business day period.
There are no minimum capital requirements for currency traders. Those contemplating day trading should be sure to check for any requirements regarding the markets or investment vehicles they will be trading in.
(And if you’ve got less than these steep minimum requirements but want to invest, here’s how you can get started with only $1,000.)
Higher Tax Rates
Gains and losses on day trading activity are subject to taxes just as with gains and losses on other investment income. Given the potentially high volume of trades, it is critical that you keep track of these gains and losses so as to not misreport your income to the IRS.
Gains from day trading are considered short term and are taxed at a higher rate than long-term capital gains. Currently, the gains made on investing assets that are held for more than one year are taxed at 15%. If youвЂ™re seeing gains on assets held for a shorter time period, youвЂ™re going to have to pay a tax rate starting at a whopping 28%.
You Could Lose Your Shirt
Of course thereвЂ™s a very major reason we donвЂ™t recommend day trading. Here at Investor Junkie, we believe that the best investments are made with your long term in mind. Whether you invest in real estate through a crowdfunding platform such as Fundrise or in ETFs (exchange-traded funds) in your IRA with a robo advisor like Wealthfront, the goal should be not to make huge gobs of money but to protect and steadily grow your savings.
Day trading is akin to gambling. And just as if you were a high-stakes player at a roulette wheel in Vegas, you could lose your shirt in the blink of an eye. Even professional traders hit slumps of their own doing or related to market or economic factors beyond their control.
How much money can you afford to lose day trading? Do you have the discipline to set a limit and walk away if losses reach that limit?
This is an issue of emotions and — of course — is not limited to day trading, but it is important that anyone who embarks on day trading set limits and stick with them.
If you are thinking of becoming a day trader, itвЂ™s important that you look beyond the hype and understand whatвЂ™s involved, including the potential risks and rewards. And if that doesnвЂ™t sound like an appealing proposition to you, you might want to look at safer ways to invest.
Here at Investor Junkie, weвЂ™re big fans of investing in real estate — be it through individual fix and flips or through crowdfunding platforms. In fact, weвЂ™ve found several ways in which real estate investments beat the stock markets.
If thatвЂ™s not your thing and youвЂ™d rather explore the stock markets, there are plenty of great stockbrokers that have tools to help users become successful active traders. For example, TD Ameritrade offers lots of cool features to help you make the right market choices.
We believe that investing should be about improving your future, not potentially losing it. ThatвЂ™s why we donвЂ™t recommend day trading to our readers.
Day Trading 2020 – How To Start
DayTrading.com is the top international guide to online day trading in 2020. Beginners who are learning how to day trade should read our many tutorials and watch how-to videos to get practical tips for online trading. Experienced intraday traders can explore more advanced topics such as automated trading and how to make a living on the financial markets.
Trade Forex with top rated broker Forex.com, which has been selected based on its high rating and your location.
Why Forex? Forex is the biggest trading market in the world and also the most commonly used by new traders. You can trade 24 hours a day, 6 days a week, which makes it ideal for trading from home even if you have a daytime job.
If you accept more risk, products like binary options and CFDs can return close to 100% on a single successful trade with top broker Nadex. These products can be used on the forex markets for 24/6 access and results are achieved in minutes rather than hours.
Top 3 Brokers
When you want to trade, you use a broker who will execute the trade on the market. The broker you choose is an important investment decision. Below are some points to look at when picking one:
- Speed of execution – Due to the high number of trades you might make in a day, speed of execution is important – as is getting the price you need, when you need it.
- Costs – The lower the fees and commission rates, the more viable day trading is. Active traders will be trading often – minimising these trading costs it vital
- Regulatory compliance – Make sure your broker is regulated. They will be legally obliged to protect your financial interests.
- Support – Whatever your day trading strategy, you’ll probably need assistance at some point, so look for online brokers with quick response times and strong customer support.
- Spreads, Leverage & Margin – As a day trader you want competitive spreads – you might also want certain leverage levels and low margins.
- Trading Platforms – Does it suit your needs? From a stop loss to a limit order and advanced charting, the trading platform needs to deliver the tools and features you want.
- Assets and Markets – A forex trader wants to trade different assets than someone stock trading. Brokers cater for different markets so you need to know you can trade the correct currency pairs or stocks and equities.
Do your research and read our online broker reviews first. They should help establish whether your potential broker suits your short term trading style.
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As we start the new quarter with the overriding question of whether the risk rally has legs, or is this the time to review renewed bearish exposure – here are a few charts that are on my radar: S&P500 daily % ranges – We closed the S&P500 cash session -1.6%, with the index tracking a 2.7% […]
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What Is Day Trading?
The definition of “day trading” is the buying and selling of a security in a single trading day. If you’re day trading online you will close out your position before the markets close for the day to secure your profits. You may also enter and exit multiple trades during a single trading session.
Brokers on occasion have different definitions for ‘active’ or day traders. Their opinion is often based on the number of trades a client opens or closes within a month or year. Some brands even refer to ‘hyper-active traders’ – a step beyond the ‘active trader’.
Day trading is normally done by using trading strategies to capitalise on small price movements in high-liquidity stocks or currencies. The purpose of DayTrading.com is to give you an overview of day trading basics and what it takes for you to make it as a day trader. From scalping a few pips profit in minutes on a forex trade, to trading news events on stocks or indices – we explain how.
What Can Be Traded?
The most lucrative and popular day trading markets today are:
- Forex – The foreign exchange currency market is the world’s most popular and liquid.
The sheer volume of forex trading makes it attractive for day traders. There are multiple short-term opportunities in a trending currency pair, and an unrivalled level of liquidity to ensure opening and closing trades is quick and slick. More suited to technical analysis, there are other ways to trade foreign exchange. In addition, forex has no central market. This means traders can make trades six days a week, 24 hours a day. They present a great starting point for entry level or aspiring traders with full time jobs. Traders in Australia might be specifically interested in trading the AUD USD pair.
- Stocks – Physical stocks in individual companies, regular and Leveraged ETFs (an “Exchange Traded Fund” holds multiple stocks or commodities and is traded like a single stock), futures, and stock options.
Trading stocks intraday offers different opportunities than a traditional ‘buy and hold’ strategy. Speculating on stock prices via CFDs or spread betting for example, mean traders can profit from falling prices too. Margin or leverage also reduce the capital required to open a position. So you can take a position on the latest news release, product announcement or financial report – as well as technical indicators.
- Cryptocurrencies – The two most popular currently are Bitcoin and Ethereum.
The financial vehicle of the moment. Spectacular growth has seen cryptos attract many new investors. Brokers are also ensuring retail access to these markets is less complicated. Taking a view on any of these new blockchain based currencies is being simplified all the time. Barriers to entry are now almost nil, so whether you are a bull or a bear, now is the time.
- Binary Options – The simplest and most predictable method, as the timing and return on a successful trade are known in advance.
Regulatory changes are pending, and with the sector maturing, these products are now offered by big established brands. The only question for you is – will the asset rise in value, or not? With the downside limited to the size of the trade, and the potential payout known in advanced, understanding binaries is not difficult. They offer a different method of trading, and can play a part in any day trader’s daily portfolio.
- Futures – The future price of a commodity or security.
- Commodities – Oil and natural gas, food stuffs, metals and minerals
If you’re S&P 500 day trading, you’ll be buying and selling the shares of companies, such as Starbucks and Adobe. In the day trading forex market, you’ll be trading currencies, such as the Euro, U.S dollar and GBP. In the futures market, often based on commodities and indexes, you can trade anything from gold to cocoa.
Index funds frequently occur in financial advice these days, but are slow financial vehicles that make them unsuitable for daily trades. They have, however, been shown to be great for long-term investing plans.
Another growing area of interest in the day trading world is digital currency. Day trading with Bitcoin, LiteCoin, Ethereum and other altcoins currencies is an expanding business. With lots of volatility, potential eye-popping returns and an unpredictable future, day trading in cryptocurrency could be an exciting avenue to pursue.
Recent reports show a surge in the number of day trading beginners. But unlike the short term trading of the past, today’s traders are smarter and better informed, in part due to trader academies, courses, and resources, including trading apps.
Daytrading.com exists to help novice traders get educated and avoid mistakes while learning how to trade intraday.
Day trading 101 – get to grips with trading stocks or forex live using a demo account first, they will give you invaluable trading tips, and you can learn how to trade without risking real capital.
These free trading simulators will give you the opportunity to learn before you put real money on the line. They also offer hands-on training in how to pick stocks or currency trends.
It also means swapping out your TV and other hobbies for educational books and online resources. Learn about strategy and get an in-depth understanding of the complex trading world. DayTrading.com is the ideal beginners guide to day trading online.
Books for Beginners
- ‘Day trading and swing trading the currency market’, Kathy Lein
- ‘Day Trading for Dummies’, Ann Logue
Both books will provide you with the basic day trading rules to live by. You’ll also benefit from advice on stock picks, plus creative strategy ideas. As Benjamin Franklin highlighted, ‘an investment in knowledge pays the best interest’.
While the ‘for dummies’ series of books are very accessible, it will be helpful to broaden the depth of trading literature you try – More on day trading books
Patterns And Technical Analysis
Day trading chart patterns paint a clear picture of trading activity which helps you to decipher individuals’ motivations. They could highlight s&p day trading signals for example, such as volatility, which may help you predict future price movements.
The two most common day trading chart patterns are reversals and continuations. Whilst the former indicates a trend will reverse once completed, the latter suggests the trend will continue to rise. Understanding these trading patterns, as well as ‘triangles’, ‘head and shoulders’, ‘cup and handle’, ‘wedges’ and plenty more, will all make you better informed when it comes to employing your trading strategies.
Day Trading Strategies
Head over to websites like Reddit and you’ll see many trading dummies who will often fall at the strategy hurdle, taking the first momentum examples they see and losing money left, right and center. Savvy traders will employ day trading strategies in forex, grain futures and anything else they’re trading in, to give them an edge over the market. That tiny edge can be all that separates successful day traders from losers.
There are a number of day trading techniques and strategies out there, but all will rely on accurate data, carefully laid out in charts and spreadsheets. Options include:
- Swing trading
- Trading zones
- Trading on volume
- Arbitrage trading
- A simple day trading exit strategy
- Utilising news
It is those who stick religiously to their short term trading strategies, rules and parameters that yield the best results. Too many minor losses add up over time.
Part of your day trading setup will involve choosing a trading account. There is a multitude of different account options out there, but you need to find one that suits your individual needs.
- Cash account – Day trading with a cash account (also known as without margin), will allow you to only trade the capital you have in your account. This limits your potential profits, but it also prevents you losing more than you can afford.
- Margin account – This type account allows you to borrow money from your broker. This will enable you to bolster your potential profits, but also comes with the risk of greater losses and rules to follow. If you want to start day trading with no minimum this isn’t the option for you. Most brokerage firms will insist you lay down a minimum investment before you can start trading on margin. You can also experience a margin call, where your broker demands a greater deposit to cover potential losses.
The brokers list has more detailed information on account options, such as day trading cash and margin accounts. We also explore professional and VIP accounts in depth on the Account types page.
Learn the trading lingo and vocabulary and you’ll unlock the door to a whole host of trading secrets. Below we have collated the essential basic jargon, to create an easy to understand day trading glossary.
- Leverage rate – This is the rate your broker will multiply your deposit by, giving you buying power.
- Automated trading – Automated trading systems are programs that will automatically enter and exit trades based on a pre-programmed set of rules and criteria. They are also known as algorithmic trading systems, trading robots, or just bots.
- Initial Public Offering (IPO) – This is when a company sells a fixed number of shares to the market to raise capital.
- Float – This is how many shares are available to trade. If a company releases 10,000 shares in the initial IPO, the float would be 10,000.
- Beta – This numeric value measures the fluctuation of a stock against changes in the market.
- Penny Stocks – These are any stocks trading below $5 a share.
- Profit/Loss ratio – Based on a percentage basis, this is the measure of a system’s ability to generate profit instead of loss.
- Entry points – This is the price at which you buy and enter your position.
- Exit points – This is the price at which you sell and exit your position.
- Bull/Bullish – If you take a bullish position day trading you expect the stock to go up.
- Bear/Bearish – If you take a bearish position you expect the stock to go down.
- Market trends – This is the general direction a security is heading over a given time frame.
- Hotkeys – These pre-programmed keys allow you to enter and exit trades rapidly, making them ideal if you need to exit a losing position as soon as possible.
Charts, Graphs, Patterns & Strategy
- Support level – This is the price level where the demand is strong enough that it prevents the decline in price past it.
- Resistance level – This is the price level where the demand is strong enough that selling the security will eradicate the increase in price.
- Moving Averages – They provide you with vital buy and sell signals. Whilst they won’t tell you in advance if a change is imminent, they will confirm if an existing trend is still in motion. Use them correctly and you can tap into a potentially profitable trend.
- Relative Strength Index (RSI) – Used to compare gains and losses over a specific period, it will measure the speed and change of the price movements of a security. In other words, it gives an evaluation of the strength of a security’s recent price performance. Day trading tip – this index will help you identify oversold and overbought conditions in the trading of an asset, enabling you to steer clear of potential pitfalls.
- Moving Average Convergence Divergence (MACD) – This technical indicator calculates the difference between an instruments two exponential moving averages. Using MACD can offer you straightforward buy and sell trading signals, making it popular amongst beginners.
- Bollinger Bands – They measure the ‘high’ and ‘low’ of a price in relation to previous trades. They can help with pattern recognition and enable you to arrive at systematic trading decisions.
- Vix – This ticker symbol for the Chicago Board Options Exchange (CBOE), shows the expected volatility over the next 30 days.
- Stochastics – Stochastic is the point of the current price in relation to a price range over time. The method aims to predict when prices are going to turn by comparing the closing price of a security to its price range.
If you stumble across a word or phrase that leaves you scratching your head, refer back to this day trading dictionary and chances are you’ll get a quick and easy explanation.
Read the glossary for definitions of many more words and concepts.
Day Trading vs The Alternatives
Yes, you have day trading, but with options like swing trading, traditional investing and automation – how do you know which one to use?
- Swing trading – Swing traders usually make their play over several days or even weeks, which makes it different to day trading. It can still be a good method for the trader who wants to diversify.
- Traditional investing – Traditional investing is a longer game and looks to put money in popular assets such as stocks, bonds, and real estate for long-term value appreciation. Realistic investment returns over a whole year are in the 5-7% range. Unless you are already rich and can invest millions, traditional investing returns too little to make much of a difference on a daily basis. However, the intelligent trader will also invest long-term.
- Robo-advisors – An increasing number of people are turning to robo-advisors. You simply chose an investing profile, then punch in your degree of risk and time frame for investing. Then an algorithm will do all the heavy lifting. This is normally a long-term investing plan and too slow for daily use.
Day trading vs long-term investing are two very different games. They require totally different strategies and mindsets. Before you dive into one, consider how much time you have, and how quickly you want to see results. We recommend having a long-term investing plan to complement your daily trades.
Day Trading For a Living
So you want to work full time from home and have an independent trading lifestyle? If so, you should know that turning part time trading into a profitable job with a liveable salary requires specialist tools and equipment to give you the necessary edge. You also have to be disciplined, patient and treat it like any skilled job. Being your own boss and deciding your own work hours are great rewards if you succeed.
Whilst it may come with a hefty price tag, day traders who rely on technical indicators will rely more on software than on news. Whether you use Windows or Mac, the right trading software will have:
- Automatic Pattern Recognition – Identifies flags, channels, and other indicative patterns,
- Genetic and Neural Applications – Profit from neural networks and genetic algorithms to better predict future price movements.
- Broker integration – With direct links to brokerages, you can automatically execute trades, removing emotional distractions and streamlining the execution process.
- Backtesting – Applies strategies to previous trades to demonstrate how they would have performed. This enables traders to better understand how particular trading methods may perform in the future.
- Multiple news sources – Online newsfeeds and radio news alerts play an integral part in day trading. As Kofi Annan rightly asserted in one of the most prudent trading quotes, ‘knowledge is power’. The more you know, the quicker you can react, and the quicker you can react, the more day trading profits you might make.
If you’re trading as a career you have to master your emotions. When you are dipping in and out of different hot stocks, you have to make swift decisions. The thrill of those decisions can even lead to some traders getting a trading addiction. To prevent that and to make smart decisions, follow these well-known day trading rules:
- Controlling fear – Even the supposedly best stocks can start plummeting. Fear then sets in and many investors liquidate their holdings. Now whilst they prevent losses, they also wave goodbye to potential gains. Recognising that fear is a natural reaction will allow you to maintain focus and react rationally.
- ‘Pigs get slaughtered’ – When you’re in a winning position, knowing when to get out before you get whipsawed or blown out of your position isn’t easy. Tackling your own greed is a hurdle, but one you must overcome.
Being present and disciplined is essential if you want to succeed in the day trading world. Recognising your own psychological pitfalls and separating your emotions is imperative.
DayTrading.com exists because we could not find a reliable day trading school, university, academy, or institute that runs classes where you can get an all-inclusive day trading education. This site should be your main guide when learning how to day trade, but of course there are other resources out there to complement the material:
- Online day trading courses
- Practice game apps
- Message boards like Discord
- Chat rooms (always free)
- Pdf guides
For the right amount of money, you could even get your very own day trading mentor, who will be there to coach you every step of the way. Opt for the learning tools that best suit your individual needs, and remember, knowledge is power. The ‘Day Trading For Dummies‘ books are not your only option!
7 Secrets To Success
Whether you’re looking for jobs you can do from home, or you want to start day trading as a hobby, follow these seven essentials.
1. Setting up
The better start you give yourself, the better the chances of early success. That means when you’re sat at your desk, staring at your monitors with hands dancing across your keyboard, you’re looking at the best sources of information. That means having the best trading platform for your Mac or PC laptop/desktop, having a fast and reliable asset scanner and live stream, and software that won’t crash at a pivotal moment.
2. Keep it simple
This is especially important at the beginning. You might be interested in s&p 500, mutual funds, bond futures, Nasdaq, Nasdaq futures, blue-chip stocks, equities, or the Dax 30, but to start with focus on only one. Get good at making money from one market/security before you branch out. The other markets will wait for you.
3. Be realistic
The movies may have made it look easy, but don’t be fooled. Even the day trading gurus in college put in the hours. You won’t be invited to join that hedge fund after reading just one Bitcoin guide. You need to order those trading books from Amazon, download that spy pdf guide, and learn how it all works.
4. Risk management
This is one of the most important lessons you can learn. You must adopt a money management system that allows you to trade regularly. Is day trading really worth it if you’ll be broke by the end of the first month?
History has shown that many successful traders never risk more than 1% of their account balance on a single trade. So, if you had $25000 in your account, you’d only risk $250 on a single trade. Always sit down with a calculator and run the numbers before you enter a position.
5. Keep a record
One of the day trading fundamentals is to keep a tracking spreadsheet with detailed earnings reports. If you can quickly look back and see where you went wrong, you can identify gaps and address any pitfalls, minimising losses next time.
Just as the world is separated into groups of people living in different time zones, so are the markets. If you start trading on the Cac 40 at 11:00 ET, you might find you’ve missed the best entry signals of the day already, minimising your potential end of day profit. So, if you want to be at the top, you may have to seriously adjust your working hours.
7. Sensible decision making
When you start day trading you’ll have a host of difficult decisions to make. Should you be using Robinhood? What about day trading on Coinbase? Do you have the right desk setup? Where can you find an excel template? How do you set up a watch list? The meaning of all these questions and much more is explained in detail across the comprehensive pages on this website.
You can also find more detailed and comprehensive lessons in our top tips.
The tax situation for day traders is entirely dependent on in which country the trader is “tax resident”. Furthermore, a popular asset such as Bitcoin is so new that tax laws have not yet fully caught up – is it a currency or a commodity?
How you will be taxed can also depend on your individual circumstances. For example, in the UK the HMRC are known to approach day trading activities from 3 different angles:
- Speculative/similar to gambling activities – Day trading profits would likely be totally free from income tax, business tax, and capital gains tax.
- Substantial self-employed trading activity – Likely to be subject to business tax.
- Significant activities of a private investor – Gains and losses would fall under the remit of the capital gains tax regime. Paying just business tax would be highly illegal and open you up to serious financial penalties.
Due to the fluctuations in day trading activity, you could fall into any three categories over the course of a couple of years. Although you don’t need a license, it’s important you rigorously monitor your trades, seek tax advice, and stay within laws and regulations when filing your tax returns.
Read the Guide to Day Trading Taxes for more comprehensive information on tax rules and reporting.
How Much Money Will You Make?
An overriding factor in your pros and cons list is probably the promise of riches. We’ve all heard stories of day trading millionaires who started trading with just 1000 dollars, but soon hit the jackpot and mastered the markets. Whilst, of course, they do exist, the reality is, earnings can vary hugely.
Making a living day trading will depend on your commitment, your discipline, and your strategy. All of which you can find detailed information on across this website.
The real day trading question then, does it really work? If you’re willing to invest the time and energy, then for you, it could well do.
For Specific Countries
Market Impact of Coronavirus
Trading Brexit News is trending
Cryptocurrencies like Ripple and Bitcoin see a lot of volatility currently.
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