How Much Money Do You Need to Start Day Trading
September 1, 2017
Day trading is a very attractive method of making money in the eyes of very many people that would like to improve their financial situation or have a job that provides a lot of money while being their own bosses and the privilege of having a flexible schedule. But, day trading is easier said than done. You need to have a starting capital in order to begin day trading, having the required sum of money to begin trading is one of the biggest problems of many people that would like to try out this opportunity of making money. So, how much money is needed to start day trading?
Pattern Day Trader Rule
If we are to look at the rules of day trading in the US, according to the Pattern Day Trader regulations, you need to have the minimum sum of $25,000 in your account in order to begin day trading. Ideally, you should start trading with $30,000 or even more, if you want to have the chance to enjoy 4 trading days during one trading week. A day trade means to purchase a security and sell the same security on the same day. The rules of the Pattern Day Trader state that one cannot begin a day trade without having $25,000 in his or her account and one cannot fulfill this requirement by using several accounts to cross-guarantee this particular sum. Also, even if you had $25,000 in your account and, due to various reasons, the sum drops below, you won’t be allowed to begin your day trading until you manage to restore the account balance to $25,000.
How Much Do You Really Need to Get Started?
But before panicking that you don’t have this amount of money into your account or you don’t want to start day trading with so much money because you don’t have the skills and are afraid of losing the money, do know that there are other ways to trade that require less money. Let us not forget that we live in an era where globalization is present in every market type, leading to the development of a multitude of trading platforms that do not have to subject to US’s regulations in this domain. Of course, this doesn’t mean that these platforms are not reliable. On the contrary, they are trustworthy and respect all the international standards and regulations, but without requesting traders to start with a minimum of $25,000. Then what is the lowest sum of money requested for day trading? There are platforms that allow you to trade with as little as $1000. Compared to $25,000, $1000 seems like a more accessible requirement to be met by the people that would like to experience day trading but do not want to juggle large sums of money until they manage to get the hold of the skills, acquire some experience, and find techniques that will help them become successful at trading.
If you started seriously considering beginning a career in day trading, now you know that, with the help of non-US brokers, all you need is $1000 and the desire to learn as much as possible. In case this is a completely new domain for you, which is a fact for very many people out there, it would be best to start small and carve your career toward more profitable trading as soon as you gain some experience, knowledge, and know-how. You will also need to be patient because you cannot transition from small trading to making large sums of money in a short period. Many traders take years to develop their day trading techniques until they actually end up earning a living out of this activity alone. But if this is what you want and you are prepared to make it work, with dedication and effort you will eventually pull through.
The Top Stock IPOs (And Potential IPOs) of 2017
July 26, 2017
An Initial Publiс Offеring (IPO) iѕ whеn thе ѕtосk оf a раrtiсulаr соmраnу first begins trading. In аn IPO, a private соmраnу ѕеllѕ thеir ѕtосk tо the рubliс in order tо rаiѕе capital tо fund their future grоwth рlаnѕ. Aѕ IPOѕ аrе frequеntlу соming tо thе market, it’ѕ imроrtаnt tо ѕtау informed аbоut upcoming IPOѕ аnd whеn they’re expected tо begin trаding. A good rеѕоurсе fоr finding оut about uрсоming IPOѕ is IPO Sсоор. IPOѕ present uniquе opportunities аnd riѕkѕ fоr dау trаdеrѕ. In thiѕ аrtiсlе, we’ll show you the top stock IPOs of 2017:
Snap iѕ аn infоrming аnd рhоtоgrарh application that iѕ exceptionally well knоwn with youngsters. As оld people аѕѕumеd control Facebook, thеir children hаvе mоvеd оvеr tо Snарсhаt. A ѕtаndоut аmоngѕt the mоѕt alluring еlеmеntѕ оf Snарсhаt iѕ thаt photographs vаniѕh in thе wаkе of being seen ̶ which lеѕѕеnѕ protection соnсеrnѕ.
Snар hаѕ authoritatively recorded tо Initiаl public оffеring оn thе NYSE. Fоrtunе rероrtѕ thаt the Initiаl рubliс оffеring could еѕtееm Snap аt $20 billiоn tо $25 billiоn.
Snар ѕhаrеѕ аrе required tо bеgin еxсhаnging Wаlk. Thаt mаkеѕ this the bеѕt Initiаl public оffеring fоr thе соming year. Unless a rich innovation оr mеdiа оrgаnizаtiоn ѕwоорѕ in, Snар will bе traded on аn ореn market inѕidе fоurtееn days.
Zасkѕ detailed thаt Airbnb соuld bе thе greatest Initial рubliс offering оf 2017. Thе оrgаnizаtiоn is an overwhelming рlауеr in thе ѕhаrеd rеntаl оf lodging units оn a brief рrеmiѕе. Zасkѕ dеtаilеd thаt Airbnb hаѕ mоrе thаn 2 milliоn overall роѕtingѕ.
Gossipy tidbits about аn approaching Initiаl public offering gоing bасk to 2014, аѕ indiсаtеd bу Zacks, whiсh said the оrgаnizаtiоn “саn роѕѕiblу be оnе оf thе mоѕt ѕultrу up аnd соming Initiаl рubliс оffеringѕ.” Zасkѕ detailed thаt Airbnb has brought $3.2 billiоn up in complete value ѕubѕidizing. In Airbnb’ѕ mоѕt rесеnt round оf financing, speculators hаd соnѕеntеd to gеt ѕоmе $200 million in stock frоm rерrеѕеntаtivеѕ.
At the point whеn will Spotify ореn uр to thе wоrld? Bесаuѕе оf tеrmѕ in оnе оf the music-gushing organization’s сurrеnt subsidizing rounds, it lооkѕ progressively likely that Sроtifу will ореn uр tо the wоrld in 2017. In mid 2016, Sроtifу brought $1 billiоn uр in соnvеrtiblе obligation at a $8.5 billion vаluаtiоn. The tеrmѕ, whiсh mаkе the loan cost оn thе obligation ascend bу 1 реrсеnt аt regular intеrvаlѕ until it iѕ роѕѕiblе thаt it hitѕ 10 percent or opens up to thе wоrld, vigоrоuѕlу boost Spotify tо ореn up tо the world ASAP. In spite оf the fасt thаt Spotify’s inсоmе hорреd 80 percent in 2015 tо $2.2 billion, rivаlrу iѕ wаrming uр with Aррlе (AAPL), Pandora Media (P) аnd оthеrѕ, ѕо raising mоrе cash might bе imроrtаnt аt аnу rate.
Despite thе fact thаt ridе-ѕhаrе contender Uber’s рrоѕресtѕ оf ореning uр tо thе wоrld hаvе bееn broadly соnjесturеd аbоut, Lуft iѕ рiсking uр force in thiѕ ѕрасе, Tаulli ѕаid.
In June, Zасkѕ hуроthеѕizеd thаt Lуft may bе prepared for аn Initiаl рubliс оffеring еvеn before its nоtаblе аnd biggеr contender makes that ѕtridе. At thе timе, Zасkѕ rеfеrеd tо a released money rеlаtеd rероrt thаt thе оrgаnizаtiоn hаd bееn еnсоuntеring hugе dеvеlорmеnt, аnd wаѕ оn track to mееt itѕ уеаrlу budgеtаrу objectives.
In view of ѕubѕidizing uр until nоw, the оrgаnizаtiоn iѕ еѕtееmеd around $5.5 billion.
Of аll the соnсеivаblе 2017 Initial рubliс оffеringѕ, an ореn offering frоm ridе-hаiling mаmmоth Ubеr, еѕtееmеd at аlmоѕt $70 billion, wоuld сеrtаinlу be the greatest оf thе уеаr. Ubеr Chief Trаviѕ Kаlаniсk has diѕсuѕѕеd рuѕhing bасk a Ubеr Initial рubliс оffеring fоr whаtеvеr length оf time that соnсеivаblе, however a current mеrgеr оf Ubеr Chinа with astringent Chinеѕе opponent Didi Chuxing соuld make ready fоr a 2017 аdvеrtiѕing. Thiѕ mаkеѕ a 2017 Initiаl public offering mоrе probable since Chinа wаѕ аn еnоrmоuѕ benefit ѕuсk for Uber. In аnу case, Ubеr lost over $1.2 billiоn in thе рrimаrу роrtiоn of 2016. “Ubеr nееdѕ tо get соѕtѕ аnd miѕfоrtunеѕ under control rарidlу,” ѕауѕ K C Mama, еduсаtоr оf fund аt Stеtѕоn Cоllеgе.
All You Need to Know About Pre-Market Stock Trading
June 28, 2017
What is pre-market stock trading?
As a norm, the regular stock trading market hours are usually between 9:30 am through to 4 pm. The opening and closing of this official trading period is usually signaled by the sounding of a bell which in most instances is done by the CEO of a newly listed company or any other person of note. During this official period, individuals can be able to trade in all companies listed within the exchange and also place any type of order.
However, trading can still take place outside the official hours and as a norm transactions carried out during this period are usually subject to a number of set rules. The extended trading sessions usually offer the best trading opportunities since price-sensitive news is most often released prior to the start of the trading session giving individuals an edge when it comes to the actual trading: this is where pre-market stock trading comes in.
The pre-market stock trading hours usually start at 7am and run to the official start time for stock trading. The trading that occurs during these hours usually set the tone for the day’s trading. However, the time frame is subject to some rules. For instance NASDAQ allows pre-market stock trading orders to be placed at 7am but execution of the orders can only take place at 8am.
For individuals who intend to embark on pre-market stock trading, the following is an overview of some of the trends that are characteristic of this type of stock trading.
Low volume trading
This is perhaps one of the most notable characteristic associated with this type of stock trading. The low volume trading is usually brought about by a number of factors. For starters, most individuals in the investment community are usually not active during this period and as a result this brings about low volume trading.
However, the most pre-dominant reason as to the low volume trading is the cap or limit placed on the size of orders placed. This is done by the regulating authority to prevent volatility in the market prior to the official trading time. For instance, a company might release great news that is bound to increase the value of its shares. An individual on hearing this might attempt to purchase a huge amount of shares so as to benefit from the impending share price hike. This will ultimately result in the share price shooting up remarkably before the official stock trading hours. To avoid this, the regulating authority usually places a cap on the number of shares that can be bought or sold during this period.
Volatility During Pre-Market
This is another common characteristic associated with this type of trading. The market at this time tends to be quite volatile due to the availability of information. Simply put, a listed company can release results before or after the official trading hours. Share prices usually react violently to this news as investors try to establish a new price
Risky Stock Trading
This kind of trading can be quite risky since relevant information is quite limited during this period of trading. Volatility during this trade period also contributes a lot to this. A good case in point is a situation where the share price might be skewed extremely high in the pre-market but return to `normal’ during the official trading hours.
In conclusion, the pre-market trading gives individual’s opportunities that are not available during regular trading hours. However it comes with a warning, you can make a sizeable profit based on your informed decisions but if things go wrong, there is the chance of making a loss.
What is a Stock Market Technical Indicator?
May 18, 2017
A stock market technical indicator is a series of data points that are derived from the application of a formula to the price data of a security.
Technical indicators serve to predict the future price levels, or simply the price direction of a security by examining the past patterns.Technical indicators can be developed using only core elements of chart analysis, such as patterns and mathematical functions.
Stock market technical indicators are mostly used by active traders to analyze short-term price movements. They offer a different perspective from which to study price action.
The following are some of the top stock market technical indicators:
Support and resistance
These barriers are used by stock traders to establish the ideal time to enter or exit the market. Besides, they give clues about the direction of the market. The unique thing about these technical indicators is that they do not become obsolete as they are caused by human nature. Support and resistance have always been and will always be a natural occurrence in all liquid markets.
Price action in conjunction with moving average and support and resistance helps traders to go with the trend and identify the path of least resistance.
Volume serves as an effective indicator of the conviction of traders. Volume placed in context with price movement, allows one to trade effectively. In order to measure the significance of volume, a trader needs a baseline to establish the percentage change over an average day.
This stock market technical indicator helps traders to identify a change in trend. They measure buying and selling pressures by assuming that no commodity can sustain an upward or downward trend without consistent buying and selling pressure.
Relative strength index (RSI)
This is a great tool that helps trades to time their trading signals. When a stock is overbought, the RSI will show a level above 70 and a stock is oversold if the RSI indicates a level below 30.
These tools identify periods of high and low volatility for stock. Besides, they can be used to identify the trend of a stock. Together with moving averages, a trader can use these bands to identify support and resistance.
Why use stock market technical indicators?
The core purposes of technical indicators is to alert, confirm and to predict.
Technical indicators alert traders to study price action keenly. If momentum is warning, it may be a signal to watch for a break of support. A momentum warning signifies the likelihood of a break of support while a large positive divergence building indicates the possibility of a resistance breakout.
A trader can utilize technical indicators to confirm other technical analysis tools. In the event of a breakout on the price chart, an equivalent corresponding moving average crossover can confirm the breakout. On the other hand, if a stock breaks support, an equivalent low in the On-Balance-Volume (OBV) could serve to confirm the weakness.
Securities traders can use technical indicators to predict the direction of future prices.
Stock market technical indicators help traders to make trading signals. With the right method, traders can use the indicators to signal trading opportunities and come up with effective strategies.
What are Candlestick Charts?
March 16, 2017
Candlestick Charts are also well known by the name Japanese Candlestick Charts. This type of chart is used to represent financial data and its movements. Visual representation provided by the candlestick pattern is easy to understand for analysis and better decision making purpose.
While creating a candlestick chart data about the prices high, low, open and close are necessary for the financial purpose. High and low are presented by the lines. Stock can close when they have high or low value.
If a stock is closed with the low value then the opening value it is represented by filling the body of a chart. If it’s opposite than the body part of candlestick will not be shaded. The body of the candle chart can be shorter or longer in size. The longer candle there is it means that there is more movement in stock and the value could be increasing or decreasing depending if it’s shaded or unshaded. So if the body part is unshaded then its good time to buy the stock since it’s cheaper at that time. But if the body part is shaded then the price has increased its time to sell the stock and it will help financially.
Most used Candlestick Chart Patterns
- Shooting star
- Blending Candlesticks
Formation of Doji occurs when the open value and the close value equal to each other. It’s hard to determine if the stock should be sold or to buy more with Doji Chart Pattern. Doji pattern is of various types such as Long-legged Doji, Dragonfly Doji, Tombstone Doji and Gravestone Doji. When Harami pattern is shown in a chart it represents that on the first day of stock market. The pressure is high for both the sellers and buyers. It is used when each day the prices are going to be increasing. Hammer formation and shooting star formations are similar to each other but little bit of opposite kinds. The shooting star always points upwards while the hammer points downwards. But both provide information that helps in selling the stock.
The Blending candlesticks are formed with uniting of candles with each other so they are blended together. Basically, the pattern has more than one candle used in this candlestick pattern. With the blending candles the opening, closing and high and low values exist same as other types of patterns is representing. But with the blending of candlesticks pattern, it also requires the open value of first candle and close value of the last candle in blended candlesticks. Blended candles are represented by the visual representation of hammer, shooting star, and other candlestick patterns as well. In blending candlesticks there could be a use of more than just two candles in forming the pattern of blending candlesticks.
Candlesticks are being used for many years now. A way of representing financial movements is easier to understand with candlestick charts. Each candlestick in the chart only shows the change in movement of a single day. So each day in a month a new candle formation takes place on the chart to compare everyday stock market details. The method of using candlestick charts is easier and better way for anyone to use. With its visual representation, the chart helps make decisions of selling and buying stock easier.