Should I actively trade????

After open an account, should I buy or sell alot? When is good time to trade?

Day traders rapidly buy and sell stocks throughout the day in the hope that their stocks will continue climbing or falling in value for the seconds to minutes they own the stock, allowing them to lock in quick profits. Day traders usually buy on borrowed money, hoping that they will reap higher profits through leverage, but running the risk of higher losses too.

As SEC Chairman Levitt recently stated before the U.S. Senate, '[Day trading] is neither illegal nor is it unethical. But it is highly risky.' Most individual investors do not have the wealth, the time, or the temperament to make money and to sustain the devastating losses that day trading can bring.

Here are some of the facts that every investor should know about day trading:

Be prepared to suffer severe financial losses

Day traders typically suffer severe financial losses in their first months of trading, and many never graduate to profit-making status. Given these outcomes, it's clear: day traders should only risk money they can afford to lose. They should never use money they will need for daily living expenses, retirement, take out a second mortgage, or use their student loan money for day trading.

Day traders do not 'invest'

Day traders sit in front of computer screens and look for a stock that is either moving up or down in value. They want to ride the momentum of the stock and get out of the stock before it changes course. They do not know for certain how the stock will move, they are hoping that it will move in one direction, either up or down in value. True day traders do not own any stocks overnight because of the extreme risk that prices will change radically from one day to the next, leading to large losses.

Day trading is an extremely stressful and expensive full-time

Day traders must watch the market continuously during the day at their computer terminals. It's extremely difficult and demands great concentration to watch dozens of ticker quotes and price fluctuations to spot market trends. Day traders also have high expenses, paying their firms large amounts in commissions, for training, and for computers. Any day trader should know up front how much they need to make to cover expenses and break even.

Day traders depend heavily on borrowing money or buying stocks on margin

Borrowing money to trade in stocks is always a risky business. Day trading strategies demand using the leverage of borrowed money to make profits. This is why many day traders lose all their money and may end up in debt as well. Day traders should understand how margin works, how much time they'll have to meet a margin call, and the potential for getting in over their heads.

Don't believe claims of easy profits

Don't believe advertising claims that promise quick and sure profits from day trading. Before you start trading with a firm, make sure you know how many clients have lost money and how many have made profits. If the firm does not know, or will not tell you, think twice about the risks you take in the face of ignorance.

Watch out for 'hot tips' and 'expert advice' from newsletters and websites catering to day traders

Some websites have sought to profit from day traders by offering them hot tips and stock picks for a fee. Once again, don't believe any claims that trumpet the easy profits of day trading. Check out these sources thoroughly and ask them if they have been paid to make their recommendations.

Most successful investors carefully research their investments before pulling the trigger. If you do your due diligence, there is no need for excessive trading. Most traders (not investors) buy high and sell low. It is psychologically difficult not to do this unless you have confidence in your investments.

Do your homework. Diversity is good, but over diversification is impossible to manage. If you are going to own individual stocks, I would try to own no fewer than 5, but no more than 10. Otherwise, mutual funds may be a good option. Excessive trading is never a good option.

Good luck.

Even if the commissions don't kill you, the research shows a long term strategy wins the large majority of the time. Studies have shown people are more likely to hold losers too long and sell winners too quickly. Since you're asking this question, you might want to stick to mutual funds or ETFs and let someone else manage your money until you can learn a little more.

Are you a Momentum trader, Day trader, Swing trader, or long term? No one can answer your question with certainty. Read this book it will figure it out for you in first 4 chapters it is called A Beginners Guide To Day Trading Online byToni Turner.

no you should just stick like you are do what you are doing it's a better thing to do

vegas every one of your "suggestions" are NOT basic picks. IAU is a gold trust (perfer DGL or GLD over this one) PEO is a Petrolium play (and not that good of a play either) ADX is a closed end fund EWA is an single country (which I would never recommend ANY single country play) investment while EFA covers what EWA does already plus Europe and the far east (Australia is the A part). for someone with 27 years these are terrible picks.

Now to the original question there is no "good time" to trade. you can guess where the market is heading and you could short a particular stock (not recommended for beginners) but the best advice I can give you is to make smart choices (the lower expense fees the better) and for tax purposes its better to hold for a year. Dollar Cost averaging is a smart way to go as well and diversifaction is golden.

Absolutely not. Invest - don't specualate. Buy the basics & leave them alone. ADX EFA PEO IAU EWA

First define your damn investment objectives. What the hell are you trying to do with your money - make money quick or invest for your future and retirement. If you are trying to flip a quick buck you would trade more actively, if you are in it for the long run - you will invest and watch your money grow. Simply diversify. Define first what you want your money to do and you will answer your own question.

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