TRADINGSIM DAY TRADING BLOG

Welcome to the Tradingsim Blog.  Please browse the various trading categories which cover everything from trading psychology to chart patterns.  Another great resource we offer is our trading simulator which allows you to practice placing trades against real historical tick data.

How to Calculate Point and Figure Price Targets when Swing Trading

One Box Count

I can honestly attribute the use of point and figure charts as one of the turning points in my trading career.  Earlier on as I studied the works of Richard Wyckoff, point and figure (P&F) charts were a staple of his trading methodology. As I began to define and refine my own trading systems, I Read the full article →

Why I no longer obsess over the Broad Market

NYSE Broad Market Tops

What are broad market indicators? Broad market indicators are breadth indicators that attempt to identify the underlying strength of the market.  Essentially, these indicators will uncover how many stocks are participating in a rally or decline, thus providing further insight to you the trader as to how you should weight the significance of a move Read the full article →

How to Trade with Margin

What is trading with Margin? Trading with margin is simply using borrowed money to buy or sell stocks short.  Brokerage firms will allow you to use your cash on hand as equity in determining the amount of margin you are allocated in your trading account. This leverage is different for the types of markets you Read the full article →

How to Identify When a Stock is Starting to Trend

P&F Chart Example

In now my fourteenth year of trading, if I had to boil down one of the key turning points in my ability to consistently make profits it would be my ability to understand when a stock is starting to trend.  This concept earlier on in my career would baffle me because I could not find Read the full article →

Is Day Trading Like Gambling – 8 Signs You have Lost Your Way

Dice

This answer to this question is based on the strategy and investing style of the participant.  I can tell you without a doubt that trading in the markets is not like gambling at all. Gambling has a fixed odds system for all major games, while trading in the markets is truly unpredictable.  The “house” or Read the full article →

How to Let Your Winners Run – 7 Tips for Success

How to Let Your Winners Run

Letting your winners run is a topic which polarizes traders.  There are those that swing for consistency and trade with strict profit targets.  These are the traders who likely view letting your winners run as a sure fire way to lose your focus and open yourself up for more risks. Then there are those traders Read the full article →

Why You Should Avoid Day Trading Schools

Day Trading School

Let me first start off by saying that if you have landed on this article you have realized that the search results for day trading schools are slim.  While there are quite a bit of results from Google; however, there aren’t many of what I would call “traditional” schools in the search results. You are Read the full article →

How Stocks Work – From a First Graders Perspective

How Stocks Work

How does the Stock Market Work? Stocks, oh where do we begin?  Let me first commend you for taking the time to try and understand how the stock market works.  When researching this topic you will notice a lot of people attempting to sound super smart.  Far too often the explanations for how stocks work Read the full article →

How to find Stocks on the Rise

Market Scanner

What is the correct definition of stocks that are on the rise?  Is this a two-week rise or two-year rise?  More importantly, what is the average percentage gain for a stock on the rise?  Lastly, how do you identify a stock market on the rise? These are the types of questions I will clarify throughout Read the full article →

Trading Days in a Year – So How Many are There Really?

Trading Days in a Year

How to calculate the number of trading days per year Since you have posed the question question of how many trading days in a year, let me first provide you an answer.  On average there are ~ 251 days per year.  This calculation is broken down into the following inputs: # of Days in the Read the full article →

Stop Loss Orders – Why They Don’t Work

Stop Loss Orders

How do Stop Loss Orders Work? If I had to define a stop loss order, it’s just that, a protective order which stops you from losing more money than you would like.  In a nutshell these are orders that are placed a certain distance from your entry price and if reached your position is closed.  Read the full article →

How to Best Use Trade Alerts

Twitter Trade Alerts

What are trade alerts? Trade alerts provide the active trader or investor an alert when a specific event occurs.  Trading alerts are a basic component of most brokerage firms and trading applications.  This event could be based on a number of factors ranging from a specific price target, technical indicator or news event.  At its Read the full article →

Trading Psychology – 11 Things that Separate Winners from Losers

Psychology of Trading

Trading to me is the greatest personal endeavor a person can take on in their life.  I say this because of how difficult it can be at times and how all-consuming it can be as well.  It was one of the last professions that who you are and what you think of yourself is reflected Read the full article →

Stocks Under 5 Dollars – 12 Reasons to Stay Away

Stocks Under 5 Dollars

1. Are you ready for the Volatility? I affectionately refer to stocks under 5 dollars as lottery tickets.  This is more of a blanket statement and may not apply to every stock under 5 dollars, but the majority of the times this is the case.  You maybe thinking, well the risk involved in stocks is Read the full article →

Stock Simulator – Key Things to Consider

Stock Simulator

If you do a search on the web for stock market simulators, you will get a laundry list of sites.  Some are free and others can cost quite a penny.  I will lay out in this article a couple of key things you should consider when trying to find the best stock simulator money can Read the full article →

What is the Best Online Stock Trading Site?

Best Online Trading Site

So this post will be one of the worst shameless plugs you will find on the web.  Simply put, I believe without a doubt Tradingsim is the best online stock trading site and I’m going to tell you why. Affordability In today’s economy we all feel a bit squeezed. As I look around the web Read the full article →

How to Pick a Trading Coach – 7 Things you Should Expect

Let me first start off by saying I have never had a trading coach; however, in every walk of life it is accepted that we may need some guidance along the way. This guidance can come from our religious leaders, executives at our jobs, coaches of our sports team and the list goes on and Read the full article →

6 Reasons Mobile Trading Misses the Mark

Why is Mobile Trading bad for Day Trading The web will tell you that mobile trading is any form of trading with a device while on the go.  This really falls into two categories: (1) mobile phones and (2) tablets.  I can make the argument that my laptop would qualify as a mobile device when Read the full article →

Day Trading Setups – 6 Classic Formations

Day trading is all about getting in a rhythm.  Over time you will begin to identify day trading setups that consistently work for your trading style. Whether you have a high win ratio or the average winning profit runs much greater than your losers, you just need to come out ahead. Your trading style is Read the full article →

Day Trading at Home – 10 Questions to see if it’s right for you

Depending on your line of work, your company may offer flexible work arrangements that permit you to work from home on a regular basis.  Well day trading at home is a little different than working from home.  In this article I will ask you 10 questions to determine if day trading from home is a Read the full article →