Day Trading For Dummies Cheat Sheet
“The Day Trading Academy = Money in the Bank”
Well my dear, it is the public! Since there is a "Chinese Wall" at brokerage houses between the traders and analysts, the former sell while what we hear most of the time from the latter group are oxymoronic statements! "We are maintaining the buy recommendation but have reduced the target!" "We have lowered the rating to a buy from a strong buy!" Or if they like to sit on the fence, they just say, "Hold." These "white lies" essentially keep the company happy for future financings by the brokerage houses' Corporate Finance division but for Mr. Public, he surmises that since it was not a "Sell!" but still a "buy" or "hold," and because he loved it at $50, a $10 discount at $40 must be a wonderful bargain! And this is the start of a downward spiral. This scenario repeats itself so very often but at the end, we all know where the stock will end up, right? We have all seen the analysts say "buy" all the way down with NorTel, Worldcom, etc.
with the desire and discipline to become a day trader.
Our day and swing trading system bases itself upon the fact that when the technical and fundamental groups are in sync and aligned together, take the signals that trade in the same direction. Respect this trend regardless of what the brokerage houses say because what they say is only for the general public. The amount of money the first two realms can throw at a stock will cause the Apples, Googles, RIMs, etc., to go up several points in one day and at times, 10 or 20 points at a time. They will buy at the opening and continue to buy until the closing bell. They will move our positions and it is here where we choose these day and swing trading selections. This buying or selling power by the technical and fundamental groups underscores our trading system philosophy. If the money is not behind the trade, the trade will not go far.