Day Trading for Dummies is a follow-up to my post titled “How to Read Stock Charts for Dummies.” You see, people have a habit of overcomplicating things that are very simple and easy to understand. I think this gives people an excuse to fail, honestly.
I mean, if you make something so complicated that you can’t understand it, then it’s not your fault that you failed, it’s because the subject matter is really difficult, or the task is impossible, right? That’s total B.S.
I’m going to make this real easy for you, so you no longer have an excuse to fail.
First, to be successful in online day trading, you have to do research using the myriad of free tools available. For example, throw a couple parameters into the screener at FinViz.com and see what pops out. A useful scan is the gap scanner; gapping stocks are popular play in the day trading arena.
This will give you a list of stocks that have gapped. Tighten the results by setting a price range, volume range, market cap, etc. You can also check out the free portion of the Wall Street journal to see what they think is going to move today, and peruse the free version of Briefing.com.
Now the trick here, instead of telling people exactly how to find stocks to trade for free, you pretend like it’s some well-guarded day trading secret. Then, you sell this secret in the form of a subscription service that you charge $30 a month for – minimum.
Next, you sell into every gap up and buy into every gap down. The odds are in your favor because you heard somewhere once that every gap closes. Even if not EVERY gap closes, you’re very certain that more gaps close than not. This is not based on any actual experience or evidence, but rather something you read one time. You know, that one book about the gaps that close all the time.
If you’re really crafty you’ll sell this brilliant piece of information along with your stock picking service, but you’ll charge double because these are the hot tips that really make the big money. Never give exit strategies, only entries. If your subscribers complain that they aren’t making money, you just say it’s because they aren’t seeing the obvious exits. It’s their fault, not yours. They weren’t cut out for day trading online.
Now, should these gaps that always fill not fill, you’re going to need an alternative plan of action. This is where your ability to trade breakouts comes into play. If you’ve decided a price level is important, for whatever reason (maybe it equates to your dog’s birthday), then the price crossing that level counts as a breakout.
When your subscribers inquire as to how you managed to trade these non-closing gaps so well, tell them you’ve got these set-ups that only you and the “Wall Street Pros” know and they make you tons of money. Give them ridiculous names like “opening range breakout” and “opening gap reversal.” If your subscribers don’t know what these are, spend 20 minutes writing an ebook, and sell it to them for $97 dollars.
There you go; day trading for dummies. In this one post I’ve taught you everything a dummy needs to know to day trade, AND I’ve given you an entire business plan for a successful online day trading stock pick and advice service. Like I’ve said before, we’re all just making this shit up as we go along. Might as well at least pretend you know what you’re doing.