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orders being executed against. Observing bids and offers being taken is the next best thing to being involved in the transaction. Naturally, in order to see these transactions taking place, you must have a system displaying this information. |
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Some people believe that a time and sales ticker will provide the same kind of information described above; however, a time and sales ticker does not indicate which side of the transaction initiated the trade. Was the bid hit or was the offer taken? A competent trader who is able to understand the screens will have a distinct advantage over those who follow general technical analysis procedures, especially when trading on a very short term basis. |
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Treat Trading As A Business |
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The business of Direct Access Electronic Trading has become a serious business rather than a casual pursuit of quick profits. DAET is a business where the entry costs are relatively low, there is no inventory to carry, and there is no need for sales contacts. If you are trading on a trading floor (in one of my branch offices, for example), you don't have to pay for electricity, telephones, fax machines, copy machines, or even a computer. Thus, there are few barriers to entry. |
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As discussed above, you will need access to capital (which is your money) in order to meet the regulatory intraday margin trading requirements. The amount of capital you will need can be controlled somewhat by you and your trading pattern. If you trade heavily in high-cap, high-price stocks, you will need more intraday margin. At the close of the market, you should leave flat so that your capital is held in the form of cash and not subject to overnight fluctuations. |
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For a few thousand dollars in training expenses, you can be in business with all the education, training, and equipment you will need. Where can you get into business today for less than the cost of a high-end automobile and have the potential to make huge profits? This is not pie in the sky. I have successfully trained people who were formerly gardeners, hairdressers, and even lawyers. Some of the people who have done |
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