What's New

As I said in my previous update, the fall of 2008, and the winter and spring of 2009 were, in my opinion, one of the best markets for trading that I have seen in my entire career. Now the panic and volatility of the past few months appears to have passed (for now!), we have returned to a more traditional "trader’s market," one that rewards prudence and punishes greed.

A Scalper's Market?

These are the kind of conditions that I believe are suited perfectly for the trading strategies that I talk about in Day Trade Online, especially "scalping" NYSE listed stocks. A "scalper's" market is best suited for those traders that are nimble and are willing to take quick profits in tight market conditions. Those speculators that can limit their downside risk, are content to take small, high percentage profits, and not be greedy or force trades, are the ones that can best take advantage of a quiet market. The ability to quickly anticipate and exploit these small changes in supply and demand is the key to prospering in a market that appears stuck in tight trading ranges. Remember, you never want to be at the mercy of the market. While the buy and hold crowd is left waiting for the next up move in the market averages to profit, the scalper can take matters into his or her own hands, and trade the market wherever it wants to go.

It is important to note: to be successful as a trader, you must be agile enough to change your strategies as market conditions change. Trades that work well in a quiet summer market may not work well in a more volatile market that we could see this fall. Please keep in the back of your mind that history shows that it is unlikely that the market will stay stuck in a tight range going into the fall, especially October. Thus, what is now a "scalper's market" may be more suited to momentum players if conditions become more volatile this fall. There is so much uncertainty out there with regard to the economy that now, more than ever, your risk management skills will be put to the test. Trade with caution and at your own risk.

Website Updates

There are a couple of updates to the website:

Questions Answered: on the FAQ page, I have posted the questions and answers to many of our frequently asked questions. This is an ongoing process and more questions and answers will be posted on the next update.

Join us on Facebook: I have a facebook fan page for the book. Please feel free Please feel free to join us.

My recent radio interview is posted: I did a radio interview with a nationally syndicated business talk radio program called the Gabe Wisdom Show. The nearly 1 hour long discussion of my book and my trading strategies is posted on the home page.

Dear Friends and Fellow Traders, October 3, 2008
As of the preparation of the second edition of Day Trade Online in the fall of 2008, the stress and strain that our markets are under due to the credit crisis is quite possibly a once in a lifetime event. Anyone who had traded for long enough has seen stressful times before, whether the Asian currency crises of 1998, the dot.com bubble and its bursting in 2000, and of course the September 11 terrorist attacks and the wars that have followed. Each period of crises offers incredible opportunities for traders, and this one is no different. From a trading standpoint, this market has offered some of the best trading opportunities that I have seen in my entire career. As long as there are supply and demand imbalances in the market, there will be opportunities for short term traders to profit, whether in bull, bear, or sideways markets. It has been reported in the media that in the midst of this panic, the NYSE specialist firms have put a substantially higher amount of their own capital at risk than in more normal market conditions. The fact that they are willing to put their money where their mouth is by buying into the investing public's selling during this market turmoil is further proof of the opportunities for profit that are possible. However, this is not a market for the faint of heart and there is without question a higher degree of trading risk and market volatility in this market than in any market I have seen in my career.

Many of the basic principles that I lay out in my books, namely that of using the NYSE's specialist system to your advantage, have been relevant during this market turmoil. Trade accordingly. Proceed with caution and at your own risk.