Day trading is stock trading with very short-term investment horizons. It refers to opening and closing the same position or positions within one day's trading. The individuals who do this on a daily basis are traders, but not investors in the traditional sense. For example, at 11 am, a day trader might buy 1,000 shares of stock ABC just as the price begins to rise, and then sell it at 11:03 am when it's up by $0.50. The day trader makes $500.

One method of trading is technical analysis, which is the study of price pattern, primarily through the use of charts for the purpose of forecasting future price trends. There are many myths regarding day trading that are misunderstood by the general public. Star Alliance Capital One would like to shed some light on some of these misconceptions.

Myth #1: The market is going down, so I can't make any money until it starts going back up.

Fact: Short-selling (a technique used to profit from an expected decline in the stock price) can be responsible for a large percentage of a day trader's income. Star Alliance Capital One specializes in helping novice traders develop the skills needed to make money in every type of market.

Myth #2: I should only trade in the market if I get a good “tip.”

Fact: Most people enter the market for this reason and subsequently lose money. They eventually learn “the hard way” that tips aren't a consistent way to profit from stocks. The fact is that the odds of making money in the stock market, without the help of a professional to establish a sound, discipline trading plan, are very small. Stock trading, whether done full- or part-time, can be extremely lucrative if done right.

Myth #3: “Buy and hold” is the only way to make money in the market.

Fact: While this strategy can work long-term in a steady, up-trending market, the volatility of the current markets are prime for day traders to make daily profits far exceeding the “buy and hold” long-term strategy.

Myth #4: In order to make money in the market, you need more winning trades than losing trades.

Fact: With the proper risk management software, discipline and mentoring, traders can learn to limit risk and make money with just a 30% success rate. Risk/reward ratios need to be computed on a consistent basis to evaluate whether or not to enter a trade.

Gold and oil prices are at all time highs and continue to have significant volatility. Star Alliance Capital One can enable you to take advantage of price fluctuations in these commodities, in addition to stocks. Stocks like GLD and USO move directly with the price movement of gold and oil, respectively. Utilizing the professional trading platform and capital of Star Alliance Capital One, together with a very high level of discipline, an individual can have the tools to profit consistently in the financial markets.

For more information please call (212) 531-8582 or email This e-mail address is being protected from spam bots, you need JavaScript enabled to view it