What is Daytrading?
What is being Long or Short Stock?
What is Swing Trading?
How high are the risks?
Can I start part time and trade on-line?
Why should I use Princeton Daytrading instead of some other firm?
How much money do I need to start and what is a margin account?
I don't live in San Diego. Can I trade from my state?
How does your training program work?
Do I need a license to trade Level 2?
What is paper trading?
What options are there for online connection?
How do I select an Internet Service Provider (ISP)?
How do I buy and sell with your service?
I'm using an $8.00 brokerage, why should I trade with you?
Do you permit foreign investors and traders based in other countries services?
How do I sign up?

 

 

What is "daytrading?"

Daytrading is a high-risk/high-return intra-day buying and selling of stocks (equities). A client connects in real time across the internet through a brokerage firm to an electronic network that exchanges stocks between buyers and sellers. Direct access traders can bid and offer stock as a wholesale customer or can buy from and sell to market makers at retail prices using (SOES), Electronic Communication Networks (ECNs), and NYSE DOT. Daytraders typically exit all their positions before the market closes at the end of the day to avoid worrying about after market price declines. There are exceptions, such as swing trades.

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What is being Long or Short Stock?

You are LONG stock if you buy stock and possess it or if you entered into an unconditional contract to purchase and you're waiting for delivery. You are SHORT stock if you borrow it from your broker and sell it. These and other securities terms are fully explained in ourtraining course.
 
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What is Swing Trading?

Swing trading is a short term investment strategy where a trader will hold a stock overnight anywhere from 2 to 5 days (approx.). The benefit of this strategy is taking advantage of gaps up and a steadily increasing price. For example: If a trader determines that stock ABCD will rise for the next 3 days, he would buy the stock on day one and sell it on day 3. The negative side to swing trading is being vulnerable to gaps down from unexpected negative news or a market correction.

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How high are the risks of DayTrading?

There is a relationship between risk and reward; as reward increases, so does risk. Day traders are competing against other day traders, market makers that purchase for their own accounts, and institutional traders who are seeking the same rewards. It is important to minimize risk to be profitable. A reasonable reward to risk ratio might be 3 to 1. Your trade potential should be at least 3 times the amount you could lose. We teach you how to evaluate a trade's potential. Click here to read: SEC Chairman Arthur Levitt Discusses Risks and Rewards of On-Line Trading! When you hear about On-line trading you probably think about discount brokers such as Ameritrade that trade Level 1. They use a third party, or middleman, to execute their trades. Direct Access Brokers, however give you access directly into the markets using Level 2.

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Can I start part time and trade using the internet?
You can start part time. You have control over all aspects of your trading. It is highly recommended that you take advantage of ourtraining courses before you begin trading. You need to know how to swim before you jump into the water. Trading on-line using the internet allows you the flexibility of trading from your home, office, or even while traveling.
 
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Why should I use Princeton's TradeTutor instead of another training program?
Princeton Daytrading, LLC is dedicated to creating the most sought after training program with the highest percentage of successful traders. Ourtraining program makes learning fast and easy with the greatest level of retention and skill development. You can expect more from Princeton, and get it.

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How much money do I need to start?
Typically, you can open a stock trading account with a minimum of $2,000.00, but you will be restricted to no more than 3 daytrades in a 5 consecutive trading day period. You will be able to buy and sell without restriction if you hold the stock over night. If you open an account with $25,000.00 or more and maintain a minimum balance of $25,000.00 you can make as many daytrades as you like with no restrictions. When margined, you will have 4 times the buying power during the trading day, but cannot be margined more than 2 times your account equity if you are going to hold a position over night.
 
 
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Can I trade from my state?
All brokerage firms must be registered in the states in which they do business. RMLTrading.com offers Realtick Software and excellent service and low prices, so I recommend them for daytrading as well as buy and hold stock investing.
 
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How does your training program work?
We offer our proprietarytraining programs at different levels.
Course 1 will teach you basics of the computer and using Windows.
Course 2 will teach you basics of the stock markets and technical analysis.
Course 3 will teach you how to use Realtick 7 trading software including, entering orders, using trend line tools, using the page manager, setting up the alarm, resolving internet connection problems, etc.
Course 4 will teach you advanced technical analysis and various trading techniques including, using indicators, locating entry points, and locating stocks to trade.
 
You may learn more about our fantastictraining program by clicking "training" on the left menu.
 
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Do I need a license to trade Level 2?
You do not need a license to daytrade level 2 (real time quotes and the most direct connection to the exchanges). Daytrading is simply buying and selling the same stock the same day. Anyone can do this.
 
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What is paper trading?
Paper trading is a very important part of skill development. Before a trader enters an actual money trade, he/she records a trade on paper (symbol, #shares, long or short, price), then after a period of time, records the exit point and evaluates the practice trade. This is an extremely important event. Only after you are confident that you can make money by paper trading should you begin risking real money. Realtick has an electronic paper trading system available. You are given a demo account in which you enter trades using the real time execution system in Realtick 7 software. Developing your skills with the execution system is vital to building your confidence. There are no commissions charged when using the demo order entry execution system. Buy and sell as often as you like, FREE!
 
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What options are there for on-line connection?
The area you live in will determine what services are available. The following are the most common connection methods in order of our preference from least to most desirable: 56K V.90 modem, ISDN modem, Cable modem, DSL, and Satellite dish.
 
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How do I select an Internet Service Provider (ISP)?
The service of ISPs vary in speed and reliability. Important questions to ask as you search for providers are: do they have a local toll free phone number, do they experience bottlenecks, will you get busy signals when you dial in, do their servers run with less than 75% total capacity, does their service automatically disconnect you after 20 minutes and can the disconnect feature be disabled, do they connect to the backbone with T1 and/or T3 lines with more then enough bandwidth to handle all their customers at once, how often does their service go down per month.
 
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How do I buy and sell with Realtick?
You buy and sell stocks using the execution program built into the Realtick 7 software program. It is automatically loaded and ready when you start Realtick 7. Nasdaq buy and sell orders go directly (electronically) through Townsend and to the exchange for execution in micro-seconds. When your order is executed, you will be notified immediately. It is extremely fast and accurate. There is a less expensive, cut down version of Realtick 7 software for beginners, but recommend the complete version. Princeton's TradeTutor training program is based upon the complete version of Realtick 7 software.
 
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I'm using an $8.00 broker, why should I trade with you?
I heard the President of the Securities Exchange Commission (SEC) on CNBC talking about how most of the discount brokerages don't do their own trade execution (called selling order flow); that they offload it to other brokers that don't always execute trades at the best price (called slippage). The average trade will not necessarily be more expensive when executed by a firm that does pay for order flow. Also, many brokers act in a principal capacity, trading for their own accounts; we feel this creates a conflict of interest. These brokers (market makers) usually make money from the spread, buying from you at the bid, and selling to you at the offer, as well as from their own accounts.
 
The following illustrates what could happen:
Reason #2 - Why do you think the discount brokers can charge you $8.00 and still make big profits? One reason is that they sell your market order to an executing broker or middleman. Suppose they get your $8 plus another $5 from the middleman. The executing brokers or middlemen are making millions of dollars. Isn't that interesting. They buy your orders and they make big money. How can that work? Suppose you enter a buy market order at 10:00 am. Your confirmation shows you paid 1/4 point more than what you had expected to pay. For 100 shares, the 1/4 point equals $25.00. How much did you really pay for the $8 trade? Try $33.00! And, that's only 100 shares. How much would 1/4 point cost you when trading 500 shares? Try $125.00. So, where do their big profits come from? What about limit orders? Suppose you entered an order for 100 shares at $50.00 per share when the price was $50.00 per share.Your order is redirected to the trade execution middleman. The price begins to decline, so he sells you 100 shares from his account at $50 per share and then buys it back 2 seconds later for $49.50 per share! You paid 1/2 point, or $50.00 too much.Your real commission would then be $58.00 for the trade. A 500 share trade would have cost you $250.00 too much. When you don't know the facts, the $8 trade sure looks like a bargain. With a direct access broker, you can see the stock available, as in the market maker window above, and YOU enter orders directly into the system. You have the opportunity to buy wholesale (earning the spread for yourself) and there are no middlemen to cheat you.
Once you trade with the many advantages of level 2 and Realtick software, you will better understand the sayings, "penny wise - pound foolish" and "you get what you pay for".
 
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What about foreign investors?
You must meet certain requirements, but can probably access the us markets. Contact RMLtrading.com to help you get an account open. Tell them at RML that Princeton Daytrading referred you and you should get special consideration.
 
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How do I sign up?
Contact RMLtrading.com. Tell them at RML that Princeton Daytrading referred you and you should get special consideration.
 
 
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