F.A.Q.
» I want to join your room. What do I have to know about the stock market ?
» I still have another job. Can I trade part time?
» How is your room different from any other room available today?
» How can I learn your system?
» What Size account balance do I need to start?
» What kind of broker do I need?
» How much profit can I expect to make daytrading?
» How long does it take to start profiting consistently?
» How many "good" trading opportunities are there, on average, every week?
» What are the rules in the RealityTrader chatroom?
» What is a typical day like in the RealityTrader Service?
I want to join your room. What do I have to know about the stock market ?
Though prior knowledge/experience is not required, it is important that you understand that daytrading does have high risk. If you need and want to learn, our room is the right place for you to start as well as continue with your education and further trading. We offer many educational and training options to assist you in becoming successful. We advise everyone however, to become very familiar with our style first. This room should be viewed while monitoring the market action in real time. This will give you a feel for our procedures and techniques. » top
I still have another job. Can I trade part time?
Yes. You decide on the pace of your learning. You decide how many steps you need to take at the time as well as the amount of time you want to spend in the market. You might start out part-time and decide later on whether this might be the start of a new career for you. Remember though that the time and energy you put into learning will pay off more down the road. » top
How is your room different from any other room available today?
The amount of information and services offered online to traders these days is astounding. Sometimes it can be very difficult and confusing to determine what is useful information and what is useless noise. RealityTrader is unique in the way that our concept and goal is not only to expose members to our style, but also to work with members so that they can create a trading style of their own. This style will suit a member’s personality and allows them to profit from the market consistently. The most important factor that really makes a difference is that instead of offering our own opinions about market events, we focus on our perception of true reality and show how to react on different types of action (see also Room Philosophy). We would like to help you to focus on what is really happening while providing our members with quality on-going training and support in both trading and psychological aspects (see also Mental State). » top
How can I learn your system?
To begin, you should read all the information on our web site. The book is available that will lead you over some aspects of our trading (link). The old maxim says that a picture is worth a thousand words. So please take advantage of our one week free trial. It is a reasonable period of time to get an opportunity to follow the market action in real-time chat room becoming familiar with our style but certainly not enough to get deep knowledge and understanding if this business is for you. The best way is to join the RealityTrader chat room. There you can directly interact with us and have your questions answered. Do not just "jump in" and start trading our calls. Watch and observe. It's a lot of information to take in, so do not rush yourself into it. Let it all come to you naturally. Paper trading, using simulator and small shares will acclimate you to our techniques and pace. » top
What Size account balance do I need to start?
Call your broker for their requirements. Considerable variation exists among trading houses. Minimum size account can vary from 2K to 25K for different brokers. We recommend you to have at least 25K to get started. And remember, that preserving your capital should be your main goal while you are learning. Make sure you have enough money to live on during the learning curve especially if you have no other sources of income. Don't count on trading capital to live on. It's your tool for trading. We feel 25K is a fair amount for two reasons. First, it is not too much that you feel you can make silly mistakes and still be okay. It is also not too little that you are limiting both your time and financial resources making it more "pressing" to make money right away. » top
What kind of broker do I need?
We recommend you do not use a Browser-based broker, but rather direct access brokers. Laser is currently the only order execution software certfified as NASDAQ's Platinum Partner. They are fully integrated trading platforms with point and click order routing and execution. » top
How much profit can I expect to make daytrading?
It's impossible to tell. We see ten traders with an identical mechanical system and their results vary considerably. Some traders lose money, some break even and some have gains. The psychological aspect of trading is so critical that we made it our main concern in your education. Knowledge and depth in understanding the processes behind market moves and behavior of market participants is what will make you profitable and successful in trading business. » top
How long does it take to start profiting consistently?
There is no single answer to this question. Daytrading is a process of learning of how to trade more consistently. You must learn how to lose, before you can win. This is the trick that keeps most away from success. Extreme dedication, constant interest in learning, and preservation of your capital while in a learning period will get you through this. The bull market we had recently, the most powerful ever, fooled a lot of people making them believers that they can do this for a living. The trick here is to be honest with yourself. You will need cold trading statistics of your own to verify what your perspectives are. The thing is, traders lose. It happens to beginning traders, intermediate traders, experienced traders and world-class traders who run huge hedge funds. The statistics are against you. If you violate the rules of trading too big relative to your account size, trading without stops, riding positions down or in general, when losses overwhelm gains, you are almost certain of limiting your potential. Learn to avoid this component of failure and after a while, it will become a habit. You will be able to routinely stay out of trouble, not giving your profits to somebody more disciplined. Trading properly and exercising good money management will allow you to gain confidence. Starting to like the "boredom" of making money consistently vs. losing money with excitement will surprise you that this is a positive aspect to trading. » top
How many "good" trading opportunities are there, on average, every week?
Daytrading resembles fishing. You are patiently waiting for your chance to strike when all variables are in place and your chances to be right are high. Some days there are no fish to catch and some days your hands will get tired from pushing the buttons. Learning when not to trade is one of the main tricks of trading.
If too many people subscribe to the RealityTrader, won't that have a negative effect on getting reasonable fills at your buy and sell points?
The staff at Realitytrader carefully monitors liquidity of the stocks it follows to assure that our subscribers can get reasonable fills in a timely manner. Our member's base aggregate equity is not sufficient to control market action one way or the other. Our main goal however is to educate you to read the market action and recognize pluses and minuses of each trade, making your own decisions on whether to take a trade or let it go. » top
What are the rules in the RealityTrader chatroom?
The first and the most important rule: no hype allowed, in any form. We have seen almost every form of hype there is in daytrading, so we know how to spot it. We make sure our members are protected of deceptive comments that stem from lack of knowledge or from someone's agenda. We don't trade Bulletin Board stocks. We are very careful with low volume stocks that might be impacted by room members' buying. Non-trading related banter is fine as long as it doesn't get in the way of trading - we value relaxed atmosphere but trading comes first. Trading related questions that are not of an urgent nature are better asked during lunch time which tends to be less active time for trading. Furthermore, everyone is to be treated with respect and professionalism. Under no circumstances is a trader to feel fear of retribution or attack for any professional discussion that is taken in the room. We encourage an open forum for professional discussion and will treat comments in such a manner. » top
What is a typical day like in the RealityTrader Service?
The room will be open for conversation 24 hours a day barring any technical problems (rare) with the chat room. Between 7:30 and 8 am EST, we will begin to gather a list of stocks that are receiving attention either from news events or by interesting action that was noted from the overnight session. This morning preparation work will continue until the start of the regular trading session beginning at 9:30 am EST. Once the trading session begins, room moderators place trading alerts, comments and news. The #Floor room is restricted from discussion by anyone other than moderators and is being used only for announcements that need to stay free of clutter. During the trading day, members may discuss and relay ideas to the room in the Interactive Discussion area labeled #DISCUSSION forum.
As we move into the afternoon trading session, we will carefully monitor the news for interesting stories that may present an opportunity to trade as well as stay alert for stocks that follow the methodologies presented in RealityTrader educational materials. Room moderators will also be available for questions in the afternoon on any trading topics that may arise. As we move towards the end of the trading day, room moderators may offer comments on stocks that can be held for overnight trades. After the trading session ends at 4:00 p.m. EST, the service will stay open and room leaders may stay after to discuss any questions or thoughts if they are able to do so. » top
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