Morning all, I know this may sound rather odd when someone...

Morning all,

I know this may sound rather odd when someone wishes to be a daytrader - but, I shall explain the oddity in a little detail.

First ------- in regard to scanning software ---------- I would use Stockdoctor ---------- a Fundamental analysis stock scanner - pretty much the best in Australia that I know of.
The learning you get from doing searches is invaluable.


Now - what the hell has FA got to do with day trading? ------------ well, IMO - a lot.


Here are a few facts for starters.

1. Almost all daytraders go broke.

2. Of the few that don't go broke ---------- most lose money. Very few make money over a long period - and even fewer make what would be called - a lot of money - ie. successful traders.

3. Very often - traders (DT or ST traders, swing traders - any traders) - get stuck in trades and become investors.



There should be very little argument against the above 3 facts.

Add to that the fact that trading is often talked about as being 90% psychology (your own) and 10% other - like skills of money management, TA - whatever tools one uses.



Put all that together and what you find is that not IF - but, WHEN you stuff up and often get stuck ---------- it would be a wise course of action if you get stuck in a company that is solid as opposed to a company that has bugger all going for it.

How do you find those companies without doing extensive individual research?

Fundamental analysis software - that's how.


So - instead of trading your funds away following every and any dog on the ASX - what you end up with is a list of companies - that aren't going out the back door in the very immediate future - and, also, you may well find that you can see which companies will raise on you as your wonderful winning day trades fly (and, you are tempted to stick for a few more days) --
your list will give you far better quality targets -- with a far better safety net then just throwing a dart at the board.

Along the way - you will be learning about what and how companies work. Also - if you are smart - you will keep an eye on who are the board members and some management - and, you will begin to memorize - who are possibly the duds and who may make things work.


Then, of course - one day into the distant future - you may well decide that trading is a glorious way to lose money and that investors are the one's who actually build the wealth --------------- and, because you have done training to be an investor by using FA as your original company finder -------- you have in fact, done years of research towards the game that makes the big bucks -- and, you didn't even know it.

hope this helps - have a great day


Pinto