Some days … The news this morning is heavy with doom. Some anonymous, “high ranking” German official told the world Germany does not see much hope of reaching a deal at the big summit on Friday. Maybe this official is correct, but we all know how this political stuff works – an anonymous whisper here, a little leak there.

The senior government official, briefing reporters on condition of anonymity, said Berlin is increasingly pessimistic about the chances of a deal, accusing some governments of failing to grasp the gravity of the situation.

One way or another, I suspect time is running out. The market is losing patience with the inability of European politicians to step up and do what is necessary. Just get ready if the summit this Friday fails to deliver …

I am new to trading and wish to know how to find good stocks to day trade. I know I know…:) day trading is risky, as is anything in the market. After thousands of hours in trying to find WHAT to look for, I am still blind. I use TOS to trade on, have roughly $30K to play with WISELY, and just looking for basic direction on “where” to look. I would consider myself to be a momentum trader (upswings only), so where would one look?

First off, I think it is good that you only trade the upswings. Second, it is bad that you chose to day trade. My friend, day trading is difficult in good times, but in a market such as this, if you are not experienced … Third, if you are serious about making money on your $30k, drop the word “playing” from your vocabulary. Trading is a business, not a game. If you have $30k to throw away, fine, but if not, then get patient because you have some non-trading time in front of you. Yes, I suggest you stop trading for a bit so you can just watch and learn about general market movement. Fourth, get yourself the book, Trading In The Zone. I suspect you need a primer on both the psychological and fundamental aspects of trading. Finally, after you have spent some time reading, watching, learning, and play trading, consider becoming a swing trader, a trader who trades the upswings but holds a position for days or weeks, if necessary. If you truly want to use your $30K wisely, follow my advice.

The reader does raise a point that, once again, supports my belief that understanding the market, the big and small picture, is a necessary component for success. He wrote he spent “thousands of hours” on the “what” and now he is looking for the “where.” Well, this is a step in the right direction, so to speak. If one understands general market behavior, as well as the big picture, the smaller picture becomes more obvious. One should be looking to economic sectors, the sectors that move when the world moves. One then should look to markets in those sectors. One then should break down those markets. Finally, after all that, one should select and execute a trade according to a specific strategy. Now, here is my piece of good news today …

The Volcker rule, a part of the 2010 Dodd-Frank financial oversight law that tries to make the financial system safer, greatly restricts the amount banks can invest in hedge and private equity funds.

Think back to 2008. The financial collapse happened because big banks had become big traders. They became overleveraged, and when their bets failed, liquidity dried up and the money flow stopped.

Trade in the day – Invest in your life …

Trader Ed