Is a day trading chat room right for you?

Here's what happens in a day trading chat room. One person (the leader) tells the members when he/she is buying and selling a specific stock. The members follow along with this trade, copying the leader's actions, and taking the same gains and losses as the leader.

Having led chat rooms in the past, there are a few things members should understand.

* Traders have their own comfort zones and trading styles. Some are comfortable with tight stop losses. Others can endure wider stops. Some like the 1-minute charts and others wouldn't be caught dead trading in such a narrow range.

* No one is perfect. I don't care how good a trader you are, you are going to mess up. The leader of a chat room is going to give a bad signal sometimes. So, the participants should not expect perfection.

* The chatter that happens between trades can be distracting. Some participants want to talk about politics and others just want to "listen to the master".

So, if you decide to join a day trading chat room, you should be aware of these things and set correct expectations. Don't expect perfection. Be patient with others. Know your own comfort zones.

Once you've accepted these parameters however, there are many benefits from attending a chat room. You stay more attentive. You have a specific group of stocks to focus upon. To learn how to enter and exit a trade profitably. You acquire the necessary confidence required of all traders. But the chief benefit, of course, is that the profits you make in the chat room can more than pay for the monthly subscription.

You may have heard of Manny Backus. Manny leads the First Hour Trading chat room. Manny is a smart day trader whom I've known for over a year. We have worked together on a number of projects. I trust his method of trading and his integrity. If you'd like to check out his chat room then click this link. Manny's chat room is very different from mine. You could even join both without much duplication. But Manny's focus is on creating quick trades in that tough first hour of trading. He tells you exactly when he is buying and selling a stock and he has a proven track record. (He may be offering a 30-day trial. If so, I'd suggest paper trading the chat room for a week to get comfortable with it before you start using real money. Here's the link again: Manny Backus' day trading chat room ).

Since May, 2009, Manny and I have been working together on an additional chat room, Morning Hours Trading. I'm available in this chat room for three hours each morning. First, I post a list of gap up and gap down stocks. Then I call out trade set ups as I see them. Members make their own entry and exit of each trade, based on their risk tolerance levels, their equity levels, etc. And I follow through each trade with ongoing analysis until each play is over. And we're getting some very good results.

If you'd like more information, you can find out the current offer by going to this link: Morning Hours Trading.

I have compared the day trading chat room experience to learning how to ride a bike with training wheels attached. But it is actually much more than that. Members develop a lot of camaraderie and there is a great deal of sharing among members - if it's a good chat room. Afterall, it can get pretty lonely sitting in front of a computer all by yourself for 30 hours a week.

If you've never considered a day trading chat room, then I'd encourage you to check out one of our no-risk offers. Find one you like. And see if your trading improves.