Daytrading advice....

J

Jst511

I am currently trading and have been off to a great start. I have received several compliments that I have a natural aptitude to trade, in respect to how I enter and exit, allowing my profits to run for me, yet not against me, and am not scared to pull the trigger unlike many other newer traders.

Although I have been successfull so far, I recognize one big weekness, over trading. I typically start off the day positive by a signifigant margin $300-900 for the lot sizes I typically trade 100-300 shares per trade.Once the market does slow down I typically grind away alot of my earnings on a slower market where I have no edge. I know I can not trade at all and just wait for the close... Yet i feel for some reason there should be a happy medium where I can continue to trade well and make some further gains rather than being stagnant or losing. If any of you guys have had a similar problem or just some advice it will be greatly appreciated.
 
umm i dunno but $300-900 up in the beginning trading 100-300 shares of what? that sounds like a lot considering your only trading 100-300 shares? are you trading google or something like that?

i would quit after your up so much
i trade 3000 shares of sso to make $900

wtf?
 
Quote from Jst511:

I am currently trading and have been off to a great start. I have received several compliments that I have a natural aptitude to trade, in respect to how I enter and exit, allowing my profits to run for me, yet not against me, and am not scared to pull the trigger unlike many other newer traders.

Although I have been successfull so far, I recognize one big weekness, over trading. I typically start off the day positive by a signifigant margin $300-900 for the lot sizes I typically trade 100-300 shares per trade.Once the market does slow down I typically grind away alot of my earnings on a slower market where I have no edge. I know I can not trade at all and just wait for the close... Yet i feel for some reason there should be a happy medium where I can continue to trade well and make some further gains rather than being stagnant or losing. If any of you guys have had a similar problem or just some advice it will be greatly appreciated.
More...

there are a couple things you could do:
1) limit trading to morning hours when you're most profitable
2) set daily cap for profit
3) have a 3 (or more) strikes and you're out system
 
100-300 per trade, Typically in a given morning I will trade 5-10k shares to make 900. I stick to stock that move but nothing crazy, typically V, PG, Financials, Nat Gas co's.
 
You have a long way to go. You need to realize how little you know rather than congratulate yourself on how well you are doing.

Why is your profit going down? Over trading. So stop over trading. Its much harder to do than you think.

You will have to define "over trading" and figure out how to identify it. Then you need to anticipate it!

Goodluck!
 
Quote from Jst511:

I am currently trading and have been off to a great start. I have received several compliments that I have a natural aptitude to trade, in respect to how I enter and exit, allowing my profits to run for me, yet not against me, and am not scared to pull the trigger unlike many other newer traders.

Although I have been successfull so far, I recognize one big weekness, over trading. I typically start off the day positive by a signifigant margin $300-900 for the lot sizes I typically trade 100-300 shares per trade.Once the market does slow down I typically grind away alot of my earnings on a slower market where I have no edge. I know I can not trade at all and just wait for the close... Yet i feel for some reason there should be a happy medium where I can continue to trade well and make some further gains rather than being stagnant or losing. If any of you guys have had a similar problem or just some advice it will be greatly appreciated.
More...


Take your wife (or "significant other" as the politically correct would have it) for a long leisurely lunch, preferably from 11:30 am to 2pm, and/or relax in bed reading, listening to music, have sex etc.
 
I started daytrading for past 3 weeks.
Most of my trading occurs the first 2 hours in the morning.
Since I have another full-time job I think daytrading is much better if it is done as part-time.
I agree that over trading can occur.
It did happen to me. Made around 800 from one trade
then greed sets in and you want to go for a second round
and ended up with a loss.
Also, daytrading can not be learned from just reading books
I believe you should be trading to know what is like to day trade.
During my past 3 weeks, I bought around 10 books on technical analysis. I told my wife I wanted to make sure my decisions
should be based on some scientific principles or set of rules.
I think it is not possible to learn all technical analysis in a short time specially in real-time pressured applications during trading sessions.
So far, the range of my trade gain have been from as high as 5600 to as low as 50 bucks daily.
I think losses are just as important than earnings because they
can reveal something about your trading behavior and decision making.
I bought JAVA and lost quite of bit of money.
Made some money with AIG then lost some too.
The other important truth is daytrading has taught me when to become a long-time investor vs a swingtrader.

I realized to gain from long positions, you must at least have substantial assets such as one million or more.
I am guessing that hedge funds are able to put most of their money into fixed interest bearing investments probably around 70-80% then the rest can be used for agressive gains.

The other important issue is discipline and proper mindset which can be developed with more normal life I guess.

Initially, high earnings can leave with you with a sense of high.
This is not a healthy one.
I started to work out going to gym daily to keep my balance and keep my composure
Even if I make 20 bucks I am happy since lots of people are without work in this tough economy.

And, I am learning to develop my specific set of rules for my own trading style.

I would like to hear from other fellow day traders on my personal thoughts.

Jacob
 
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