A big mistake I made when I first started trading was to buy stocks based on name value, i.e. those that I had heard of just because I had heard of them. It is a mistake to base your stock selection on this. To day trade, you need to learn to read charts. Easyguru gave someone some good advice a couple of days ago, and this applies to your other thread about strategies as well:
daytrading
- Thread starter blb078
- Start date
I agree with that business learning one stock at a time. Many daytraders are following a wave, the people who trade one stock are often riding the wave.
To get around the PDT crap, you could look at trading currencies or commodities (eminis). I don't think it matters what you trade, its how.
#1) Discipline (risk management, sticking to fundamental system rules) Dont bet the farm on any given trade, get out of losers quickly and hold onto winners with a little more patience. There will always be other opportunities - don't force yourself into a trade or to stay in a trade that doesn't conform to your entry expectations.
#2) System - get comfortable with the behavior of the vehicle you are trading around. Find the indicators that worked on past data, test, test and retest.
#3) Focus - this is about you getting a good feel for your trading. Subscriptions may or may not give you the right advice but you will not be developing the instincts if you look to someone else to feed you the moves.
Good Luck. Its a tough market right now, low volume/energy and all.
#1) Discipline (risk management, sticking to fundamental system rules) Dont bet the farm on any given trade, get out of losers quickly and hold onto winners with a little more patience. There will always be other opportunities - don't force yourself into a trade or to stay in a trade that doesn't conform to your entry expectations.
#2) System - get comfortable with the behavior of the vehicle you are trading around. Find the indicators that worked on past data, test, test and retest.
#3) Focus - this is about you getting a good feel for your trading. Subscriptions may or may not give you the right advice but you will not be developing the instincts if you look to someone else to feed you the moves.
Good Luck. Its a tough market right now, low volume/energy and all.
Peter are you really a KLAC only specialist or do you go back to QQQs sometimes?
db trader is right about focus.
Little, yes I am a pure specialist now.
One stock. one timeslot, one direction
KLAC, first 30 minutes, short only
It may take longer to close the position than 30 minutes, but if I take a position it is in the first 30 minutes. Goal, 1% on equity by using leverage. Hey, its a living.
Little, yes I am a pure specialist now.
One stock. one timeslot, one direction
KLAC, first 30 minutes, short only
It may take longer to close the position than 30 minutes, but if I take a position it is in the first 30 minutes. Goal, 1% on equity by using leverage. Hey, its a living.
blb078,
From what you have written so far I'm not sure you're ready to trade again right now. You really should have done enough homework this time around to know about the PDT rules and the fact that you need $25k minimum, and probably $50k realistically to make a go at stock trading for a living.
With that aside, I second the fact that you should become a specialist in 1, maybe two stocks (or futures markets). I spent too much time chasing a huge basket of stocks when I started. You are competing w/ professionals who only trade one thing using one or two patterns only. They make it very boring (redundant) and very profitable.
Use a simulator and don't trade live until your entries and exits are second nature. Tape one or two $100 bills to your monitor next to where you position your simulator so you have to look at them every time your enter a trade. Hopefully it adds some of the stress that you will feel when you go live. Do a search on Yannis under User Name, he had some good advice for beginners on another thread.
Good luck!
Whamo
From what you have written so far I'm not sure you're ready to trade again right now. You really should have done enough homework this time around to know about the PDT rules and the fact that you need $25k minimum, and probably $50k realistically to make a go at stock trading for a living.
With that aside, I second the fact that you should become a specialist in 1, maybe two stocks (or futures markets). I spent too much time chasing a huge basket of stocks when I started. You are competing w/ professionals who only trade one thing using one or two patterns only. They make it very boring (redundant) and very profitable.
Use a simulator and don't trade live until your entries and exits are second nature. Tape one or two $100 bills to your monitor next to where you position your simulator so you have to look at them every time your enter a trade. Hopefully it adds some of the stress that you will feel when you go live. Do a search on Yannis under User Name, he had some good advice for beginners on another thread.
Good luck!
Whamo
If you are going to only have 20k to start, then you are not about to start daytrading, you are about to run into a wall of frustration if it's stocks that you are planning to trade. (SEC- PDT rule)
Either resign to the fact that you are about to start swingtrading or trade the emini futures contracts if you really want to daytrade.
The ES (S&P eminies) pays 50 bux a point and the NQ (Nas 100 eminies) pays 20 bux a point. The YM (Dow eminies) pays 5 bux a point.
You can daytrade these as much as you like with 20k and you don't have an uptick rule when shorting.
That being said, seek to identify a trend on whatever timeframe and vehicle that you choose to trade. Seek to enter the trend at a decent price and assume that the trend will continue until the market tells you otherwise. Use stops and keep your losses small.
Write out a trading plan/method. Papertrade your plan and test it, does it make money/ points more often than not? Papertrade against your plan and see if you lose money/points repeatedly. If not find another method.
Once you come up with a method that pays more often than not, trade it live with real money.
If your written plan/method is making money then write out plan B. It should read something to the effect of "stick to plan A"
Best regards and good trading to you.
plumlazy
peter, I've been trading KLAC for a while as well.
My tip: Trade in 100 sh lots when you first start. Actually, I would recommend paper-trading or trading on a simulator when you first start, but that's too boring for some people, in which case 100 sh lots will do the trick nicely and cheap.
If you have 20K, I would recommend looking into a prop firm like GreenTree Trading who can provide with some more capital/leverage and get you around the PDT rule.
-FastTrader
My tip: Trade in 100 sh lots when you first start. Actually, I would recommend paper-trading or trading on a simulator when you first start, but that's too boring for some people, in which case 100 sh lots will do the trick nicely and cheap.
If you have 20K, I would recommend looking into a prop firm like GreenTree Trading who can provide with some more capital/leverage and get you around the PDT rule.
-FastTrader