daytrading

Quote from blb078:

i don't plan on relying strictly on the subcription services, i only have around 20k to start, so i will have to focus on lower priced stocks to make some money. i think i'm going to stay w/the more popular stocks to start, hopefully i'll less chance of losing everything.

are there any good strategies to use?
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You might consider thinking about trading the higher priced stocks. They will have more intraday volatility. Your positions will be smaller but you will get a bigger bang for the buck.


For a $10.00 stock to move $1.00, it has to have a 10% move.

For a $50.00 stock to move $1.00, it only needs to move 2%. A 10% move will represent 5 bucks.

Either way play it safe, take it slow, and enjoy the process.
 
but on trading a smaller priced stock i can pick up more shares, try to make a few cents and get rid of it. if i trade higer priced stocks i get fewer shares that have to move more than a few cents?
 
yes, you need 25k to daytrade.

the rule (SEC) sucks. but it's there, and unfortunately, it's a catch-22...

the brokerages won't put significant money in to sue and overturn the rule.

people who need it most (ie. less than 25k) don't have money to sue.

so either you better be a 'winner' immediately, and get it over / keep it over 25k...

or work and get more than 25k - substantially more..
 
Some humble advice from someone who was where you are now, 6 months ago:

I am floating between profitability and non-profitability currently.
Almost there. I can smell it.

The best advice I can give is, find a method before using real money.

"Find a method" means a lot. Books are written on methods.

So to simplify what I mean , and to perhaps provide some insight into where others (me) look back now and wish something was done differently: Find a method before trading it, instead of trading to find a method.

One very important note though: papertrading can only teach you so much. Trading with real money is where the whole 'other side' of trading comes in: emotions.

Find a timeframe that suits your personality.
Find and become an expert in one or two types of trades/patterns/tape reading/etc. (you can add more later)
Learn discipline.
 
Quote from blb078:

but on trading a smaller priced stock i can pick up more shares, try to make a few cents and get rid of it. if i trade higer priced stocks i get fewer shares that have to move more than a few cents?
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A higher priced stock will move "a few cents" a lot easier then a lower priced one will. Especially for daytrading purposes, there will be more of a rhyme or reason to the move. It's just the way to go, in my opinion.

I really don't want to debate about this. In all seriousness, I'm not articulate enough to express myself in a post.


Another point, assuming that you have discipline and are not going to throw your money away by trading foolishly, you might benefit from using the leverage of a pro. firm.
 
i agree that a higer priced stock will move a few cents more than a lower priced stock, but i won't be able to get as many shares on a higer priced stock. ie: buy 4000 shares of xyz @ 5.00 and it moves .02 minus comission, i use datek/ameritrade for my broker @11.00 per trade, that is a total of 80.00 made minus 22 for the comission is that is 58.00 do that 3 or 4 times a day and i'm at my 150-200. Remeber i only have 20k to start with.
 
I agree that finding a methodology that works is key. I might also suggest that you try one of the real-time simulators that some of the brokerages have. I think Interactive Brokers has one as does FFasttrade. However, with FFasttrade you can trade index futures and such, but not stocks. The obvious advantage of the simulator is you can trade in real-time, but are not risking any of your hard earned cash. If you think you have an edge in the market to make money, find out first on the simulator.
 
Quote from blb078:

i'm about to start daytrading, i used to daytrade a couple of years ago, but wasn't to familiar and lost a good junk of change, i'm going to get back into it and i'll have around 20-30k to start, i want to try and make 150.00-200.00 a day, to start, any advice, does/don'ts, any help would be greatly appreciated.
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Blb078:

Absolute discipline and adherence to your proven edge is a must if you want to shoot for it. I am assuming you’ve already got your sound money management rules worked into your trading system. My concern here is if you’re setting such a daily target (and there’s nothing wrong with setting targets) is if your cumulative P/L starts heading the other way (i.e. minus) during the day, would it negatively affect your composure and destabilize your plan in the attempt to meet that quota to $150.00 - $200.00 a day?

Kermit
 
i don't think if i have a bad trade it will affect me, i've had them in the past, i'm going to try to stay w/some bigger companies to start, the orcl, awe, pcs, so if i have a losing day, they have a good chance of rebounding.
 
As others have said, you can't daytrade without a daytrading account, and that requires 25,000 USD.

Once you save that up, trade with a firm that offers low cost commissions, and trade only 1 equity for six months. Learn everything there is to know about it, including news on it, news on the sector and breaking economic news. Briefing.com is fine for that part.

For the last six months I have only traded KLAC and have done well. I used to have 10 screens, trade many different items, and drive myself crazy. Now I have 2 screens and 1 item to trade.

I used to write excel programs to help me trade, now I trade two or three times a day.

For a lot of successful traders the KISS philosophy has a great deal of merit.

There a thousands of traders out there who are smarter than me, making less money because they spread their smarts over too many screens and items.
 
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