Experinced traders only please ,Profit goals vs. buying power

HI,

I am not trying to be smart, but why would you do this?? Also, I feel the more important question is how do you figure your stop. For someone to trade that size and take that risk and then be concerned only with if they are making enough money with it is someone just asking for it. If you are going to try that size I would suggest you trade the S and P emini and or the Nasdaq emini. If not the emini, then QQQ for Nasdaq and SPY or maybe DIA. I think over time you will develop a better feel for it. Please be careful.

John
 
Originally posted by Babak


Pardon me for interjecting a comment here but every transaction that takes place on an exchange is a pairing of buy and sell orders. There can never be more buyers than sellers. I think what you mean to say is that for a rally to take place, buyers have to be more aggressive than sellers. Perhaps a small detail, but it cuts to the heart of the matter. :)
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Babak,

I absolutely LOVE when I hear people say that... :p

Good Trading,
Publias
 
Originally posted by Babak


Pardon me for interjecting a comment here but every transaction that takes place on an exchange is a pairing of buy and sell orders. There can never be more buyers than sellers. I think what you mean to say is that for a rally to take place, buyers have to be more aggressive than sellers. Perhaps a small detail, but it cuts to the heart of the matter. :)
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That doesn't make sense to me.

Any supply and demand auction/trading is driven by imbalance between buyers and sellers otherwise a price would never change. If the demand for oranges triples in one day then the price will be driven due to shortage of supply. If people stop buying oranges then the price drops as the sellers have to lower prices to attract buyers. That's why OPEC try and control supply to maintain a consistent price.

If there are 100 million WCOM shares for sale and buyers for 10 million then the price will go down until the imbalalnce is neutralised. That's .30 cents.
 
Mike,

You are mixing two things up. These two things are:

1] people that would like to sell/buy at a certain price
2] people that do in fact sell/buy at a certain price

I'll use your example. In WCOM, there might be many who want to sell at a certain price. But they find that there aren't buyers ready to buy at that price to consumate a transaction. This has nothing to do with how many buyers there may be, but it has everything to do with what price the buyers are willing to buy at.

The potential sellers would have to lower their price to meet the potential buyers. Or else, the potential buyers would have to change their minds and increase their price to where the sellers want to sell.

Remember, a transaction is agreement on price, and disagreement on value. Prices change because one side of the transaction is willing to believe that the other side will prove to be significantly wrong in their calculation of value.
 
I think this is a matter of semantics. How can you ever PROVE if there were more buyers than sellers or equal number of buyers and sellers, but the buyers were more aggressive? Can this be measured? And does it matter either way, when the end result is the same?
 
Originally posted by VOLUME
"You should make between $8000-15000 if the market has a decent rally (i.e. Nasdaq moves 20 pts.up)."-Goldenarm


If you are pulling $11,000 (avg.) on 20 point Nasdaq moves then you should be retired by now....and you are the greatest trader that ever placed an order.
:eek:
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Stocks like KLAC can make 3pts moves very easily on certain days, 11K on positions of those sizes on those stocks is not abnormally large. Won't happen everyday, but if you're willing to sit with 4000 shares of NVDA and 2000 of KLAC etc, you BETTER be going for 10k total profit when you initiate :D

To EQTRADER, why bother buying a variety of stocks in anticipation of a rally, why not just the QQQ's and SPY's? The only reason I ask is that unless you have some basket execution already setup, it seems that such diversification for the sake of just an intraday rally is kind of excessive -- makes more sense if you are swing trading for a multi-day position.
 
Thanks for your reply

I would rather be in stocks I feel are stronger than the overall market. If my basket rallys it should outperform the spy's and the Q's, and on the other hand, if the market weakens my stocks may hold up better.
 
These figures are for INTRADAY TRADING ONLY

Lets say a trader is long a basket of 7 stocks
1k- adbe b 24.7 s 25.51....$ 810 p
1k- bls b 30.6 s 31.13.....$530p
2k- aol b 12.62 s12.6.....$40L
2k- ge b 28 s 27.9.....$ 200L
2k- amat b 18.25 s 18.85... $1200p
2k-mu b 23.35 s 23.97.....$ 1240p
2k csco b 14.15 s 14.25.... $200 p
---------------------
$ 3,740 gross profit
-$300 commish
--------------
$3,440 net profit
I entered those positions at 10:30, sold them at 11:45, not a bad morning's pay!
 
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