optioncoach,
We are currently only paying the SEC, gateway, and clearing fees. All of the transaction fees have been waived until we graduate. As well, we have not put any of our own money at stake - just our time.
We are not being forced to trade LU and NT, and in fact, I almost never trade LU. I tried it for a couple days but it didn't agree with me so I have tried other stocks. One of the stocks that I have to trade is EWJ, so I have been trading it for credits and the occasional penny spread. This isn't my choice for a long-term strategy, but is just a hoop that must be jumped through. As we prove ourselves, the basket of stock grows. Since I finished three days of $25 profit with no negative days, I am able to trade any high-volume NYSE stock, though I have been discouraged from trying the very volatile ones.
Still, as you can see, I was able to trade VLO, though it just lost me money. I'm now trying to select stocks which can make money, preferrably without a lot of churn.
From what I've been told, the reason that we follow this path is that the slower-moving stocks like LU are easier to teach, give far fewer losses, and can be profitable. When we can be profitable there, then we are assumed to have some understanding of the market and an ability to control our losses, and more is opened up to us.
So I'm in the process of selecting stocks for myself instead of having them handed to me, and my first choice was... not so great. If you have any suggestions, I would love to hear them. Not sarcastic or anything - I really am interested in what you can suggest.
Quote from optioncoach:
After one week of making the firm $500 in commissions, can you look back and say you have learned something concrete to apply to any stock or market?
Yes, I've learned quite a lot. I find that many of the people here are very experienced and may not realize just how clueless many of us noobs really are. I've learned about the different ECNs, market players, mind games, tools and some techniques. Remember too, that I've traded CDE, L, F, LU, SLR, EWJ and now VLO and MOT. I hope that what these stocks teach will be applicable to others.
I am not sure why people here are not "slapping" you to wake up and realize that a firm that makes about $2,000 a month off of you while limiting you to $50 max a day risk management is dancing all the way to the bank and is no better than a Ponzi scam.
The $50 stoploss grows as our profits grow. Since I have never made even $50 in one day, this is an adequate stoploss. As I become more profitable, the stoploss grows as well.
Why would think this is good unless there is more I am not seeing, like you are being trained or they will take the handcuffs off at some point and let you trade big lots (scary thought given current level of trading).
I've decided, for whatever reason, that I would like to see if I have some aptitude for this. I am doing it full-time so that I can focus on it and learn without other distractions. They give me an environment to trade and practice which I think is a fair deal. If I feel stymied and like I am not reaching my goals, I will take some other measures to deal with it.
Hope that helps you understand why I am where I am.
