Quote from timscott:
I quit my job in '99 after working a $5k acct to 50k over a few months, then doubled it in one day to $100k to become a "daytrader".
I lost $83k of that in 6 months by over trading and chasing hot names. It was brutal - but gave me a wake up call.
Over the next 6 months I turned that $20k into $600k by anticipating moves rather than chasing them, and using 2x margin or options. Caught some great moves but invariably left huge amounts on the table. If I had 10 k of options turn into $50k i would just take it.
The edge back then was simple - figure out what sector the money was rotating into and look for low priced stocks that hadn't moved. Sometimes it would take awhile but invariably the daytraders would find them.
Recent for instance - quick scan of coal stocks once ANR and PCX got jiggy turned up ICO at $7. It almost doubled in just over two months. Double your money a couple times and you are rich.
