Good job! Just curious - is that $53k before taxes trading at 25 to 1 margin on NYSE/NASDAQ stocks?
Is DayTrading Stocks Even Worth it Anymore?
- Thread starter tatertrader
- Start date
Good job! Just curious - is that $53k before taxes trading at 25 to 1 margin on NYSE/NASDAQ stocks?
That's before taxes and after costs that are debited directly from my trading account (mostly just FirstAlert at $450/mo). Add about another 2000 in subscriptions, charts, internet connection, etc.
I never use all my buying power. On the open I might have 10 positions of 1200-2000 shares each. Otherwise I'm mostly trading 3-500 shares at a time.
I never use all my buying power. On the open I might have 10 positions of 1200-2000 shares each. Otherwise I'm mostly trading 3-500 shares at a time.
one thing on why daytrading was harder during livermore's time...
take a look at how many shares outstanding existed for the 'big' stocks. very, very few.
and, remember that the specialists would keep spreads wider than subsequent years.
daytrading was much easier at the bucket shops, as livermore discovered.
take a look at how many shares outstanding existed for the 'big' stocks. very, very few.
and, remember that the specialists would keep spreads wider than subsequent years.
daytrading was much easier at the bucket shops, as livermore discovered.
man, that's serious bp. that's a nice comeback but that would be tough to pay bills with...
good luck
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Don bright said something like learn a couple of stocks [like specialist] & sit on the edge of your seat. My time frame is longer than Bright Bros, I day trade some but mostly swing trade.
Enjoy daytrading more than swing trade never the less swing is more profit.
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Helps some that I Watch & trade QQQ,SPY, DIA family of stocks.
Accidently discovered from my chartbook that my most profitable day trades were daytrades that started out as SWINGTRADES:try not to let a swingtrade profit turn into a loss.
That never made it easy but made it more workable for me.
It is absolutely possible to still daytrade stocks for good profit.
You just have find the right ones to trade (catalysts/stories/RS) and minimize losses quickly; the market is not forgiving anymore for mistakes.
Also, the best trades are in the AM, after that interest dwindles most of the time..and odds of success are reduced.
Check out COF yesterday...straight up...then flatlined. The days of trading all day long are over. You will get nickel/dimed to death if you choose this path.
Since I started keeping track in 2003, here are some good examples:
1/2/03 Long MMM; E: 124; E 125.90; Good ISM #
1/3/03 Long FRX; E: 105.25 E: 106; Good EPS #s
1/6/03 Long IBM; E: 82 E 83; Good RS, and seasonaly strong day
1/7/03 Long IBM; E: 84 E 85.40; Good RS, con't from prev day
1/7/03 Short MMM; E: 126.80 E: 127.01; Worse than exp. Factory Orders, but alas did not go down..so covered quickly
1/08/03 Short MBG; E: 26.60 E: 26.40; Cut estimates, but really did not want to go any lower..so bailed, looked priced in on open
1/09/03 Long IBM; Good news from SAP (Didn't take as was at the doctor, DAMN!, but good example nonetheless)
You just need to be more creative, and trying to be done by 11:00 doesn't hurt either, after that lot's of noise and random action due to decreased interest.
Avoid overtrading at all costs!!!
Hope this helps
You just have find the right ones to trade (catalysts/stories/RS) and minimize losses quickly; the market is not forgiving anymore for mistakes.
Also, the best trades are in the AM, after that interest dwindles most of the time..and odds of success are reduced.
Check out COF yesterday...straight up...then flatlined. The days of trading all day long are over. You will get nickel/dimed to death if you choose this path.
Since I started keeping track in 2003, here are some good examples:
1/2/03 Long MMM; E: 124; E 125.90; Good ISM #
1/3/03 Long FRX; E: 105.25 E: 106; Good EPS #s
1/6/03 Long IBM; E: 82 E 83; Good RS, and seasonaly strong day
1/7/03 Long IBM; E: 84 E 85.40; Good RS, con't from prev day
1/7/03 Short MMM; E: 126.80 E: 127.01; Worse than exp. Factory Orders, but alas did not go down..so covered quickly
1/08/03 Short MBG; E: 26.60 E: 26.40; Cut estimates, but really did not want to go any lower..so bailed, looked priced in on open
1/09/03 Long IBM; Good news from SAP (Didn't take as was at the doctor, DAMN!, but good example nonetheless)
You just need to be more creative, and trying to be done by 11:00 doesn't hurt either, after that lot's of noise and random action due to decreased interest.
Avoid overtrading at all costs!!!
Hope this helps
[. The rest of the time I look for relative strength or weakness out of a list of about 75 stocks which I follow closely. I go home flat every night. The most important thing to remember is that you only need 4-5 good days a month to make a living, as long as you stay out of trouble the rest of the time. [/B][/QUOTE]
I just started daytrading this week, (I have previous expereince as a market maker so I am not a total novice) and have 2 questions for you:
1. how do you keep track of 75 stocks all at once? I assume it is using alerts that sound off when certain technical prices are hit?
2. on your second point, how big are you playing (% of capital ) in your positions if you can survive on 4-5 days of gains? Not that I am questioning the validity of your statement, but you must be taking huge risks?
thanks in advance for your reply
I just started daytrading this week, (I have previous expereince as a market maker so I am not a total novice) and have 2 questions for you:
1. how do you keep track of 75 stocks all at once? I assume it is using alerts that sound off when certain technical prices are hit?
2. on your second point, how big are you playing (% of capital ) in your positions if you can survive on 4-5 days of gains? Not that I am questioning the validity of your statement, but you must be taking huge risks?
thanks in advance for your reply
Do you do that consistently or was that a one hit wonder?