MM/SP knows Day Traders????????

Motas

I've been trading for about 6 months as well. After being down about $5K in the first two weeks, I stopped trading for a week and did some serious introspection.

I strongly suggest that you do the same!

If you have read the books thats you listed, then you are not exercising what you have read. Here are the most important aspects of trading that I have learned so far.

Trading is 1.) Psychlogy 2.) Money Management 3.) Methodology

Money management is discipline above all else. You know the rules (Risk/Reward Ratio, Probability, Stop Losses, MAx position size, etc.) If you can't learn the discipline, then don't trade!

Methodology is very subjective, but I believe that every successfull trader comes into his own. Go with what works for you. Backtest and trade small lots until you see results.

Psychology could very well be the most important aspect of trading. For many people it is very difficult to remain objective when trading. It is also difficult for many to learn the rigid self discipline that is absolutely necessary to be successful. You should already know that most who attempt this profession loose everything because they lack the discipline. You have difficulty with these aspects and you need to develop the proper pshchological techniques to overcome them.

In closing, trading is not for everyone. Perhaps the best advise I could give you is to stop trading alltogether. At least you will stop loosing money.

Mike
 
Originally posted by version77



ALLRIGHT, JUST A MINUTE HERE. Did you say you sold JNPR for a
loss a few days ago and bought them again this soon? Isn't
this going to be a wash sale? If so, then you will not be able to
claim a loss on your schedule D for the 70K. Big mistake #2...

Am I right or wrong?
More...

Wrong, only at end of year. But its a leap to assume there's to be 70K in gains to offset.
 
Actually , if he never sells this second lot in 2002, (maybe waiting for it to go to 50), it will be a Wash Sale and not deductible this year.

Wash sale rules suk large. Claiming mark to market staus this year for that very reason.
 
Originally posted by mgkrebs
hell, he only gets to write off 3k of the 70k anyway, wash sale or not.
More...


claim trader status and he can write off more than 3k limit, if he declare intention to file as mark to market status last year then he is eligible to write off even more this year.
 
The learning curve is ALWAYS the same.
70k$ yes but in%?

I lost 40% of my trading account on the first month several years ago beginning day trading.
Then time of hard working, paper trading and back on duty.

Now i win consistently( not each day but each month for sure) and i live of my day trading.

My advice would be :

Trade only 2 or 3 stocks in order to know them like the back of your hands( more than 1mio shares a day and more than 15$).
Trade only 9H30-11H30 / 14H30/16H ( very important specially with the lack of volume and liquidity we have this time).

always have a trading plan

Have a good money management : Mine are post it on my computer!! when reached stop that day.
Risk management is a key issue in a day trading strategy
Profit booking rules are key factors to achieve regular performance:
for example ( it is just an example):- a 1% gain on the net asset value generated during the course of one particular day will trigger up the maximum drawdown of the day to 0% instead of minus 1%. etc..

Sorry for the mistakes but i am french
 
This has been a good thread for newbies, true story of not. If his story is true Motas needs to get some type of gambling addiciton counseling, or maybe he's just silly rich on stock options from his corporate job. For those who don't know, mota is Spanish slang for pot.
 
:( STOP.

You need Trading Rules firmly established before you execute another trade. You can find reasonable trading rules with respect to execution and stop/loss on this web site and in any number of web sites/books. If you say that you have good, effective trading rules, then you don't have the ability to follow them, and in that case you need to find another profession.

You need a sizing plan. Start with the smallest quantity of stock. If you have three winning days in a row, bump up your size 10%.
If you lose two days in a row, or if you lose the amount of money you made in the last three winning trading days, then you need decrease your size 25% until you put together three winning days in a row. Bumps up go NO MORE than 10%.

You need to survive. You need to learn how to put together three winning days in a row. Then you need to learn how to put together a winning Week. Then a winning Month. Then a winning Year. Then you will be able to call yourself a professional trader who supports himself and his family from the markets.

That is how I do it. The mortgage and the 1040 says "professional trader".

Good Luck and be true to yourself.

Bone
 
Originally posted by nljones5
For those who don't know, mota is Spanish slang for pot.
More...

http://www.edrugtrader.com/
Contains adult language

each round of edrugtrader lasts between 1-2 months.

you start the game with 1 gun, 1 prostitute, and $2500. buying and selling drugs and weapons is commission free. used weapons are worth less than you paid for them.

you can rob 5 unique users per day. if you lose the other user is awarded $75 and you are penalized $75, so you must have $75 in your account before you try to rob someone. You can't rob someone whose rank is more than 5% of the total users below or 7% of the total users above yours.

newer news stories supercede older news stories. news stories affect the trend of each individual drug, and the drug prices move pseudo-randomly according to their trend.

every new day you login to your account you get a bonus $50, and receive money from all of your prostitutes. every 3 days you get a new prostitute for free. you can not buy or sell prostitutes. the prostitute keeps the money from days you don't login. if your prostitute has diseases or accessories, they'll make a different amount of money, than if they didn't have the diseases or accessories, and may have a chance of dying. some diseases take off more money than others, likewise some accessories add more money than others. diseases can me removed, accessories can be purchased, and prostitutes can be renamed all by clicking on their name in the account page.

when drugs get high priced, they will be split. This means each share is worth a fraction as much, but you get the inverse of the fraction times as many in your account at split time (you break even). this is to make all drugs affordable for new users.

all money amounts in this game are ficticious. You may not exchange your edrugtrader account balance for US$ or any other currency.

at the end of every round, all non premium accounts will be deleted, and all premium accounts will be reset. gang owners will not be removed at the end of the round, and the gang structure will remain the same for all users that were not deleted.

a casino is available to users who have an overall value over $10,000
 
You must log in or register to reply here.
Back
Top