New to day trading, change of career - best tools?
- Thread starter we5inelgr
- Start date
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Sounds like you are right on your headline; New To Daytrading, Change Careers LOL.
Seriously put last half of your money in SPY, or QQQ when or if half your capital is gone;you could still profit on holding SPY/QQQ/dividends.
Of course your broker will hate you daytrading with half//12k; but that is part of this plan also.The good news is almost all lose more than 25,000 learning to trade or invest.
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[Edit; some may not lose 25k investing but that is a different deal+ dividends]
OP i am in the same boat so dont let the nay sayers crush you if it is something you really believe in. One thing i am learning is that it takes a lot more work than expected, like a lot lot more. early mornings checking the screener then researching each stock that fits your bill, news, financials, etc. Looking anywhere and everywhere for ideas, watching educational videos, researching unfamiliar terms, etc...It takes a lot of effort but at the same time it is fun learning so much each day.
My 2 biggest problems are:
1) I have a hard time going in on what looks like an obvious play. like you, I dont have a job and never want to go back to work so i think that fear makes me timid. Even though i have done the research and all signals are green i am hesitant and its hard to make money like that.
2) my other issue is probably the absolute hardest thing for most beginners which is to cut your losses before they get out of hand. Its so common for a reason, you buy in and it goes against you and you dont want to sell because "it will come back up" and before long you are so far in the red you cant even look at your portfolio without utter despair. Then you convince yourself that what once was a "trade" is now just a "long term investment" and that money is tied up for who knows how long...
Learn how to use finviz and i also like stocktwits (90% for entertainment, 10% to see what others have to say about potential plays). Good luck.
My 2 biggest problems are:
1) I have a hard time going in on what looks like an obvious play. like you, I dont have a job and never want to go back to work so i think that fear makes me timid. Even though i have done the research and all signals are green i am hesitant and its hard to make money like that.
2) my other issue is probably the absolute hardest thing for most beginners which is to cut your losses before they get out of hand. Its so common for a reason, you buy in and it goes against you and you dont want to sell because "it will come back up" and before long you are so far in the red you cant even look at your portfolio without utter despair. Then you convince yourself that what once was a "trade" is now just a "long term investment" and that money is tied up for who knows how long...
Learn how to use finviz and i also like stocktwits (90% for entertainment, 10% to see what others have to say about potential plays). Good luck.
it will all depend on what you want to trade as a day trader. stocks, futures, options. Its different criteria for different trading style.
for me trading index futures, as a day trader works out best. If you can put in the time and really understand some of the advice real traders give out, it will help you immensely. Most of the time the advice will not be related to strategy or setups but more emphasis on risk management, position sizing etc. The psychological side is more important and that is the only side that anyone can help you with, be it a casual advice or mentor ship. Trading setups, strategies that works or not will have to be learnt on your own and you need to spend
considerable screen time. What works for one will not work for you and you will have to solve that on your own.
for me trading index futures, as a day trader works out best. If you can put in the time and really understand some of the advice real traders give out, it will help you immensely. Most of the time the advice will not be related to strategy or setups but more emphasis on risk management, position sizing etc. The psychological side is more important and that is the only side that anyone can help you with, be it a casual advice or mentor ship. Trading setups, strategies that works or not will have to be learnt on your own and you need to spend
considerable screen time. What works for one will not work for you and you will have to solve that on your own.
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Since you are developing your own trading system it's probably a point of emphasis for you to manage your expectations. And the expectations you laid out in your OP are not realistic - unless you are 1 in 10,000.
When I started trading futures on the floor of the CBoT, I had a trading system, I had a position management system, I had the great benefit of a couple mentors who were Chicago legends and who would sit down with me and review my trading cards with me - and I was emphatically told to just learn to survive. I was told that after six months, if I had half of my capital remaining I should consider myself fortunate.
Point being - if I could learn to survive I could learn to become consistent. And with consistency you can then go on to build trading account equity.
This is a very difficult business. It attracts scads of very smart people. You are going to need a very good trading plan, and you are going to have to manage your positions with brutal efficiency devoid of emotion.
I wish you good fortune !
Part of your bio above implies you've recently retired while the other part is in line with your thread title of "changing career".
If the latter, don't quit your job and use the time to figure things out. Your goals out of the gate should NEVER be how much money you could make but instead your goals should be involving your ability to follow a trading plan when you've completed one. Simply, the profit goals you've mention are not realistic of what will most likely occur for you.
Yet, based upon your questions such as "looking for ways to identify entry points for stocks"...you do realize you're a few years away from any consistent profits ?
Whatever you try...make sure you backtest it and then simulate trade it prior to putting any of that money from the IRA into the markets.
Also, I wouldn't be using any money from the last kid's college education...that's crazy to think its part of your trading capital...it shouldn't even be on your radar as trading capital especially when you say you do not need to depend on income as if you already have plenty of money.
If that's the case (you have plenty of money), part of it (a good portion) will be your tuition money to get into the business of trading.
I will assume too that you've already have your bills (living expenses) taken care of for a few years without needing to be dependent upon trading...stuff like medical/dental bills, disability insurance, life insurance, home/auto insurance and many other expenses.
If not, another reason why you should never quit your job until you can consistently make profits (real money) in the markets and you can do that via trading on vacations, leave of absence, days off like pretend to be sick or a change in work schedule so that there's no conflict with your trading of stocks.
Good luck...its a long road unless this is going to be just a hobby.
wrbtrader
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