Joytrader:
Before I get to the specifics, you are doing fine, don't worry about it. Before I worked for Worldco I was doing Datek and Quote Tracker and I felt like I was flushing money down the toilet day trading with that set-up, if you are making breaking even with a crap box like that you are doing great, believe me. Even when I started at the firm, I never had a $100 day trading 100 shares, and first month and half I had 3 winning days . . .
But seriously, for someone with your set-up I would recommend swinging trading, it plain sucks, no offense, it is like bringing a knife to a gun fight, sure you can still make money with it if you are godly, but it stacks the odd further (to the point of being nearly impossible) against you. At least move to IB, trading 100 shares there is no better online broker and their execution is light years ahead of Datek's. If you trade Nasdaq, you gotta have Level II, it is just that simple, no Level II trade NYSE. There are many chart packages out there and I am sure someone on this board can give better recommendations (everything I use is provided by Worldco so I don't do research on those), Quote Tracker is awesome for someone tracking his E-Trade account at work and I think it can barely get the job done for swing traders, for day traders (I beta tested for them when I was a newbie), in day trading, it is garbage. Last but not least, you gotta have more than one monitor and a fast connection, I started with 2 at my firm and I had a lot of trouble, as soon as I got my third monitor I went on a hot streak because I was able to watch so much more stuff. A fast computer helps, also you gotta get a faster connection, your 56K modem is alright for posting amatuer messages on boards but the biggest challenge in day trading versus swing trading is to get that fill, that one print, and it is not a good idea to race flat footed when someone is on a horse . . .
Yes, there are many newbies who said "oh I am going to make money and use my profit building toward better broker/equipment/software", they are all broke now. I am sorry but your set-up is ok for swing trading, in day trading you will get nowhere with it. Your techniques may not be the problem! But I have to tell you something, everyone can read charts, it is hardly an advantage, with the exception of heavy basket traders (at least 10 positions at a time, to 100, I am serious, I have seen people trade like that), the difference between a great NYSE trader and a good one lies in their tape (TOS) reading skills, while I haven't traded Nasdaq professionally, I would say the reading of Level II and TOS is perhaps the most important, yet hardest skill to develop as well . . .
By the way, there are also newbies who think day trading is about making 2 points off 200 shares for a $400 profit, 50 cents is a VERY nice trade for a day trader, in later stage of the game even a 25 cents can mean big profit when you do heavy sizes. You don't have to be a scalper, but get that "I gotta make at least 50 cents" thing out of your head, take what the market gives you, beggers ain't choosers. If you have to make 20 cents on a trade to break even then you will never make any money day trading, switch to IB!
To address some of the prop. firm questions, there are threads on it just scroll a few pages, Worldco requires little to know starting-up capital, and there are traders who are in the hole 10-20K firm's money. Now before you ask how is that a smart business practice, it is a VERY smart business practice, because new traders start out with 100-200 shares and it takes a very long time for them to lose a tons of money, and if the firm gets 4 traders and only 1 makes it, it will still make money because 1 senior trader trading heavy volume will easily make it all up with the commission he generates. Case in point, I am a 8 months trader and I have made 82K before trading costs/pay out YTD, I get 36K, thats 46K firm made off me just a small potato in term of volume, that is more than enough to cover 3-4 losers (keep in mind those 20K deficit is at least 50% commissions, not actual losses to the market). This is the shotgun approach of managing a trading firm, Worldco basically gives everyone a chance (me with no college degree and a low GPA) and if you make it, you make it. And it never fires anyone unless it is of attendance issues, as a matter of fact every trader regardless of result who wishes to leave the firm hears a long motivational speech by the boss and usually gets a better commission rate / payout / special checks (kids out of college needs to pay the bill, and those checks are not deducted against the capital account, and those guys are down 10-20K).
There is a reason why Worldco has most traders here in New York (550 at last count), and the firm plain makes a lot of money, there is no excuse for not being able to make it at this firm, it is as good as it gets when it comes to odds (although it is still a long shot) . . .
