Hi all. As you can see, I am new. Currently, I'm learning and struggling most with terminology and how things work. I've already been hitting the books on all of this; these questions are just a result of what all I've learned. I would appreciate it and be very grateful if one or more people could help me with my list of questions that I've developed while studying. I'm sure some will sound very stupid, but I apologize in advance.
1. You can only buy or sell futures on the entire market itself (or commodities) and not individual stocks, correct?
2. Say you're trading and you feel that a stock is going to go down for the next three seconds. What instruments exist to the trader to gain from it going down in those three seconds? Which is most lucrative?
3. Say you're trading and you feel that a stock is going to go down for the next three minutes. What instruments exist to the trader to gain from it going down in those three minutes? Which is most lucrative?
4. Say you're trading and you feel that a stock is going to go down for the next thee days. What instruments exist to the trader to gain from it going down in those three days? Which is most lucrative?
5. If a trader buys several stocks on Friday afternoon and then sells out of them on Monday morning when they're higher, what style (or styles) of trading is this likely to be?
6. If a trader “buys oversold stuff to profit from a recovery to the mean in the coming three days” and “sells overbought stuff to profit from a decline in the coming three days,” what style of trading is this likely to be? What things help tell the trader that such stocks will indeed recover in three days?
7. A lot of traders say you must have one of the fastest internet connections available to trade successfully. How true is this for the average trader to be successful?
8. What is the typical stop loss set for in a trade? Is the stop loss commonly adjusted upward with a winning trade, as the win travels upward? If so, by how much, usually?
9. What are the common minimum and ideal target return percentages per trade?
10. When one sees pictures of a trader having many monitors each in front of them (5-8 or more screens), what are these screens used for? What is usually on each screen? What would be lost by having only one or two screens?
11. About how many trades does the average trader have going at a single time on average?
12. Market orders vs. limit orders: what's the difference?
13. What is “scaling into/scaling out of positions”? I assume gradually trading into or out of a position?
14. What is “self-routing” your orders?
15. If a trader “only seems to be watching charts and tables” while they trade, what kind/style of trading might this be?
16. What's the approximate minimum starting capital one must have to do tens of trades per day? (Obviously tens of trades amounts to a lot of brokerage fees.)
17. If someone is “watching the list of the current gainers and losers and then buying some of the biggest losers and selling the biggest gainers,” what style of trading might this be?
18. Can margin be used daily when buying and selling individual stocks short-term (either in seconds or minutes)?
19. Can margin be used daily when buying and selling individual stocks medium-term (buying or selling and holding for three days)?
20. Can a trading strategy that has worked well in Japan for a certain number of years also work well in the US market? Do different strategies work or fail differently in different markets?
21. Does it make sense if the goal of a trader was to "ride their win for as long as possible" but overall they were in each trade for only "seconds at a time"? From a newbie perspective, this seems too short to ride a winning trade.
22. How common is it for a momentum day trader to decide that no stocks look good on a day and not trade for the day?
23. How common is it for a "swing trader" to decide that no stocks look good on a day and not trade for the day?
Thank you.
1. You can only buy or sell futures on the entire market itself (or commodities) and not individual stocks, correct?
2. Say you're trading and you feel that a stock is going to go down for the next three seconds. What instruments exist to the trader to gain from it going down in those three seconds? Which is most lucrative?
3. Say you're trading and you feel that a stock is going to go down for the next three minutes. What instruments exist to the trader to gain from it going down in those three minutes? Which is most lucrative?
4. Say you're trading and you feel that a stock is going to go down for the next thee days. What instruments exist to the trader to gain from it going down in those three days? Which is most lucrative?
5. If a trader buys several stocks on Friday afternoon and then sells out of them on Monday morning when they're higher, what style (or styles) of trading is this likely to be?
6. If a trader “buys oversold stuff to profit from a recovery to the mean in the coming three days” and “sells overbought stuff to profit from a decline in the coming three days,” what style of trading is this likely to be? What things help tell the trader that such stocks will indeed recover in three days?
7. A lot of traders say you must have one of the fastest internet connections available to trade successfully. How true is this for the average trader to be successful?
8. What is the typical stop loss set for in a trade? Is the stop loss commonly adjusted upward with a winning trade, as the win travels upward? If so, by how much, usually?
9. What are the common minimum and ideal target return percentages per trade?
10. When one sees pictures of a trader having many monitors each in front of them (5-8 or more screens), what are these screens used for? What is usually on each screen? What would be lost by having only one or two screens?
11. About how many trades does the average trader have going at a single time on average?
12. Market orders vs. limit orders: what's the difference?
13. What is “scaling into/scaling out of positions”? I assume gradually trading into or out of a position?
14. What is “self-routing” your orders?
15. If a trader “only seems to be watching charts and tables” while they trade, what kind/style of trading might this be?
16. What's the approximate minimum starting capital one must have to do tens of trades per day? (Obviously tens of trades amounts to a lot of brokerage fees.)
17. If someone is “watching the list of the current gainers and losers and then buying some of the biggest losers and selling the biggest gainers,” what style of trading might this be?
18. Can margin be used daily when buying and selling individual stocks short-term (either in seconds or minutes)?
19. Can margin be used daily when buying and selling individual stocks medium-term (buying or selling and holding for three days)?
20. Can a trading strategy that has worked well in Japan for a certain number of years also work well in the US market? Do different strategies work or fail differently in different markets?
21. Does it make sense if the goal of a trader was to "ride their win for as long as possible" but overall they were in each trade for only "seconds at a time"? From a newbie perspective, this seems too short to ride a winning trade.
22. How common is it for a momentum day trader to decide that no stocks look good on a day and not trade for the day?
23. How common is it for a "swing trader" to decide that no stocks look good on a day and not trade for the day?
Thank you.
