Stock Trad3r INDEX

[stock_trad3r]

5K into 230K ?

wow

you should do that 10 times and then you'll have 23 million

I take it you daytrade options or forex because you can't make those returns daytrading stocks.

 

[Steve Tvardek]

Nope, just daytrading stocks. Never touched forex or options.

There is a liquidity barrier intraday for the stocks I traded so I couldnt squeeze much more out than that. But the point is, b/c my money is constantly freed up to take advantage of new opportunities intraday, the money one can make is much greater than someone who has to sit on a position for weeks/months/years. Plus I can sleep with ease

Quote from stock_trad3r:

5K into 230K ?

wow

you should do that 10 times and then you'll have 23 million

I take it you daytrade options or forex because you can't make those returns daytrading stocks.

 

[michaelscott]

I dont think the question here is if daytrading is more profitable, but who is on the right website and who is on the wrong website.

- Steve appears to be a successful profitable prop trader.

- Stocktrader appears to be more of an investor who enjoys putting down traders.

- Steve appears to discuss and encourage methods of making a living from short term trading.

- Stocktrader appears to put down people on the site and discourage the practice.

Im not saying that daytrading does not carry its own share of risks or that its a great way to make a living.

However, I am saying that Steve is on the right website where as Stocktrader is on the wrong one. The Investors Business Daily site maybe more suited for Stocktrader.

Yes you can make that kind of cash daytrading stocks at a prop firm, but there is a flipside too where you lose the entire deposit. Steve is good at what he does where as some others are simply not good. Lets leave it at that.

 

[stock_trad3r]

IBD sucks

Did you know that IBD 100 index underperformed the S&P last year?

The problem with the IBD 100 is that there are too many stocks on it; most of them which tend to suck.

It isn't too uncommon for a stock on the IBD list to go up 100% in a year only to spend the next two years crashing. That happens a lot to mind cap stocks which is why I tend to avoid them. The IBD 100 has too many mid caps. Large caps are better actually.

 

[smilingsynic]

Quote from stock_trad3r:

actually buy and hold investors statistically fare better than daytraders

An above average daytrader will produce returns that will dwarf those of an above average investor as per Sharpe.

 

[stock_trad3r]

Quote from smilingsynic:

An above average daytrader will produce returns that will dwarf those of an above average investor as per Sharpe.

who is sharpe? The pen?

Yea an above average anything will probably beat an average. Yea the guy who bought microsoft in 1985 will probably beat your average investor.

 

[SiSePuede!]

Quote from stock_trad3r:


The problem with the IBD 100 is that there are too many stocks on it; most of them which tend to suck.

Yeah, I prefer an index of 100 stocks to only have 20 stocks too.

I'm on vacation and just checking it, good to see that you're not getting any smarter by going to day-care and summer camp.

 

[infolode]

Quote from stock_trad3r:

I ditched the DDM crap and replaced it with more RIMM at 199

RIMM will keep going higher so no sale.

Are you hedged(I hope)?

 

[sophiekay]

Quote from Steve Tvardek:

Forget the statistics, I'm saying a good daytrader (someone who is already proven) vrs a good buy and hold investor. The daytrader will make FAR more money given the same starting capital (within reason, there is a liquidity limit in daytrading unfortunately). Just as an example, I am a daytrader only, started with 5K at the beginning of 2006 and turned that into 230K by years end. That high return is based primarily on the fact that I was able to compound and compound everyday, as my capital is constantly being freed up. The buy and hold guy has to sit through periods of inactivity or even drawdown. Basically, the more opporutnies you give a trader that can trade, the more money you can make. Simple math (also helps to have some leverage afforded to me, however the firm makes up for that in commissions charged).

Steve, 5K to 230K is amazing! Congratualtions!!

2 questions from the uninitiated. Is that something that anyone can do? And, is it sustainable?

 

[michaelscott]

Steve is a prop trader. At a prop firm you basically throw down an initial deposit and then your given an amount of leverage that is much greater then you would be provided with a retail account.

You can read more about it in the prop firm section.

The advantage to Steve's situation is that he wouldnt be able to lose more then 5000.

Quote from sophiekay:

Steve, 5K to 230K is amazing! Congratualtions!!

2 questions from the uninitiated. Is that something that anyone can do? And, is it sustainable?