DayTrading???

[Just Beginning]

I am new to this part of the cappersmall website.... I am thinking seriously about nudging my way into daytrading.... i have a bachelors in business from a very good business school here in georgia and I am working on my mba... what would be my next logical step if i were to begin thinking about daytrading?

[FBHERO]

find some money, open a account and start hitting buttons

[tw burke]

when you perform a trade say around 2pm does it go in effect that day day ??

[JeromeFromSoutheast]

Originally Posted by Just Beginning

I am new to this part of the cappersmall website.... I am thinking seriously about nudging my way into daytrading.... i have a bachelors in business from a very good business school here in georgia and I am working on my mba... what would be my next logical step if i were to begin thinking about daytrading?

i could fill a book with all of the "logical" steps.... not much you learn in business school is going to help you with daytrading....

1) buy a few books on technical analysis

2) paper trade for a least 6 months (paper trade means to get a demo account from a broker which simulates live trading without real $$ on the line)

3) find a mentor to train you.... expensive in terms of up front cost, but much cheaper than the inevitable busted 1st account just about every trader goes through.

[Romanowski]

Jerome gives great advice I had some of the same questions a few years ago

[ryhenry09]

romo or jerome- do u guys have any suggestions on books? i would like to learn more about tech trading/ reading charts, etc.

[JeromeFromSoutheast]

martin pring has a good intro book... it explains the basic concepts, but it was written during the tech bubble so it certainly isnt gospel

[haraka]

Just a friendly suggestions. After you have gone through and you think you are ready to day trade, start a play account where you don't play with real money. Do this atleast 6 months to a year. Even if you are doing well with paper trading, you must do this atleast for 6 months. The biggest mistake you would make is thinking you are ready and good at it ans start playing with real money. I am speaking from experience. I started with an amount X, increased it to 160% in two months. After that, I lost a shit load of money basically in three days. and now I am down to 10% of my inital investment. When you start trading with real money, the first six months only trade with 50% of the capital you have. NEVER NEVER NEVER Ever start a ( I can't think of the term right now, but where the trading company matches your captal) This is the best way to loose money. You can take your education at throw it out the window when it ocmes to tradig. I have an MSC in engineering and I am very good with analytical side but the stock market doesn't hold any logic. Read as many books as you can. For every dollar you spend in learning about the the dividents would probably be 100 to 1000 times as much. Good Luck

[Goods]

Great advice from Haraka up top. Like he says, you can be incredibly analytical but daytrading tends to be fueled by emotions. Psychology is key.
(the account where the broker matches your money for trading is a margin account)
I've stopped daytrading for a while. Found I started jumping without thinking it out. May as well be at a casino. Least I'd get free drinks. Good way to lose money fast.

Behind every trade, there's someone smarter than you trying to take your money. Every time you see a stock that jumped 5 points and kick yourself for not getting in, remember you could easily be the guy who bought it at the top and watches it dive taking your new plasma TV with it.

For beginning books, I like
"Technical Analysis of the Financial Markets" by John J Murphy - teaches you the basics of everything on TA

"The Complete Trading for a Living" by Dr. Alexander Elder - great insight on tying psychology around the market and straight forward dos and don'ts

Also check out investopedia.com and have a look around. Good luck.

[ajohnson69]

Originally Posted by Just Beginning

I am new to this part of the cappersmall website.... I am thinking seriously about nudging my way into daytrading.... i have a bachelors in business from a very good business school here in georgia and I am working on my mba... what would be my next logical step if i were to begin thinking about daytrading?

Most equity firms are going to make you put up some capital since your just starting usually the standard is 5k for 100k buying power....but they'll train you and sponsor your series 7......but it would be a good idea to get a demo and practice

[zoezoe]

i daytraded back in its heyday and i would strongly advice against it, but if you think you can do it, my only advice is when you learn on the demo, its much easier to sell and get out then in real life and for some reason the profits i was making on the demo didnt happen as easily in the real world....i am sure this wasnt intentional at all by the house... NOT, as it looked so easy in practice

[ajohnson69]

yea there's actually tons of scams....i usually don't put much thought into conspiracy theories but there's alot in that sector

[JeromeFromSoutheast]

Originally Posted by zoezoe

i daytraded back in its heyday and i would strongly advice against it, but if you think you can do it, my only advice is when you learn on the demo, its much easier to sell and get out then in real life and for some reason the profits i was making on the demo didnt happen as easily in the real world....i am sure this wasnt intentional at all by the house... NOT, as it looked so easy in practice

No its not intentional by the "house".... the data they fed you is live.... the problem is twofold:

1) Demo's dont take into account volume or slippage
2) It's all PSYCHOLOGY.... trust me, you are your own worst enemy in trading

[duckster]

This is an education of you wish to daytrade that there is no way out to not pay fo rthat education, just as college. I tell peeps that ask me about trading, start with 15K, play small, and expect to lose all 15K. The cost of learning. FIND somebody that trades to sit with. And that DOESNT mean no stupid software or anything like that, forget that stuff. Tools , tools, tools... learn them. Throw your finance class crap out the window. Learn how to be a robot, market will eat your lunch off human emotions. DISCIPLINE, DISCIPLINE, DISCIPLINE.... if you dont have it, dont even think about it. You have to be able to sell when you are red. EVERYBODY loses, big key is limiting your losses and letting your winners run. learn how to sell and take a profit. Never try to hit an exact bottom or top. Learn how to take your money and run. Treat it like a job. Chats are good to see what is in play.... only for daytrading flips, dont hold them, never.

[duckster]

One of greatest books for a trader if you can understand it. Nothing changed regarding the book and its age of time, just technology. How stocks are ran up to be shorted or shares dumped to raise capital, ect. Reminisces of a Stock Operator.