Any Online Stock Traders?

[Pops15]

I know a guy that was bored with retirement so he became a day trader. He has 3 computers with high speed internet and reads and watches everything he can on tv about the market and individual companies. I'm not sure how much $ he started with but I'm sure it was a modest amount. He made $96K as a day trader last year.

 

[rekees4300]

I know a guy that was bored with retirement so he became a day trader. He has 3 computers with high speed internet and reads and watches everything he can on tv about the market and individual companies. I'm not sure how much $ he started with but I'm sure it was a modest amount. He made $96K as a day trader last year.

The stock market is a zero-sum game. In order for the guy to make $96K then somebody else had to lose $96K. Since the other guy didn't want to lose it that means the guy who made it has to be smarter/faster than the guy who lost it. It's possible to make money betting on horse races but it has to be a full time job. You have to know more about the horses than the other guy.

 

[mjarrels]

Yes on that Ford stock. Wish I had bought about 100,000 shares about two years ago. My diet would be kobe beef now.

mark

 

[HowlingWolf]

I am a profitable trader. I buy shares and wait for a 10% or more rise in profit and then sell. Some times weeks sometimes days if it hasnt made a profit in six months i sell and get on to someting else. I usally average a 10%+ monthly return. Started with 6k two years ago at around 46 now. DONT play with more than you can afford to lose. This year my monthy returns will pay for my new tractor and some new toys. Keeeping the main amount working for me. If intrested do a search for a book by Wade Cook. Ive used his books to buy property and figured I would see what he had to say about the market. Cant speak for others but WHHOOO. Its fun, it makes money, its easy.

 

[jpm]

i bought a stock once through a regular broker and paid a commision of $70.if i sold it though him i'd have to pay again.he was making more than i would.so i
opened a scottrade account and moved the stock to that account ,i bought and sold that stock 10 times for the same $70.00 and made lots of $$$ .

 

[Iplayfarmer]

Thanks for all the input so far.

I have the regular mutual fund thing going already with a conventional investment firm (Edward Jones). I'm going with the buy and hold game there. That's my retirement and long term investing. What I'm looking for in the online brokers is something more volatile and more exciting that has potential for a greater return in the short term.

I'm a volunteer with the fire department. I figure the firefighter's mentality will work in the stock market... I run in when everyone else is running out. I've already decided to not play with anything I'm not willing to lose.

The only online firm I've seen reviewed so far is Scottrade. Anyone out there with experience from other firms?

 

[js5020]

Im a forex trader,, foreign currency,, my fav is Aud/Jpy. I prefer currency over stocks myself, but to each his own. I like the few rules aspect of the forex market, no minimum balance for a pattern daytrader, buy/sell as often as you like, when you like, and if your good, greater leverage ability. No matter what you chose watch yur backside and manage your capital wisely.

 

[twarr1]

The only sure way to make money in the stock, forex or futures markets is to write about them or be a broker.
For the average investor or trader, the markets are a negative sum game when trading costs are figured in. That means you have to be right more than 50% of the time to even break even. Factor in the natural tendency to sell winners and hang on to losers ( for any time frame) and your chances at the casino at least as good.
With that said, I still trade all three, and usually do pretty good, but I don't count on it...

 

[smfcpacfp]

I'm a volunteer with the fire department. I figure the firefighter's mentality will work in the stock market... I run in when everyone else is running out.

I can promise you that if that is your day trading strategy, you might as well take your money and throw it into the fire. A day trader wants to run in, just before everyone else runs in.

The fireman's mentality would be a good long term stock investment strategy.

 

[alchemysa]

.... I'm going with the buy and hold game there. .... I run in when everyone else is running out..... I've already decided to not play with anything I'm not willing to lose. ?

Go and join a forum that discusses systems for betting on the horses. (I'm serious, they really do exist). You'll be amazed how similar the language is. "I only bet what I can afford to lose", "This is my strategy..", "I only pick horses that do this...", "When I'm 50% up for the day I quit"." "If I'm down 50% I quit" etc, etc. etc. But most of them still lose.

The bottom line is that no 'system' alone can win. If you think you can just establish a bunch of 'rules' to follow then you are kidding yourself. You'll just be more cannon fodder. You need to do a heap of personal research PLUS have a a lot of discipline and luck in order to to just break even, let alone come out ahead.

 

[Iplayfarmer]

Alright, new question...

I've heard of games you can get to test strategy. The games I've heard of tie into realtime stock quotes and let you put in buy and sell orders to see how it would go in the real world. It's a way of testing strategy without putting any real money down.

Does anyone know of a game like this?

 

[brin]

Alright, new question...

I've heard of games you can get to test strategy. The games I've heard of tie into realtime stock quotes and let you put in buy and sell orders to see how it would go in the real world. It's a way of testing strategy without putting any real money down.

Does anyone know of a game like this?

If you open an online trading account account at Charles Schwab > www.schwab.com you can log into your account in Demo mode and make trades with the market open but they do not count...That is better than a game I think since it is actual trading based on a trading platform that you would actually use when you actually began trading for real...I am not familiar with other on line brokers or if they have a similar set up. Give it a try...nothing to lose...it is just practice...just be sure you log in under Demo mode.

 

[sweettractors]

Dow up 406 10:30 CST today. I thought about buying Friday anticipating more downturn this week. Goes to show a lot of time, it is best to use reverse logic in the market? Ken Sweet

 

[brin]

Dow up 406 10:30 CST today. I thought about buying Friday anticipating more downturn this week. Goes to show a lot of time, it is best to use reverse logic in the market? Ken Sweet

Ken...That is why I am a scalper...I just buy based on the chart and stay in for only a few minutes to a half hour at most. I just buy enough shares so that just a few penny gain will yield a nice profit.

 

[js5020]

Wow not much positive investing sentiment from the bulk of posters, hmmm. Well Ill tell ya this,, not everyone makes it in the markets but I always go with the theory,, I never want to be old and say I should have tried x when I was younger,, go your own man thats the only way you will truely find out for yourself if you got the stuff,, stay out of forums they are full of folks looking for answers few have or are willing to share, and I or any other trader could lay out an entire strategy with audited proof it works and 90% of folks following it would fail,, its not easy, its not a sure thing, and your not gonna be a gajillionare by the end of the year, but if you study, study, study, work hard, and manage your capital properly you might have a shot at making it, but youll never know till you try it for yourself.

 

[brin]

Wow not much positive investing sentiment from the bulk of posters, hmmm. Well Ill tell ya this,, not everyone makes it in the markets but I always go with the theory,, I never want to be old and say I should have tried x when I was younger,, go your own man thats the only way you will truely find out for yourself if you got the stuff,, stay out of forums they are full of folks looking for answers few have or are willing to share, and I or any other trader could lay out an entire strategy with audited proof it works and 90% of folks following it would fail,, its not easy, its not a sure thing, and your not gonna be a gajillionare by the end of the year, but if you study, study, study, work hard, and manage your capital properly you might have a shot at making it, but youll never know till you try it for yourself.

Well said js, I agree with all of what you posted.

 

[sweettractors]

If you are going to try it, I would advise staying at the computer during each days trading session and keep the TV on and switching from CNBC to CNN breaking news. Don't go the the lake fishing when you have money invested short term. I was with a buddy on the lake a couple years ago and he heard on the radio that the market was probably going to move and to get his trade in before the end of the trading session, we had to make a run for the bank and he climbed a pretty good size bluff as quick as he could to get a cell phone connection and got his sell order in just about 2 minutes before the closing bell. He could have lost thousands on that one GM trade. Ken Sweet

 

[/pine]

It's all about fortitude and how much you can take...

My advice is to open an account at a full service brokerage (along with an online account)...visit your brokerage and pick their brains on learning to read the tape and watch the money flow into or out of an issue...

Since the advent of the Internet..."everybody" is a "trading guru" <caugh>...

Unless you plan on trading strictly on momentum...the key is to watch a stock (for weeks, months) and "learn how it trades...

There was a time when you could buy Home Depot stock every other week for $50-$60/share and sell it the weeks in between for $70-$80...
this would go on for months and months...it's all about learning how a particular stock trades...

Generally speaking NEWS drives stocks on the short term and fundamentals drive stocks long term...

before you invest in the stock market...learn to read SEC documents... forget all the technical anaysis BS... and learn to read the SEC docs...that is where you will find everything you need to know about a company...

Another key thing to watch is institutional interest...

Good Luck

 

[js5020]

Actually, in reading the posts on this thread, I see a lot of positive comments on investing. Just not a lot of support for speculating. Which is what day trading is.

Most people lose over time as day/short-term traders due to several factors:

- Opportunity costs (what you COULD be doing with that money in a safe investment

- Transaction costs (brokerage fees, and for some - trading platforms)

- Taxes (good record-keeping is critical)

- Poor risk management (they do not factor in risk-adjustments into their returns)

and most importantly....

- The value of their time.

The time you spend poring over research, watching financial news, checking portfolio status, record-keeping, and handling paperwork and taxes is substantial, and if calculated, the hourly returns are minimal.

Day trading is a full-time job, with questionable returns. Long hours hunched over a computer screen. Significant stress - especially when large sums are in play.

Is that how you really want to spend your retirement days? Maybe it is, and if so, more power to you.

If you are in it for the "thrill of the chase", then I would set aside a fixed sum, and have yourself a blast til it's all gone.

If, on the other hand, you are in it for some sort of financial gain, a simple risk-adjusted net present value analysis of the available alternatives would quick show short-term stock trading to be a sub-optimal strategy.

S1

Agreed,, good info by the way! I gave daytrading curriencies a try for 2 yrs, it was an absolute rollercoaster ride most of the time, and I found I could do just as well or better on longer timeframes and not be stuck behind a computer screen 18hrs a day.