Anyone here make a living by day trading? And what do you think of my trading strategy?
I really hate my job and want to quit. I want to be a day trader and make money in stocks. I’ve made so much money from stocks, but that was just by buying and sitting on them for a while. If I wasn’t working, I could watch stocks everyday.
So if your only income comes from stocks, how much do you typically make a month? What’s your strategy?
Suppose I had $100K….my plan would be to split it up among 10 stocks…so $10K each. And then whenever any stock makes a 3 to 5% gain, sell it off….and that’s $300 to $500 I just made. If all 10 stocks make a small gain of 3% in a day, that’s $3000!! I know I probably won’t be able to make that everyday, but if I could do that once a week I’d be very happy!!!
day trading would not work at all in this economic climate. be grateful that you actually have a job. now is a good time to buy stock, but only if you’re willing to hold it for long term. day trading right now is risky. also your numbers are way exaggerated. if these numbers and gains were true, then everyone would quit their job and become a day trader. there’s a reason people don’t and that’s stability.
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day trading would not work at all in this economic climate. be grateful that you actually have a job. now is a good time to buy stock, but only if you’re willing to hold it for long term. day trading right now is risky. also your numbers are way exaggerated. if these numbers and gains were true, then everyone would quit their job and become a day trader. there’s a reason people don’t and that’s stability.
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If you want to make money in the stock market by trading try learning Technical Analysis it is the best way to make money in the stock market if you have a short term time frame.
http://www.stocks-simplified.com/technical_analysis.html
Thats what I have been using to make money when everyone else has been losing it.
And I’m not to crazy about how you plan to approach the market. It seems to me that that would only work until you experience your first loss.
If you buy 10 stocks at random and 2 go up 5% that’s good, but it 1 goes down 50% that’s going to hurt.
I would suggest you.
1. Actually have a reason for buying them. Try to develop a strategy for when you plan on buying it. What signal do you want to use to create your buy signal.
2. Have a target. Make a target based on something, like support or resistance.
3. Limit your losses. This is the biggest thing you can do to make sure you last as a trader.
4. Have both long and short positions on at the same time. This way you can make money if the market goes up or if the market goes down.
There is a lot to learn but if you do take the time you could make an Ok living with $100k.
References :
http://www.stocks-simplified.com
I have day traded professionally in the past for a short period of time. Your theory has a number of holes. First, most day traders do not typically hold 10 stocks at one time, and they don’t hold stocks in their accounts overnight. Day traders usually have 100% cash in their accounts at the end of each trading day. Secondly, day traders rarely hold on to a stock for a 3 to 5% gain. Day traders are primarily momentum traders who chase fast moving stocks. We would typically trade in 1000 share increments, but would only hold on for .25 point to .50 point gains. Of course with gains, there are always losses. The psychology of day trading is very challenging. The temptation to hold on to a loser can be overwhelming. For this reason, losses can be much larger than gains. There are successful day traders, but it is truly an art.
Even with a buy and hold strategy, it is not realistic to think that you can consistently make 3 to 5% gains on all of your stocks on a weekly basis. The lure of trading stocks in your living room on a professional level can be great, but the reality can be devastating.
If you quit your job, have another job lined up. Don’t think you can trade stocks for a living.
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keep your job for a while and in the meantime, day trade a demo account using your strategies and see if you can make money.
if you do not make money, then it is good that you have a job. you will be able to support yourself while you finetune your trading method.
if you do make money on that demo account, try opening a live account with the least minimum amount and see if you can make money activley trading that, and in the meantime, still keep your job.
When your trading profits equal your current salary, then can you quit your job and focus on trading exclusively.
Good luck!
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So let me get this straight, in this huge Bear Market, you are going to hold positions overnight or much longer? Buy and Hold died in 2008.
I day trade futures, but my partners trade stocks and ETFs. The goal is to get in a get out the same day based on detailed technical analysis.
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February 28th, 2010 at 4:39 pm
Don’t do it, said the professional to the neophyte.
Your strategy alone is a huge red flag. You have
no clue what you are doing.
"…if I could do that once a week I’d be very happy!!!"
If a frog had wings, it would fly.
[The key word is "If."]
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