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  • Any Traders on Here?

    Just checking. I am thinking about trying to keep trading full time rather than go back to work. I wanted to see if anyone else is doing the same.

  • #2
    No, but if you are the rare person that can make a success from day trading...all power to you. There are untold billions floating around the stock market day trading is lucrative if you know how to do it. I would love any advice.
    "The problem with self improvement is knowing when to quit." "Diamond" David Lee Roth.

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    • #3
      boda, I have been trading in some form for about 20 years. Trading stocks was just a hobby. I started trading derivatives about 18 years ago. Futures contracts on commodities, equity indexes. bonds, etc. Now I focus mainly on the e-mini S&P. There is a ton of "advise" on the Internet. I chose a quick reply because I could write a book. It is truly like starting a business and the education you'll need can be very costly. Regulations require all brokers to state that only funds you can afford to lose should be used. Statistics as high as 98% of traders lose their capital. Not ony is trading a intellectual challenge, but equally psychological self analysis. Confidence is an absolute requirement and also a large reason for failure. One must treat it as a business. To keep this short, I offer this: Paper trade for as long as you can. Be patient to the extreme. Know your market and its history. Just because you're a trader doesn't mean you have to trade all the time. If you don't feel up to it, don't trade. If you're upset, don't trade. Have a plan. Be able to answer the questions of why you're entering a trade. The point of entrance, the goal or exit, how much you're willing to risk, is the profit target at least a 2 to 1 risk to reward ratio, perhaps more, and do you have the proper mind set to hold to your plan? There are so many other rules that you've got to do your homework. The market wants your money! It's an auction. A zero sum business. As an individual, you are up against the best and biggest in the world. The biggest point I can offer is, DON'T LOSE MONEY! If you're in the market and you don't lose money, you'll profit. You will lose more trades than win. But, with the proper money management, you can lose 10 trades, win 4 and be way ahead in profits. Don't let your ego change your confidence. Be so extra careful that if you just don't feel right about the trade, stay out. The market is there 24/7. Keep your capital to trade again. The market is not a casino. There is only gambeling as there is in any business. It's just really easy to switch from a business psychy to a gambeling one. You might as well flush your cash if you go that route. There are scammers everywhere. Trying to sell computer programs, education, advise, newsletters and every catagory you can think of. You have one person to answer to and that's the person you see in the mirror everyday. It is not easy, as some advertisers would make you think. It is very, very hard. There is a good amount of skill and art in the business. But, if you keep your eye on your capital with good money management and keep your ego in check, you may be successful. Study, study and then study some more. Watch out for greed. Once you've made some money, protect it with moving stops. Please, never trade without stops!!! Trading can be a very rewarding business. Can you be in the 2% of individuals that can make a living at it? Sure, but you must learn the rules and then follow them. The market will teach you, but it will cost you thousands of dollars. It's much cheaper to be patient and do your homework. I wish you well!!
      No matter how cynical I try to be, I just can't seem to keep up with how bad things really are!

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      • #4
        Trading the market daily is not easy

        I think Snorp said it best. I did trade the market never really never made much money however I have been successful with long term buy/hold strategies. My advice is do your homework look at companies that you can relate to, years ago Quickie ruled the wheelchair market, so I invested in the company that owned Quickie within two years I more then doubled my investment, so I sold my position. My daughter liked to shop at a store called Aeropostale, so I wander in looked at at shirt that looked like it came from Goodwill saw the price was $45.00 i noticed the store was crowded and people were spending money so I went home did some research and decided to buy 500 shares @ 21.00 within 6 months it was 31.00. The above examples are from the great investor Peter Lynch see it, feel it, touch it Also you must never get attached to a stock I lost plenty in companies I thought were great but they kept trading down. Know when to fold them I use a mental stop of 15% meaning if the stock falls below 15% of my purchase you sell, if the stock proceeds to move upward I us a 20% trailing stop. The market can be fun just remember you are just a small fish in a big ocean.

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        • #5
          Originally posted by smbrown412
          Hi Guys,

          You might want to check out www.supaswap.com its not trading in the way you describe, but is a source of additional income...just a thought!

          You should also check out http://supaswap-makingmoney.com again some good advice

          Hope this all helps
          I invest all my money on tinned meat. Spam mostly, I see you do as well.

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          • #6
            i want to start, but i have no clue where to start!
            c5/c6 brown sequard asia d

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            • #7
              making money in the market is not that hard but generating enough cash flow to live off of to enjoy a decent life might be. I would say to earn $30K/yr (before tax) and to be able to absorb some losses without going broke or starving, you need a starting capital of $500,000, cash. Figure 5% /yr +/- some gaines/losses.

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              • #8
                Karupt411,
                What stocks do you really like? What is your opinion of Low's home improvement center? I am looking into some stocks that will outperform. It seems once this economy get going, the building industry will rebound. Any comments?

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                • #9
                  Originally posted by JoeMonte View Post
                  Karupt411,
                  What stocks do you really like? What is your opinion of Low's home improvement center? I am looking into some stocks that will outperform. It seems once this economy get going, the building industry will rebound. Any comments?
                  If you just look at LOW it has a couple of things that makes it seem like a solid investment but not one that will outperform the market to any great extent. It is at the midpoint of its 52 week hi/low, it has a P/E of 17. If you compare that to say home depot, you can see it is pretty much the same. Analysts rank it as OUTWEIGH with means they think it will do better than the market as a whole but not a lot better.

                  As for the sector in general, it is one I would stay away from. Housing and housing related stocks seem risky to me given the current environment of foreclosures. So looking at the fundamentals of LOW may not tell you what it will do, you may lose your shirt or may get a two bagger.

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                  • #10
                    T8burst,
                    Thank you for the thought. You are correct with this current environment. Who knows what the market will bare in the next year. Hopefully , it will climb over 12,000. It will be interesting. What sector do you feel will rebound? I appreciate your comments. Thank you.

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                    • #11
                      Originally posted by JoeMonte View Post
                      T8burst,
                      Thank you for the thought. You are correct with this current environment. Who knows what the market will bare in the next year. Hopefully , it will climb over 12,000. It will be interesting. What sector do you feel will rebound? I appreciate your comments. Thank you.
                      One thing that is getting a lot of attention now is cloud computing: http://seekingalpha.com/article/2265...kspace-hosting

                      It is has been talked about for a while, but I think the technology is about to explode. I am just starting to read up on the various companies, but from a just a technology standpoint I think we have reached a tipping point where companies are going to move a lot of things out of their intranet and into the cloud. There will be some great places to make investments there I think.

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                      • #12
                        T8 burst, I appreciate the thought and looked into this a little. Never really heard of this Cloud Computing until you mentioned it and Cramer on Mad Money started to talk about it. Are you familiar with lower priced companies that might rebound or start performing well? Take care,
                        Best Regards,
                        Joe

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                        • #13
                          Originally posted by JoeMonte View Post
                          T8 burst, I appreciate the thought and looked into this a little. Never really heard of this Cloud Computing until you mentioned it and Cramer on Mad Money started to talk about it. Are you familiar with lower priced companies that might rebound or start performing well? Take care,
                          Best Regards,
                          Joe
                          Joe,

                          I can't really recommend individual stocks. I would say that I think there is more upside in investing in companies that are developing cloud software (the 800 pound gorrila in that space is salesforce.com (CRM) http://finance.yahoo.com/echarts?s=C...urce=undefined) than there is in companies developing cloud infrastructure (such as rackspace). Salesforce took a very painful part of enterprise business, managing your sales pipeline and by moving it to the cloud saved companies a ton of money and headache. There have to be other opportunities out there with similar upside, maybe back office accounting, HR... I don't know. I do really think the best investment opportunity is in the cloud applications, more so than providing the infrastructure.
                          Last edited by t8burst; 10-24-2010, 11:57 AM. Reason: my gorilla was too small

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                          • #14
                            I appreciate your thinking. It is true with opportunities will be in the applications like some many other industries. It will be interesting anyway to see what the market does in the next couple of months with the political races going on. Have a good weekend.
                            Best Regards,
                            Joe

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