Day trading??

Hey All,
I don't even know if anyone on this forum can answer this question, but...

What is the real deal with day trading? I imagine you need a really big bankroll. I'm wondering what kind of ways these guys make money. Is there a good book I could read, that has real info in it, and isn't just a sales letter?

My interest is because of that stupid infomercial at 3 in the morning. I'm sure that's a bad investment, and am just wondering what it's really about.

Shooby

the stuff on tv is crap.....the people that teach are the ones that can't trade, you can study everything in trading from gann to elliot wave to woodies cci and you still will lose if you don't have proper money management and the emotional stability to make quick decisions.

Your bankroll size needed depends on what your trading and what style of trading you are doing.

[Sniper]

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What is the real deal with day trading?

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The real deal with day trading, is that its a job. If you are prepared to put in the time necessary to do it well, then your chances of success are better than if you are looking for a no-work get rich quick scheme.

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I imagine you need a really big bankroll.

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Assuming you've done your homework before putting any money to work in the market, you can start with a bankroll between 30-100K. Obviously, the bigger your starting bankroll, the easier it is to stay in the game if you are hit with some losers (variance) at the beginning.

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I'm wondering what kind of ways these guys make money.

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There are many different methods used by day traders.

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Is there a good book I could read, that has real info in it, and isn't just a sales letter?

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Several good reading lists have been posted on this forum, do a search. The more you read, the more prepared you will be.

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My interest is because of that stupid infomercial at 3 in the morning. I'm sure that's a bad investment, and am just wondering what it's really about.

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Which of the infomercials are you referring to?

[Sniper]

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the stuff on tv is crap.....the people that teach are the ones that can't trade,

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This isn't true, and I expect you wouldn't say the same about 2+2 and poker /images/graemlins/smile.gif

Most of the infomercial stuff is at a basic level, but can help people quickly to acquire "some" of the knowledge they need to be successful.

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you can study everything in trading from gann to elliot wave to woodies cci and you still will lose if you don't have proper money management and the emotional stability to make quick decisions.

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This is true, I highly recommend books by Elder, Douglas and Van Tharp; as some of the first books for someone looking to learn how to think about trading.

As in poker, money management and psychology, play a key role in ability to handle variance.

Day Trading to Win, I think that's what it's called.
Shooby

[sammysusar]

The market is not very volitile right now so day trading is quite difficult. when market is volitile can be a good strategy. Problem is only a very small percentage of people have the right mental approach to be good at it. from having some experience is business probably 5 - 10 % of people can make a good living at it. Is kind of like poker in that regard.

the market is very volatile right now, FUEL, BSM, NLST, EDNE, BIDU.........so so much more

If your bankroll is sub-50K, you'll make a lot more multitabling at midlimits than day trading.

[1800GAMBLER]

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If your bankroll is sub-50K, you'll make a lot more multitabling at midlimits than day trading.

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and what is possible in day trading if it is higher?

that is very untrue, now if you not margined and scalping q's then of course yah, first depends on how good you are at poker of course /images/graemlins/wink.gif and secondly what you are trading, there is no way you could if you are fully margined 100:1 trading forex but i wouldn't recommend it.

The greatest traders in the history in the world (daytrader or otherwise) became legends making 30% a year for many years with bet sizes that didn't get them overmargined and overtraded. That is only 15k on a 50k bankroll. The majority make far less even though they might brag that they made 100% once.

A knowledgeable 50k bankrolled limit holdem multitabler can win much more (in terms of roi on bankroll)if he has a level of discipline even half as good as Ed Seykota's.

you obviously don't know nothing about trading if you can only make 15k on 50k in one yr, in fact if you make 15k on 50k in one yr you shouldn't be trading.

I'm talking positional trading (betting on market direction) from home.

you don't position trade the market unless your trading futs

What methods of trading/daytrading make a 15k return on a 50k bankroll small?

breakouts, bounces, sympathy plays, news, gappers

[squiffy]

You may need to sign up (free) with motley fool to read these. But one viewpoint on daytrading.

http://www.fool.com/News/mft/2004/mft04122705.htm

http://www.sec.gov/investor/pubs/daytips.htm

http://www.fool.com/News/mft/2004/mft04112903.htm?ref=foolwatch

[Sniper]

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If your bankroll is sub-50K, you'll make a lot more multitabling at midlimits than day trading.

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The amount of $$ you can make from trading is substantially higher than what you can make from poker, given similar comitment levels toward your success (and of course, having the "right stuff" to be successful at either).

The bankroll size point at which your potential ROI peaks out in poker, is substantially lower than the bankroll size where your trading ROI peaks.

[Uglyowl]

I have never met a day trader with a big mouth that is that successful. They are all clowns. The ones that you are most likely to hear at partys, dinners, etc. you are better off not listening to.

The ones that seem to do well are the guys that fly under the radar.

IMO the best way to learn how to trade is to start trading. Of course you'll want to start out with a demo account tho (unless u hate money). Trading, for me atleast, is about two things: 1) Discipline, and 2) Simplicity. Take your time and learn the basics, then try and come up with a profitable trading system/style/method - or follow one you read about, etc. Keep it SIMPLE, and stick to the PLAN. It's very important to have a trading plan with rules, goals, etc.
Oh and stay away from those informercials/seminars etc unless you're not concerned about wasting money/time.

Seems like some good advice. I'll check it out. Thanks to all who answered. /images/graemlins/cool.gif
Shooby

if you get quotes from mytrack, you can have a play acct, and it will trade keep track of positions in real time, only thing that would be different would be your fills.

[Sniper]

Shooby, was it Trend Trading to Win.. Waxie's informercial?

[Sniper]

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The ones that you are most likely to hear at partys, dinners, etc. you are better off not listening to.


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You definately shouldn't be trading off tips you hear at parties /images/graemlins/wink.gif

[obsidian]

A good friend of mine recently started day trading. I make more than him play 5/10 online.

[Sniper]

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A good friend of mine recently started day trading. I make more than him play 5/10 online.

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A comparison of 2 peoples relative skill level really doesn't help answer the question, now does it?

There is significantly more money made from trading than from playing poker, in the aggregate.

Also, the two are not mutually exclusive, you can make $$ from both, as I expect many of the active forum posters here do.

[sammysusar]

there may be individual stocks that are volitile but the market as a whole is not. if you use a methodology that is very market based i think it is difficult right now.