Day Trading

[natenut]

I know the stock market is pretty messed up, but with it so low wouldn't it be a good time to invest? I was wondering how much money you need to have to throw around. I have a few hundred bucks that i am willing to take a chance on (hey i'd just go to the casino with it anyway) I really am kind of clueless on this, but playing Yahoo! investment challenge is pretty fun. Thanks for any advice!

 

[Mister T]

a couple hundred is too little.
transaction costs will be too high a percentage of your portfolio.

 

[StageLeft]

If by day trading you mean keeping stocks for hours or no more than a few days or something with such a small amount of money the otherwise incredibly risk will be insurmountable as you find that transaction fees are eating up each move.

 

[Tominator]

Originally posted by: Mister T
a couple hundred is too little.
transaction costs will be too high a percentage of your portfolio.

There was a place online that you could start with as little as $50. I do not remember where.

Day Traders are extinct....

 

[linuxboy]

You could try it using those 25 free trade offers Ameritrade periodically has. You have too little money, however. You could throw it all into one stock or a few stocks and see the performance over 5 years, but day trading with that volume is pointless if you're out to actually make a gain.

Cheers !

 

[Pliablemoose]

If you want to play the slots in the stock market, here's a formula, look for a stock that's taken a 30% decrease in it's value in the last 24 hours & buy it.

Theory is that the current owners will freak out & sell on the drop, and bargain hunters will swoop in temporarily, trick is timing, take a small profit above your comission fees, and sell quickly.

 

[FeathersMcGraw]

Originally posted by: natenut
I know the stock market is pretty messed up, but with it so low wouldn't it be a good time to invest? I was wondering how much money you need to have to throw around. I have a few hundred bucks that i am willing to take a chance on (hey i'd just go to the casino with it anyway) I really am kind of clueless on this, but playing Yahoo! investment challenge is pretty fun. Thanks for any advice!

I'd suggest going to the casino if you want to gamble with your money. At least your chances of winning are regulated there.

I think a lot of the current market conditions and volatility are created by people who want to play the stock market without a grasp of any of the fundamentals of either business or investing.

 

[Miramonti]

Originally posted by: Tominator

Originally posted by: Mister T a couple hundred is too little. transaction costs will be too high a percentage of your portfolio.

There was a place online that you could start with as little as $50. I do not remember where. Day Traders are extinct....

Datek allows 3 open and close trades each week (i believe), otherwise you're labeled a "daytrader", which by SEC rules requires 25k in your account.

 

[natenut]

Thanks for your help, perhaps i'll have a few good nights at the bar insted

Maybe a mutual fund would be a better venture at this point in the game anyway, but i do belive that some of the big technology stocks are now under valued, such as AMD (9.25). With 64 bit technology on the horizon, there will be a huge market as applications take advantage of this architechture. And AMD is on the front of flash memory, with so many new electronic devices needing affordable high capacity storage this market has nice groth potential imho.

 

[mikebb]

Originally posted by: natenut
Thanks for your help, perhaps i'll have a few good nights at the bar insted

Maybe a mutual fund would be a better venture at this point in the game anyway, but i do belive that some of the big technology stocks are now under valued, such as AMD (9.25). With 64 bit technology on the horizon, there will be a huge market as applications take advantage of this architechture. And AMD is on the front of flash memory, with so many new electronic devices needing affordable high capacity storage this market has nice groth potential imho.

You're on the right track, in wanting to get into something you know about. I never buy stock in a company whose field is something I'm clueless on. Problem with techs is, there's too much uncertainty right now, and companies like AMD have not proven that they can be profitable. Of course, grab hold of a company that isn't profitable, if they become profitable, you'll cash in (look at Nextel today, up 30% today on news that they're finally making money.)

Bottom line is, the tech boom is over, so no free lunch or quick riches. Save your money, think long term with a solid mutual fund or proven stocks (if there is such a thing anymore.) Buy QQQ(Nasdaq tracking stock) if you think tech has a future.