Is anyone here a day trader?

[Deleted member 4644]

I am been thinking of taking about $5000 and trading it on a day to day basis, maybe making $100 a day or something as a goal. I have $25,000 I could put aside in a fund because I understand that is a requirement for day trading?

What else do I need to know about it?

 

[Stunt]

Why are you setting aside $25,000?

Make sure you have extremely low commissions and don't mind losing the $5k.

 

[Deleted member 4644]

Commissions are $7. Don't mind losing the 5k. Gotta set aside the 25k if you are a "pattern day trader" according to SEC rules.

 

[akshatp]

If you dont mind losing the 5k, my paypal address is listed under my heatware account

 

[Paul Ma]

I suggest using ThinkorSwim, they have low commissions and a really powerful interface. 25K is per SEC regulation.

 

[JackRipper]

1. Wake up at 5am EST and start doing your homework.
2. Avoid trading forums
3. Stay away from margin trading unless u know what u're doing
4. Trade on companies u know much about and have faith in
5. Research and plenty of it.
6. Market usually goes crazy at opening bell, around lunchtime EST, and closing bell...

 

[vi edit]

Originally posted by: Stunt
Why are you setting aside $25,000?

Make sure you have extremely low commissions and don't mind losing the $5k.

NASD/SEC rule 2520 says you must have at least $25,000 in equity if you are flagged as a PDT.

http://www.patterndaytradingrule.com/

 

[Greenman]

I know a guy who did this, traded away 50k in just a few months. My guess is no one told him you have to sell stocks for more than you pay for them if you want to make money...

 

[vi edit]

Originally posted by: Greenman
I know a guy who did this, traded away 50k in just a few months. My guess is no one told him you have to sell stocks for more than you pay for them if you want to make money...

You can make money on "selling" tanking stocks. But you have to call your shorts...err shots beforehand.

 

[tweakmm]

If you want to speculate like that I suggest you do it on the FOREX market instead of the NASDAQ.

Nicer trending, less volitility and a lower entry barrier make it a supperior market to day trade on.

 

[Fritzo]

Also, figure a good chunk of any profits go to taxes

 

[tweakmm]

Originally posted by: LordSegan
Commissions are $7. Don't mind losing the 5k. Gotta set aside the 25k if you are a "pattern day trader" according to SEC rules.

My suggestion is to read as much as possible before you start throwing that kind of cake around.

It's pretty apparent that you don't know what you're talking about and when it comes to investing, you want to know what you're talking about.

 

[smack Down]

Originally posted by: LordSegan
I am been thinking of taking about $5000 and trading it on a day to day basis, maybe making $100 a day or something as a goal. I have $25,000 I could put aside in a fund because I understand that is a requirement for day trading?

What else do I need to know about it?

I to would like to get 700% interest in a year. I mean just a goal.

 

[KnickNut3]

You expect to make 2% a day?

As in, a 14000% annualized return? (500% if we assume no compounding)

Hahahahahha

Sorry, man. But to get anything close to that you are going to either be heavily leveraged (like 50:1 or more) or in really aggressive strategies. And judging by the fact that you're asking this forum for advice, I don't give you very good odds. I'm not making fun of you, just warning you.

Now, if you want to use money you can afford to lose to try some strategies and learn about market price movement patterns, go ahead. But while $100 on a $5000 investment sounds reasonable, it's really not.

 

[Deleted member 4644]

lol at some of these responses. I actually realize how ridiculous I sound. I am probably not really going to day trade, but I just wanted some info on it. I have made a couple hundred in the last few weeks just riding up and down on an ETF with a few K and it kind of got me inspired to do it more often and with slightly more $$.

 

[Yossarian]

day trading is so 1998

 

[imported_goku]

Day trading is the most risky and stupid thing you could possibly do. My dad has been trading for many many years, and one thing he has basically said is that you may make money now but may end up losing it all and some more, quite possibly filing for bankruptcy.. If you want to trade, please don't day trade, it's a very BAD idea..

 

[LS20]

Originally posted by: KnickNut3
You expect to make 2% a day?

As in, a 14000% annualized return? (500% if we assume no compounding)

Hahahahahha

Sorry, man. But to get anything close to that you are going to either be heavily leveraged (like 50:1 or more) or in really aggressive strategies. And judging by the fact that you're asking this forum for advice, I don't give you very good odds. I'm not making fun of you, just warning you.

Now, if you want to use money you can afford to lose to try some strategies and learn about market price movement patterns, go ahead. But while $100 on a $5000 investment sounds reasonable, it's really not.

while this is a slightly mean response, its true. run some sites and check the rules and fees clearly, its not as easy as riding a few stocks up and down everyday. the costs of a PDT will swallow up what little gains you project make make easily