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PatrickKn



Registered: 07/10/11
Posts: 20,564
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Anyone into Day Trading?
#23497709 - 08/01/16 06:57 AM (7 years, 5 months ago) |
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I'm interested in starting day trading, but am a bit wary. If anyone has some solid advice, I'm down to hear it. Curious where to start really. Played with paper stuff last week briefly and only lost, so I have plenty of learning to do. Have about $1000 dollars to play with for that purpose, with ~4-500 extra per month if necessary. I'm not necessarily looking to jump in right away though, I don't mind researching it for a few months to get my head wrapped around it before spending any real money.
Not looking for long term stuff, I already put 15% of my check into long term stuff. Looking to see if anyone has some solid advice. It's a bit hard to wade through it when every search result leads to some scammy bullshit site on the subject. If anyone knows of a youtube series that has good advice and can show a realistic approach to it, that'd be appreciated. Spent a lot of last night trying to wade through all the shit.
I understand the basic gist, I just don't know how to decipher whether something is going to rise in the next 2 minutes or fall without breaking the bank.
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Repertoire89
Cat



Registered: 11/15/12
Posts: 21,773
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Re: Anyone into Day Trading? [Re: PatrickKn] 1
#23497868 - 08/01/16 08:52 AM (7 years, 5 months ago) |
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I did with crypto currencies. They're so volatile, you can catch a 10 fold increase in a few hours, or a similar drop.
Very stressful, felt like I was in a casino all day, going back to check the numbers every hour.
Not my thing at all
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lysergiccognition
Stranger

Registered: 12/29/12
Posts: 53
Last seen: 4 years, 8 months
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Re: Anyone into Day Trading? [Re: PatrickKn] 1
#23497872 - 08/01/16 08:56 AM (7 years, 5 months ago) |
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Day trading is pretty difficult with 1k. Idk what your background and experience level is with financial instruments, but there are FDIC regulations that will prevent you from doing much with that amount of money.
Freeriding is the first thing that comes to mind. Basically you can only make 1 transaction with unsettled funds (3 biz days for funds to settle). So say you buy stock AAPL today and it goes up 10%, you sell today and that's okay, thats your one transaction with unsettled funds. Now you have to wait 3 business to use those funds again or you will be freeriding, which will lead to a suspension from trading on unsettled funds for about 3 months.
You can get around this by getting into options or trading on margin, but you need to know what your doing or you'll lose it all real quick. Also I would say you also want 5-10k to really play around with the market on a daily basis.
I would recommend learning about the VIX (volatility index of the s&p500) you can buy ETFs that follow it closely. That can help u make money on a bear market. Also stay on the look out for earnings reports, for example groupon beat analyst estimates by a lot last week and it went up 25% in a day. You can buy a stock the day before earnings if you think the concensus is that they are gonna beat estimates, if your right you'll prob be in the green 2-20%. If your wrong and it goes down 10%, just make sure your buying a company with solid Financials and it will prob go back up in no time (markets are irrational and react accordingly, take brexit for example).
There is too much to talk about and im on my phone, but to sum it up... learn how to read balance sheets and operating statements, learn how to bank on a bear market (VIX, shorting, options), don't panic with the market, buy the rumor sell the news. Look into forex or futures trading as well, maybe that's more up your alley. Oh and watch bloomberg in the mornings.
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rickpsfuckyou
listening to Mozzy



Registered: 11/26/05
Posts: 1,860
Last seen: 2 years, 4 months
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I want to forex trade bitcoins and i was researching this stuff. Babypips.com is the website most recommended by all the reddit btc daytraders. It has a school (info and quizzes ) on trading concepts, I am in first grade, hahaha.
You can also use a demo account, (on many different exchanges for free) to practice trading, for a few months to get the hang of it risk free.
My uncle makes bank trading and he was helping me learn and told me, once you double the demo accounts balance, you are ready to try with a small amount of money to execute real trades.
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rickpsfuckyou
listening to Mozzy



Registered: 11/26/05
Posts: 1,860
Last seen: 2 years, 4 months
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Also my uncle said us exchanges blow cause all the rules, he said using one in the uk or the carribean is way more profitable because different regulations are more lax than the american laws
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demiu5
humans, lol


Registered: 08/18/05
Posts: 43,948
Loc: the popcorn stadium
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Re: Anyone into Day Trading? [Re: PatrickKn]
#23497899 - 08/01/16 09:13 AM (7 years, 5 months ago) |
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Quote:
PatrickKn said: I'm interested in starting day trading, but am a bit wary. If anyone has some solid advice, I'm down to hear it. Curious where to start really. Played with paper stuff last week briefly and only lost, so I have plenty of learning to do. Have about $1000 dollars to play with for that purpose, with ~4-500 extra per month if necessary. I'm not necessarily looking to jump in right away though, I don't mind researching it for a few months to get my head wrapped around it before spending any real money.
Not looking for long term stuff, I already put 15% of my check into long term stuff. Looking to see if anyone has some solid advice. It's a bit hard to wade through it when every search result leads to some scammy bullshit site on the subject. If anyone knows of a youtube series that has good advice and can show a realistic approach to it, that'd be appreciated. Spent a lot of last night trying to wade through all the shit.
I understand the basic gist, I just don't know how to decipher whether something is going to rise in the next 2 minutes or fall without breaking the bank.
Personally, i would be dumping that money into physical precious metals.
but if you really are set on day trading, i'd start by looking into Jim Cramer's books
-------------------- channel your inner Larry David
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PatrickKn



Registered: 07/10/11
Posts: 20,564
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Re: Anyone into Day Trading? [Re: demiu5]
#23498084 - 08/01/16 10:55 AM (7 years, 5 months ago) |
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Quote:
lysergiccognition said: Day trading is pretty difficult with 1k. Idk what your background and experience level is with financial instruments, but there are FDIC regulations that will prevent you from doing much with that amount of money.
Freeriding is the first thing that comes to mind. Basically you can only make 1 transaction with unsettled funds (3 biz days for funds to settle). So say you buy stock AAPL today and it goes up 10%, you sell today and that's okay, thats your one transaction with unsettled funds. Now you have to wait 3 business to use those funds again or you will be freeriding, which will lead to a suspension from trading on unsettled funds for about 3 months.
You can get around this by getting into options or trading on margin, but you need to know what your doing or you'll lose it all real quick. Also I would say you also want 5-10k to really play around with the market on a daily basis.
I would recommend learning about the VIX (volatility index of the s&p500) you can buy ETFs that follow it closely. That can help u make money on a bear market. Also stay on the look out for earnings reports, for example groupon beat analyst estimates by a lot last week and it went up 25% in a day. You can buy a stock the day before earnings if you think the concensus is that they are gonna beat estimates, if your right you'll prob be in the green 2-20%. If your wrong and it goes down 10%, just make sure your buying a company with solid Financials and it will prob go back up in no time (markets are irrational and react accordingly, take brexit for example).
There is too much to talk about and im on my phone, but to sum it up... learn how to read balance sheets and operating statements, learn how to bank on a bear market (VIX, shorting, options), don't panic with the market, buy the rumor sell the news. Look into forex or futures trading as well, maybe that's more up your alley. Oh and watch bloomberg in the mornings.
This is more in line with what I'm looking to do. Good info. Will read up on some of this stuff. I was watching some videos that said you could start with 500-1000, they didn't mention some of these free rider rules you mentioned at all. It's good to know. Hard to wade through all the info without someone trying to push bad information on you through their videos or websites. May save up more before trying anything.
Not big on the forex/crypto currency flipping. At least the binary stuff. Seems like playing black jack more than anything, but I could be wrong on that for the more experienced who are successful with it. I did some of the demo stuff with that and I was losing hard.
Quote:
demiu5 said: Personally, i would be dumping that money into physical precious metals.
but if you really are set on day trading, i'd start by looking into Jim Cramer's books
I have a lot of silver and a small bit of gold. All in all, about 50% of what I make gets saved in some way rather than spent, including a 401K and just general savings accounts for emergency stuff and vacations and whatnot. Interested in putting a bit of it into day trading though to increase how much I'm saving. If I could pull an extra hundred or two a week, I'm happy enough with that (not trying to full time job it or anything). Really trying to save up 10K within the next year and a half for some studio equipment. If I can cut the time in half, that'd be nice. Just weighing options really.
Edited by PatrickKn (08/01/16 10:55 AM)
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demiu5
humans, lol


Registered: 08/18/05
Posts: 43,948
Loc: the popcorn stadium
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Re: Anyone into Day Trading? [Re: PatrickKn]
#23498172 - 08/01/16 11:53 AM (7 years, 5 months ago) |
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have you ever followed geokills stock thread in money matters?
it's worth a read
also, there are other metals besides silver and gold. palladium, platinum, etc...
-------------------- channel your inner Larry David
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Seriously_trippin
Cosmic Guru Ganesh



Registered: 07/12/13
Posts: 14,473
Last seen: 6 hours, 52 minutes
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Re: Anyone into Day Trading? [Re: demiu5]
#23498188 - 08/01/16 12:02 PM (7 years, 5 months ago) |
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Tldr. No but I am into night trading and the occasional morning trading.
-------------------- R.I.P Zombi3, Blue Helix Modest Mouse Zappa Slothie That Kid With The face ShLong Le Canard split_by_nine & Big Worm Forever Etched in the sands of time in the shroomery and ever so beloved and deeply missed by many
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