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OfflineRedstorm
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Day trading: My New Hobby
    #8143111 - 03/13/08 07:56 PM (15 years, 10 months ago)

I decided to put $500 in a trading account and have some fun. I'm going to use this thread as a log for everything I end up doing with that $500.

Where I am now:

Last week I bought 1470 shares of IVA, a penny stock, at $.34. I unloaded it all today after a quick price increase at $.45 before it fell way back down during the day. That gave me $661.50 before fees.

I then bought 21 shares of HLX for $30.07. It closed the day at $32.25. I think I am going to wait until it gets to about $34.00 or 35 before I sell.

I know it's still early and the fees are killing me, but I'm having a lot of fun with this whole investing thing.


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Offlinesomebody041
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Re: Day trading: My New Hobby [Re: Redstorm]
    #8143194 - 03/13/08 08:09 PM (15 years, 10 months ago)

I did the exact same thing as you a few years ago: opened up a daytrading account with 500 bucks just to see where i could end up. i learned alot about day trading, made alot of big gains (as well as big losses) but ultimately came up wayyy in the green.

last time i checked that account had $8200 worth of mutual funds in it! day trading is fun, but i dont always have time to do it, so when i take a break i put the money into a low risk stock or mutual fund. always make sure your money is working for you :wink:


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OfflineRedstorm
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Re: Day trading: My New Hobby [Re: somebody041]
    #8143341 - 03/13/08 08:32 PM (15 years, 10 months ago)

When I have downtime at work, I do a little research. I have no fucking clue what I'm doing for the most part, but I've had some luck on my side so far. Hopefully it keeps up.


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OfflinegeokillsA
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Re: Day trading: My New Hobby [Re: Redstorm]
    #8143736 - 03/13/08 09:38 PM (15 years, 10 months ago)

Glad to see you gettin' your feet wet Redstorm!  Welcome to the highest yielding asset class in modern history. :smile:

If you're investing in stocks with such small market capitalization, typically below $2/share, luck is pretty much all ya got! :wink:
That IVA stock trades on an average volume of 11,000 shares/day... at 32 cents a share, that's some $3,520 changing hands in a day. 
While that may seem like a lot with $500 to play, that could dry up in no time and will cause some serious volatility on any real news (let alone hype).

By all means, have some fun while you familiarize yourself with the ways of the market. 
Just know that when you're trading penny stocks, you're pretty much gambling.

Once you have larger sums of money to trade, those super-small-cap stocks simply won't work because there aren't enough buyers/sellers out there to support a substantial order.  In other words, there is a lack of liquidity - and that's the last thing you want when managing your own assets as it may force you to sell all or a portion of your shares (depending on how many total shares you own) at a much lower price than you had initially hoped for.


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OfflineRedstorm
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Re: Day trading: My New Hobby [Re: geokills]
    #8144862 - 03/14/08 05:02 AM (15 years, 10 months ago)

That's one of the first things I noticed. There were times when I wanted to sell, but I couldn't find a buyer before yesterday. It was kind of irritating.


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Offlinekadakuda
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Re: Day trading: My New Hobby [Re: Redstorm]
    #8145043 - 03/14/08 07:32 AM (15 years, 10 months ago)

how does one get into it? is there anyway to do it online? i am not in an english speaking country so local brokers are out.

i have been doing the same with currency lately but its at the bank and bank rates are far from fair.


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The seeds you won't sow are the plants you dont grow.


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Offlinejenns_hot
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Re: Day trading: My New Hobby [Re: kadakuda]
    #8145048 - 03/14/08 07:36 AM (15 years, 10 months ago)

i'd like to get into that too... its the smart way to gamble.


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Offlinelonestar2004
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Re: Day trading: My New Hobby [Re: Redstorm]
    #8145303 - 03/14/08 09:37 AM (15 years, 10 months ago)

Cool:)


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We have "reckless fiscal policies"

America has a debt problem and a failure of leadership.

Americans deserve better

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Offlinewiggles
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Re: Day trading: My New Hobby [Re: lonestar2004]
    #8145467 - 03/14/08 10:38 AM (15 years, 10 months ago)

I may get interested... but how exactly does one get involved? Would I need to actually find a broker or could I do it online? I'd be a bit worried about online trading since everything is usually delayed, and when you play with penny stocks its chancey when 15 minutes can mean the difference between selling above or below the buying price.


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You can turn your back on a person, but never turn your back on a drug, especially when its waving a razor sharp hunting knife in your eye.
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OfflinegeokillsA
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Re: Day trading: My New Hobby [Re: kadakuda]
    #8145854 - 03/14/08 12:24 PM (15 years, 10 months ago)

You can trade penny stocks through any of the major online brokers (probably all of the online brokers, for that matter). While the large(r) capitalization stocks are typically listed on the NYSE, Nasdaq, and Amex exchanges... these penny stocks will list OTD (over the counter). Unlike stocks that trade on the major exchanges, there is little to no regulation on these companies, so they don't have to report earnings, and can take you for a ride with a whole heap of lies in any of their press releases. Just be careful is all I'm saying, and don't put too much money on the line when gambling with these little guys because quite frankly, you don't know whether the "news" on these companies is true or not!

You can check out my Stock School thread, where I updated the first post to include a basic run-down of what considerations should be kept in mind when you start trading, as well as a small list of the most common online brokers.


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OfflineRedstorm
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Re: Day trading: My New Hobby [Re: wiggles]
    #8146929 - 03/14/08 05:57 PM (15 years, 10 months ago)

I'm on Etrade, and they have the "2 Second Guarantee", where any order that is filled is transacted almost instantly.


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Offlinesomebody041
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Re: Day trading: My New Hobby [Re: Redstorm]
    #8147741 - 03/14/08 10:11 PM (15 years, 10 months ago)

I got into it by searching on the web for some message boards with people who post recommendations. I would look at their pick, read why they chose it, and then follow the stock. after a while you start to pickup on what you think is important to look for.


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InvisibleTripityDooDaDay
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Re: Day trading: My New Hobby [Re: somebody041]
    #8147873 - 03/14/08 10:58 PM (15 years, 10 months ago)

This is not exactly "daytrading" as I know it. Short term for sure though and about as close as you can get on a small budget like that. Fees that will eat you alive is the big problem.

If you are interested in this sort of thing I suggest trying one of the numerous free real time stock simulators available. Investopedia was my favorite when I was playing around.

Check into online brokerage services, pick one and study the fees etc... Factor that info into your simulated investments and you will get a pretty accurate picture of how you will do in this sort of real world investing before dropping a dime.

Quality research is the key to success. The really good info doesn't come free. If you want to seriously reduce your risk and increase profit then you will also need to employ services of a company that specializes in quality research and predictions. Add their cost to your fees.

In the end I determined that I would need at least $150,000 invested at all times to live at my current income from the profits alone while devoting about the same amount of hours to research and trading without serious risk as I do working my job. I'd do it if I had it. Especially considering the "opportunity for advancement".

My trade durations stretched from days to months as well. Actual day trading is just that and a whole different game needing higher stakes at higher risks.


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Offlinewiggles
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Re: Day trading: My New Hobby [Re: TripityDooDaDay]
    #8148301 - 03/15/08 01:50 AM (15 years, 10 months ago)

Awesome :smile: Thanks for the info guys. I'd looked at etrade, scottrade, and TD Ameritrade but all of them seemed to have a bit of a delay (granted, this is about 3 years since I really last looked). Thats why I was a bit leary about trying any of them. I'm just looking for whichever offers the lowest fees and has the smallest delay between the transaction request and the actual transaction. I'm not going to have a massive budget to start with, but I'm going to set aside the same amount I would set aside were I to go to a casino... so prolly a few hundred.

Right now all of my investing is long term, but I'd like to at least get my feet wet with short term and day trading. I've also gotten some literature from a friend of mine off wall street who reccomended checking out Foreign Currency Exchange day trading because there's much less of a concern with fees and you can make a profit with a smaller amount of starting capital.

I'm still trying to teach myself everything, but there's just so damn much to learn... though I will say motley fool has been indispensable so far (though their email spam can be annoying).


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You can turn your back on a person, but never turn your back on a drug, especially when its waving a razor sharp hunting knife in your eye.
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OfflinegeokillsA
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Re: Day trading: My New Hobby [Re: wiggles]
    #8150097 - 03/15/08 04:11 PM (15 years, 10 months ago)

As a user of TD Ameritrade for the past three years, I'll tell you that so long as you are trading a stock with adequate volume (liquidity), and your bid is at or above the current asking price from other sellers, or your asking price is at or below the current bids from other buyers, your trade will go through practically immediately. Of course, I typically like to take a look at the recent trend and place a full day limit order that is underneath the current bid or above the current asking price, because if you're patient and have a good idea of the support and resistance levels in a given stock, the short-term volatility will usually result in you trading your shares at a better price if you're just willing to wait for your price. These limit orders will stay active for the whole day and execute as soon as there is a matching (or better) bid/ask.

Market orders will result in an instantaneous transaction because it will pair your order with whatever bid or ask price is out there... this is precisely why you should never place a market order, because someone could place a ridiculously high asking price or a ridiculously low bid price, and with a market order, you have no control over the actual price where your transaction settles. Therefore, you may end up paying significantly more or receiving significantly less per share, than you were aiming for.

To summarize, only use LIMIT orders where you can specify your desired bid or asking price.
To clear a trade immediately, bid slightly more than the current ask, or ask less than the current bid.


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InvisibleLiquidkick
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Re: Day trading: My New Hobby [Re: Redstorm]
    #8164175 - 03/18/08 09:17 PM (15 years, 10 months ago)

Wow, you must be getting nailed with fees from etrade, i know i was getting killed with 13 one way.


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OfflineDerk
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Re: Day trading: My New Hobby [Re: Liquidkick]
    #8166701 - 03/19/08 01:41 PM (15 years, 10 months ago)

Quote:

Liquidkick said:
Wow, you must be getting nailed with fees from etrade, i know i was getting killed with 13 one way.




que?


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InvisibleLiquidkick
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Re: Day trading: My New Hobby [Re: Derk]
    #8355577 - 05/02/08 08:53 PM (15 years, 8 months ago)

They were charging me 12.99 per trade, which is a significant cut into profits...which will force you to hold for larger swings. It's hard to scalp with a 12.99 trade fee.


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OfflineEpigallo
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Re: Day trading: My New Hobby [Re: Liquidkick]
    #8371245 - 05/06/08 10:31 PM (15 years, 8 months ago)

I have been trying to formulate some trading algorithms that I can just implement and not think about. Is there a way to buy several dozen, maybe even hundreds of stocks, and basically program them to be sold based on the changes and limits I specify?


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InvisibleLiquidkick
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Re: Day trading: My New Hobby [Re: Epigallo]
    #8371305 - 05/06/08 10:48 PM (15 years, 8 months ago)

yeah. you pretty much have to program a system.

I think ameritrade has a program that is called strategydesk that may allow you to do this.


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OfflinegeokillsA
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Re: Day trading: My New Hobby [Re: Liquidkick]
    #8372907 - 05/07/08 12:24 PM (15 years, 8 months ago)

Yes, StrategyDesk does just that. You implement various formulas that are based upon any number of variables (you can get extremely complex), and have it automatically trade for you. That may work for some, but I believe in fundamental analysis over technical analysis, not to say that you can't win either way!


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