10 cents a day

Discussion in 'Strategy Building' started by quin8670, Sep 1, 2007.

  1. Sometimes it helps to think that one can make a pretty decent living trading if they only can extract 10 cents from the market everyday. It seems easy - but it isn't - but it is highly possible...
     
  2. jtnet

    jtnet

    you can make a living with a 1/4 tick as well.... lol .... we all know what ensued from there
     
  3. I know but with a 1/4 tick you have to use huge size in order to make good money.
     
  4. chud

    chud

    $.10 * 250 trading days = $25/year

    Where do you live that $25 a year is a pretty decent living?
     
  5. Brandonf

    Brandonf Sponsor

    Uhmmm..for the mentally challanged out there I'm pretty sure he means that if you average 10 cents per share traded per day, its just a matter of upping your size and you will make a nice living.
     
  6. Yes, it looks easy mate, scalping away for a 10c move.

    But the problem is what do you do when it goes 30c against you in a blink of an eye, and then another 20 and another 20 and before you know it is a whole $1 against you.

    Let me guess, you decide to become an "investor" in the stock, cos' you believe in it, cos' it is a good position, cos' if you take the loss now it will take you 10 good trades to break even, and then you leave it until the end of day cos' it will come back. And when it does, it 'proves' you were right and you will do it again next time ... but when it doesn't come back, you leave it overnight, cos' it is a good position to have anyway, cos' you believe in it. And then the next day it gaps against you another $1, oh dear and now what do you do?

    And so, when the cycle ends you are either back to square one or way down in your average of 10c.

    Yeah, been there done that, didn't get a t-shirt but i am still around to tell the tale of trading by the seat of my pants experience. Those were the days of innocence, uh?! :D :D :D