Erosion and day trading

Discussion in 'Trading' started by Nutinsider, Oct 11, 2012.

  1. well first of all, I would not limit myself to trading in just one day like a professional is often forced to do.
     
    #11     Oct 11, 2012
  2. I have a good pizza shop down the street from my house and I always wondered.. how do their profits not get eaten up by electric bill, employee pay, food supply costs, building lease payment, insurance, taxes, and a mess of other stuff.

    Then I realized, they needed to sell enough pizza's to cover all of that, then sell more!

    The entire losing business model of day trading is transaction costs because over time, you'll be trading 50/50. The secret is beating that.
     
    #12     Oct 11, 2012
  3. "Day traders with less than $25,000 are prime clients of prop firms as they are able to trade freely without worrying about the minimum equity requirements enforced by FINRA Rule 2520. This is because most prop firms are set up so that traders trade sub accounts of the firm, but the firm “hits the street” as one large account."


    Just read this. =[
     
    #13     Oct 11, 2012
  4. when they invented globex, a lot of us thought we could sit in our homes with our AOL dial up and trade as cheaply as Chicago floor traders.

    It's important to know your limitations

    You just happened to have caught me on a very disappointing losing week

    so I am not real positive on the whole deal

    I guess I have done ok, but others that got real jobs did much better
     
    #14     Oct 11, 2012
  5. that's cool. You finally figured that out. That shows me that you are smarter than the average bear. I am very impressed. What's next? Will you do some studies on sliced bread?
     
    #15     Oct 11, 2012
  6. Ya. I read that one company was in trouble cause they advertised their bread as "lower calorie", when intact they simply sliced the bread thinner. The calories per loaf were identical. Can you believe it?!
     
    #16     Oct 11, 2012

  7. Thanks. This reminds me of a friend of mine who bets sports quite frequently. He is a smart guy so I don't understand why he bets sports. In the long run you have to win 56/100 bets to cover the juice. Same concept with trading I suppose.
     
    #17     Oct 11, 2012
  8. Easy answer hard to argue with go with interactive brokers.. minimum 10k
     
    #18     Oct 11, 2012
  9. you sound like more of a stock trader than a futures trader to me

    and both of them almost always lose
     
    #19     Oct 11, 2012

  10. Most poker players lose as well. =D
     
    #20     Oct 11, 2012