Getting Started Day-trading

Discussion in 'Professional Trading' started by GoldMiner1849, Sep 3, 2007.

  1. OK, so I'm new and a wannabee successful day-trader. Read some TA books (Market Maker's Edge; Master Swing Trading; Using TA; etc.) and taking an online course from Day Trading U.
    Signed up with TD Ameritrade using Qrotetracker.

    Am I on the right track? Can day-trading be lucrative? Anyone local to LA, Ventura, Santa Barbara to act as a mentor?

    All advice appreciated.

    GoldMiner
     
  2. xiaodre

    xiaodre

    Yes, people make money daytrading.

    As an aside, there is some required information missing from your post that leads me to believe it isn't a very serious post:

    I will be trading [blank] instrument, using this type of chart. Why? Because my trading method, basically [blank], needs it. I expect I will be firing off [blank] number of trades a day, and my success rate will be [blank], and from this I can assume that I will make [blank] dollars per month. My account balance is [blank]. I know it's risky, but I am prepared to blow out this account, because I have a fallback plan - [blank]. The [blank] method works very well in a [trending or non-trending] market, and less well in a [trending or non-trending] market, but I have [blank] to keep me out of trades at times like those. By the way, I define a trend the way [this that or the other book] defines it, which is, [blank].

    Any thoughts are appreciated...
     
  3. daytrading sucks, jmho
     
  4. I have been trying to day trade for 5 years, not made a dime. Its tough, I've read all the books, done some seminars even they did not help me. The only advice I could give you "don't do it". I know you read people on ET saying they making money scalping the ES, but the saying goes talk is cheap.

    My account is going down slowly but surely. I'm giving it to the end of the year, but looks like I be getting a job.:(

    Bill
     
  5. plugger

    plugger

    When a trading giant (some think of him as a trading deity) like stock trad3r offers an opinion, you are best to listen. He knows a lot about trading.
     
  6. It sucks because you're constantly staring at a screen for 8 hours a day looking for setups to skim perhaps .2% profit off a trade.
     
  7. mde2004

    mde2004

    Reading a few books huh. You will blow your account out a few times for sure. Day trading is a suckers game and almost 95% fail within the first year.
     
  8. Yes, I'm in the 95%, that means you must be in the 5% of the winners with your comment. I could go on and say most seem to be in the 5% of winners on ET. Well everyone talks a good game.
     
  9. You should never blow up more than once. Otherwise trading isn't for you.
     
  10. Good post (and perhaps the only one in this thread who is offering sound advice).

    There's no reason to believe that GoldMiner1849 is not serious, he/she just needs to understand what is required to give day trading a good shot. In short, you need a plan (as outlined in the above post). I'de do some google searching for 'day trading plans' - you are likely to find quite a few that can at least help you to understand what constitutes a decent plan. However to further help, I've filled in xiaodre's blanks (which outlines my day trading plan)

    I will be trading [YM] instrument, using [5min chart for entries and 30 min charts to define the trend ]. Why? Because my trading method, basically [5 minutes squeeze - Bollinger band, Keltner channel crossover system - squeeze], needs it. I expect I will be firing off [2-3] number of trades a day, and my success rate will be [65%], and from this I can assume that I will make [$250] dollars per day per contract. My account balance is [$20,000]. I know it's risky, but I am prepared to blow out this account, because I have a fallback plan - [getting a proper job]. The [squeeze] method works very well in a [trending] market, and less well in a [non-trending] market, but I have [worked out that the pre-market volume can help me define the type of day its likely to be] and will help me to stay out of trades at times like those. By the way, I define a trend using [on 30 minute chart using a version of Heikin-Ashi].

    I'de also add that you need to give some serious thought to the following areas.
    1. Amount of your account at risk per trade (eg 20 point stop on YM = $100/contract. With a $20,000 account this equates to 0.5% per trade - look to keep this to under 2%
    2. How many losers per day before you quit (eg risking 0.5% per trade, I give up for the day once I had lose 2%)
    3. Some daily, weekly and monthly targets and a reward system when you meet these targets.

    Day trading is IMHO 60% plan (strategy includes entries,exits, position size, money management etc) 20% mind and 20% preparation. (Loads of people will disagree with this breakdown no doubt!). You need to get this sorted before you pull the trigger on your first live trade otherwise you will be destined to failure. The markets re-enforce bad behaviours (lets say your first week is a resounding success and you've no idea why, and then your second week is a resounding failure - you'll still have no idea why!!).
     
    #10     Sep 3, 2007