This is a little troubling to me. If you are having to deter yourself from trading too much by way overpaying for commissions, this indicates a discipline problem. This seems a very bad way to train yourself. If you believe a trade is worth taking why would you pay 29.95 to execute, when you could do it for a fraction of that cost?? Books schmooks..... IMHO there's two ways to go, to learn how to trade: #1 Screen time for 2-5 years or more. #2 Get a mentor. (Finding a mentor is not so easy, but would most likely significantly reduce your learning curve if you could find one.) Don't waste your time on more than two or three books. If you already know the basics, I'd say move on to #1 or #2 above. If you ever learn about price action and money management, you'll look back and wonder why anyone wastes time on all the books that imply that they will teach you to trade.
Thanks for the reply my friend. Not sure if I have a discipline problem or not. I am an extremely Thrifty and Frugal person, so the higher commission forces me to think a little more about what I am doing. Remember I am still a work in progress. But you do have a point about the higher commission. Can you suggest any other BD's for me to consider ?
Ahhh...you have the wrong idea. Discipline is not trading less...it's trading smarter. Actually you want to trade MORE (not size, but # of trades). That's the only way you will learn to trade SMART. If you aren't doing at least 10 round trips (20 trades) then you aren't trying hard enough. Your current broker will break the bank at that rate, so if you are taking this seriously it's time to switch.
Thanks Dustin ! When you say at least 20 trades do you mean per day, week or which here ? Remember I am working with under $25k.....so trading more may violate my account with respect to the daytrading rules. There was a lot of insider trading / trades being made in stocks that were on our restricted list, going on with my employer ( I worked for a BD). We were initially able to have accounts outside the broker I work for.....and as you know the compliance area would get copies of all trades. But as these trades in violation increased, my employer said all accounts will need to be moved in-house to better monitor our actions. Commissions were not reduced for us.....( I know sounds suspect and a way for my employer to capitalize off this while monitoring), but if we wanted to continue employment there, this is what it was. One friend didn't move his accounts over and they did a background check and found he had other accounts not disclosed and was released....so they were serious about this. So this is the main reason why I held my accounts there. But I have moved from the Brokerage side to the actuarial side.....and the rules for some reason are a little more relaxed on having an account outside the job. So I will be moving my accounts eventually.
Good day, everyone. I'm a newbie and don't want to come in like a wide-eyed, gooshy dweeb but I'm really excited to be coming into this industry. An art major in college, I was hired by a firm two years ago as an office assistant. This past summer I had the opportunity to take advantage of the resources and take the Series 7 and 63. I've gotten so turned on by the financial industry, I can't WAIT to get registered. I've been reading many books along with the studying...but haven't been getting much from them until recently picking up Fooled By Randomness, which you mentioned. I'm afraid I may have put too much stigma on the test and put way too much pressure on myself. I missed passing yesterday by 9 correct answers. GRRRR! Try, try again. How many attempts did you guys have? Thanks for input. I look forward to reading more here.
Missing by 9 questions on the 7 is like saying you almost got 1400 on your SAT's but got 1200 instead....its a huge difference. Passed the 7 on the first try with an 88, passed the 55 as well with a score of 79 (70 is passing). Neither test matters one iota for daytrading though.
Hey man, best of luck. You look like you've got it down pat. Just stay the hell out of "trading education" chat rooms.
thanks my friend....but i am light years away from where I want to be. This trading is easy to learn....but difficult to master. I watched that show Wall Street Warriors with Alex Gerchick (sp?) . He stated in one of the episodes that if he only makes $50 he is cool with this as long as it is not a lost. Then I recall reading Warren Buffet stating that one needs to grow slowly. In the past.....when I waited for those big swings or homerun trades......I usually lost or lost some of the unrealized gains...........taking smaller profits here and there seems to be working for me. I guess you can say I am scalping with a swing trading timeline. Its working for me now......but who knows what can happen when the market turns. Much more to learn here.