I'm willing to lay it all out, and this is only real trades -- does not include any of those golden "trades that got away." I started trading in 2006 with an account that had $2000. I did some day-trading and some swing-trading, always mindful not to trigger the pattern day-trading rule. I built the account only through trade earnings and very small weekly contributions until I reached a point where I had a consistent track record for successful trades. Then I started contributing like a mad-woman to get the account over $25000. I just crossed $25000 recently. Here is my record, rounded of course because I'm doing this from memory.....first column is year, second is average balance of account, third column is total gains that year. 2006 $2500 $500 2007 $5000 $300 2008 $8000 $3500 For 2009, like I said, I just got the account over $25000, and almost half of those funds were added in the last few months. I just calculated returns the other day, and I have had a 45% return so far this year, and my actual profits are just over $5000. I am 31, and not really looking to leave the workforce at this point -- but I do think I am at the point where I could generate a decent supplemental income, like if I were in grad school or doing a fellowship that was low-paying.
I would recommend TPM1/TPM2 too, they are my basis for fulltime trading. I have occasionally criticized (carefully) the moderators' penchant for 'breakout plays' even if somewhat extended intraday, but they justfified through scalping 10cts, 20cts, 40cts small gains instead of riding a daytrade. The room does not play all the setups taught in the TPM courses, which I find unhelpful to new graduates ..... my own interpretation is to favour the basic buy/sell setups (PBS/PSS) and Gap plays. I like Tom's style the most.
TradingGal, I would highly recommend two things.... Firstly get your account up to about 35K if you're going to start day trading actively and secondly wait until the beginning of september to start the account b/c the end of August is one of the worst trading periods of the year. Actively day trading is far different than occasionally swing trading or putting on long term positions.... Make sure you have an exectution platform that specializes in servicing day traders and don't do it just spare time or eventually you will most likely lose all your money. People who day trade full time usually fail at a rate between 90 and 95 percent. The last thing you want to do is build up your account over a mult-year period only to blow out that same account in a month or so. If I was you and working a full time job other than trading I would just keep doing whatever you're doing now in the market. If you are making 50% returns a year with what you're doing then just keep doing it but take bigger positions. Why change what you're doing if it's working?
'First prize is a cadillac eldorado.Anyone want to see second prize?.... second prize is a set of stake knives.Third prize? Third prize is you're fired.'
If I could come across more stocks like Cannabis Science, I definitely could make a living at this. lol. Bought 30,000 shares when it was @.07 and last month, it decided to go Platinum and made it up to 1.44. I sold all shares @1.38... do the math.
Thanks. I have no intention of ever becoming a "day trader" the way that most people define the term. However, I probably will become one as the SEC defines the term. I intend to continue what I am doing, which is trading off of a formula I created a couple of years ago, and which I run each day on about 20-30 stocks that I include or kick out based upon (i) fundamentals (i.e., would I be comfortable holding a large long-term position in this stock), and (ii) how the stock performs in a trailing 6 months of back-testing of my strategy. My goal is to execute 3 or 4 trades per week using this methodology. Right now I am getting at least 2 per week, which is a huge increase from 3 per month last year!!! As I get better at this, though, the window of time that the round-trip takes narrows, and more of these trades are closing on the very next day or the same day. Also, there are those exceptional days on the market where a few stocks trigger one after the other, and I could literally take 3 or 4 round-trips in one day. I am tired of being limited by the pattern day-trader rule and I want to be able to trade my strategy without that added concern. As for my job, I have a completely flexible schedule in a job that keeps me tied to a computer all day long. I make the choice to watch the markets during peak hours, and it just means I stay later at the office to get my real work done. I am in a profession where being known as somebody who works late and on weekends is a huge benefit anyway. My colleagues and my boss know I am an active investor and have never considered it a detractor from my work. In my area of work, being conversant in the markets is a huge benefit anyway. I actually love my job and have no desire to leave it, but I enjoy the security that comes from knowing that I can generate some money on my own that could at least pay some bills if I lost my job.