As the thread seems to be a bit serious now, I will not insult your intelligence, but when the time wasters return, the mirror will be taken out again The only thing that matters is making money. How you make that money is up to YOU, and once YOU are making it then what ever you are doing is fine. When I speak, I am, of course, speaking from my viewpoint based on my experiences. I have found, after making and losing a good amount of money, that, there are some approaches that are far less risky than others, and, if done CORRECTLY, can yield very good returns. E.G. With $50K daytrading account (and I will go with standard US brokers as some here have no access to CFD accounts, of which I have 5) you have $200K buying power. If the average price of a US stock is $50, then our max trade size, allowing some reserve, is approx, $180K / 50 = 3600 shares If we target the magic number 50 cent range, then, for a winning trade we can make 3600 x .50 = $1,800 If we make one winning trade per day we make $1.8K x 5 = $9k per week. If we allow for some losers, say 50/50, then we make $4.5K per week. Now, $4.5K per week is GOOD money for most people, and that is for only 1 trade per day The average number of trading days per year for US Stocks is 250, so, if we target $1K per day for profit, we make $250K per year. Now, lets look at what is really possible, if we are really smart and have more money that $50K 5 trades per day Avg size per trade is 2000 shares 3 winners @ average 80 cent 2 losers @ average 20 cent Annual returns excl commissions. + 250 x 3 x 2000 x .80 = 1,200,000 - 250 x 2 x 2000 x .20 = 200,000 Net = $1,000,000 Forget about commissions - Comms of 250 x 5 x 2000 x .0075 = $18,750 (which can be reduced if you want to shop around!) So, can you be a millionaire is a Year? Well, we all know the answer, but, how many will actually do what is required in order to allow it happen? MK, please check the sums, as you are a straight A student TE
TE, which specific screening criteria do you use to find the right value stocks, with the right balance of average daily volume and volatility to trade your method? Do you measure performance against index? How many do you look at from day to day?
and further to Fibs question, if we looking at how the generals trade and that they need to perform greater than the market, do they scan for stocks that are performing just under the market / just over / or neutral to the market? If their intention is to outperform the market they do have the power to push the stock higher, so what is the sweet spot? I think DT mentioned earlier that some stocks were too strong, just understanding what criteria to look for in the stock selection.
It sounds to me like once you've developed a decent sized list of "candidates", that becomes your monitoring list. Of course, you can always add/subtract from it as you see opportunity arise, but you have a standard foundation to start with. The list has to fulfill certain criteria of course to provide ample opportunity. Then there are other factors. Size matters.
We need to be aware of whats happening and not miss the obvious. <object width="480" height="385"><param name="movie" value="http://www.youtube.com/v/FdEVWlnWc7s&hl=en_GB&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/FdEVWlnWc7s&hl=en_GB&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="385"></embed></object>
I went on a long hike yesterday and made peace with charts. Everything is ok now between me & charts. As far as your calculations they look purty good to me. There were a couple spelling and punctuation errors, but I'm going to give it an A+. Very eye-opening. Sounds easy. I'm off to rob a bank now so I can get my hands on $50,000.
"Believe nothing just because a so-called wise person said it. Believe nothing just because a belief is generally held. Believe nothing just because it is said in ancient books. Believe nothing just because it is said to be of divine origin. Believe nothing just because someone else believes it. Believe only what you yourself test and judge to be true." [paraphrased Buddhist saying]
I waz never one for the spellin and funny characters, so, I just make up my own as I go along, for, it is all b.u.l.l.s.h.i.t anyway It might sound eazy, but, doin it is far from eazy, in fact, it is the hardest thing ever to do, but, if it is possible, which it is, then IT CAN be done, NEVER SAY NEVER TE