Thanks for all the suggestions. I am reviewing all of them and related links and so forth. Do you think it is almost certain I will lose the 5K considering the following. While I know nothing about Day Trading other than what I have read here and in a book I bought last week "a beginner's guide to day trading online" by Toni Tuner, I do have a good fundamental knowledge of business. I have run my own small business for 20 years (it is failing now due to external circumstances I have no control over) I have an MBA from a local University but it was earned 15 years ago so it is alittle dated. I have occasionally bought stocks long (about 10 times) and only lost money on one trade. My strategy was contrarian. For example I bought Apple computer when it was trading at $6 dollars a few years ago because even though their earnings where down and the future looked bleak I knew that either the Government or Microsoft would step in and save them because if they failed that would leave Microsoft open to be clobbered as a monopoly. As it turned out Microsoft did intervene but still got clobbered. I made a great return but had to wait 6 months to cash out. If I had the time now to buy and wait I would be watching for chip makers to bottom out and then buy one. I can tell day trading is totally different. The one thing that appeals to me is that you can win money immediately. I am not looking to "get rich". Just earn a somewhat steady and reliable income weekly or daily. Will my background help things at all or does the future appear bleak? Whatever happens, as a token of my appreciation for the input I have received here I will post all my transactions here on elitetrader until the 5K is gone or I have doubled it. So you can watch the gazelle hurdle the lions and tigers or get eaten alive! Ken
Don't do it Ken. From what you have written here, I ASSURE you that you are not ready to "day trade", if you are doing this from your home and without some kind of mentor. Your university MBA tells me that you are an intelligent person. Making money day trading takes more than mere intelligence. Takes a long time (years) to learn how to compete in the market on a "day trade" basis.
You can day trade with $5k or less with an offshore broker because they do not have to follow NASD trading rules. I use www.alldaytraders.com I have used them for about 4 months now and have not had any problems. I only have about $6k in my account with them and I get 4 to 1 margin and day trade multiple times everyday with them. The only other way you can do it (day trade) with that little is through a prop firm.
Of course misctrader, you would have a hard time to live of $5K. However I understood the question as a bit more theoretical and started from the famous: " if you know what you are doing". Be good, nononsense
Shot a couple of lions today but then one jumped out of the bush and gnawed on me slightly - had to scramble back to the land rover.