When the internet stocks were reaching astronomical level with 30-60 intraday point moves back in 1999-2000 we heard alot about daytraders....Now from media reports and critics you would think daytrading has been stomped out... WELL I DON'T THINK SO>>>> HERES WHY>> 1. August 27,2001...New Nasd regulations now allow 4x margin with min $25,000 account 2. The free flowing avail of capital with Fed easing monetary policy...MOney is easy to borrow.. I have 2 loan account with 5.9% on unsecured lines of credit.. ITS NEVER BEEN A BETTER TIME??? THOUGHTS
topguntrader, ITS NEVER BEEN A BETTER TIME??? Well, it's certainly better than it was in the summer. Range constriction was really nasty then, tough to scrape out a .50 run. But the market still has a tough time stringing together a decent run in either direction. As long as the days have enough range you can intraday trade them, but it makes it tough on overnight swings with the market being so news driven due to the war, anthrax, etc. To quote Lee Strasberg from Godfather II, "This is the profession we have chosen", so in one sense anytime is the right time. But I suppose a more appropos quote would start out, "It was the best of times, it was the worst of times..."
The BEST time of the year to start (in my humble opinion) is Summer. Why? Because Summer conditions will quickly humble you, immediately making you a very cautious trader. Once you appreciate the risks involved (and Summer will make you appreciate em, I assure you) then you can reap the rewards in the better times, with greater consistency.
candle, While I agree with you in theory, I think that in practice the summer can be a totally debilitating time for someone to start trading. They have no reference point, never truly know if it's them or the market, and the blow to their confidence on a deep-down level can be very hard to recover from (along with the depleted capital in their trading account). Maybe a phoenix will rise from the ashes, but I suspect a slightly easier time might be a better place to throw the first pitch.