maybe the stupidest question you've heard...

Discussion in 'Trading' started by liam, Sep 25, 2001.

  1. liam


    ...but i'll ask anyway. why does everyone says that daytrading is hard? what is the hardest part? and is it possible to let's say (just an example) buy 5000 shares @ 17.56, and sell them a few secs later @ 17.57? that's a $50 profit minus $15 commision = $35 pure profit? is that posible in the real world? thanks very much.
  2. lescor


    is it possible to let's say (just an example) buy 5000 shares @ 17.56, and sell them a few secs later @ 17.57?

    Yes, it's possible. But what if a few seconds later it's at 17.46? Now you're down $500. What do you do? Do you hold on and wait for it to come back so you can break even? While you're waiting, it drops to 17.36 and you're down $1000. Now your palms are sweating and your head is spinning because you really can't afford to lose that much. When it drops another 10 cents, the pain becomes unbearable and you sell. 10 minutes later it's at 17.77 and you feel like kicking yourself, so the next time you hold on a little longer, but lose again. Then you bet a larger amount than usual because you need to recoup your losses. That doesn't work out and now you're broke and a statistic.

    There's a reason why this is one of the hardest professions to succeed at. Read several books and spend some time on these boards before putting real money to work, and then in small amounts until you are consistently profitable.
  3. klin


    Yes, you can always make easy money like that only if u can foresee 10 seconds of future. What if the prices drops to 17.50 after you bought? Wait or stop out? Wait could make you loss more. The money you made during 10 right guesses is not even enough for one bad luck.

    It's the my experience as a loser, hope other people give their input.
  4. ddefina


    Everyone who has traded for awhile and has become successful has most likely paid a tuition of $10K to 50K (in losses) before they started making money consistently. The upfront costs are usually no cheaper than college. Simulations and paper trading are very deceptive.
  5. limbo


    I don't think Liam is saying it's easy-I think he's just looking for information. Liam I think if you're a member here you have access to tons of information. Daytrading as you've heard from prior posts is more than tough--you will need alot of time and a very clear head to make it. Truthfully, at this point and time, if you have talents in other areas, I advise you to do something else if you possibly can.
  6. liam


    thanks for the info. i wasn't saying it was easy, i was just asking what is the hardest part. and it looks like everything is hard work. thanks again.

    (damn those simulators. they make it look so easy.:D )
  7. ...but i'll ask anyway. why does everyone says that daytrading is hard?

    thanks, I needed that
  8. ron2368


    The hardest part is ....if you quickly get that .05 profit do you take it or are you going to try for .10 and then if it quickly goes to a .05 loss are you going to take it, well gee it may actually go up in 2 seconds and you will have a profit...but wait now you are losing .15, but wait it may go back to breakeven.....

    I think everyone here has done that at one time.

    Study price movement on a time frame you would be able to trade and develop a plan. I cant find anyone that could predict a stocks movement tick by tick. The predictability of very short trends is difficult, as you begin to focus on larger trends it may make more sense to you
  9. Hitman


    The hardest part in day trading is . . .

    Commissions, that's right, you heard it correctly, commissions.

    Very few traders at my firm are down big in term of gross, but they are down big in net.

    A lot of us would be making incredible money if we don't pay commissions, it is a trader's number one enemy, even at a penny a share.
  10. sallyboy

    sallyboy Guest

    The responses to your question come from experienced traders. Everyone comes into this profession wet behind the ears and many get their hat handed to them as the door hits them in the a** on the way out. For some it comes naturally. They get the hang of it soon after starting and never look back. For others it takes alot of pain, emotional & financial (tuition is expensive), before they "make it".

    My advice is to always remember to calculate the downside. Many don't do that, instead calculating how much they are going to make.....ka'ching. Often times it's only after you feel deep in your gut how the market can crush you like a grape that a healthy respect develops....gone is the naiveté.
    It's not until losses stare you in the face that it becomes apparent that there's more to this profession than imagining how you're going to spend all those greenbacks.

    You shouldn't change your goals because these posts make it sound impossible, but you should go into it with both eyes open, not wide shut.

    Good Luck.
    #10     Sep 25, 2001