Newbie here, need some advice/thoughts

Discussion in 'Professional Trading' started by golfmontpoker, Aug 14, 2006.

  1. Hello everyone, well met! Im currently a college student and my parents have agreed to loan me $1200 to get started on E*TRADE (What does everyone here use? Pros/Cons?). Anyways, I basically dont wanna make thousands, even though it would be nice. I just want to earn around $300 a week to live off of during school because I can't stand BS jobs anymore. What my strategy is basically is that im going to objectively analyze penny stocks to make a quick $60 profit a day or so. I suppose what I'm asking. Is it possible for me to buy a stock, for example, at like 1.02 a share and turn around a couple hours later and sell it at 1.46 and make a basic gain of around $80 (this is subtracting the trade fee). Does this seem viable and possible? Any input would be greatly appreciated!
     
  2. do you really think trading is so easy that you'll be able to make money with a $1200 account? Not to mention the fact that you dont know how to trade. you need a reality check Golf, this is NOT likely at all.


     
  3. Cheese

    Cheese

    Stick with your BS job and end your BS fantasies of getting something for more or less nothing.
    :)
     
  4. So, you are looking to make 25% return every week? You may want to know that Warren Buffet is struggling to make that much in a year.
     
  5. I guess you missed this line from his post

    "for example, at like 1.02 a share and turn around a couple hours later and sell it at 1.46"

    He wants over 40% ROI in a few hours. If I can do that consisitently yearly or monthly basic, I can own the whole world before I die.
     
  6. Try papertrading for a month and see how your strategy works out...

    Also I suggest your parents keep their money...
     
  7. Listen everyone, I said I was a newbie. What i was asking is if this is possible? Today for example, riotech opened at $0.91 a share, by 11am it jumped up to almost $1.60. Would it of been possible to buy it at lets say 9am at around .91 and then turn around and sell it at $1.60?? Just asking if its possible, thats all.
     
  8. Sure it's possible but bloody difficult to do. Best Wishes.....You will learn a very valuable lesson for a scant $1200.
     
  9. Ah yes, this is going to be a blowup.

    Although i give you props kid, I started out with Eturd, and I managed to turn 2k into $2,100 until Eturde screwed me over on something, and money started magically going away after my account was freezed and I couldn't touch my money.

    So, either Etrade is going to suck up your money, the commissions are going to suck up your money, or your just going to give your money to the pros.

    Save yourself some hassle. Go actually make 5k, and then put up 2k of it at a prop firm and use the rest to enjoy your life after your blow up.

    Coming into the game with that type of attitude is certain to spell disaster.

    Even though I typed all of it.... he is still going to do it anyways, so it's all really useless. But figured I'd try.

    You should have a goal of not to lose too much money, not making money.
     
  10. Welcome to et, and let the tar and feathering begin. To flip a stock daily, in other words 1 trade a day, you need 25k because you would be a pattern day trader, and thats what big brother says you need. Now you could trade futures, but I think you need more than $1200.00 to open an account. In spot Forex you could open an account with OANDA, do some position trading, and make a few bucks but not 300 a week. Look at a return closer to 3% per month, maybe.

    You must understand, in this business, like all other businesses it takes money to make money. It is hard to trade stocks with that small amount of money because of the price per share for example, a $50 stock allows you to buy 24 shares you can see how much the stock has to move before you even pay for the trading fee. I have traded and made money on penny stocks, but you have to be very careful because they can wipe you out very fast.

    So, read some books about trading, got to stockcharts.com and read about technical and fundamental trading, open an account with oanda, BUT DO NOT FUND IT, just open the account so you can have access to their message boards, and then start reading, go to moneytec and forexfactory and read some more, then you are ready to start simulator trading, and when you reach the point of 100% profitable trades on the simulator,
    you will be ready to start live trading.

    When you start trading make sure you trade at the lowest leverage possible and sizes where 1 pip=1 dollar. Expect also to have 60% profitability, if you do better than this great, but don"t expect much more. Oh and you will not be trading against banks or hedge funds but against other retail traders like yourself.

    So to answer your question straight out, no, it takes time and effort top learn this business, but if you are profitable, it is a business that can give you great freedom, and a good living.

    So work hard and maybe we will see you in the pit one day.
     
    #10     Aug 14, 2006