if you do not bet, you have no chance to win. if you bet, you may lose your chip. if you lose your chip, you may have no chance to gain if you bet, you may have chance to win if you have chance to win, you may not lose your chip if you keep betting, you may get more chances to win
I think trading 100 shares with $20 limit or 200 shares with $30 limit is quite possible but requires a lot of patience and discipline.
I wonder, why are you arguing with me? It is not me who set these rules of $20, $30, $50 and so forth maximum losses per day. It is the firm. I do bet. But within limits set. From what I see I think it is possible to make money this way, but it is much harder.
" Intelligent ignorance. The other day, I was talking with someone who casually trades and they asked me for my opinion on some of some popular stocks, AAPL, GOOG, RIMM. I said I know what general business they are in but thatâs it. I know nothing else nor did I care to know. Furthermore I donât know what levels the markets are at or if itâs earning season or a Fed day. They almost started to argue with me stating that the more I knew the better off Iâd be. Wrong on all counts. The less you more the better off you are I said. The hours and hours of time I DONâT spend every week doing research, gathering opinions, fostering expectations and thinking I know what a stock will do is much more valuable to me practicing self mastery. You see, after a very short time the basics of charts can be absorbed and a simple strategy devised. The hard part is getting yourself to: 1.Acknowledge what the market is doing in front of you at this very moment. 2. Acting on the information in a timely manner. 3. Follow your trading plan. Knowing who you are and by that I mean really knowing how you act under âpressureâ, your strengths and weaknesses, your full range of emotions and how you typically act when exposed to them, only then will you be able to be comfortable with any outcome the market presents you. So the journey to self mastery must begin by looking inwards to yourself instead of the what the market is doing. The markets are nothing more than a giant barometer of human emotion namely fear and greed presented by however many different stocks, commodities and forex trading instruments driven by grandiose or petty schemes, promoters and publicity machines. Donât try to learn the unlearnable. In the end it doesnât matter what you think is going to happen anyway because the markets are going to do what they are going to do based on whatever information is put to it. End of story. Now if youâre like me and purposely dumb yourself down in regards to market knowledge by not reading or watching anything to do with it, itâs very easy to get in and go with the flow or change directions rapidly. Opinions and expectations mean nothing. The dumb, thus smart traders donât try and figure things out. They see an opportunity, they act. Take ABIO yesterday for instance. Iâd never before seen the stock or know what they do. After it caught my eye by being up so huge what I did want to know was whatâs the volume and whatâs the spread. Thatâs all I needed to know from the market. It already had super momentum. That was plain to see. After that it is all down to me. Position size, stop price, correct order entry, work the trade. Then, when is it going to stop going up and reverse? What is the mob mentality thinking. How much farther is it likely to go up? How will they react when it slows down and stalls? Profit taking, reverse the position, set stops, be ready for it to go in any direction. This is the stuff a trader needs to focus on. To be a master of their actions and thinking ahead on what they will do in the coming moments. There are no surprises when you have such an attitude. I strongly believe that when you spend your time in reflection on yourself instead of the markets you will be much more successful. "
Yesterday afternoon and tonight I was thinking and came to important realization. Me and other guys at our office have been barking on wrong tree all this time. As I already explained, this is a new office and floor manager and his assistant are not professional traders or floor managers. They are learning like us. Everybody trading different stocks and as I have noticed all stocks people trade are very volatile and do not have enough volume per 1 tick outside of BAC and FAZ to make it worth while in this business. I have been always interested in volume. And now I realized few things: 1. How a newbie like me can dare to trade WFC, MS and even FAZ with only $20 daily loss limit. I can be out in no time. Admittedly I have been able to develop really good risk control skills due to these monsters volatility. I am quick to close losing trade but most of them are not losing. I am just being shaken out. Anyway, with $20 rule they are losing trades. Some guys even trade FAS and TGT with $20... 2. The point of all these efforts is to make money. Trading those above mentioned stocks noob can be out of $20 in no time. And speed of their movements does not let inexperienced trader think clearly to make right moves. Also, these stocks outside of BAC and FAZ are not good to make money in prop business. Prop business is about VOLUME. Most of the stocks people trade doe snot have enough depth per each price level by which I mean 1 tick/ 1 cent. I doubt that such stocks like TGT or FAS can be traded with 10 000 shares in and out. 3. So, seeing all this I decided to move to very liquid, inexpensive and not very volatile stocks that provide high liquidity per each price level and let me use my $20-30 daily limit without thinking of running out of bullets after 3-4 losing trades. Also, there is obvious potential to learn trading these stocks as they can be traded in and out with reasonably high position sizes and small enough tick stop losses. 4. I had very unpleasant experience yesterday. Usually I always tried to make passive order with RDGE and agressive exit/ entry with EDGA. I saw many times that somehow very often I I clicked on hot keys and nothing happeneed. I saw record that trade canceled although I did not cancel anything. Yesterday, I traded fast moving market and obviously needed quick execution. 5-7 times I could not enter and then, twice I had winning trades which I could not close and then they turned into losers. Then I was explained that EDGA is not good for aggressive entries/ exits. And I should use Arca or Bats. Feeling was really nasty to see my nice $5-7 turn into -$5-6. It put me out of game yesterday and made me think of whether I was trading proper stocks for beginner and for prop trader who wants to make money. 5. As I already understand, guys in our office trade faster stocks not because they are good to make money but because stocks where money is are boring to trade. 6. Title has these conditions: 100 shares = $20 loss limit 300 = $30 500 = $60 and so forth. It is clear what company wants. It wants us to trade stocks that do not move too much and have high volume and tight stops are possible. I will start trading such stocks today. It would be great to hear opinion on my thoughts from experienced Title or Swift Trade floor manager and experienced successful prop traders if what I think is right.
I also noticed statistically important behavior of one of such stocks. To say important is that I back tested its behavior over the past 3 months and entry on signal would bring 75% winning rate. The problem, that this stock often after this signal and entry would go into red and stay their for hours and sometimes close to stop and then break out with good results. I noticed it 2 weeks ago and tried to trade but because of boredome closed positions at small losses to see stock later move strongly in chosen direction. Should I concentrate on such things when I see certain stock does something that can be turned into $$$ , is it what people call the trading EDGE?
you need to find a new house, it's hard enough to trade the market,you have an added monkey on your back, pleasing them with commissions , regardless of your profits and in great regards to your losses,you are handcuffed
this is a total waste of time. prop trading and risking only $20 a day? How the heck are you going to make money doing this? do you think you can waste away 3 years of your life, like other here suggest 1 year 1 stock ,2 year 2 stock 3 year 3 stock, then after three years you trade 3 stock with a $60 stop max day... man:eek: if you can't daytrade with 100k, then daytrading is a total waste of time imo
$20 it is only for beginners. It is going much higher for experienced traders. Up to $1000 nds a day. I think I will stick here as new experienced guy looks like bringing an order and system into our trading. At least we are starting looking at stocks thatb are reasonable to trade with $20 daily limit. Not like TGT or FAS.
Today traded safer stocks. Won/ lost stayed flat. I did not go completely with my plan, would have been $8 up.