Hey Everyone. Ok what im going to do is open a account co-singed by my father, but its going to be just a 5k account, with only 3 trades per 5 day period. Now heres what my trading plan is. Iv been looking at BRCM and BRCD for the past 3 months, and i have a pretty good idea on there moves. so.... Most of the time BRCM is at around above $19.00 Now what im going to do is wait till it gets down to about lower then $17.00 where it was on friday and Buy x ammount of shares and keep it open untill it gets back up to above 20.00 And it ussaly does. And thats just 1 of my trades. Does that sound like a good plan? Or am i way off base fellas? Does anyone have any tips for people like me who can only open accounts like 5k and can only trade 3 trades per week? Like just some starter tips or anything? Thanx everyone
Dont risk your money with swing trades. Do daytrades and if your maximum limit is reached, just wait a week.
Just be sure you can afford to lose your entire investment or at least more than half of it. This outcome is more likely than not. A very interesting alternative would be savings bonds. You can buy them online at www.savingsbonds.gov, and if you hold them for 17 years, they are guaranteed to double in value. If the market recovers earlier than that, they will double in value much earlier. You can pay by credit card, there are no fees whatsoever, you can never lose any of the money you invest and you can defer taxes for decades. If you view trading as a gamble, a stock account would definitely be of higher entertainment value to you, but the kick has its price, just like in a casino.
Yea I could do that. Just make 3 very Good Daytrades and wait till next week. Lobster: What do you think i should do. I just want to make a VERY small amount right now. Like i know IM GOING to lose most of it, and yes i can afford to lose it. But untill i start 25k day trading i want to just Trade and make a little money. Anyone else have any opinions on my Plan I outlined above? Thanx
I just want to make a VERY small amount right now. Like i know IM GOING to lose most of it, and yes i can afford to lose it. But untill i start 25k day trading i want to just Trade and make a little money. Anyone else have any opinions on my Plan I outlined above? i think its a good plan to get a feel for trading.i would suggest calmer stocks though to start with.try WMT,MRK,MSFT they have good ranges and arent going bust.
The scenario you describe for your chosen stock describes a trading range. A trading range is one of three directions a stock moves, up, down, or sideways. What is your plan if the stock breaks down thru your trading range? Are you prepared to short or buy puts? Do you have a stoploss in mind? What if the stock breaks out? Do you have a trailing stop in mind, or a profit objective? Range trading is fine but I don't think you are ready to trade. Stay out until you have some concrete rules. If the stock breaks to new local lows, are you going to be like the rest of the retail world and end up holding on because "it'll be back." Yes my signature is 'you must be in to win', but you must be prepared to win, too. Don't jump the gun. It sounds like you have more work to do.
Also wanted to mention that I disagree with a new trader daytrading. Gone are the fast days of lifting the offer only to see it lifted higher. Of course your method is an overniter, which I do agree with. Just keep your position small while your pocket is small. There is too much to think about when daytrading. You will experience the same thought process but much more slowly using the daily charts.