If I was day trading I could sit there all day and trade nothing but flags and using S/R for my exits. It is a blast for sure but bigger money with less commissions in the swing trade game.
Yes stocks do gap against you from time to time. The key to managing this is to keep an updated watch list. With mine I usually filter out stocks that tend to jump around a lot. It is rare that I have one gap outside of my comfort zone because of the filters I use for my watch list. I also don't enter a trade on a stock that is about to announce earnings for the same reason. Have a great trading day...
Wow I didn't realize how much his commissions are. I trade prop so those types of plays are easy for me to make since I don't really look at my commissions. My intent for the post was to get his mind thinking about how he could have traded it differently, something that I always do after the clos and has helped me immensely. Also to try to slow you down a bit, learn one setup really really well, add it to your plays, then move onto another setup ect... Sam, to be honest, if I were you and you are serious above day trading, then you need to find cheaper commissions. Unless you are trading serious size, then your commissions will just eat you up, but at this point I don't think you should be trading anything larger then a few hundred shares until you learn more and more about the price action. Or you can try swing trading like 4re said.
4re, I see where you are coming from, and I totally agree with you. You will see that once again today I traded "noise" (not as bad though), so when you say this, I see complete sense. However, you are talking to Mr. A.D.D. here ; one of the things I'm trying to work on is to feel okay about not taking every trade out there.
Good thing I'm not trading with real money yet, but I am very awar of it and it truely is a concern. Any suggesions? Btw, my broker just called and said he wants to piss on your car for encouraging me to find cheaper commission KingDong/4re (and everyone else), thanks for your support and genuine enthusiasm to add on to my knowledge. Much appreciated.
Pic. 1: Trade 1: LONG: Entry: $27.29 Exit: $27.30 $0.01 Trade 2: LONG: Entry: $27.37 Exit: $27.58 $0.21 Trade 3: LONG: Entry: $27.66 Exit: $27.60 -$0.06 Trade 4: LONG: Entry: $27.73 Exit: $27.63 -$0.10 Trade 5: LONG: Entry: $27.73 Exit: $27.79 $0.06 <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3043089/spy.png">
If you have enough funds to day trade stocks then you most likely can afford to swing trade about 5-10 positions at a time with between 100 and 300 shares. Most swing trades will last between 3 to 7 days and that will keep any ADD under control The key is to place your entries and exits before the market opens and just monitor periodically during the day maybe once or twice. Try a hobby. I love to do Brazilian Jiu Jitsu and boxing. I am running a business so my time is spent with it but I do go work out when I can. Watching pixels all day can be bad for new traders.
Pic. 2 Trade 6: LONG: Entry: $28.61 Exit: $27.61 $0.00 <img src="http://www.elitetrader.com/vb/attachment.php?s=&postid=3043098/spy.png"> Total (+/-): $344.12; [$440-$95.88(commission)] All Time (+/-): $392.26
............and good for my broker. I spent $100 (approx.) only on commission today. I see your point. However, 4re, I have spent and put in a lot of time studying day trading and seem to be getting better at it. All I know about swing trades is that you place your trades and let them run until they decide to turn on you. I'm sure there's more to it than that. I surely will keep your advice in mind as I may actually decide to take it up in due course. Thanks man.
Ha, hilarious... I didn't realize you were paper trading eventhough I read your posts, talk about ADD.. I think a lot of people on here trade through IB. If you are going to be daytrading it might be worth it to look into Lightspeed or just find a good prop firm. Just remember the first year is all about learning and trying to get better each day, so stay small and make all your mistakes on small size so you don't dig yourself an early grave.