I hope this helps any newbie when you start trading and things do not know how you expected. It was taken from www.stockdaytrading.biz Day traders are those people who deal with shares on day to day basis with the sole objective of making some quick easy money. Day traders are those short term buyer who indulge in buying and selling of shares and stocks and keeping a close watch on the price fluctuations of the market. The day traders generally close up the transactions at the end of the day so that their risks are minimized for the next day. Nobody knows how the market will open the next day and what will be the prevailing price of various securities. This a way of managing risks when the stock market shuts for the day. At times if there are great fluctuations they may even close the deal within minutes of buying the shares and thus making a quick profit. There are estimates that about 250,000 people operate from home. However in spite of tall claims no one really knows whether the day traders finally make any money or not at the end of the day. Nobody really publicly announces his balance sheet at the end of the day and there is no available statistics regarding the number of day traders operating in the market. Most studies have pointed you the fact that the day traders on the whole lose money in the stock market but there are stray instances of successful trading too. The percentage of day traders losing money is higher in cases of those who are new to it. Apart form this there are some firms where day traders lose money for unknown reason. Only a small number of firms make little money and a very small percentage of day traders actually make big money. Statistics also point out to the fact that those day traders who operate from home tend to lose more money than those who operate through a professional stock brokerâs firm. Making money by day trading has nothing to do with intelligence. No matter how much you study the trends and the various financial reports, it is purely a matter of luck in the end. There are so many unforeseen factors which influence the value of stock that no one can accurately predict its future swing.
I agree with everything until this last paragraph where you have some pretty ridiculous generalizations. 1. Of course profits have to do with intelligence, not a 100% correlation, but still very connected. 2. "Purely a matter of luck" is simply untrue; of course luck is sometimes involved, but it's definitely not everything. Trading has much better odds than casinos because there are certain situations where the odds ARE in your favor--such as short selling into stocks that are taking out support levels. While that is happening, there are massive wave of computer generated sell orders that drop the price--aka not luck. This example also destroys the statement that no one can accurately predict future swings
However in spite of tall claims no one really knows whether the day traders finally make any money or not at the end of the day. Nobody really publicly announces his balance sheet at the end of the day and there is no available statistics regarding the number of day traders operating in the market. Most studies have pointed you the fact that the day traders on the whole lose money in the stock market but there are stray instances of successful trading too. The percentage of day traders losing money is higher in cases of those who are new to it. Apart form this there are some firms where day traders lose money for unknown reason. Only a small number of firms make little money and a very small percentage of day traders actually make big money. Statistics also point out to the fact that those day traders who operate from home tend to lose more money than those who operate through a professional stock brokerâs firm. Making money by day trading has nothing to do with intelligence. No matter how much you study the trends and the various financial reports, it is purely a matter of luck in the end. There are so many unforeseen factors which influence the value of stock that no one can accurately predict its future swing. This is the part I was focusing on for the newbie. Focus on the psycology and money management
I would say that many of the traders on ET who claim to be successful are either paper traders, do so with tiny funds, have had short term success (mostly luck), delude themselves or outright lie. Obviously, some are successful. What was posted seems to have a lot of accuracy. The amount of trading capital you start with has been tested and also correlates with success. The more the better.
Bullshit. What statistics? I can count at least 20 incorrect or conflicting statements on that website, and it is the last thing that I would recommend for a new trader. That site has one purpose, and that is to get visitors to click on Google links to generate affiliate income. Is that your site? I see you promoting the link in a number of posts, so I can only assume it is, in which case you are not only spamming, but spamming crap.
Everyone is different, but I would argue having a very small amount of capital IS ideal for any newbie. Why? Because you know you can not blow your 5k or 10k deposit. You trade 100 shs, and learn. I ll bet all those WHO start with large accounts - are more likely to be gunslingers - averaging down (not having stats showing you that your method works IF averaging down over many trials)- not taking your loser, and trading WAY WAY to big size relative to experience. IF only those starting out understood, that IF you could trade daily and break even after the first 1-2 years, you are ahead of most everyone trading. And, my experience is the opposite - all the traders I know that trade from HOME do very well. (most of these HOME traders however started in the office, or on the floor.)
Investor Terry, here is your registration information for the site you have been recommending. www.stockdaytrading.biz I assume that you are Terry Grier? And it is your site? The purpose of the site (which is a single page) is obviously to have visitors click on Google links, but you are purporting to offer helpful information to traders, and you have done so in a number of posts here on E.T. Moderator, please ban this spammer. Domain Name: STOCKDAYTRADING.BIZ Domain ID: D16924746-BIZ Sponsoring Registrar: GODADDY.COM, INC. Sponsoring Registrar IANA ID: 146 Domain Status: clientDeleteProhibited Domain Status: clientRenewProhibited Domain Status: clientTransferProhibited Domain Status: clientUpdateProhibited Registrant ID: GODA-029193260 Registrant Name: Terry Grier Registrant Organization: Unknown Registrant Address1: (Deleted for privacy here) Registrant City: Denison, Texas