Wanna start daytrading need more info

Discussion in 'Trading' started by Qbert, Jan 4, 2001.

  1. Qbert

    Qbert


    Hi! , since i was young i always dreamed of trading stock ,
    im a 21 canadian i have saved some money and i think i am ready to start daytrading , 5k to loose , anyway i loose that much in a month at the casino 8)
    i been playing lotsa market computer sim since i was 14, i watch market news every day , u know the type heh

    but im so lost , i got no idea what software to use , how to setup an account,
    "i dont wann setup an easy account at E*trade because i dont think its gonna be fast enough ,web browser"
    and im worried about scam
    * u know when u talk about money you always get rats who wants the whole cheese *

    Can a canadian citizen trade on american market ?
    whats the best software to get lightning fast speed and nice graphs ?

    is there a place where i can read more ?

    Thanks alot !

    BTW this place is very nice ! best forum spot i found after a day search
     
  2. Baron

    Baron ET Founder

    One thing to keep in mind is that you will have to take on more risk than normal because your capital is limited. In other words, you won't be able to spread your risk across multiple positions because you'll need to put all of your buying power into a single position in order to make a profit after commission charges. If you have a string of losses (which is almost inevitable as a beginner), it will take a significant chunk out of your capital.

    You probably won't be able to day trade because you'll want to keep your commission costs to a minimum. Finding a broker that charges based upon the number of shares you purchase instead of a flat rate is the cheapest route for you to take.

    You'll need to trade using a longer time frame by holding your profitable positions several days or even weeks. Trading in that manner will allow to hopefully catch larger moves that will enable you to increase your capital base without incurring a bunch of commissions and fees along the way.

    Trading with a small amount of money is difficult at best, especially for a beginner. Best of luck to you.

    Baron

     
  3. Qbert

    Qbert

    Thanks for the info ! really appreciated.

    I still have a Question , can a canadian citizen trade on US market whitout any problem .
    or its a bit more complicated ?
     
  4. silvius

    silvius

  5. I'd suggest to long how to long term trade first. If you want to be sucessfull it can be done, but usually takes a few years. Learning to trade doesn't happen overnight. Daytrading can be done, but if you have flaws in your trading style the frequency will bring them out that much faster, plus with the extra commissions it will really hurt. The other thing to consider is payment for time. WIth only $5000 if you were to get 100% return you would have made $5000 for the year. How many hours will you put in to make that return? You are working for less than minimum wage, plus most starting traders have losses for a long while. I'd think of it as an investment in a trading education, but don't get discouraged if you fail, you are going to need a lot more capital to be able to survive drawdowns. That is why a lot of firms require more starting capital

    rtharp
     
  6. This is exactly right and these are some of the main reasons that undercapitalized traders fail, especially those who attempt to daytrade. Even with this evidence upfront, most will disregard these facts and daytrade anyway. Good post.
     
  7. First time I stumbled on Baron's post, wow. he is real!

    To the OP. Go to your local library and read everything on day trading they got. Then come on ET list the publications you have read and then ask for more books. After that (one year of reading) ask people to help you devise a trading plan. Then read more, ET, you Tube and countless sites devoted to trading. Then open up a sim account and try trading your plan. Then (maybe) trade with real money.


    Good luck!
     
  8. newtoet

    newtoet

    This thread is almost eight years old. I doubt the OP is around.
     
  9. You can wire me your 5K it will give the same result, maybe a bit faster.

    Anyway, look at Interactive Brokers, they are the best for canadians.
     


  10. I wonder how it ended for him? is it Bahamas or local Wall mart?
     
    #10     Dec 6, 2008