Day Trading: Facts, Fiction and Discussion
- Kirk
- TONYBRIG
- TONYBRIG
- KirkL
- TONYBRIG
- JenL_3
- TONYBRIG
- JenL_3
- tele
- tele
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» Kirk - Day Trading is NOT investing
Since talking about Day Traders here and being of the opinion it was not a good way to make money, I have met several successful day traders. They are not the types portrayed in the media. They don't go to offices loaded with PCs and leased lines where they pay fees for access and the "job" looks more boring and stressful than any I know of .The day traders I have met (in person and online) do it right in their own homes, have their own Instanet links and one "Lazy" trader I've met personally has an account with a market maker. Some are very, very good at it and make a good living while doing something they enjoy. One takes vacations to cities like NY to attend annual meetings and investor forums for certain industries put on by the investment houses.
This is my advice to "would be Day Traders":
Rather than going to a "Day Trading School", I'd advise reading one or more of the books from the list below like Abell's. IF you like what you read, then read the next two books used for one of the day trading schools. After reading these books, if you are still interested, then create a "pretend" trading account using Quicken or MS Money and practice what you have learned trading for six months to see how you do. If you have to cheat or lose your phantom stake, then don't quit your day job! This way, you might lose all your pretend money, but still have some fun!
I have added 3 new books to my Reading list on Day Trading:
Lets use this thread to discuss Day Trading, its pitfalls, rewards, success stories, major flops, news stories on the phenomenon, etc. I am still a long term investor, but enjoy learning about how others make a living in the stock market.
<img src=http://www.internetcount.com/1867301701.cgif width=30 height=15>
-- posted by Kirk
» TONYBRIG - Well now for the other side!
I dont know bout these books but certainlycouldnt hurt buying them and getting their
viewpoints.
One should learn all they can bout Day Trading
and check out some of the Salons that may be
in your neighborhood.
Personally I dont use them but for some it is
the way to go. You get help, a group atmospehre,
and maybe even a crying towel for the losing
days. Not everyone can be so self sufficient to
do it by themselves.
Some of the Salons are part of Chains which may
be better.
See if you can talk to some of the Traders there
and if its not a WINNING PLACE then dont even
consider it.
Look for a soft-sell joint avoid high pressure
Cigar Smoking Pot Belly guys who are reading
"The Racing Form."
VBOLHH
-- posted by TONYBRIG
» KirkL - Not Investing
Being CEO of MSFTor being President of the USA
are neither considered investing.
Doesn't mean they are not good, honorable ways to make a living.
Day trading is a job.
The way I invest, find a good company at a any price, study it, buy the stock when on sale, then forget about it as I look for the next great company to invest in.... this is investing because I can stop "working" (looking for new companies to invest in) anytime and yet my "investments" will continue to grow in value.
You can not say that about a Day Trading position since, by definition, they close all positions short and long, before going home at night.
-- posted by KirkL
» TONYBRIG - Maybe Day Traders do!
Close their positions at nite but not allTRADERS do that. Some hold for a few days or
longer.
Call it what you like Investing is LONG-TERM
Trading is not?
Some will disagree with you.
The bottom line is still making $.
Thats the important factor not what one calls it.
VBOLHH
-- posted by TONYBRIG
-- posted by TONYBRIG
-- posted by JenL_3
» tele - Kirk & Tony Are Both Right
I day traded (actually short term traded) from 1992 to 1996 and averaged approximately 35 pct net ie after taxes and expenses annual return. It was extremely stressful since I was also running a business at the same time. While the results were far better than just sticking with an index fund, they were not nearly as good as if I had just stuck all my money into DELL, MSFT, INTC & CSCO as long term investments. Anyway I got sick of it after 1996 and went to a more passive strategy ie index funds for my long term stock money. So what's the bottom line? I'm glad I learned how to do it (note most of my trades were options related) and it helped me reach critical mass at an early age (40), but tax time was no fun (pages of Schedule D), and there were a lot of sleepless nights. Will (probably) never do it again.-- posted by tele
» tele - Kirk & Tony Are Both Right
I day traded (actually short term traded) from 1992 to 1996 and averaged approximately 35 pct net ie after taxes and expenses annual return. It was extremely stressful since I was also running a business at the same time. While the results were far better than just sticking with an index fund, they were not nearly as good as if I had just stuck all my money into DELL, MSFT, INTC & CSCO as long term investments. Anyway I got sick of it after 1996 and went to a more passive strategy ie index funds for my long term stock money. So what's the bottom line? I'm glad I learned how to do it (note most of my trades were options related) and it helped me reach critical mass at an early age (40), but tax time was no fun (pages of Schedule D), and there were a lot of sleepless nights. Will (probably) never do it again.-- posted by tele
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