option daytrading

hi..i am doing daytrading in last two years,i gain something and lost huge,kindly advice me what should i do.?

i want share trading as my career,so wat should i do,wat are the basics.in which site i get good advice in options.i am confident that i can do it..

I can provide you with on-job training and resources to refine your trading skills to enable competency over a 90 days period – after you complete a pertinent 2 week assignment.
—————————————————————————————
Question: How is "geometric average" a useful estimation in the context of share prices, explain with a example.

4 comments - What do you think?

Posted by admin    Date: Friday, January 22, 2010

Categories: option daytrading

Tags:

Autotrading with Stock Advisor Group?

Hello guys, I was wondering what anyone thought about Autotrading. I’m currently a value investor but have been getting hammered lately. I saw this site called www.stockadvisorgroup.com and they basically pull all the trades for you. They seem to have a really good track record for the up and down markets and my brokerage TradeKing offers the Autotrade option. However, this site is basically a day trading site. For all you guys out there who are day traders, does it work? I’ve always been under the impression that daytrading was a losers game and that buy and hold for a long time was the only true way to go in investing. I would appreciate info from those who’ve had success with investing. Thanks!

The vast majority of people who day trade lose money. There are no simple ways to make money day trading. I am highly suspicious of anyone who claims you can make money using any stock trading computer program. Often there are hidden catches. For instance, even though they are supposed to be automatic, they often require you to put in your own parameters. Trying to figure out how to set the parameters is very difficult. When you lose money you don’t know whether to blame yourself for putting in the wrong parameters, or blame the program.

I suggest you stick to buy and hold. If you are losing to much on your stocks, consider switching to a low fee, no load mutual fund at Vanguard such as Windsor or Windsor II. You may not be diversified enough. Read these websites about how hard it is to make money day trading.

1 comment - What do you think?

Posted by admin    Date: Friday, October 9, 2009

Categories: option daytrading

Tags:

Can I Day Trade with $1,000 to $4,000?

In the Regulations and Requirements for Daytrading from the Regualotry Stocks Requirements or w/e its called that you must mantain a balance of at least $25,000 to day trade…

However, day trading in their definition is trading the same stock or option 4 or more times during a 5day trading period…

SO CAN I DAYTRADE WITH DIFFERENT STOCKS with the amount I mentioned (or must I hold overnight?)
what i meant was SEC REQUIREMENTS

You will have to hold for at least three days, or at least hold onto the cash proceeds from any trade for three days. It takes that long for a trade to clear, unless you are approved for day trading, in which case you do need a minimum account of $25,000. For instance, you could buy a stock and sell it the same day, but if you used the cash proceeds to buy another stock, you would be required to hold that stock for three days before selling it.

6 comments - What do you think?

Posted by admin    Date: Thursday, September 17, 2009

Categories: option daytrading

Tags:

some finance questions. What’s daytrading? what are options? What are brokerage costs? When to sell?

Yep, a lot of questions unanswered.

I learned about mutual funds, but I’ve been hearing a lot of bad stuff about them lately. I wonder what are the costs of just getting a broker or a brokerage service. If I wanted to invest 2 grand in some stocks just to practice, how much would it cost me to buy and sell as opposed to like expense ratios and all that?

what are stock options?

My finance teacher taught us how to monitor stuff, but she never taught us anything about selling. When do small cap stocks peak? When do you give up on them?

What is daytrading? Is it costly because of all the brokerage fees?

What are some good cheap brokerage services to start with?

Daytrading is what the name implies, trading stocks during the course of the day. Daytraders usually do not hold many positions (either long or short) over the end of business and look to close out their positions by the end of the day. Daytraders usually trade based on a stock’s technical analysis and try to capture daily movements in the stock’s price. Because daytrading involves many trades, daytraders usually use an online brokerage service with the lowest commissions per trade. There are some such services that only charge a few dollars per trade because of the volume. Even firms like Fidelity, Etrade and Schwab only charge about $10 per trade and there are some that charge less.

Regular "full service" brokerage firms, like Merrill Lynch, usually charge over $100 per trade if you use a broker (instead of their online service). Average mutual funds typically charge expense fees of between 0.50% (for the cheapest funds like Vanguard) to over 1% of your account balance each year. Load funds can charge up to 5.75% of your initial mutual fund purchase (which typically is just a commission that goes to the distributing broker).

Small cap stocks come in and out of favor. They had quite a run after the dot.com crash and many pros expected large caps to start to outperform small caps in the last 2 years. The theory is that small caps have a more difficult time getting credit than large caps during credit contractions. You could compare the indices that represent large cap (the S&P 500) versus small caps (the Russell 2000) to compare relative value of the two. You can also look at the chart of these indices. Like I said, the period of outperformance is cyclical, but it is difficult to call the turn when one investors will start to favor one over the other. Better to be invested in both. However, I have read several articles (mutual fund manager and Forbes columnist David Dremen is a proponent) that say that small caps always outperform large caps over a longer term (especially small cap value stocks).(The growth versus value argument is a separate one). There are some great small cap mutual funds, like the Royce Funds, that have performed in all types of markets for long periods.

When to sell is the most difficult decision in investing. There are always plenty of stocks to buy even in the worst of times. In almost any economic time, there is a demand for some goods and services and some part of the world is usually growing (the exception would be a worldwide recession). The hard part is determining when an investment is not working out and you don’t want to give it any more time, or when it’s time to take a profit. Most of us are not good at judging the actual earnings growth within the company and to know when the growth of a company is fully priced in the stock. It helps to look at the stock chart to see if the stock is leveling off or starting to turn down. Of course, some stocks pause or pullback before resuming their upward trend. Therefore, you have to use technical analysis along with the fundamentals to see if the growth is slowing. Remember the stock market anticipates events so by the time a company reports that its growth is slowing, the stock price will already have started downward. You have to read the company’s earnings reports to see what they say about future growth. They sometimes mentions statistics like "backlog" which tells you how much future sales they already have lined up. Also, a company’s "profit margin" should be growing as sales expand. You can also compare the company’s expected future price to earnings ratio versus its earning growth. A general rule is that you should not pay (i.e. buy a stock) for a p/e ratio of more than 1 times a company’s future earnings growth rate. (in other words, if a company is growing earnings at 40% each year and will maintain that growth rate, then don’t pay more than a p/e multiple of 40 for the stock. At such a p/e ratio, the market is telling you that the growth in earnings is already priced into the stock price. Some people pay up to 2 times the growth rate for company’s with exceptionally high growth rates and no competitors, but because of the law of large numbers, growth rates have to decrease as the company gets larger.)

Above all, if you buy a stock that turns out to be a good investment, don’t get greedy and think that it will always go up in value. Even the best companies’ stocks level off after large movements. Sell part of your position on the way up and don’t worry about paying taxes or brokerage commissions (better to have a profit then a loss). Don’t worry if the stock continues to rise. If you’ve done your homework, then you should start to recognize when the stock is losing some of its steam. Nowadays, there is almost no such thing as "buy and hold." Almost ever great stock has had a period where it leveled off and did nothing (so-called digesting its gains) sometimes for years, or started a long gradual decline. Mostly, because when a company is starting to perform, it draws the attention of the investment community and they buy the stock causing the price to rise. At some point, investors capture their gains and move on to the next opportunity. Many people get "caught" buying expensive stocks that have already peaked and ride them back down. This can happen even though the company continues to report good earnings growth. When a stock does not go up and stay up on a good earnings report, it means that this news is already factored in to the stock price and no new buyers are being attracted. A stock needs new buyers to push the price up. Like I said, it is the most difficult thing to judge. Good luck.

2 comments - What do you think?

Posted by admin    Date: Wednesday, September 16, 2009

Categories: option daytrading

Tags:

I want to learn day trading,free online trading course,trading lessons online $$?

I WANT TO START DAY TRADING.
I MEAN I WANT TO LEARN DAY TRADING STOCKS, LIKE AMEX, NYSE, NASDAQ ONLINE THAT TOO REAL TIME.

I FOUND SO MANY ONLINE TRADING COURSES.
HOW BENEFICIAL IS THIS LINK:

http://lansing.craigslist.org/fns/172121865.html

ANY IDEA:

http://lansing.craigslist.org/fns/172121865.html

Girish:

my keywords:
Also learn forex trading online, personal day trader, personal day trading mentor, free trading personalised mentorship, personalized mentor, free forex lessons, learn technical analysis for free online, learn trading with NO fees, free option trading, free options trading demo software , online futures trading, Stocks, learn Day Trading online for free, free trading resources, daytrading teacher coach, free intra day trading teacher online , Trading and Investing basics and fundamentals for Beginners, free online trading Courses, Videos Courses, free real time demo trading Software for begginers & beginers. Learn real-time online stock trading for free
——————————————————–

http://lansing.craigslist.org/fns/172121865.html

HOW IS THIS LINK WHEN IT COMES TO LEARNING OR LEARN DAY TRADING STOCKS ONLINE?

http://lansing.craigslist.org/fns/172121865.html

——————————————————–

Be aware that 90% of day-traders lose money. The odds are way against you. I recommend trying swing-trading (a few days to a few months time frame) first. The pressure is less and the timing not so quick. The exact same principles that apply to swing trading will prepare you for trading on shorter time frames. Or … you might decide you were making enough money in swing trading to stick with it.

As for sources, check with your brokerage. Many of them make learning tools available to their clients.

Best of success.

2 comments - What do you think?

Posted by admin    Date: Monday, September 14, 2009

Categories: option daytrading

Tags:

Daytrade Stock Options?

Does anyoone understand how to do this? Has anyone tried it? What was your profit outcome? I cuurently am holding Research in Motion (RIMM: CALL March 200 $96 and 115) My goal was to hold them long term. But because of the daily volatility, and general upward trend of this stock (option) i was thinking about daytrading the option itself. The first day i bought RIMM it went up 50%. 5 days later i earned $2400.00 on my initial outlay.

I daytrade options using a stradle strategy and it is very profitable for me. This is where you buy an out of the money call and an out of the money put and wait until you can sell both of them for more than you paid. If you pick a volatile stock with not so expensive options, then you can usually expect a tidy profit. And, since you have both the put and the call, you don’t really care which way the stock is moving. RIMM options are a little too expensive for me so I haven’t traded them.

However, if you are trying to trade only the call or the put you will need to know your stock very, very well – this is something I occasionally do when I see a very obvious trend in it. Because of the risk involved in daytrading options to one side only, I would suggest that you learn chart patterns and then practice your strategy with a virtual account until you have a significantly higher percentage of winning trades. You’ll need time to learn how to spot support and resistance points correctly.

Also, if you do get into a single side and you find that it is starting to go against you, you can always turn it into a stradle.

4 comments - What do you think?

Posted by admin    Date: Saturday, September 12, 2009

Categories: option daytrading

Tags:

regarding daytrading?

hi i really had to do this, because this is only option for my next steps of growth, well i am new and doing paper stock day trading for sometime, earned some lost some, my statergy is to buy when stock raising and sell immediately when it starts falling, i like to any recommendations or suggestions how best i can be in this, all are welcome

good luck, I lost a lot doing it your way. Keep one thing in mind…if your stock is rising and you are thinking about holding it for a bit more, set a limit! And I am not saying this as a mental limit. If you buy at $20, and your stock is rising, you might set a sell limit of $20.50 if it drops. Protect your investment. I could tell you a horror story of where I bought into a stock on the rise, and was up by over $4 a share for 200 shares…I stopped and took out the trash, and upon my return, it was $2 a share less than when I first bought it. Long story, but the bottom line – no limit set. This situation occurred in a 20 minute period, it doesn’t happen too often, but for me… Never again.

2 comments - What do you think?

Posted by admin    Date: Friday, September 11, 2009

Categories: option daytrading

Tags:

How much $$$ do daytraders make?

Also, which is better – stocks, options or forex for daytrading?

The vast majority blow up their accounts in weeks or months, or get discouraged and quit. It’s insane to try daytrading without establishing yourself as a more "normal" trader first and deciding that way what instruments work for you. If you’d done any trading in options you’d know that spreads are bad on options, so that is a huge headwind to fight. Since you seem to fancy yourself a hotshot trader, why not go for the pinnacle of risk and trade some really volatile futures like copper, silver, and gold?

3 comments - What do you think?

Posted by admin    Date: Wednesday, September 9, 2009

Categories: option daytrading

Tags:


SEO Powered By SEOPressor