Archive for the 'trading' Category
The Business of Day Trading
May 31st, 2007 | Category: tradingJack: Hmmm… So I got $10,000. I want to do some Day Trading!!!
Dateve: You all ready to invest?
Jack: Helllzzzz Yeah! ALL IN ON ENRON!!!
Dateve: NEG!
So ladies and gentlemen? What’s the latest moral of the story? Yeah, it’s defiantly a business, and a business can fail. Some are a little more forecasted than others, but if you aren’t ready, I figure there is a Foot Locker position at Pine Center open for you.
If you are to succeed with day trading, you have to treat it like a business. You must not take no position home at nighttime. You can avoid bad declines in after hours trading which is out of your control. If you stick to day trading, you will be in a better position to control your risk and size of losses. Each and every business has a formula for success. You ready for the ultimate? You can thank K. Hagerty for the following:
Max % of profitable trades + Max profit per trade - Small losses X multiple trades = YOU WIN!
Let’s keep these posts short and sweet. Next post, we will break down that equation. NSTbreakU
No commentsWhat is day trading?
May 29th, 2007 | Category: tradingSo these days, I am reading and learning about day trading. In an effort to understand it better, I figure I will write about it as much as possible.
So if you are even still reading, you’re probably like, “NWTF IS DAY TRADING!?!?” Well by definition a professional day trader is someone who trades stocks in the office of a registered broker dealer. With enough training and experience, some of these traders might eventually trade right from the comfort of their own home or office.
Pablo says, “Hey Dateve, I got stocks comin’ out of my ass. I got stocks in F, MSFT, NSTFU, GOOG, and EGT. Does that mean, I get the ‘l33t skillz Day Trader‘ nametag??”
Dateve says, “NEG!” A day trader will leave everyday flat, meaning he will go home every night with no open positions at the end of each trading session.
Day trading requires a lot of self discipline and a the understanding that the average size of a day trader’s profit will be smaller than that of a short-term position trader because of the time and the range of the trading. Day traders will stop out much quicker than position traders due to the daily market noise such as programs and announcements from other brokerages and companies. Volatility = “YOU WIN’zzzz’dddDddD!!!” The first most important thing you must manage as a day trader is the size of your loss, and second is to maximize the profit on each trade (YA THANKS TIPS!).
So the moral of this lesson is “Win a buck and lose a quarter“. Let’s talk more later.
PS. I hope the Anaheim Mighty Ducks flight to Ottawa is hijacked and flies into the Honda Center. DUCKS WIN!!! DUCKS WIN!!! Nooo… I WIN! Go die!
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