<off topic> Fred:
re: "2. You've never been in a federal income tax bracket above 28%"
Yes, that's right. And I have never been more than a casual investor for the past 15 years (10 with a discount broker). Until this year my record was good.
re: "3. A 50K minimum prevents you from opening a brokerage account."
I do have under 50K right now, yes. I used to have more. I got hit in January with a huge loss and am still reeling. The sub-50K figure prevents me from opening an acct with Castle Securities or with a SOES firm,(unless I find a backer, which I would very much prefer not to do) but not, of course, elsewhere.
re: "5. They told you that profits would "roll in" after 3 months."
Sorry to misstate their position. They said that a learning curve of 3 months was unavoidable. They never promised that profits would roll in. They DID say that their own personal experience and that of many soes traders was that once the curve was passed, 100% yearly returns were typical. The curve, they said, usually translated to a 10-30 percnet drop in portfolio value, and could be scary. They took pains to point out that some never pass the curve. They also warned that SOES trading is getting harder as more traders jump on the bandwagon and MMs come up with more sophisticated strategies to side-step bandits.
re: "6. You are considering quitting your job to SOES trade full-time."
True. Considering. As you might have guessed, it's not much of a job. I have no intention of daytrading before I have all the facts and have a clear sense of how good I would be at it. I am gathering those facts by asking questions online, by paper trading at the SOES firm (which they encourage all student traders to do and which can go on indefinitely so long as there is a free terminal)and by hanging out after market close to pump traders and instructors for info. This phase of my learning will go on until I am satisfied it is safe to proceed.
re: "7. You are not a babe in the woods."
Actually, I said I didn't mean to sound like one. If I DO sound like one, fine, I'll be a babe in the woods. Hope that my off-topic posts have not been a hassle for you and others. I am asking questions on this thread because I am looking for a way to trade cheaply and RELIABLY online to get a taste of daytrading for real instead of on paper. I have no axe to grind about which system of trading is superior. I just want to find the best one I can. I HAVE found the environment in the SOES trading room to be very conducive to accelerated learning. SOES trading has its risks, yes, but the people at the office here in Seattle are motivated, generous, eager to help, the focus is clear, and money is definitely being made.
A final point:
In the two weeks I have spent hovering at the SOES firm with its T1 modems, direct nasdaq feeds, level II access, SOES/ECN/Instinet capabilities and instructors poised to get you out of a bad trade I have found that telling jigs from trends, reacting to breaking news or divining the motives of MSCO or GSCO is the "easy" part of daytrading. The hard part is developing a sixth sense about WHEN/IF YOUR ORDER WILL BE FILLED. It seems to be the same with Daytek except magnified over time. In my last post I asked the question why anyone with the $ resources to use more sophisticated access would not opt for a system that gave the fastest possible fills. I ask this with no first-hand knowledge of Daytek and only because I notice so many posts complaining about glitches and delays. I don't mean to sound like I know more or even as much as those who have daytraded for months and years. I am only comparing what I have recently learned with what I read here.
If you have the time could you answer quickly:
1. Do you recommend Daytek?
2. What do you mean by a negative sum game?
If you don't have time, I understand.
Thanks
E |
