Duke
Further your request for advice to Tim to become a Day Trader, I offer to following suggestions:
1) Only trade in stocks with high volume, ie. in excess of 1 million shares per day;
2) Only trade shares in companies that you would want to hold on a long term basis, ie. a company whose fundamentals are excellent and long-term growth prospects are high;
3) Only trade shares in companies that have experienced significant downturns from their 52 week highs, ie. the company is at least 10% if not substantially more, from their 52 week high. This minimizes downside risks. Most of the time, if not all the time, the market acts like lemmings. Many will jump off of cliffs (sell) because others are doing it.
4) Only trade in companies that you understand their products and prospects.
5) Do not chase after a stock. Let it go if it is going up.
6) Buy at least 1,000 shares of a company. Anything less is a waste of time and effort. If you cannot afford 1,000 shares, you should not be in the business.
7) Tim's response that you can earn $25K a year is conservative. Many I know have doubled their portfolios in less that 5 months. On the other hand, some I know have lost it all in 5 days. Therefore, it is important to have a stomach of steel.
8) Hedge, Hedge, Hedge.
9) Great current prospects for Day Trading are ASND, LSI, VLSI, ATML, and COMS.
10) Terrible prospects would include CSCO, MSFT, and IBM.
Hope you find these points useful.
SLN |
