Hi Barney
That is the scariest post I've ever read on SI. Using your In-laws stock/money to trade? You just might have the ba**s to make it.
The person who suggested using 100 share lots is entirely correct. Paper trading won't show you if you get fills or not. You will see times where shares trade at your price but you don't get filled, the stock upticks and then you have to re-enter your order. It can be frustrating, even with a good broker, you aren't guaranteed a fill. Even with a SOES execution system if there is a queue ahead of you you won't get filled or the stock upticks and you get filled at a higher price. Even worse in a down draft, if your stock starts tanking no one will buy it. Paper trading can be good for identifying trends and patterns but you can't learn trading if you don't know how to place the order and update it quickly.
I've been trading for a couple of months and have had my share of problems with brokers. For daytrading you can't depend on the cheap discount brokers. Go with one of the good ones that provide Level II information, I use MB Trading mbtrading.com, but when I was researching new brokers 4 were under serious consideration, AB Watley and their "Ultimate Trader" system, Castle online with their "Kill Key" system, Cybertrader, or whatever they call themselves, and my ultimate choice MB Trading. There are some new ones cropping up each week, and some look like they might be similar in concept.
These all cost more per trade but in most you have the option to place orders over SOES, Select Net, and an ECN or two.
Discipline is the key to daytrading. Cut the losses. Do not let it drop over 1/4 point. If it does, sell it anyway. If it's dropping that fast, when it hits the bottom it will probably bounce and give you some opportunity to get back some of the loss. You will have some losing trades, get over them and make a couple of good ones.
And try to forget you're playing with your In-laws money. :-)
Rick |
