Day Trading Rules Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Day Trading Rules

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mikey who wrote (10)	5/2/1998 9:15:00 PM
From: Wayners	Read Replies (4) of 40

Before you start daytrading with real capital, try doing it on paper first and try some different methodologies. See some of the methods other people are using on S.I. I would strongly suggest that you study technical analysis and ignore fundmamental analysis. Make sure you have a real time charting service that is reliable. That's going to cost about $750 a year or more. It isn't as easy as it looks, especially for beginners. Trading low volume stocks or stocks with wide spreads will kill you. Stick to stocks that trade an average of 2 million shares or more a day. Make sure that the stocks move enough to rip off 1% to 3% pretty regularly. You need to understand and be able to measure volatility. You have to understand what a trend is and what an oscillating pattern is. You need to be able to recognize divergences between price and volume. You need to be able to identify good support and resistance levels. You need discipline to get in and get out at your targets and not change you mind later because you think or hope that the price is going to go further. It takes discipline and sometimes a strong stomach--especially on entry. You need volume to ensure that the tick data you are looking at doesn't have a lot of gaps and holes in it. Those gaps and holes won't tell you where the stock is going. Its like being blind in between. You need lots of trades in front of you so you know minute by minute what the current sentiment is and how it is slowly changing for the stock. Look at stocks like CPQ, ASND, MU and so forth. There's a lot of things that can go wrong. Things like quote services going down, can't get a hold of broker quickly when you need to, slow fills, unexpected news releases or more likely unexpected rumors in the middle of the day and so on that may affect the entire market or your sector. These will have profound influences on your stock price and they are completely out of your control.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next