funk,
Thank you very much for your trading comments. I can really relate to your point about choosing high volume stocks that do not trade too fast.
Because I've only been doing this for about a month and the market has been so volatile during this period, I think my view of it is distorted. I've not traded thinly traded stocks. Spreads are usually awful.
I can now see why Cooper, in his Hit and Run Trading, recommends NYSE issues at $50-$60 prices. They are much smoother in their price changes. I've observed some "runs" that lasted 3-5 minutes leaving plenty of time to hop aboard: 1000s of shares going off at ASK with huge imbalances in Bid/Ask. I'm still developing some perspective on this, however, and do not yet have a good feel for the relationship between Bid/Ask balance and price movement based upon average volume. I sometimes see huge imbalances without any influence; other times, a balanced Bid/Ask results in rapid price movement. Go figure!
In any case, I'm excited about doing this full-time someday. One of two things has to happen: make lots of money at work so I can spend 3 months practicing; or, get pretty consistent in my trading so I'm confident I can do it to support myself. I'm starting with enough cash to trade 1000 shares of most stocks (sometimes using margin). I only have one issue active at any time. If I can do 5/8 point a day on average, I can switch to full-time. If I can do 1 point or better, I'll be very happy! I really need to go full time so I have the time to read news, study charts, learn strategies, and set up strict rules for my trading which are OBJECTIVE, MEASURABLE, and SOUND.
Thank you for your generosity and willingness to share ideas. |
