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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Time Traveler who wrote (3866)	9/13/1999 6:43:00 AM
From: Eric P	Respond to of 18137

The high paying works are the management type which I really detest. Every day, I watch my portfolio increases or decreases several times more than my monthly salary. I wonder if I can make my investment more efficient. Is scalping for $1/8 or $1/4 here and there the answer? I am not so sure. Please advise. Scalping 1/8 and 1/4 is probably NOT the answer. Scalping is an extremely fast and difficult method of daytrading. It can be an excellent way to lose money quickly due to its high commission and other transaction (spread) costs. After all, even a mere 15%-20% return (like the S&P500) with my capital per year would generate more income than my annual salary. If you can live comfortably off of S&P levels of return, then I would suggest you invest your portfolio into an index fund and enjoy life. However, I suspect that it's not all about money. I suspect you are probably like many of us, and find trading to be an exciting and interesting career and that you could "enjoy going to work" each day as a trader. Most successful traders love their jobs and wouldn't give it up for any other job. However, it can also be very difficult to succeed. I would suggest you consider investing the bulk of your portfolio in an index fund, then open a small(~$10-20k) 'play' account to try daytrading. Read through the information in the thread summary for guidance to new/prospective daytraders and START SLOW in your trading. Despite having substantial assets, there is no need to quickly lose a lot of money. Take things very slowly and try to learn a feel for the market and trading. This should be done as slowly and inexpensively (i.e. minimize trades/losses) as possible. With hard work and good fortune, you will begin a new, highly successful and exciting career. Worst case, you will lose $10-20k and decide that trading is not your cup of tea, and find another exciting career or maybe just retire and live off of your portfolio income. In any case, we welcome you to the thread and hope you will stay awhile. Please feel free to ask any other questions you may have. Good Luck! -Eric