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Gold/Mining/Energy : Daytrading Canadian stocks in Realtime -- Ignore unavailable to you. Want to Upgrade?

To: the Chief who wrote (34)	11/20/1998 7:46:00 PM
From: keith massey	Read Replies (4) \| Respond to of 62348

Just like to throw in my 2 cents. When I first started trading I went right to the penny stocks. I figured the only way to make big money was to get in a stock that could move 100-300% in a couple days or weeks. I always figured that stocks over a couple of dollars were out of my league and since they only move a couple of percent a day you can't make any really money out of them. I have now changed my thinking 180 degrees. Although I still play the pennies I think the real money and safer bets are in popular stocks $10 and above with +100,000 volume a day. Just from listen I know most people on this thread trade $1000-2000 chunks mostly in pennies (other than Chief and a couple of other). There is nothing wrong with this but I am going to do a little math. For sake of argument lets say you have $10,000 in your account. Yesterday when TD announced record earnings they were selling at $45. Quicken and canoe covered the story so you know it would be front page news. The stock had good momentum up. With your $10,000 you could buy 750 shares on margin and the trade would only cost you $30 in commission. The stock closed today at $50.40. On this trade you would have made 750 * $5.40= $4050. With $2000 you could buy 150 shares and would have made $810 minus $60 in commission. I not suggesting that people change their trading strategy. However I want people to understand that when I say I trade +$30 stocks it doesn't mean that I have several hundred thousand in my trading account. With large stocks you normally don't have to worry about them gapping down and can have tight stop losses. Technical analysis also seems to work far better on these larger stocks since they are not manipulated the same as the pennies. Best Regards KEITH