Your Questions About Day Trading Strategies
Saturday, February 18th, 2012
Joseph asks…
How to start day trading?
I want to start day trading, but I have virtually no experience with stocks. I’ve done a bit of research on it and I really want to get real time feed to test my strategies. Is there a way to get real time feed of the markets for free? And if not could I just open and account and and watch for a month or so with no penalties?
I know all the brokers that cater to internet traders. I need a broker that provides direct real time access. If its for free, then great but even in a demo form, or if i open an accound with their account minimum. I would just like a way to get real time data so I can make hypothetical trades..
admin answers:
Fidelity provides Active Trader Pro free for investors with large accounts. It includes real time quotes, with a number of other tools.
More sophisticated Level 2 data is available. See Online Academies online tutorials and consider attending a class.
Use practice sites for an extended period before getting started with real money.

Mark asks…
day trading eminis???
your thoughts?
pros cons
strategies etc
would love to hear anybodies feedback
admin answers:
They are highly volatile. If you are an experienced trader, you can make a lot of money. If you don’t have experience, this is no place to learn about futures trading. Start with grains or something relatively straight-forward and then move to eminis when you feel comfortable.

Paul asks…
Can I make money Day Trading Stocks?
In 2007 and 2008 I did a little trading, I made some money, but I lost nothing. I only had $5000 at the time, so I couldnt make any real money off it. I had to stop because Im a loan officer and 2008 was when the industry died and I needed that original $5000 to survive.
Anyways, I have been Papertrading for a year now, although its fake money, I have been making big gains. I have a very simple strategy. I have about 6 stocks I like, when the market opens I wait 10 to 15 minutes to see which, if any, of my $10 or under stocks are surging up. I pick one of those stocks, stay in for just a few minutes, or until I see any sign it may be done surging up… then I sell and shut off the computer.
This worked for my with real money and its working for me now. So, now, I have $25,000 (real money) and I want to know if I should start real trading. Am I missing something? Why does this seem so easy? I want to start using the $25,000.
admin answers:
How do you account for slippage? Are you accounting for commissions and taxes? Are you accounting for margin interest? What do you do if it doesn’t go up? Have you been keeping statistics on the number of stocks you thought was going up and did versus didn’t? How many of the stocks that you thought was done surging was actually done surging? Have you kept statistics on that? I don’t know what you’re missing, but you’re probably missing something, if you haven’t missed anything in your method than what you’re missing is putting your money where your mouth is.

Linda asks…
A Difficult Investing/Trading Question! NOT HOMEWORK?
I’ve been testing out two trading strategies lately, and here are my results.
Strategy 1
Profit to Loss Ratio
1 : 1.5
Chance to Profit
85 percent
Strategy 2
Profit to Loss Ratio
2.5 : 1
Chance of Success
60 percent
If both strategies are applied on the same day in order to hedge Strategy 1 against Strategy 2.
What is the chance of both strategies succeeding?
What is the chance to breakeven?
Thanks
admin answers:
There’s no way to know the chance of both succeeding since you don’t give any idea of their relationship to each other. For example, it’s not a hedge if number 2 loses EVERY time number 1 loses. This might be the case if they’re both equity investments.
I’ll just say that a market with the above relationships isn’t efficient, thus I think it’s unlikely to exist as you describe. I think you’ve screwed up the math someplace.

Sharon asks…
what do say about day trading or intraday in share market is it a wise decision?
do you prefer investment strategy…4r short term and long term. else tell me wats your take on share market??
just few days back my friend bought essar oil 1000, ptc 1000, Rnrl 1000, gmr 600 recently for intraday. price gone down so he tought to hold and sell tomo but still down. you cannot keep the stocks with more then 3 days time limit if you dont give the cheque for shares bought.he dont have that much money to give cheque. so he sell everything in loss???
and last week he bought chambal 2000, videocon 1000 for intraday, price gone down. so he was holding with debt 4r 3 days time and sold everything in loss.
no he is not a beginner, he is in this from past 4 years..
for day trading should u buy small quantity.so the risk becomes less or you should buy like my friend.
admin answers:
If you have to ask this type of question on Yahoo answers, then you 100% should not be day trading, or anything even close to this. You will loose all your money. This has happened to many folks.
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