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Anyone make a living day trading?
Yes , I trade work for money almost everyday.:D

Just kidding , I've been trying to though , problem is , you have to bet big to make big money , I'm not rich enough or gutsy enough to go all in on any one or two stocks.

5-10% weekly isn't too hard to do , but then my day trading limit is only $5000 per stock , so even 10% is only $500 , I bought KLH last week and have already made over $1200 , only now I really like the stock and think I will hold it longer term , it is showing some great potential.

I sold my worst performing REIT today to buy some more KLH.

Trading fees can eat a good portion of your winnings , and the odd loser as well brings the average down.

You have to set a limit and get out when you reach that limit , don't feel bad about the gains you might have missed , it's hard to do tho.
For instance , I bought TKO a month or so ago , 1000 @ $4.50 , and sold @$5.50 , thought I was doing great , two weeks later or so it hit almost $7.

I bought CWTR this morning , they crashed yesterday and are on their way back up already , I made money on them the exact same way a few months ago.

It's exciting , and profitable if you have some insight , do some research and stay within your limits.

We should have a day trading thread going , just to see how some of us do , as well as sharing the info with others.

I would be interested to hear from any others that are day trading as well.

Good thread.
 

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I don't really day trade, but sometimes like to ride a wave (whats that, swing trading? momentum trading?)..

And my main issue is holding on too long. I may have a 5%-10% gain on something but its looking good so I hold on, only to see it drop again.. Pretty confident it will pick back up, but I should have sold for the 5-10% gain to get some capital for other opportunities.

I don't think I could make a living at it though.
 

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A discount brokerage insider once told me that on average day traders lose their entire capital within two years.

I suppose it's possible for some daytraders to make enough money to compensate for their time *and* earn an attractive return on their capital. On average though the odds are very poor.
 

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A day trader is always out at the end of the day. I think you might be talking about momentum investing.
 

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Swing trading I call it , but with enough diversification , you can still be trading something everyday.

By the way , my KLH just went up 25% this morning , minutes after buying more , made me another $3000 this morning alone.:D:D:D:D

Check it out it may be a real winner.
 

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Discussion Starter #8
A day trader is always out at the end of the day. I think you might be talking about momentum investing.
Would you refer to momentum investing as riding the wave sort of speak, like today has been a good day in the markets and I did some buying/selling which in 2 hours made me $500. I definitely could have made more but someone once told me, "never be afraid to make a profit".

Basically just hobby trading as opposed to day trader I assume.
 

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Discussion Starter #9
What does the daily volume of a stock tell you?

I assume the more volume the more activity but is that a positive or negative, does more daily volume mean the price will increase or decrease?
 

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A discount brokerage insider once told me that on average day traders lose their entire capital within two years.

I suppose it's possible for some daytraders to make enough money to compensate for their time *and* earn an attractive return on their capital. On average though the odds are very poor.
I wonder what the average amount of capital is for a person to start day trading.
 

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CC i think it depends which part of the brokerage operation the insider is attached to. The general representatives at any discount broker will see large numbers of fast traders, because such traders almost by definition must migrate, and do migrate, to fast, cheap online brokers. Witnessing how some clients gamble and lose is one of the negative aspects of working for a discount broker.

however, the desks at the same online brokerages that serve bigger & more serious clients usually witness remarkably stability. These clients are certainly not losing their entire capital. Not in 2 years, not in 10 years, not even in a lifetime.
 

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Honestly I think people could be sucessful in day trading if they built up a safety net. I am not sure how day traders prevent themselves from losing too much money. Although I guess for most people its go big or go home. I would have to say though most day traders are likely to have some sort of extra cash set somewhere incase they REALLY screw up.

Not sure though as I am not a day trader :).
 

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A discount brokerage insider once told me that on average day traders lose their entire capital within two years.
A day trader is always out at the end of the day
So were they, right up until the day they lost the last of their money.
These are the kind of statements made by people who don't believe it can be done and get upset when others do it.

Kind of like "double dip recession" , it only exists in the mind of those who ran with the pack and were too scared to back get in or re-allocate at the bottom , now they're hoping for the big downturn because they've missed the boat.

ANYTHING can be done , if done properly , it all depends on your appetite for risk and your insight as to market sentiment , some are very good at it.

I've done VERY well this past six months , I set aside $10,000 for high risk day/swing trading , if I lose it , it's gone , the rest stays in my log term portfolio.
Problem is , in the last 6 months , that $10,000 has turned into $25,000 , but anything over the 10 grand gets re-invested in long term well paying REITs.

I put a lot of time in at my computer screening and researching stocks in order to find ones I think will go , but others who can't do it like to call it luck , I disagree.

I'm not recommending anyone do it , just saying it's working well for me and it CAN be done.

I get the rest of the winter off now and plan on getting into it more seriously , will let you know how it goes.;)
 

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To make money "day trading"...you either have to be extremely brilliant, or extremely lucky.

Its best to decide for yourself which one describes you.

Every study shows that day traders lose in the end.

The brokerages, and especially full service brokers, absolutely love day traders!

If you made money day trading in the last 6 months,,,you were very lucky, or you were simply riding the wave up....make no mistake.

I would respectfully suggest that you take those profits and buy some blue chip div stocks and the like.....

Of course its your money...to each , his own.
You didnt need anyones help earning it,,,so how you invest is strictly up to you......

I wish everyone good luck, so I'll wish you good luck too.
 

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I would respectfully suggest that you take those profits and buy some blue chip div stocks and the like.....
Warp , obviously you do not assimilate what you read very well:

I said:
"anything over the 10 grand gets re-invested in long term well paying REITs."

Perhaps the fact that you miss simple things like that are one of the reasons you are not able to make money on short term trades.;)

No need to get excited people , just saying it can be done.

If you can't do , don't put down others who do.:p

"To make money "day trading"...you either have to be extremely brilliant"
Thank you Warp.:D
 

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I agree with Furgy that it can be done and it is done all the time but no one should think that it's easy and not everyone has the mindset/discipline/work ethic/intelligence to do it.
 

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These are the kind of statements made by people who don't believe it can be done and get upset when others do it.

ANYTHING can be done , if done properly , it all depends on your appetite for risk and your insight as to market sentiment , some are very good at it.

I've done VERY well this past six months , I set aside $10,000 for high risk day/swing trading , if I lose it , it's gone , the rest stays in my log term portfolio.
Problem is , in the last 6 months , that $10,000 has turned into $25,000 , but anything over the 10 grand gets re-invested in long term well paying REITs.

I put a lot of time in at my computer screening and researching stocks in order to find ones I think will go , but others who can't do it like to call it luck , I disagree.

I'm not recommending anyone do it , just saying it's working well for me and it CAN be done.

I get the rest of the winter off now and plan on getting into it more seriously , will let you know how it goes.;)
I have no doubt at all that *some* are good at it. I didn't say that every day trader loses his shirt. Just that the vast majority do.

The only major study of daytraders that I know of is this one:

Do Individual Day Traders Make Money? Evidence from Taiwan

When an investor buys and sells the same stock on the same day, he has made a day trade. We analyze the performance of day traders in Taiwan. Day trading by individual investors is prevalent in Taiwan – accounting for over 20 percent of total volume from 1995 through 1999. Individual investors account for over 97 percent of all day trading activity. Day trading is extremely concentrated. About one percent of individual investors account for half of day trading and one fourth of total trading by individual investors. Heavy day traders earn gross profits, but their profits are not sufficient to cover transaction costs. Moreover, in the typical six month period, more than eight out of ten day traders lose money. Despite these bleak findings, there is strong evidence of persistent ability for a relatively small group of day traders. Traders with strong past performance continue to earn strong returns. The stocks they buy outperform those they sell by 62 basis points per day. This spread is sufficiently large to cover transaction costs.
 
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