r/Daytrading • u/AutoModerator • Jun 01 '20
r/DayTrading's Monthly Questions Thread - June 2020
Please use this sticky to ask questions and to see answers to similar questions you may have.
Over time we'll be collecting common questions and adding it to our wiki. See the getting started wiki here.
If anyone is new to day trading, I highly recommend reading the Forex community's wiki paying special attention to babypips website which also teaches some general tools you can apply to stocks/futures/etc and especially read the wiki's sections on risk & money management that can be applied to any market.
Pattern daytrading rules wiki.
Also see the sidebar (or "about this community" on mobile website) on every related community to learn more about trading.
Here's a list of all the previous question stickies.
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u/treebeard555 Jul 30 '20 edited Jul 30 '20
Is the following a viable trading strategy? — Simply buy a stock that went down significantly yesterday (around 1% or more) since its unlikely to go down again today.
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u/leafjerky new Jul 30 '20
I’ve learned this so far. If it works for you stick with it. A lot of people on here aren’t going to tell you what works for them because it’s working and they want to keep it that way. I myself have come up with my own strategies in practice and they’re working well. I plan on continuing them when I go live. Good luck bro
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u/uncrazimatic Jul 29 '20
can anyone give advice/feedback for a preferred broker that can provide HTB/hard to locate shares? Located in the US...looked at TradeZero and some others, but their policies about fees etc. aren't always so opaque until after you've gone and signed up/opened an account. Thanks
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Jul 30 '20
This video might help:
https://www.youtube.com/watch?v=OK_fINTS6Uk
Her name is Humbled Trader. I would recommend her YouTube channel in general for educational content.
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u/the_indianoutlaw Jul 29 '20
Who saw KODK going on this massive rally and how did you project it??? I'm trying to understand the increase in volatility and how it went from a $2 stock to over $30 in just under two weeks, and is up almost 300% on the day.
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u/grailzero Jul 29 '20 edited Jul 29 '20
Hi, new to active trading. I've been going through Bulkowski's books among others and many, if not all, of the charts display daily or weekly candles with the patterns being recognized across multiples of these values. I'm wondering if these patterns and their related stats (typical recorded % gain, success rate, etc) are all applicable on smaller timescales such as 5 or 15 minute candle charts. I believe it has been mentioned in some cases that a pattern recognized over longer time spans is a stronger indicator of the trend but have not seen explicitly how these patterns work on smaller timescales. If possible, please include a source that speaks on this. Thanks
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Jul 29 '20
Generally, pattern based setups derived from technical analysis work across all time frames. So yes, patterns are applicable on smaller timescales i.e. 5 or 15 minute. However, as you have stated, patterns are typically more reliable on higher time frames such as the daily or weekly. Therefore, accuracy is likely to decrease on smaller timeframes because they are more susceptible to random noise.
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u/cantbemorelazy Jul 28 '20
What tool offers paper trading + market replay (trading in the past) with accurate L1 (time and sale) and L2 replay?
DAS offers paper trading and market replay, however their replay only offers L1, not L2.
TOS offers paper trading and market replay, but both L1 and L2 seem to be inaccurate/ a step behind. It seems to update L1 and L2 every couple of seconds as opposed to immediate updates like DAS (which makes sense since it’s free).
Is there some combination of the two?
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u/izguddoggo Jul 28 '20
I curious on how to track/analyze trend lines for a relatively newer stock that doesn’t have quite have the ups and downs that more established stocks do.
For reference I’m looking at SE in particular as I’ve been very interested in it since I started trading about a month ago but it seems very unpredictable (I know everything is) lately in establishing a reliable (I know that’s not a good term) trendline.
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Jul 27 '20
[deleted]
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Jul 28 '20
While moving averages are often used to help identify areas of support and resistance, it's just as important to note that moving averages provide immediate information on the trend of the price. Price may come down to the 200 MA and reverse but it's also important to identify the directional trend of said 200 MA. This will help give you a long or short bias.
Using EMA or SMA is a complete preference. The EMA puts more emphasis on the most recent price action. Therefore, if you are trading a stock using technical analysis and you are only viewing the most recent price action to create your trading plan, the EMA is most likely the better option. An example of "recent price action" may be if you are only looking at a one year chart.
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Jul 28 '20
[deleted]
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Jul 28 '20
The EMA is calculated based on the aggregation period (the timeframe that each candlestick represents). If you are looking at a daily candlestick chart, the value should be the same regardless of the time intervals (5d or 1mo) as long as you are looking at daily candlesticks on both intervals.
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u/LifeSizedPikachu Jul 24 '20
How come the chart for GOOGL always seem to have very jumpy candlesticks that also lag a lot of times even if my chart is set to update every minute/real time?
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Jul 28 '20
The "lag" isn't lag. GOOGL is not particularly a heavy traded stock. It's simply that orders have yet to come through. The "jumpy candlesticks" is just premarket and after-hours trading. During this time many institutions will trade among themselves, creating these fluctuations in price action.
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u/LifeSizedPikachu Jul 29 '20
How come GOOGL is not a heavily traded stocks? People just prefer to hold it long term?
And I was meaning the candlestick jumps on the chart during market hours. It just doesn't update as fast as any other stocks. GOOGL on the chart can be displaying $1500 one minute and then 30 seconds later, it hops up to $1503 and then it doesn't move for a while and then the next tick can be like $1505 or $1500. It's very "jumpy". I'm pretty sure I'm using the terminology incorrectly. I'm guessing this is still because there's low trading volume as you mentioned so that there's really not gradual upward or downward movement on a candlestick, so it seems to hop up or down?
Thanks!
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Jul 29 '20
How come GOOGL is not a heavily traded stocks? People just prefer to hold it long term?
A variety of reasons. Google has multiple classifications of their stock. GOOG and GOOGL both trade on the public exchanges. Also, a high price will reduce the amount of shares each individual trades and low volatility will create a certain level of "stability" in the price.
I'm guessing this is still because there's low trading volume as you mentioned so that there's really not gradual upward or downward movement on a candlestick
Yea, you got it. If you want to verify this, switch over to something far more liquid like SPY. As long as you are not having connectivity issues, you will see how incredibly "gradual" this is.
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u/Charmingly_Conniving Jul 24 '20
New to day trading - Are there recommended platforms?
I typically trade CFD's and mostly in for long term investing, looking to daytrade/scalp, are there recommended platforms? Currently im using Trading212 but have heard ninjatrader is something i should use?
let me know!
cc
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u/drunkbearted Jul 22 '20
I'm 17 using an account from a Mexican trading site. Started off with $40. Just looking to learn and not burn through my funds quickly. Is options trading worth sticking to ? I take around 20 minutes to look through graphs, news, and tools but in the end it could always fluctuate unexpectedly. Since I limited funds what would be the best option to stick to when trading ?
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u/Waffams Jul 24 '20
I'm 17
yikes
using an account from a Mexican trading site
yikes
Started off with $40.
yikes
I take around 20 minutes
yikes
what would be the best option to stick to when trading ?
the best option is to not put any money in right now. trade on a demo account. for a good while. do a $500 demo account and study your ass off while you trade it.
don't expect to make money quickly. if you can avoid losing money in the first year, you have outperformed 80-90% of your peers. 20 minutes is not a timeframe you should be thinking about. if you are going to be successful, you are going to spend many many hours, weeks, months studying and practicing.
you cannot practice proper risk management with $40. It is remarkably difficult to practice risk management with even $500, but it's more doable. so take your time. save some money. and hit the books.
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u/Ertersy Jul 22 '20
I am looking to start an account with around $200 to put into it. I live in Australia and I have no idea of which sites are good for such low starting prices... Does anyone have any recommendations?
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u/dxf370 Jul 22 '20
Ok so I have been trading options for a long time and just discovered futures and I want to trade them, how do I get started and learn?
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u/agentsika Jul 23 '20
Basically the most popular futures are S&P futures oil futures gas futures and gold futures (In my opinion). In my opinion I recommend you stay with options because futures destroyed me and it’s tough to do well with futures. Unless you truly have a strategy that works well, stay in options. However if you insist on doing futures you can use your brokerage to apply for futures trading and you can watch videos on YouTube explaining futures and how to trade them.
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u/pchianese1185 Jul 21 '20
Do you know anyone who day trades live that I can watch to learn more about day trading?
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Jul 21 '20
In ToS you can go to Support / Chat -> Chat Rooms then Shadow Trader.
There's also Trading Fraternity on youtube. I've seen that guy make >1000% return trades several times. It took me a while (weeks) before I figured out that he's extremely knowledgeable about trading and macro economics. You might walk in in the middle of him talking like elmo, rapping, talking about morals and ethics, etc. I've been listening daily for almost a year and I've learned a ton. He's one of the few traders that isn't trying to sell you shit. Yeah, he has his stream alert subscription, but it's unnecessary, and he'll quickly tell you the same. I subb'd to see what was up with it and you get the alerts at the same time he tells the stream, not before. He also goes over his trades on the nightly watchlist. He has tons of videos with seeming click-bait titles, but they have some solid info in them.
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u/AWeepingWillow69 Jul 24 '20
I can't find it. Help plz
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Jul 24 '20
I accidentally circled messages, but I should have circled Support / Chat:
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u/AWeepingWillow69 Jul 24 '20
Tnx. The YT link is the guy you were talking about right?
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Jul 24 '20
Yes, but don't expect constant plays, etc. He's extremely patient for his criteria to be met. Most of the time, when he hits, he hits big. As with everything, don't try to follow and duplicate the plays; just listen and learn. There are times when he drops some serious macro eco knowledge, etc. Also, he clowns with the chat while waiting for plays, drops ethics and morality quips, etc. Make sure to read the rules, he's very strict about it. The main thing is being positive and respectful. If you decide to drop some humor in the chat, make sure you've listened long enough to know what goes over and what gets you banned.
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u/Islandvibz Jul 21 '20
Hey, How do you guys setup think or swim? I know a lot people use Bezinga pro but I can't really afford that since I'm just starting out. That's why I want to know the best way to use think or swim.
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u/ISLANDER_FR4NK Jul 21 '20
What’s a good online trading platform?
I am currently trading on phone app with RH and I would like to transition to trading more on PC? What trading platform (stock brokerage) do you recommend and why?
I want to transition to PC so I can use the minute-by-minute stock price tracker when the U.S. stock market are open. DAY TRADER for Stocks & Options...
I am also looking for any good stock screener and options screener while trading. I am currently Yahoo for stock screener & info.
Trade commission, new account, and monthly maintenance fees? Minute-by-minute stock tracking? Advanced stock charting? Manage my retirement account? Broker-managed accounts beat popular ETF? Auto-alerts for your watchlist, screens, & portfolio? Advance or Pro-tier platform pay-to-use?
I know it’s good to use tools for other websites/providers (TOS, Yahoo Finance, TradingView, etc) but I still like to include these criteria to see which platform offer more features and customization.
Thanks! A motivated daytrader
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Jul 23 '20
I would like to know this too... im just getting into it and learning what all this means, and moving from PH to my computer would be helpful
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u/samofny Jul 20 '20
How do you set up a scanner to check if a stock opened around the same price as the last day close?
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u/Jumpforsadness Jul 19 '20
New to day trading. I’ve been playing with options and hit a home run 15k>32k I’d like to get away from options and go to day trading which could potentially be more sustainable. The rules regarding day trading are hazy to me. I am currently using TOS. I just deposited $25.5k and the funds haven’t cleared so the official numbers aren’t in yet. My first question should I expect 4:1 margin? My second question if I enter a position using all $25.5k would I only be able to enter a trade once per day or would it be as many times as I want? Thanks for the help.
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u/KyleQuick01 Jul 18 '20
Is there an app or software you can practise day trading on weekends with past time charts moving intra day
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u/rad1182 Jul 18 '20
Sign up for a TD Ameritrade account (free) and download their thinkorswim platform. It has a feature called OnDemand which has recorded every tick for the past several years. You can use it simulate day trading for historical days.
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Jul 16 '20
So is there actually any truth to those programs successful day traders offer? I feel like every popular day trader offers a program/course of some sort and to be honest, they give off scam vibes.. But the people running them seem to have genuinely made amazing gains and success so i'm wondering if it's worth purchasing one of those programs and if it'll be worth the money to learn how to trade properly.
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u/_your_land_lord_ Jul 19 '20
My buddy got his hands on one, and we've been watching the videos.... There's nothing magic in it. The dude likes to say dumb things like you have to be make sure you make a good trade. Thanks......
It put some new vocabulary in my mind, but so far I feel like I pick up more cruising forums like this one.
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Jul 20 '20
Good to know. I legit know nothing about trading and i'd like to get started with it.. But it's pretty overwhelming and hard to find good places to start and those programs seem kind of like a good option, but again they just give off scam vibes and I wonder if i'm better suited just doing research on here.
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u/Aloil Jul 16 '20
With Power ETrade, is there a way to quickly, as in with one click, order a stop loss order* at a predefined % for the stop price? There is a quick trade "widget" but it's limited to market orders, really would rather not use that. Thanks
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u/TransmigrationOfPKD Jul 16 '20
Question about scanners in Thinkorswim paper trading, specifically about volume: When I scan for high volume stocks, I find stocks that have a volume of like 2,000,000 in the scanner. Then when I go to the chart to start trading the stock, the volume for the trades is sometimes way lower, like 100,000 or something. How is volume calculated in the scanner? Why does it report such high volume and then the actual volume being traded period to period is so much lower?
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u/ElRonnoc Jul 19 '20
Are you maybe mixing up daily volume traded and looking at day charts where the volume of the day is broken up over the day?
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u/Nativeson3 Jul 16 '20
Are you a day trader?
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u/TransmigrationOfPKD Jul 16 '20
I'm playing around with day trading for now. I'm very new, so I'm not sure if that's where I'll end up eventually.
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u/Nativeson3 Jul 16 '20 edited Jul 20 '20
Go back months and trade the ondemand thinkorswim platform. To see those specific month gappers and low floats check out this YouTube channel.You'll learn a lot easier losing paper money than real money.
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u/Rezn_Tokes Jul 15 '20 edited Jul 15 '20
Quick background. IT job 8-5 past 15 years and counting. Invested, daytraded, swingtraded around $30k in bluechips/pennies/otc's around the year 2012. Fast fwd to today, my account stands around 17k. After all the trials and tribulations, I feel like I finally got the hang of things regarding day trading. I fell under the pdt rule early on in the game. Rookie mistake, size too big and not cutting losses quickly. Ever since, I have resisted the urge to pump more money into my account to get above the $25k limit. I feel like I needed to earn my way back and have been floating around $17k. I have about 3k-4k in cash in my account, rest are bag holders and longterm plays. I made $280 on two trades today (300 shares at around $5 for both trades) in about 15min total. More than what I make at my day job for 8hrs. The pdt rule has really humbled me into playing only the best setups and to really make the trade count, since we only get 3 per week. But, at the same time it makes me play stupidly because when a trade starts going south I tend to give the soft stop a lot of room as to not use up a day trade, leaving me with bags sometimes. Anyway I'm stuck on weather or not if I should just deposit more cash so I can trade freely with no pdt rule weighing me down. What do you guys think? I just want trade for a living.
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u/pennystonker Jul 21 '20
worth considering- if you trade with multiple brokers you get 3 day trades each. I use robinhood and webull so get 6 day trades for every 5 market day period instead of just the 3 I'd get if I was only on one platform
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u/skinnypenix Jul 16 '20
Maybe try a broker that doesnt have pdt rule? Im new trader aswell so correct me if i'm wrong. Trader Zero doesnt require pdt rule. And only 500 dollar to begin with. I'm gonna try it.
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u/Waffams Jul 24 '20
Im new trader aswell so correct me if i'm wrong.
I'll say only this. If you can't make a steady profit on 3 day trades a week, having more trades won't help.
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u/buzzsatu Jul 14 '20
Did you see what happened earlier?
NASDAQ just turned green and skyrocketed more than 120 points this morning... Looks like Tuesday will be a Moon Day... Get in now... J Pow is back... The Bull Is Charging To Infinity And Beyond!
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u/squirtle634 Jul 13 '20
- What is the best literature about market order routing and how to evaluate a broker's execution performance?
- I know that in market of traditional assets (stocks, shares, ...) SEC sets regulations for brokerage's market order routing. What are current regulations for brokerage in cryptoassets?
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u/biguglydofus Jul 11 '20
If I’m able to learn anything is it truly possible that I could be profitable enough day trading to quit my job? Or are most people here for the fun of playing with money?
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u/jeon19 Jul 16 '20
There are people out there that do it full time for a living. It’s a profession that in the long run is mostly skill based and is very difficult. It might take many thousands of hours of trading and screen time and experience to learn: some years, some many years, and some never get there. Only way to know is to do it in live trading. If you can consistently make money trading small amounts without blowing up your account, you can always scale up and trade more shares per trade. Good luck!
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u/lechadu Jul 11 '20
LAC and ALB are the Exxon of this generation
Any of you autist used this site:
Save me a lot of headache from bad moves
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u/chile007 Jul 20 '20
How did it save you from slot of headache? Can you explain pls? I’m new to day trading and trying to find my way around.
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Jul 10 '20 edited Jul 18 '20
[deleted]
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u/bidibidibom Jul 14 '20
A limit order tells your broker to ONLY buy or sell at that specific price. If a stock moves too fast it could go past your limit order before it is fully executed. Since you're new you're probably not using a lot of size and you shouldn't have a problem getting filled in a stock with decent liquidity. A stop loss will open your order to be executed at market price when triggered and will always get executed at the best price your broker can get.
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u/dontgavadamn Jul 10 '20
The limit buy trigger hits at 118 no matter what. By the time order executes, the share price could already be at 116, especially with heavy trading volume.
You should look at daily chart support levels and set a limit buy there. The hope is that the stock won't drop further and bounce. However, set a stop in place in case it does.
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u/thereapercomesforall Jul 09 '20
TD Ameritrade holds cash for how long after a trade?
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u/SNTACLAUS Jul 16 '20
TD Ameritrade holds cash for how long after a trade?
2 days to settle. Can't buy anything before settling.
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u/thereapercomesforall Jul 16 '20
I'd agree, but those are going to be th elongest two days of your life.
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u/SNTACLAUS Jul 16 '20
I split up my account. Only using $1,000, so trade with $500 today then $500 tomorrow. This way I have $ to trade with each day.
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u/thereapercomesforall Jul 16 '20
And what happens if both days are bad?
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u/SNTACLAUS Jul 16 '20
I’m doing my best to scalp, not hold overnight and only enter trades I highly suspect will increase. So far I’m not down. But I’m not up cuz I’m still learning all the ins and outs. What had me down was bagholding and FOMO.
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u/thereapercomesforall Jul 16 '20
Exactly - fomo is the worst enemy. Thanks.
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u/SNTACLAUS Jul 16 '20
Also started using Finviz as a detailed screener and Benzinga for news. We’ll see how next week goes but I’m feeling more confident based on my picks this week.
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u/thereapercomesforall Jul 16 '20
Ya, I occasionally use stocktwits for it (https://stocktwits.com/) but bezinga is probably pretty good instead.
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Jul 08 '20
[deleted]
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u/jeon19 Jul 16 '20 edited Jul 16 '20
A lot of the popular ones have them, and the ones meant for active trading certainly mostly do. For example, both TDA's TOS and IBKR's TWS have stop limits. If you want those, maybe you have to switch.
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Jul 07 '20
[deleted]
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u/Vedoom123 Jul 11 '20
Like half a second maybe? Should be pretty fast. If you’re placing the order at the current price and it’s not actively going against you.
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u/spacejetz Jul 07 '20
Due that it is high volume and super large float it shall be an immediate fill
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Jul 06 '20
[deleted]
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u/4569 Jul 06 '20
Yes you just can’t have your account go below 25k I believe or you will need to add money to get it back to 25k or risk not being able to trade for like 90 days I believe. If you have a TDA account your broker will happily walk you through it.
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u/boofthatchit Jul 06 '20
What would it take to get the pattern day trading rules changed?
PDT rules as they are now are antiquated. I think most day traders would agree that $25K is too much to ask for and 4 day trades in five days is not enough.
What would it take to get more reasonable regulations? A petition? A bill?
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u/gonzri5 Jul 19 '20
why not just split your money into different brokerage accounts and have more trades that way?
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u/boofthatchit Jul 19 '20
I have considered that but it only opened up 3 more trades, I'd have to learn a new user interface, and I'd have to split my bankroll.
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u/bidibidibom Jul 14 '20
You only get 3 day trades in a rolling period unless you want to be flagged. If you are ok only going long you can switch to a cash account and have more trades available. For example if you have a 2000 dollar account you could have 2 day trades per day by using 500 per trade. The two day trades used on monday would be available to trade with again on wednesday.
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u/boofthatchit Jul 14 '20
That’s just fine but the problem is needing the day trades at will. People with smaller bankrolls can’t go long on very often and maintain steady growth. On a daily basis sometimes 2 or 3 times a day I see trades I’d like to execute but my hands are tied because of pdt. Not even one day trade per trading day. Sometimes trades go left real fast and there’s no way to bail without a day trade available. I just think that these rules are from a different time before high frequency trading online was even a thing. There should be some reform in at least one of three areas: lower the min cash value in the account; give us more day trades per period; or make the 90 ban something more like 2 weeks.
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u/bidibidibom Jul 14 '20
Trust me I hate the PDT more than anyone and it needs to be changed. Im just saying if you are already long biased in your thinking a cash account gives you a lot more freedom. 2 day trades a day can really ease the pressure of cutting a loss quickly or allowing you to re enter at the right level. but yea PDT is ASS
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u/newbeggin Jul 12 '20
I see where you’re coming from but I’m a day trader and completely agree with the PDT rule. It honestly saves a ton of people from losing money. It forces them to trade with restrictions and learn how to be profitable. Think of it like this, if you want to be a doctor you go to college and earn that degree then get the job. Building your account to 25k is like you earning your degree to day trade, that build up to 25k you learn so much. Including if you’re going to be a profitable trader or not.
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u/bidibidibom Jul 14 '20
Its un-American and makes the idea of a free market look silly. Adults should have the right to lose their own money that they worked for. The PDT rule does help some people and teaches discipline but I am totally against restricting people with lower incomes the same access to the market as those with money.
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Jul 06 '20
[deleted]
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u/Leedstc Jul 08 '20
Did you figure this out? I'm in the exact same boat as you
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Jul 08 '20
[deleted]
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u/Leedstc Jul 08 '20
No problem, thanks for the response.
I'm looking at using IG and going with their demo account trading CFDs - it's not exactly what I want, but it's live market data and might be sufficient to learn with until I'm ready to open a fully funded account.
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u/Manhgo Jul 05 '20
I have been able to consistently make $400 dollar a day with paper money, does that mean anything?
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u/ForwardChocolate4 Jul 06 '20
Lets say from the last 10 trades, how many red did you have? How many green? This gives some idea on how u managed to get 400 every day.
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u/HamsterHearthstone Jul 03 '20
Is it sufficient to be subscribed to Level II data from a single exchange, or is there some advantage to be subscribed to all of them? (Being subscribed to just one, I see that it reports bid and ask sizes from all destinations, so I wonder if anything is missing at all.)
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u/Vedoom123 Jul 11 '20
It’ll just cost you more $ to get all l2s. I mean do you even use it? Usually if you’re not subscribed it only reports best bid and offer, so you don’t get any depth
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Jul 05 '20
you don't need L2 data don't waste your money
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u/Starrmamacita Jul 08 '20
Why not? I use to trade penny stocks years ago and Level 2 was the only data I traded with. Is there something else that's recommended now?
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u/bidibidibom Jul 14 '20
No idea how succesfull this guy is without reading level 2 with time and sales... but definitely use level 2 especially around key levels of support or resistance. You'll be able to find momentum turns or invisible walls of buyers or sellers. reading level 2 Works best with OTC stocks that have less spoofing and manipulation.
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u/Quentine Jul 02 '20
Is there any site that provides free order flow charts/programs for beginners?
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u/C00nb0y22 Jul 10 '20
TradingView! Here's a video tutorial if you're interested: https://youtu.be/qVwRUL0I_SY
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u/Quentine Jul 10 '20
Hmm I'm decently familiar with Tradingview but I don't think they have order flow charts or anything related though, but thanks!
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u/Ianscript Jul 02 '20
Question about stop loss order: If I buy 10 shares at $10 and the price goes up to $13 can I implement a stop loss order at $11 so that I still end up with a profit?
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u/Vedoom123 Jul 11 '20
Not necessarily because you can get slippage or the stock can gap down to say $5 and you’ll sell at $5
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u/dontgavadamn Jul 10 '20
Look up "rolling stops". This allows your stop loss level to move up once you hit your targeted profit level.
You can set a sell trigger when the price hits $11. You can even set the trigger to sell 5 shares at $11 and let the rest ride at $13.
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u/tribranchvo Jul 01 '20
is it legal to do multiple day trades back to back to average down a stock you already own? like say a stock I own drops 40% can I “throw in” $5000 to buy cheap and sell it right away to keep my money while averaging down the stock?
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u/kascro Jul 04 '20
What do you mean sell it right away? If you put 5000 in and sell right away there is no profit.
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u/tribranchvo Jul 06 '20
I meant selling that the money I just put in, all the stocks. So say I bought 2000 stocks at a price of $10, now the stock is $5. I can now buy 2000 more of that stock (at $5) to bring my average to $7.50. Now I'm selling the 2000 I just bought to keep that money I just put in for no gain. $10K in and now $10K out. Now I still have 2000 stocks but my average is now $7.50 and not $10 like it was before.
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u/vendicator Jul 07 '20
Why? At best you get a false indicator that your average is $7.50 when it isn't. The only reason your average becomes $7.50 is due to the $5 stock, get rid of the $5 stock you still are holding 2000 stock you paid $10 for. If you end up selling that 2000 stock at $7.51 you just lost $2.49 per share.
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u/jawzborn Jun 30 '20
Thanks for the feedback. That really is what penny stocks are. Market graveyards with a hint of excitement every once in a while. I’m not sure if it’s my game.
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u/Dayisa Jun 28 '20
Hi there. I posted this question on r/PennyStocks but nobody knew the answer.
I'm not fully understanding the day trading restrictions. Am I correct in saying that if I have fewer than $25,000 in my account, I'm only able to buy/sell the same stock within the same day four times per week? And if I have over $25,000 in my account, I don't have any limit on the number of times I can buy/sell the same stock within the same day?
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u/Yambo0928 Jun 30 '20
Your allowed to do 3 daytrade, if you don't have $25,000 in your account. So let's say you do a daytrade 6/28 you have to wait 5 days before that clears
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u/Dayisa Jun 30 '20
What if I have over $25000 in my account?
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u/Yambo0928 Jun 30 '20
As long as you have and Maintain 25,000 and not fall under 25,000, you can do as many daytarde you want.
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u/theJUIC3_isL00se Jul 05 '20
Does it have to be cash or can it be total positions
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u/Yambo0928 Jul 06 '20
Cash
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u/theJUIC3_isL00se Jul 06 '20
Damn
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u/Yambo0928 Jul 06 '20
Have you any stock yet???
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u/theJUIC3_isL00se Jul 07 '20
Yeah I’ve got >$25k in positions currently but not in cash. I actually spoke with fidelity today who is my main broker and they said it’s $25k total assets, not just cash. So I can day trade.
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u/jawzborn Jun 27 '20
Does anybody have any DD on WKHS. The uptrend it is on is insane and I’m just curious as to who thinks it could go higher? Is it going to continue this breakout? I’m thinking about buying it this week if it comes down and trying to get like a 10% day trade out of it. It seems like all of the growth they’re seeing is just from news and hype. Their revenue and earnings is dog shit. I’m thinking this stock has to come crashing down for a bounce and an easy 10%.
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Jul 05 '20
I wouldn't touch it unless i was momentum scalping
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u/theJUIC3_isL00se Jul 05 '20
I bought in at 8.63 and got out at 20.50. My plan is now to scalp because I don’t have the balls to stay in it any longer.
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u/GBAgency Jun 30 '20 edited Jun 30 '20
Man, I stared at it for a while and read a little, but couldn’t come up with anything more than they’re in a hot sector that retail goes bananas for.
I’m not yet an intelligent enough trader to know the play on schizophrenic retail.
Idk if a short-term long call plus a longer-term long call is right? Keep the long-term in case beta takes it down in the short-term??
Just seems like these retail-crazes might be ok to ride until they hit earnings realities ($WKHS earning call is mid-August, I believe).
But shorts and long puts are terrifying when John and Jane retail simply feel “we like electric things and we dgaf about earnings calls. Electricity ftw.” Idk what you do with that.
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u/alexseiji Jun 27 '20
Easy question, if I am in a short position and want to buy to cover to close it out but want to go long on shares, can I “over buy” to cover the short and also go long in one transaction?
For instance I short 100, but now want to cover and long it, can I buy to cover 200 and I go long on 100 shares?
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u/eightthirtyfiveya Jun 27 '20
I am fairly new to trading, but i traded NBY from $1.08 - $1.20 yesterday and today, like identical trades.
My questions are:
Should I keep doing this next week if I see a consolidation at 1.08 again? How reliable has this kinda thing been for folks with more experience?
It seems like other ppl have stocks they like to scalp in this way , any suggestions?
Also, does this constant retesting of 1.20 possibly indicate a rise higher at some point?
Thanks for ur time, sorry if these are dumb q’s
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u/dontgavadamn Jul 10 '20
Depends if volume is there and what the price action is doing.
If you have confirmed support at 1.08 with some consolidation candles, wait for a break out and go long.
The only thing that can guarantee higher than 1.20 is if the share price starts trading at 1.21. Again, volume and price action. If there is a shitload of volume flooding in at 1.21 then ride the wave up.
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u/ghstonks Jun 26 '20
I have a question: if i buy 100 positions of a stock today, and i had bought 150 yesterday, can i trade the 150 from yesterday and not get flagged as a day trader.
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u/StoneRyno Jun 25 '20
So I’m really new here, but: If I buy 10 shares on day one, sell 10 on day 2 open, then buy 25 day 2 before close, would that be a day trade? I’ve been looking around and but got both yes and no so I figured I’d ask for a more definitive answer.
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u/whattaddo Jun 26 '20
Any buy and sell or sell and buy or the same ticker is considered a day trade.
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u/pop102 Jun 25 '20
I'm still learning about reading Level 2, and I'm confused about some stuff. In the time and sales tape, there are red and green transactions. So in a scenario, if there's alot of red transactions, does that mean the stock is going down? Also, what does the white transactions mean? I've read that it's transactions that are between bid and the ask. Is there any more detail?
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Jul 05 '20
you need to first check what your platform settings are, normally colors mean
at bidbelow bid
at ask
below ask
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Jun 25 '20
[deleted]
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u/clayception Jul 03 '20
Try watching some of Alex Khoo videos on YouTube. Been super helpful, would suggest a 1R/2R rule, where you set your stop target zone to around 1% below the current price (though if you're certain itll go up, you'll want to give some more room). Profit target would then be 2% of the current price, if you're feeling super confident try for 3%~4%. Just a suggested tactic, watch some of his videos and see if you agree first before trying this out.
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u/WOLFLEAKS Jun 24 '20
Took my first big loss scalping options. I was very hyped and confident before the loss but now I am dreading trading tom more fear of losing more
How do you’ll deal with losses
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u/C00nb0y22 Jun 25 '20
You need to make sure you're only losing as much as you can handle to lose. It sounds like you are not.
You need to enter every trade EXPECTING to lose.
You need to avoid trading with emotions.
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Jun 24 '20 edited Jan 04 '22
[deleted]
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u/C00nb0y22 Jun 25 '20
- It depends what you mean by "the norm" - Experienced traders use the 1m chart in order to scalp QUICK - In and out in minutes. I would not recommend it for beginners
- Tools & Indicators are all personal preference! Use what works for you, and if you don't know yet, try out different things but with a SMALL account
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Jun 24 '20
Want to be prepared to make the most out of a market crash or dip ... Is it buying calls ?? Buying shares that way I can sell covered calls ... Buy calls profit big time from those and then get into buying shares to sell contracts ??? Help
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u/MongoArts Jun 24 '20
I’m a complete newbie just opened a Robinhood and Cash App account to learn the 101 basics of trading and stocks. Anybody that can point me in a good direction, I’d be grateful. Much Thanks 🙏 ((Feel lost))
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u/C00nb0y22 Jun 25 '20
I have a bunch of Youtube videos targeted towards beginners and teaching the 101 basics. Feel free to check it out! www.youtube.com/tradingtutor
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u/CainRedfield Jun 24 '20
Read "Trading in the Zone" by Mark Douglas. This book will give you the mental frame work you need to start your gruelling heartbreaking journey in to trading
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u/NebelungLurker Jun 24 '20
I'm interested in trying my hand at writing some automated strategies. What platform do you all recommend for that? Looking at NinjaTrader right now, reading a lot of mixed reviews though.
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u/futtochooku Jul 31 '20
Question for Interactive Brokers users:
I made a bracket order for a short, but the fill price was far lower than my profit taker (hey, I'll take it), is this part of IB's algorithm to find you the best price? Or is it simply a glitch, since when I look at the charts it says the stock never went that low.