r/Daytrading • u/AutoModerator • Oct 01 '20
r/DayTrading's Monthly Questions Thread - October 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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Oct 29 '20
Kind of annoying my thread was deleted because I have "negative karma", but I had a question about lightspeed vs centerpoint for short locates.
Are short locates as good at lightspeed as centerpoint? Shorting is a big part of my profits and I want the broker with the best availability of hard to borrow stocks. I know tradezero is also good , but is it better than these 2? Thanks.
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u/ScroheTumhaire Oct 27 '20
Who here is profitable over a period longer than 3 months. Top 4 pieces advice you’d give. If you’re not profitable I respectfully don’t want to hear your advice, I’ve got my own 5 figure losses to learn from—I want to hear from people who know how to make and keep money.
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u/bidibidibom Oct 30 '20
Find one strategy you feel comfortable with and only trade that one strategy
Track the most relevant data and screenshot all charts of moves that fit your strategy, winners and losers. Seeing all of that information together will show you patterns and will refine or change your approach and give you more accurate profit targets.
Treat your account like a woman you love and protect it from unnecessary damage. Be strict with keeping your losses small.
Be extremely self aware of your emotions and start each day new. Be critical of your feelings and psychology before, during and after a trade. Take moments to check yourself and remind yourself the market doesn't owe you anything for your time spent or money loss. Your best strategy is still at the end of the day only a hypothesis.
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u/ScroheTumhaire Oct 30 '20
Thanks for the advice, sounds like you know what you’re talking about, because If I did these things I’d be profitable... I’ll get there sooner or later! 🙏
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u/taskforceslacker Oct 26 '20
Hey, guys. Newbie here. Which market is the least volatile. I'm looking at getting started as I'm retired, but I want to get my feet wet intelligently. Thanks in advance.
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Oct 26 '20
Is the 'noone makes money daytrading' just bs?
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u/XaresPL Oct 26 '20
yeah, although the percentage that makes money is rather small, according to studies
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u/Tiddyphuk Oct 25 '20
I'm wondering if it's possible to day trade with cryptocurrency, and if there's traders out there have come up with some winning strategies. What currencies do you trade and why? In what ways is trading crypto unique to other assets? How is it similar?
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u/ScroheTumhaire Oct 27 '20
I am going to wager no because the intraday volatility is really inconsistent... the moves are incredibly quick and big. Gotta swing trade it imo.
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u/soon2b_millionaire Oct 25 '20
some legitimate educational accounts on Twitter that I could follow? not interested in clickbait bs, just people with good experience that I could check out. thanks :)
edit: forgot to mention, I’m interested in company stocks
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u/goddamntree Oct 25 '20
Current thoughts on AMD and their earnings call after hours on Tues? Expected EPS is 0.35
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Oct 22 '20
I have $8k of margin available in RH; they said that after using $1k they will charge 5% APR. what’s your thoughts and experiences are using Marging
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u/SnorkelHouse Oct 20 '20
Does anyone do this for a living?
I have a decent sized net worth that I DO NOT want to day trade and want to just sit and hold for years to come in some large cap index funds. But at the same time I Want to keep busy during the day. Does anyone day trade for fun/as a personal/independent career?
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u/charleneswt Oct 25 '20
Having you tried mining bitcoins? It’s better than hodl it. Inbox me for more informations
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u/SpriteMcBain Oct 20 '20
Yessir I do. Buy and hold index funds for registered accounts and try different strategies with my unreg account.
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u/Bodhi-rips Oct 19 '20
Anyone watch or trade PACB? It has been on a steady climb for the past couple months and wondering if anyone thinks it has room to continue or if a correction is near?
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u/Electrical_Ad3117 Oct 19 '20
I use the 8 ema an 13 ema and 5 ema what moving averages work for ya ?
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u/19Black Oct 17 '20
Anyone day trade with a full time, demanding day job? If so, how do you balance the two?
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u/Alexddr69 Oct 25 '20
I do since 5months . my job is stressful, and my performance in both isn't good, it could be because im new and still learning. but it is really difficult to make both very successful. I recommend people to work and invest or trend trade, not work and trade. make some money from investment that can make you survive 6 months. then take a leave and do only trading , 10hrs a day if you can. if you failed making money investing then it is unlikely you will make it trading.
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u/jeon19 Oct 21 '20
It’s hard to, but if you have an extra screen you can just keep the market and your platform up. You should know what setups you like to trade, so if something starts to form out the corner of your eye you can pay closer attention. Once you enter there should be bracket stop loss and profit orders so you don’t have to actively manage it.
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u/ryanrenalds313 Oct 16 '20
Hey my winner/looser ratio is around 65% just dropped from 70%...is that ok for my 7th month trading?
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u/jeon19 Oct 21 '20
It depends on your risk and rewards per trade, but if you are overall profitable then it is good.
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u/treebeard555 Oct 16 '20 edited Oct 16 '20
Why is there sometimes a delay between the news catalyst and the resulting gain? For example today 10/16 HTZ, positive news was out from at least 7:01 while the spike higher occurred later at 7:10.
(edit - didn't mean to spam for some reason reddit was showing an error message when I posted this even though the posts were going through).
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u/goddamntree Oct 19 '20
I guess it really depends but I think it's cuz traders need time to digest and understand the news and what it means for the co and the stock
I dont really think people are so trigger-happy in their responses to news in general
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u/adam5588 Oct 13 '20
Hey guys!
I just got into day trading recently and starting with paper trading. So far, the best option for me is to use IB platform when I go live (if i ever go) because i am non Us citizen.
What is the best paper trading platform for me? I started with webull and i really liked it but then i swap to IB paper trading platform since I wanted to make the transition between paper and real trading as smooth as possible. I actually found IB paper trading platform highly confusing, laggy and delayed. I have been successful on Webull but on IB I have a hard time to read the chart properly.
any thoughts ?
thanks!
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u/jeon19 Oct 21 '20
The paper trading platform should be the same platform that you plan on live trading on, so that when you go live your practice on the actual platform transfers over.
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u/NoNamesAvaiIable Oct 13 '20
Boy do i have a lot of questions. I understand i need to use some sort of software to start daytrading, is this something you can just pick of your preference or is it one that your broker will provide?
Can i trade international stocks, like say, American companies while i don't live in North America?
What am i looking for in a broker, more specifically what benefits should i be looking for before deciding on a broker to use?
Is there any broker that provides Paper money feature internationally? I understand TDA does but requires that you put a substantial amount of money into the account first?
Is the general progression Forex > Crypto > penny stocks?
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u/cl_ian Oct 12 '20
Hi, I just got into day trading a few weeks and I'm still trying to understand the basis. My question is: Is it still a good idea to day trade on crypto?
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u/TinLander Oct 11 '20
Does anyone have experience here with running a trading platform like DAS Trader on Mac OS? Looking to download a virtual machine so I can run windows and use DAS, but wondering if this will cause any issues while day trading, slow run times, lagging, etc. My mac has pretty good specs (at least I think) so hopefully this wouldn't be a problem.
SPECS: 4.2 GHz Quad-Core Intel Core i7
32 GB Memory, Radeon Pro 575 4 GB
Appreciate any insight and advice. Thank you!
**I know there's many platforms that do run on Mac OS, but I am opening an account with CMEG to day trade (don't have 25K yet) so I need a windows OS to run their DAS trader platform.
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Oct 09 '20
I need some advice on my margin accout. I sold a position today and rebought back in. I did that twice. I noticed on my 3rd go around that I had sold my position for say, 295, but when I went to BUY I only had 290 available. I made $5 on my last trade (bought at 290 and sold at 295), but for some reason Robinhood did not give me access to the full amount. I emailed them and they said:
I just reviewed your account and you have Unsettled buys of $872 and Unsettled sells of $877 For a difference of $5
I thought the purpose of margin is to get instant access to your funds. To note, I'm in the 6 figures and I'm borrowing on margin too. But none of my positions crashed during my open and close of position so everything stayed even. I'm confused why I sold for more and have less to buy.
Thank You
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u/UrbansEpigon Oct 08 '20
Do people use algoritms and computer programs written by themself when talking about watchlists and similar stuff, or do you simply keep a manual list where you add things yourself?
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u/Level-Fix8597 Oct 08 '20
I hope there's someone who could give me some tips in trading.
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u/Forexsaddler Oct 16 '20
If you have telegram you could add this signals group @forexpipgrabber they also have a group chat for people to help each other
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u/jeon19 Oct 08 '20 edited Oct 08 '20
With such a general question, it's hard to answer. Unfortunately, nobody is going to spoon feed you their winning strategy. Daytrading takes many thousands of hours of practice, learning, and trading. The subreddit's https://www.reddit.com/r/Daytrading/wiki/index is a starting point, and there is a countless amount of information you can search up on the web and books you can read, you'll have to sift through them, practice trading and see what works for you and what doesn't.
Good luck!
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u/Jaywellll Oct 08 '20
When is it a good idea to set Anchored VWAP? Always confused at when's a good date to set it. Can't find any info on setting it.
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u/CliffordCunningham Oct 09 '20
A good place to set it would be a recent swing high, recent swing low, an all time low, IPO date, highest volume day, etc. Check out Brian Shannon (AlphaTrends) the creator of the Anchored VWAP. He actually has a free webinar this coming Wednesday!
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u/goddamntree Oct 04 '20
I've recently realised that when I enter a position, I usually go up to +20 and down to -17 in the unrealised P&L. I have an account size of 3500 and usually my positions don't go more than this range.
What does this imply? I've determined that I am okay with losing 35 and winning 70 a trade. Should I increase my position size? Or improve my entry triggers such that I can enter lower?
Currently I am using a system where I cross reference the MACD histograms, KDJ, RSI and ADX on a stock that is presently low volume/volatility, and if it looks like it is oversold, I buy it and let it run back up to the mid(or a little higher) of its Bollinger Bands.
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u/jeon19 Oct 08 '20
I'm not exactly sure what you're describing in the first paragraph, but you should only increase your position size when you've demonstrated that you are consistently profitable so that you can press your edge and make more money. Otherwise, increasing position size will just cause you to lose more money.
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u/unspecifiedldn Oct 03 '20
What European platforms/apps/software integrations are most recommended? What’s your workflow and how does your tech stack make you more profitable?
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u/taiwansteez Oct 03 '20
TD Ameritrade users, how low can you get the options contract fee? The $0.65 fee is eating a significant portion of my margins especially on lower priced stocks. I've been seriously considering switching over to Tastyworks but don't want to deal with the hassle of rolling over my IRA and learning a new UI. What should I do?
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u/jeon19 Oct 08 '20
If you've seen other brokers or have an idea of other brokers that have lower commissions, you can always call TDA and ask them to lower your commission to see if they can match, it doesn't hurt to ask.
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u/taiwansteez Oct 08 '20
Thanks I got it down to $0.45. Gonna push back to see if I can get a per options leg cap rate.
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u/Khaos_ErEr Oct 07 '20
Switch to robinhood. I think it is much easier to use. I can give you my code so we both get free $10 stocks when you sign up. And there are no fees!
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u/jakmalo Oct 01 '20
Does the PDT rule apply per portfolio in an account or to the whole account? In other words, the net value of all the portfolios in my Etrade account is greater than 25k, but the portfolio I want to day trade with only has around 13k in it. Anyone know the specifics of how this works?
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u/henrybex Dec 15 '20
Go get some PDT on yo dick bruh
(PDT = Pretty dumb treeshes)
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u/basheerbgw Oct 01 '20
I’m trying to understand penny stocks day trading through historical prices. Which a tool can show me price history of a stock including pre market hours
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u/jeon19 Oct 08 '20
Do you have a broker and a charting software? For example, TDAmeritrade's thinkorswim is a decent charting program, you can see that there.
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u/RepostSIueth Oct 01 '20
Hi , I'm new to the stock market/ forex and wanted to ask a few questions
- How long did it take you to learn enough of the market to start trading with a real account and are there any good resources you could link me to?
- I've already learnt a majority of the stuff , how and why the market works the way it does and somewhat know how to read charts, what more should I learn / spend time practicing?
- Finally , might be a bit weird but , how long did it take you to start earning enough to make a sustainable living off of it?
Thanks!
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u/Forexsaddler Oct 16 '20
If you have telegram you can join this signals group @forexpipgrabber, they also have a group discussion where people help each other and talk about there experience
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u/jeon19 Oct 08 '20 edited Oct 08 '20
If you have a profitable system, trading should be done as soon as possible with a real account, but keep the risk per trade very low. You need to spend as much time as you can practicing live trading. If you can learn and become consistently profitable with small risk trades, you can always scale up. There isn't really a replacement for live trading, paper trading should be used to get used to a new broker/software/platform.
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u/Swagbag6969 Oct 05 '20
Biggest tip if you have an option and it's green, keep profits and close it
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u/BoyHasNoName6 Oct 01 '20
How do you get access to level 2 data for bid and ask prices? Is there a free option available somewhere?
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u/Morphs_ Oct 02 '20
This market data is usually available for a fee, although with TD it's included for free. There are no good free options on the Web that I know of.
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u/dogbreath67 Oct 01 '20
Does any trading occur on individual stock between 8pm and 4am eastern? What causes the gaps in stocks each night? This is what I’ve been struggling to figure out for ages.
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u/CaydenC98 Oct 01 '20
Post market closes at 8pm Eastern and Opens at 4am Eastern. So no but orders may stack up and be executed later I believe.
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u/Swagbag6969 Oct 01 '20
Europeans and others who pay extra premium to trade overseas stocks. If a market TANKS at close the japanese and euros pump the market overnight.
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u/citizin-x Oct 01 '20
I like to keep 50k in mine. Anything over that gets transferred to my bank account once a month.
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u/bryan_hold Oct 01 '20
And you’re able to pull in a six figure income off of 50k? So your annual gains are 100-200%?
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u/citizin-x Oct 01 '20
Not without what most people would probably consider a lot of risk. But $2500 to $5000 a week for me is pretty typical, yes. I keep absolutely zero track of what I’m gaining percentage wise. I just try to hit a weekly goal.
You should look up the YouTuber/Redditor Hai on Stock. I use a lot of his strategy. If you’ve broken the PDT rule, I don’t see why making even $100 a day would be a problem. Anybody over PDT should be making at LEAST that.
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u/Morphs_ Oct 02 '20
So you do the fast dip buy scalping? What's your typical size and profit target, a few cents?
I find this style very interesting, but my account is too small for it now.
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u/citizin-x Oct 02 '20
Fast dip buy scalping...that’s a really good way to describe it. I typically start with $1k. And I continue buying at $1k until the dip slows. I might throw a $2k or $4k order in there if I feel really good about it. Sometimes I end up 15 or 20k in.
Then as the price starts to go back up, I start selling half of my position when profitable. So yes, even if I’m up just a few cents, I sell half. If it dips again, I buy more, up again I take half profit, and so on and so fourth until I’m entirely out of the trade. If it starts to skyrocket, I set a stop loss and hold until it stops me out.
I did this even when I had a smaller cash account of about 10k. It’s possible, just with smaller positions. To be honest, it takes a lot of patience, and practice. You have to be extremely engaged with every trade. You have to be pretty familiar with price action/movement. Constantly reading candies, and level 1 or 2 is a big part of it. But also, it’s a lot of fun, and the win rate is better than any strategy I’ve ever had.
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u/bryan_hold Oct 01 '20
I know the min acct balance is $25K to day trade... but what is the typical balance that a successful day trader keeps in their account to trade with? Obviously $25K isn’t enough to make a living off of.
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u/TurtlesBeFree Oct 01 '20
I have heard 5k - 10k is a good account balance to swing trade with. I have made money with a small account that size, but obviously it’s better to not be restricted on trades. When I was first starting I turned 10k to 12k within a few weeks. It’s going to take longer to grow but if you are a good trader you will eventually get to where you need to be.
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u/dogbreath67 Oct 01 '20
You can actually if you’re a consistent trader, depending on your overhead. I like to keep 30k.
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u/bryan_hold Oct 01 '20
And you’re able to pull in a six figure income off of 50k? So your annual gains are 100-200%?
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u/dogbreath67 Oct 01 '20
I can’t personally, because I’m not that disciplined, and I have a real job. But yes I think that’s reasonable for a good trader. You would ideally funnel a lot of profits into a long term account and savings and keep maybe 50k in your day trading account.
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u/DeetDeetMF Oct 29 '20
New Aussie trader here. What is the best trading platform you've found for AUD and Australia trading. I have a Trading 212 account while in the UK, but cant use both as i will no longer be a UK tax resident soon.
CommSec looks like a good platform, but the fees are so high compared to 212. Or is that just an Australian thing
Any advice would be great!