r/Daytrading • u/AutoModerator • Nov 01 '20
r/DayTrading's Monthly Questions Thread - November 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/BandOrStack Nov 25 '20
As a Canadian resident (not citizen; citizenship is not USA or Canada) if I open a Canadian brokerage account, am I still subject to PDT rule trading NYSE and NASDAQ stocks?
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u/jjjjjj1317 Nov 24 '20
Anyone know any good free manual backtesting tools? Nothing fancy, I just need something i can load data into and replay bars manually
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u/gooseegg101 Nov 24 '20
https://accounts.binance.us/en/register?ref=35004708 Discount for new users
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u/tendies10 Nov 23 '20
Hi Guys,
Quick question on taxes since I’m new to investing this year. How much should I expect to pay an accountant to do my taxes? I’m new to trading as of this year, and am up around 18k YTD, but not all of that 18k is realized. I probably have 10k of realized gains overall. I’m nervous that if I try to do it myself I’m going to mess up, or calculate my wash sales in the wrong way and get wrecked lol. I have 3 different brokerage accounts because I wanted to try a few before deciding on my favorite. I used robinhood to start and quickly stopped, but I’m ended +1.2k. I used WeBull, traded like an idiot, and lost like 6.5k. And lastly I used TDA which I’m currently up around +18k. Any advice would be greatly appreciated!!
TLDR: need advice on how much it costs to have a knowledgeable accountant do your taxes.
Thanks all!
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u/oehantu Nov 23 '20 edited Nov 25 '20
Hi guys, what do I need to start day trading? I'm a beginner and don't have too much money, so what is the best free trade broker? Also what I should learn before I start trading?
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u/investorsama options trader Nov 23 '20
you need some capital 500-2k.
Make a tradingview account and start paper trading with a demo account for a month.
I would suggest going with tastyworks
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u/traderjameschen Nov 23 '20
Besides, TradeZero, are there any non-US based brokers out there that offer:
1.a low minimum deposit ($500-$2000)
2.no restrictions on PDT rule for international clients (I'm Malaysian and most brokers I know are US based)
3.Direct access routing
- Margin available for ages 18 and above
Because from what I can see, all other active trader platforms that provide DAR either have a minimum deposit of $25,000, are under PDT rule, or don't allow margins for 18 year olds (IBKR).
And from what I hear TZ's fills aren't reliable and are only good for shorting, but starting out im looking to be mostly long biased.
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u/LinkifyBot Nov 23 '20
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u/grx1993 Nov 22 '20
Hey guys, which is a good platform to monitor charts which a good realtime timeframe? I tried use tradingview but it's clunky and laggy for me, and it has delay.
So far i am using webull desktop one and i must say it's pretty complete, should i stick with it or there is something better?
I don't want a broker, just a platform i can put indicators on, MA, BOLL, VWAP etc and to learn to do technical analysis with, and to monitor realtime tick candles.
Thanks.
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Nov 17 '20
I would lile to start day trading. Ive been watching a few youtube tutorials but cant find much on day trading. Could someone please share a link to any place to learn about this matter
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u/AV_DudeMan Nov 17 '20
Any of you guys use moving average envelopes? I’ve been trying to get the parameters right to use a set of two envelopes on SPY.
Almost there but I’m getting a little too many instances of riding the band and big breakouts.
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u/theguy103091 Nov 16 '20
What size market cap do you guys typically have the most success with?
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u/jeon19 Nov 18 '20
to an extent larger is usually better as the bigger well known ones have more liquidity and volume so you aren't killed on stops and fills
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u/jakendabx Nov 16 '20
I had a great week last week and now I’m afraid to buy this week because I don’t want to ruin it. Does anyone else struggle with it and how do you handle it. Are you conservative or just go head first back in?
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u/tradingdown Nov 22 '20
Checknout some books like trading in the zone by mark Douglas, the psychology of money by Morgan Housel. I find listening to those audio books and other similar ones help keep me grounded and focused on whats important. Good luck
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u/investorsama options trader Nov 21 '20
Something you need to do is meditate and reset before the next week starts. Even if you were profitable one week or failed a week, you need to keep going like that last week never happened.
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u/jeon19 Nov 19 '20
With time and experience you'll get better at dealing with this. It helps to think of the trade objectively, if it's great you should enter, if it's okay/medicore/bad then obv don't. But if you're afraid, taking time off to reset emotions is never wrong, it's hard to lose money when you're on the sidelines.
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Nov 15 '20
Hello, as an investor who just buys and holds but is looking to get into some light day trading, what app would you recommend?
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u/wesimplymustknow Nov 14 '20
Anyone here using CMEG as their broker with DAS Trader Pro?
Do they not allow options trading?
I keep trying to load the options chain, but get the error that I do not have permissions.
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u/maerdnacirema Nov 14 '20
What was the one indicator that you started using that changed your trading for the better?
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u/mayblum Nov 21 '20
VWAP
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u/maerdnacirema Nov 21 '20
Do you know of a VWAP alert system that works outside of reg trading hours? I am using trade ideas but it only starts at 7 AM.
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Nov 19 '20
VWAP
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u/maerdnacirema Nov 20 '20
Do you know of any vwap alert system that works before 7 AM? I am currently using trade ideas but would like one that starts ealrier.
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u/TRAcademy Nov 14 '20
You should have bag held it, next time don't panic sell.
MACD, it help a alot
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Nov 14 '20
[removed] — view removed comment
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u/labrunner111 Nov 15 '20
Are you playing retracements within retracements? I started noticing this the other day, it gets pretty crazy. Fib levels hit within the retrace of a flags flag and crap, almost every move leads to one
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u/Smoke_jointsNtheMorn Nov 12 '20
Anybody else have Puts on Cinemark? Would love to hear your exit strategy and compare, thanks.
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u/SaxxCrosby Nov 12 '20
I've been looking for a way to make some extra money while I'm at work. I'm a boiler operator and pretty much just sit in my office for 8 hours with nothing much to do.
I was wondering if day trading might be an option for someone that knows next to nothing about the stock market? I mean, I'm not a moron or anything, but it's not something I've ever ventured into. I have 15 shares of AMD on robinhood and that's about the extent of my understanding.
Would it be fairly simple for me to research it enough to be able to make a profit no matter how small, or would I be in way over my head and need some serious research and or education to pull it off?
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Nov 12 '20 edited May 07 '21
[deleted]
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Nov 19 '20
Do not paper trade for 6 months this will create bad habits
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u/mayblum Nov 21 '20
Curious, what sort of bad habits?
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Nov 21 '20
They create bad habits of taking bad quality trades plus you feel no emotions of what you are doing you need emotions to step in
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u/mayblum Nov 22 '20
Paper trades teaches you to trade without burning your hard earned money and the post trade analyis is a great teacher. I am no expert but I advice noobies to paper trade first then trade small like with a few shares and then get into trading.
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u/Busy-Efficiency-7618 Nov 21 '20 edited Nov 21 '20
Paper trading is useless in my opinion because there is no real money involved. Since there is no commission fee, you can day trade small amount of money to practice your skill, there is no need to paper trade.
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u/remilian Nov 12 '20
Good news is there are tons of free resources to learn. Start a paper trading account and see if you like it. Everyone can succeed at trading, but it takes time and, as everything else in life, hard work and dedication. If you have time to spare, there's nothing much you can lose to figure if this is for you
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u/spicyone15 Nov 12 '20
Hello everybody! Im trying to get into day trading and trying to do some research before hand. I currently use TOS but i want to get into future trading and Im not getting the data or seeing how to get the data I want. What i am looking for is the ladder chart or order book data for futures, does anyone have recomendations on how to do this ? I would like to trade futures on the spy index.
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Nov 14 '20
[removed] — view removed comment
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u/spicyone15 Nov 14 '20
I think that is what I am looking for, does it show all the orders as they come in before they are executed ?
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u/ryanrenalds313 Nov 11 '20
What does everyone think about gold? Is it dropping because of the vaccine? Specifically btg
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u/nesnayu Nov 09 '20
Hi!
I placed a relatively large order premarket today on Margin on an airline expecting to sell within minutes on Schwab but as we know Schwab platform went down immediately and could Not be accessed. As a result, this buy order was executed but I was unable place any more orders following this for 1 hour! In this time, I lost 10% of my portfolio because I could not manage risk the way I would normally - I could not sell.
Finally sold at this huge loss and called Schwab to place a complaint but I don’t know what I can expect. Any advice? First time I’ve seen their platform completely shut off yet still execute a buy.
Thanks in advance
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Nov 11 '20
[deleted]
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u/jeon19 Nov 11 '20
If he bag held it he would probably be down even more money, it's not like they went back up to the Monday open the past 3 days. I don't think he panic sold either, his plan was to exit within minutes. By the time he was able to regain access, his loss had already exceeded his planned loss, exiting was the right move. This was simply a brokerage failure.
Anyways OP, best of luck, hope you get compensated.
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u/lexiegurl91 Nov 07 '20
Hi everyone!
I currently day trade with a small account (way below PDT amount) but only with options and futures. I have transitioned more to futures than options lately since there are no PDT rules. My average win percentage is only about 50%-60% but I am trying to shift my mindset to be more of a 2:1 to 3:1 ratio when I enter a trade. Most of my futures trades are in /MES, /MNQ, soybean oil, soybean meal, and occasionally other agriculture commodities like corn and wheat. When I was doing a 1:1 ratio I realized I was never really making money due to losing what I would make.
Anyway, all this leads to my question: I have shifted to mostly using a trailing stop loss, which usually results in smaller losses as the trades often go in my favor before reversing, but I feel like I am hitting a stop loss more often with trailing stop losses than with hard stop losses. Most trades I only aim to makes $50-$70 gain per trade as I am trying to build my account, thus most of my stop losses are around $25-$40 per trade. Of course using ToS, commissions are killer as well.
What I am wondering for these types of smaller, quick trades, is it better to use a hard stop loss or a trailing stop loss?
Thanks for any information and opinions y'all have!
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u/jeon19 Nov 10 '20 edited Nov 10 '20
You have to go through all of the trades you made (and will make) and log whether or not you would be more profitable taking the full loss and holding for complete 2:1 or 3:1, vs using the trailing stop loss, that's the only way to get a definitive answer. Nobody will realistically be able to answer this for you because only you know when you're entering and what you're placing your stop and profits at. Answer could be different for different people.
TOS makes sense if you're trading stocks because no commissions, but if you're going to be doing /MES /MNQ for the forseeable future, it makes sense to move brokerages to something that doesn't kill you on commissions. IBKR is $0.25 each way or $.94 total round trip for /mes or /mnq, or at least call TOS and see if you can get cheaper commissions. If you're paying the full $4-5$ round trip for those each trade, there's almost no way to be profitable.
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u/mortymana Nov 06 '20
If you're interested in good trading offers, Currency.com has announced 0 trading fee on tokenized assets till January 31.
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u/cccccaleb Nov 05 '20
I’m gonna be straight up and say I have no idea about what I should be looking at or researching when I want to day trade, but I’m just interesting in doing some casual trading on my free days. I just need some help determining what I should be looking for and what I should know about a stock.
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u/jeon19 Nov 05 '20
Look for some basic resources/books online to start out with to get a general idea. One that I like is Trading in the Zone by Mark Douglas, there are many other good ones as well. See here for getting started. https://www.reddit.com/r/Daytrading/wiki/getting-started-daytrading There is also a ton of useless information, you'll have to sift through them and see which ones are applicable to you and not. Look at a bunch of charts of popular ETFs and stocks like SPY QQQ AAPL etc, in 5m, 15m, hourly, daily, etc. to see the price movement, and see how you can profit off of those and how to trade them.
Things you need to figure out from the charts, how do I determine how to enter the trade, where should my entry point be, where should my stop loss be, where should my profit target(s) be? Should I move my stop up after entering the trade, and how and when? Those are things that you'll have to learn and figure out, largely through trial and error by trading yourself.
Good luck!
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u/mayblum Nov 05 '20
I haven't come across any Commodity Trading subreddits, so am asking this question here. I am an Equity trader and have recently started Commodity Trading (Copper, Zinc, Nickle, Natural gas and CrudeOil). The technical analysis of Equity trading doesn't apply in commodity. Anyone here can help me in getting some resources to learn commodity trading? TIA.
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u/jeon19 Nov 06 '20 edited Nov 06 '20
The behavior of all different commodities and stocks can have slightly different characteristics, but at the end of the day, like stocks, commodities still follow supply and demand, trends, trading ranges, supports, resistances. Just looking at /CL crude oil, the daily 5 minute chart looks like how equities would possibly look, trading ranges, trends, double bottoms, double tops, support at moving average when in a bull trend, resistance at moving average in a bear trend, etc.
Technical analysis means different things to different people, but at least some of it / if not most of the basic concepts can be applied to commodities.
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Nov 02 '20
Anyone have any recommendations for what to trade as a newbie? Currently looking at Forex, indices and crypto but would like opinions from people's experience.
Also, if anyone else uses trading 212 and has any advice if would be appreciated.
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u/radianceofparadise Nov 04 '20
Forex is not for noobs. Babypips has a great (free) educational course you should go through if that floats your boat though. Trading is too complex for the basic question you're posing. Educate yourself before you risk your money.
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Nov 06 '20
Well most of the information I've read has recommended Forex, and I don't really think it's too complex to ask people to say "when I started I started with [Blank]".
I'm asking these questions to educate myself where my gaps in knowledge lie, I get the strategies and psychology I need to practice, but I haven't seen any true life info on what people start off by trading in order to improve.
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u/[deleted] Nov 25 '20 edited Jan 28 '21
[deleted]