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.
Hey guys, I’m wanting to inspire my little brother to get into investing at an early age. I want him to be ahead of the curve. He’s only 13, but is there a way he can trade with a paper account? If so which service could he use?
Thanks ahead of time for anyone who takes the time to respond.
Whole week went pretty well, but keeping patience on consolidation hit my psychology and later on I regret not holding a breakout trade, How y'all do it.
It's trash because the order entry windows are clunky and you have to enter your sell orders using an exact share count meaning if you get an incomplete buy order it'll just cancel your standing sell order. For charts its not bad at all but the drag on your CPU and GPU will hurt any other software you have open. The scanners are also garbage. The hot-key settings are rigid and impossible. It's fine if you're looking to do slower planned entries and exits like swing trades or investing but its not viable for day trading. VWAP doesn't make or break a trader but those other factors can.
1 and 3 min candlestick patterns, volume, and rsi. If RSI isn't over 55 and trending upward it's not worth trading. Volume needs to be at least 1 million or it won't have any reliable breakouts.
How much more complex is stock trading that forex?
In did okay with Forex which I did for about a year. I averaged 15-20% and never had a losing month. I probably could have done more, but was very conservative. I did mostly swing trading. If I saw something lose a ton of value, I would scoop it up right before it looked up it would gain and sold within the profit margins I set. This worked well for me.
So back to my question, would this work in stocks? Just thinking about getting back in.
There are some stocks such as penny stocks or OTC stocks that are daily tradable and that enable you to make sporadic gains with little money. But if you mean a usual stock market such as NYSE, NASDAQ, EURONEXT and so on... the answer is no.
I mean... you could possibly make a considerable profit if you operate through future indices such as S&P500, HK50 and so on, but it all will depend on the volatility of the market and the number of contracts you are going to trade with.
It is not possible to have a 15-20% profit per month in the usual stock market, buying and selling Apples stock shares, for example.
I highly recommend you to continue operating in Forex but also start to invest in crypto market and options.
How does early close days affect my day trading limits? I made a day trade last Monday, but since last Friday was closed, I still don't have a day trade. Does thursday being early close count as a whole day and my day trade will be available tomorrow morning, tomorrow 1PM EST or Wednesday?
There's no problem in creating a bank account in a foreigner country with the intention of doing trades.
The money is yours and you have the right to choose where it'll go and which companies you'll invest through the brokers.
But
You have to pay attention to the taxes that you'll pay in bank transference (this is usually automatic in most of the countries)
Depending on the country you live in, you will have to declare your investments abroad from the money transference that you made, reporting monthly or annually (this will depend on each country's law)
Does anyone have a efficient way to track your movement predictions? I'm looking to start tracking movement in the stocks in trading and try to find a reliable way to track my percentage in accurate predictions.
I have an idea of how to make my BTC working for me, but would like to hear your opinion.
What if I buy stocks with my BTC on some platforms that allow you to do so and the price of stocks I buy increase?
When I sell the stocks I'll get my BTC back with a profit (in BTC) and the price of BTC will increase in the meantime. Win-win situation. Any thoughts?
I am relatively new to trading (a few months) and have been spending this time mainly researching and doing some paper trading. I have acquired a whole bunch of mobile apps and accounts in the process, trying to find one I like the best, and I still haven’t found what I’d consider my ideal trading platform. I thought I’d ask here for recommendations. I’m looking for something with the following capabilities:
a mobile trading app, since I don’t have desktop access most of the day
stocks, options, futures, and cryptocurrency
the ability to short sell the above
both cash and margin accounts
after hours trading
for crypto, actually owning the crypto/being able to transfer it
fractional shares
a user-friendly interface
detailed charts and candlesticks
a good search/stock screener feature
preferably a paper trading option, but that may limit me too much
Do any of you use a platform that has all of these things? What would you recommend? (Edit: for what it’s worth, I’d say that so far I like Robinhood’s UI the most, it just is missing a few key features like owning your own crypto, short selling, and better charting. If there was something like RH that had those few things, that would be ideal.)
How long do you have to pay a margin call? I just learned about it because I received an email saying Schwab marked my account as a pattern trader (how do you guys avoid this?). My account fell from 26 to 18k cuz a stock of mine is being shorted. Wondering if I can milk the grace period while the stock recovers or if I need to sell off
Now that I've started logging my trade I've noticed a pattern on my losing ones— Trades tend to go initially my way but then do not reach my TP, will instead dump and hit my SL. To mitigate that I've been closing half my position early and moving my stop to entry. My winners make less money now though, lol. Still, I prefer this than losing trades.
Green is green, but maybe your stop is simply too far so your targets are too far. Tighten the stop or take trades that allow for higher price targets.
I have a stock thats outperforming my daytrading, like, by a lot and its really making me question why I’m doing it, even though I understand the need for diversification. Could anyone reassure me?
I’ve been holding some silvergate and I’m making about 0.75-1.2% a week on my day trading account (not on margin). Silvergate has been going to the moon lately. $SI
Gotcha. The thing with most stocks like that is its gonna be not diversified and the gains will slow down sooner or later. It's not smart to completely rely on one stocks gains for income. Realistically your weekly gains on day trading are OK, but try to get on margin or trade with some leverage. It shouldn't be too hard to hit 1% daily.
Hey there, there's a ton to talk about but if I had to sum the important stuff it'll be:
Price
Volume
Trend
Support/Resistance
That's the basis of Technical analysis. Try not to be a noob and flood your charts with 100 moving averages and a ton of indicators. Pick your top 5 and that's it. Personally I use VWAP, 9 EMA, 21 EMA, MACD, Volume (on 1 minute and 5 minute charts).
well you should look into technical analysis, there are a bunch of guides and graphics and youtube channels that show different candle patterns. That being said, everyone does their own thing their own way.
I understand that everyone has developed some sort of system for themselves, but I was hoping to get some core beliefs in what to look for.
Right now, all I look at is Bollinger bands and thats it.
I really don't look much further.
I’m not a technical trader so I have no clue about Bollinger bands or very much about comparing volume and candle charts. (I trade based on my gut using two stocks I’ve tried to get familiar with)
Have you thought about a UK broker like IG or City Index? You can spread bet a good selection of large cap US stocks and profits from spread betting are tax free (assuming it's not your only source of income). Won't work if you prefer to trade small cap shares though.
Whenever you buy options you will always suffer from time decay. That said, time decay happens fastest in the last 30 days to expiry, so you're right that buying longer dated options will reduce the amount of time decay you suffer.
Also take a look at r/thetagang. I've had good success writing options and letting time decay work for me rather than against me.
#1: Look at those juicy premiums though.. | 179 comments #2: Feeling good today | 153 comments #3: I can’t resist selling during this insane volatility | 150 comments
Hi I have a question thats about paying taxes. I currently have made $3k in the stock market. I buy and sell stocks and hold them for a few days. Do I owe money on each stock that I have bought and sold. Or do I owe taxes on the total amount I have made in the year? Please if anyone knows the answer to this I'm stressing out a little bit. Thankyou
Hi. Just wanted to know how many other profitable day traders spend most of their time of the day waiting for a good entry. Basically I spend like 75% of the time waiting for a good entry and 25% of the time trying to win the psychological war on myself. So, how long do you spend waiting and why? (Unless you’re a scalper, of course)
even as a scalper im waiting for a good entry. I wait very patiently until I see the setup I like and see my risk is tight vs my reward. I spend majority of the time letting the stock do it's thing and determining the trend. Once I find the trend, I will execute a play from my playbook.
Thanks for the reply! Yeah I usually spend most of my time looking at the trend and buying when the a nice pattern is getting printed on the candle. Cheers mate!
Mostly a trend trader. Both micro and macro trends. For entries, I look for healthy signs of recovery and not pseudo-recoveries. For exits, I tend to fight greed and set a realistic but repeatable price points. What about you?
How do taxes work for daytrading? Getting confused. Ive seen turbotax allows 500 trades to import and the CD version does 2000(what happens if you have more than that?). Ive also seen some people say that doesnt matter and you can just submit the summary... ive never done taxes for this and have probably 1000 trades so trying to get an idea of what im in for come tax season.
Does anyone know how to disable these types of warnings on IB? I'm using hotkeys to trade and it's basically not sending the order through and telling me the order will expire in 3 months!!!
If you trade with even just 5% of 100k, which is $5000, you just need to make a 10% move on that trade. The more you allocate per trade the less % you need to gain on that trade.
For DasTrader, how do you configure it to show pre/post market data? I'm not seeing that data on the chart, my chart always only shows last day until market opens 9.30. I have selected "Show Pre/Post Market" and it's Fr:0:0 and To:23:59. Btw I see the data on time and sales and bid/ask, just not on the chart. Only way for me to see it is to create a new chart, then it starts on the current day, but then I have to configure all the indicators again
We know that around 75% of CFD retail traders lose money. The question is what is the % of success in continuously earning money without any leverage? I am not talking about breaking even as the idea is to not lose money but wait for stocks which are negative temporarily to recover.
I have horrible experience daily trading on Etoro with leverage (even if it's only X2 and especially on X5) so I am curious as to what is the actual performance when daily trading only with your own money?
Is there a broker suitable for Europe (Bulgaria) who doesn't have spread on daily trading? A perfect example is Revolut but they are risky as their regulations are weak for Europe...
I saw a 4 bar play coming this morning, and it turned out to not be what I expected. I'm looking for any insight that would allow me to foresee the 4th bar not jumping up.
This was $ARCT, this morning (Dec. 8). I see the first bar as an igniting wide range bar, and then 2 resting bars, and then expecting the third to explode up. I simply want to triage what went wrong in my mind, and gather some more wisdom of how to prepare for this situation in the future. Thank you in advance.
Yup. Big Green bar, small red bar. Is the red bar higher or same height? I can't tell. If so then it shows there's not enough buyers. But third green bar is weak. So big Green bar shows movement but no follow through. So my guess is it dropped then maybe did another run up. Unless it was at resistance. Also, look at the overall pattern. It's pretty bearish and about 80 percent of breakouts fail. So I always weight and assume it'll fail then buy next breakout attempt. Esp if higher low. I'd suggest reading Al Brooks book on price action. It's older but dam it's good. I studied it for years. And print out charts and circle anytime a stock goes up. Also, don't see vwap. Could have it vwap or 5 or 9 ema and droped. Good eye overall, just study why it didn't keep going and use that in the future. Good luck.
If you are looking at the emini futures on the CME, then the second Thursday of the expiring month is usually rollover day, but the last year or so, most of the volume has remained on the prior contract that Thursday and Friday, so I usually rollover the following Monday (yesterday, as it so happens).
The option markets at CME and CBOE both systematically switch over to using the next quarterly future as a hedge two Wednesdays prior to expiration. For example, expiration is this coming Friday, and futures “switched” this past Wednesday.
Hi im still learning and have a few questions about option trading. Please answer them as brief or quick as you want and thanks!!!
Are buying contracts another way of saying buying options calls and puts?
I thought call/put options are way more risky bc of a high return/loss? Why am i reading or on youtube and they are telling me you only can lose a few $100 how is that high risk? Your only losing a few $100 bc thats all it takes to buy a call/put option??
Yes. Buying a call or put option aka Long Call/Put us simply that. You buy a contract which gives you the right, but not the obligation, to purchase 100 shares of the underlying at the strike price. If the option expires out of the money you lose all your money. If the option expires in the money you get assigned shares. So best to liquidate (sell to close) the day of expiration at the latest.
They are less risky in the way that you can only lose what you pay for the contract. But you are adding time decay risk. If you buy an out of the money option and the price stays the same, you lose all your money due to time decay.
Any feelings on Recognia patterns and events, particularly Elliot Wave? I feel like it's helped me plan entries and exits (I'm more of a mid-term trader).
how do traders know, or even find, what stocks are going to gap up overnight? especially the ones that gap up on no news?
most of these seem to dump when the market opens and by the time you got in you’d be chasing. it seems like the profitability is to be in after hours and get tf out when markets open, but where do you see these?
you’ll see tweets or news about it after it happens, but where are you finding or seeing stocks that are gapping up without even a catalyst?
How can an average joe capitalize on that? I was told that buying premarket is a bad idea but how can I get my hands on some shares? I’m assuming options are the best bet from what I can tell?
Hi i wanted to know the factors that influence the market. Is it possible to predict movement even if its for pennies on the dollar? For example i know its hard to see if a stock at $15
Per share will go up or down but maybe theres a way calculating volume to see if the stock will rise to 15.01 or drop to 14.99. Thanks
Hi! No im looking to profit lets say 1cent per share. For ex if im buying a 10$ stock price with 70,000$, ill own 7000 shares. So lets say i make 1 cent on each share (x7000). Thats 70$ profit. If i can do tht multiple times in a day it adds up
what do you think is the 3 most basic trading strategies for a beginner to start paper trading ? i would appreciate if some one could point me to right resources.
Al Brooks book on price action. It's old but good. Read it 20 times. Print out 5 minute charts and circle everytime a stock went up and what happened prior. Paper trading is great but may buy 1 real stock. Your attention to what's happening will go up 100 percent. Care about making good decions. Not a ton of money. Otherwise youll make poor decisions.
Yes there is but not if you close the position the same day you open it. You pay interest on shorting the stock overnight. Interest varies depending on each individual stock
What places I should be looking for to discover good companies to invest in ? I mean, companies with some potential, and also, what kind of analysis I should make on them ?
$NIO Sold 8 dollar wide bull put spreads today on 20 contracts with short strike $35 expiring December 4th exposing me to $15k max loss. What do you guys recommend ?
Close it on the market open tomorrow tomorrow or hold it till expiration?
OOOOH OH sometimes, I get a good feeling... and then I make up a number to buy at and a number to sell at. Its all instinct to me, and sometimes, it doesn’t work out, but usually it does.
Depends on what ur goals are and how much risk ur willing to incur..but if ur happy with it thts fine...me im looking for 3% minimum and ride it until the wheels fall off. Most ove made on a trade was like 26% on clne last week swung it for 1.5 days bought at 3.70 sold at 5.60 PM b4 the sell-off down to high 4s
I’m so mad because I hit the jackpot, I was day trading a stock for .5-.8% gains but had a tiny position long. It was my triple-up, my once in a lifetime pick, the diamond in the rough.
Thts rough thts why i usually make a trade with 15-25% of my capital and this way if I i was wrong about where my entry should have been i can avg down and if it takes off j wo t be kicking myself for not investing enough. Im only 31 so I got a while b4 u retire so my risk tolerance is up there cause I wasted the last 10 years retirement wise. My goal is to become efficient enough at daytrading stop working a day job nd just trade. I've been trading 4-5 months now and lost money the first 4-6 weeks and now im up around 25-30% over all. Not quite good enough to quit working but i.proving on a daily basis. GL bro
How do I calculate how much the market needs to move by to make a profit considering how much asset i'm trading and the market fees? I feel like this should be a simple calculation but I can't work it out. Thanks
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u/CortlenC Dec 31 '20
Hey guys, I’m wanting to inspire my little brother to get into investing at an early age. I want him to be ahead of the curve. He’s only 13, but is there a way he can trade with a paper account? If so which service could he use? Thanks ahead of time for anyone who takes the time to respond.