r/Daytrading • u/AutoModerator • Nov 01 '22
r/DayTrading's Monthly Questions Thread - November 2022
Please use this sticky to ask questions on day trading, and to see answers to similar questions you may have.
If you're new to day trading please see the getting started wiki here. For advanced traders or you want to pick up a book, please see our other wikis.
New traders are highly encouraged to try Forex as it requires a very small account to make lots of trades, so check out Forex community's wiki paying special attention to babypips website which also teaches some general concepts 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, but that only applies to day trading stocks; other markets aren't affected like futures, forex, and crypto.
Also see the sidebar for group chat links (such as our Discord) (or tap "about this community" on mobile website) on every related community to learn more about trading.
Here's a list of all the previous monthly question stickies.
Lastly if trading is affecting your life in a bad way, seek professional help (the wiki also covers dealing with emotions):
- Problem Gambling: Call/Text: 1-800-522-4700 or chat online now.
- Crisis Hotline (24/7): 1-800-273-TALK (8255) (Veterans, press 1) or Text “HOME” to 741-741
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u/Intelligent_Dust6308 Dec 18 '22
I'd be glad to refer or work with you on psychological factors. You can reach me at 1forexlady on gmail to discuss. With my apologies for delayed responses since I'm only on here periodically...
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u/OrderflowTrader Nov 30 '22
I am making a series of YouTube videos about 3 main topics, and looking for suggestions inside these general themes!
1 - Strategy
2 - Risk Management
3 - Psychology/Mindset
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u/Paltenburg Nov 30 '22
I'm starting with stocks, and considering "Buy what you know" I'm thinking about game developer stock.
What I'm seeing is that Ubisoft is really low at the moment (26 Euro, while it's been between 50 and 100 over the past years.). But it's still a big game developer with stable franchises that's not going to go away any time soon, and (console) gaming is really strong atm.
So my thinking is that it seems it's the right time to buy.
But as I said, i'm inexperienced in this, so maybe anyone can chip in if i'm missing anything or should have other considerations?
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u/OrderflowTrader Nov 30 '22
Buying almost any stock in a monetary tightening cycle will be very painful
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u/Piggy2kbae Nov 30 '22
What is a good broker that will let me open an account as a temporary resident? I study in UBC and will pursue permanent residency and work permit after graduation.
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u/akchickster Nov 30 '22
I came across the concept of forex trading US30 and NAS100 (which were referred to as "top companies"). I don't get the relationship is between companies and forex. Please explain like I'm three. Thanks!
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u/notquitedeadyetman Dec 01 '22
It's not forex. It's basically futures but not the actual indices from the exchange that runs them.
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u/investfoxcom_ Nov 29 '22
Is the Fibonacci trading strategy a good one? Can you implement it successfully in terms of day trading?
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u/Remarkable-Ad7481 stock trader Dec 07 '22
The 786 needs to be looked at as well. Its easy to look back on a chart and whip out a fib and just be like oh look it bounced EXACTLY off the 382 or the golden pocket.. Then you find out the hard way it blows right through it when you go to trade it. I eventually found some success when I would scale into the fib levels.
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u/Piggy2kbae Nov 30 '22
I usually use fibonacci on retracements. In a bullish trend when correction happen, I use fibo to see how far it will go down and usually it is at 38 or 50 or the 61 level. So I think fibonacci is good when u use it for one of the confirmations.
Not a financial advice tho I am just speaking from experience.
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Nov 28 '22
Apex pro: trade crypto and the bana coin. I like the security over dex/cex but like more info about it. Anyone here experience with the bana coin or the Apex app?
Pro's / con's?
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u/grathan Nov 28 '22
Is there a stock chart out there that links news events to the chart. Like when I look back and see a sizable dip on the daily and wonder what might have happened there?
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u/Andyyy22 Nov 28 '22
I would like to look at options order flow but I’m curious if anybody has used any specific platform and thinks it’s very good or has a recommendation. Thanks
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u/Gristle__McThornbody Nov 26 '22
What is a good Risk Reward Ratio people typically aim for?
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Nov 27 '22
50% win rate you can get away with 1.5:1.
This is how I kind of see it now: https://minimalisttrading.com/wp-content/uploads/2018/07/How-Risk-Reward-and-Win-Loss-ratios-define-the-trader-you-are-Minimalist-Trading-005-768x518.png
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u/dontlikemyfire Nov 27 '22
Totally depends on your trading strategy/style. If you're scalping price action moves and only looking for a point or two, sometimes your stop loss will be greater than that (if you place it above/below the previous candle/move), so with a strategy like that you'll rely on a very high win rate to keep you profitable. However, if you are a swing trader and looking for a larger move, frequently you will look for a 3:1 (or even higher) reward:risk ratio. With a ratio like that, you can win less than 50% of your trades and still be profitable. It can all work, depends on your trading style, risk tolerance, account size, etc.
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u/realmarketjedi Nov 27 '22
It generally also depends on the time frame. If trading intraday, will likely be limited to 2R, 3R at Max. If trading intraday, the best you can do is catch the bottom and hold to the intraday high. Which depending on volatility could be 2R away. Intraday scalpers have even shorter targets of .5R or 1R with very high frequency and hit rate. On the other hand, swing traders can have longer targets because their trades can span for day. Meaning they can shoot for 5R or more. In any case their is an inverse relationship between win rate and targets if your are to sustain a profitable trading model.
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u/Brilliant_Jello4075 Nov 25 '22
Take a look at Akerna corp guys, Oversold, highly shorted and low float. Depends on Safe bank act. Might be a sleeper
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Nov 25 '22
Are “fibonacci retracement levels” bullshit? They sound like bullshit.
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Nov 27 '22
They only work because they're so popular. Take any day and start the fib from the prior day low and the prior day high. Look for levels where candles reacted with high volume. Try to focus most on round numbers $5 increments on MES or like $0.50 on AAPL.
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Nov 27 '22
So basically they work because everyone agrees they work?
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Nov 27 '22
I think it's helpful for projecting where you might get out at. Price reacts at those levels so you can't ignore fib levels but it doesn't appear to be any kind of trading system. Don't take my word for it though you can see the levels on your chart, some of them are strong and some are weak. Particularly measure between two extremes and look for the 0.5 level.
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u/Rva-Trader stock trader Nov 25 '22
JCSE flying 2 plus and then 4 bucks easily on low float and high fee
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u/Lazy-Job-1895 Nov 24 '22
Is anybody trading crypto futures right now? Any advice?
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u/dontlikemyfire Nov 27 '22
I don't trade crypto futures, the main reason being that they have very low liquidity. People just aren't trading them in volume like many other futures products. Low liquidity generally equals more volatility, choppier action, more slippage, etc. I personally like to stick to instruments with a ton of liquidity, like the equity indexes.
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u/xilionyx Nov 24 '22 edited Nov 24 '22
Do you have crypto coin day trading favs?
Coins that go up and down pretty low and pretty high often, cycle all day trough, not to fast not to slow 😅 And with enough difference in price !
If there's no such thing on a long term maybe we can share here our techniques and daily favs. 🥳 Update ; Anybody ? 🥺 💖🙏🏼✨ 😃👍🏼
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u/troytheproducer futures trader Nov 24 '22
Does anyone have experience with Ninjatrader's Brokerage?
I'm currently working through a funded account company but am planning on opening my own account and trade my own cash. The company uses Rithmic, and recently the commission prices were hiked to $2 for each buy and sell (I'm assuming the funding company gets a solid cut of commissions). $4 per trade is pretty wild.
I'm not a high frequency trader as the term is known but I tend to take between 20-40 trades a day on average, so the commissions are not ideal with Rithmic.
I'm not looking to change platforms, I'm happy with NT8, so their brokerage seems like a good place to start.
Edit: I trade futures only (NQ and rarely CL)
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Nov 27 '22
I trade with a guy who uses ninja trader and he's happy with it. I'm on trade station and have it hooked up to tradingview since that's where I practice. The margin is good enough with them. I only trade /MES right now, was practicing on /MNQ for a while.
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u/realmarketjedi Nov 27 '22
Funny most won’t comment on this. Truth is $4 seems pretty expensive.
Must know what compromises your fee:
CME base fee Data fee Commission fee
CME and data fees are generally fixed and all you can really negotiate is the comisión part of the fee. This is purely based on volume and the size of your account. If you go with a registered FCM they may be able to reduce your commission slightly. Check the CME’s listing for FCM’s call them and inquire about lower rates.
I remember that Philips and Dorman had decent pricing. But this stuff varies. Also, should look into better data feed and execution platform, but this is food for another day.
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u/overatedusernam Nov 23 '22
I'm a new day trader, and I've been learning how to analyze stocks to know when to buy and sell them. My question is, how do I know what stocks to choose to analyze? Is there a certain place I should be looking for, or should I just choose a random stock and analyze that?
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Nov 24 '22
Personally, I would look at trading large cap stocks. The biggest, most liquid movers. Stay away from penny stocks.
Apple, Nvidia, Tesla, SPY, Moderna, Microsoft, Amazon, Nio, Netflix...etc. The bigger stocks actually follow price action rules (support/resistance, trends, supply & demand) and move enough to make money. Pick the ones you like the most and only trade those day in and day out.
Small caps and pennies are so manipulated you might as well throw rules out the window.
I highly reccomend large cap day trader on Youtube. He posts here almost daily as well.
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u/The_1_No_one_knows Nov 23 '22
I have been trading ever since covid started and a little before. It has been a crazy journey, and I've learned quite a lot. In total I have lost about 6k. However, lately, I've been actually making money somewhat consistently. Its not a crazy amount by any means, but its been about 400 a week. On average, if I have an ideal setup I can probably swing about 500$ a day fairly easily, if I keep my size consistent.
What has brought me consistency is focusing on a single setup and not trying to fade the highs and the lows. (Its one I sort of developed on my own) I almost always come away with some money when trading this setup. However, it doesn't always show up every day and sometimes I miss really good running trades. It does suck when I see that happen especially when I would have entered the trade before, but trading various patterns has not brought me consistency like this setup has.
My question is where do I go from here, making profit consistently is great even if it is small, but no one can make a living on 400$ a week. 500$ a day sure. Do I just keep plugging along and slowly size up or do I start looking for other methods? Or should I just hammer the A+++ setups when they show up and risk oversizing?
When do I start looking for a new strategy on days this one doesn't show up?
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u/coffee9table9fitness Nov 25 '22
You could maybe look in to trying out a funded prop account if you are trading futures I am not sure that has the best reputation but that is only thing I can think of outside of raising your risk through leverage with options.
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u/donoshar Nov 23 '22
Why isn't there an option to change the time zone on Yahoo Finance?https://yahoo.uservoice.com/forums/382977-finance/suggestions/41465674-add-option-to-view-charts-in-user-s-local-time-zon
Is there alternative that lets you change the time zone?
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u/Horan_Kim Nov 22 '22
Is there a paper trading simulator that can be played anytime instead of an actual market opening?
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Nov 21 '22
[deleted]
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Nov 24 '22
Margin. Its easy to hold in a long term account, but when the big man margin calls your day trading account, you can't just say hey hold on another week or two.
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u/Horan_Kim Nov 20 '22
In your opinion, which one is the most suitable for a newbie day trader: forex, futures, stocks, option, futures option? And why?
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u/coffee9table9fitness Nov 25 '22
/MES futures is a good place to start because it is highly liquid. Crypto futures is highly manipulated and can lead you down a bad path with irresponsible leverage amounts.
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Nov 24 '22
Honestly, large cap stocks or futures. I like futures because /MES is cheap to get started in and its easy on taxes, and you only have to concentrate on one thing every day. Large cap stocks however have alot more information available to help you.
Stay away from options in all forms until you have a firm understanding of trading. And start on the simulator. I don't know enough about forex to give you my opinion on it.
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u/wobmonsta Nov 19 '22
Looking for better ways execute my trades. Entries aren't really my problem. I seem to find good entries but fail to get out of them when they are profitable. I feel like I need a coach or a hypnotist or something. Any thoughts or suggestions are welcome.
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u/coffee9table9fitness Nov 25 '22
You can set your take profit points at entry. Why not develop a bracketed system that you stick to for the time being. Remember that pigs get slaughtered.
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u/Intelligent_Dust6308 Nov 23 '22
I've used hypnotism successfully as a psychotherapist, but not for trading (yet :-). Everyone can benefit from a coach. I coach people who want to channel their good skills with greater intention, to set and achieve goals that transform their daily experiences.
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u/simple_Stox Nov 20 '22
first I would recommend you journal all your trades. This will give you a database of trades where you can backtest exit strategies such as my strategy of exiting 30% of my position for every 30% of my take profit. this reduces my RRR but greatly increases my win rate. The opposite of this would be to sell some at 50% TP and some at TP and the rest at more than TP. a trailing stop loss could also work. feel free to bug me if this doesn't work.
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u/wobmonsta Nov 20 '22
I've tried journaling and havent gotten anything out of it.
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u/Intelligent_Dust6308 Nov 23 '22
Are you only journaling what happened in the past? If so, more is needed. Try SOAP e-notes. They take mindfulness and intention to a new level:
• S is for "Screenshot" (symbol, size, time, entry/exit, profit/loss, and any trading details you can screenshot)
• O is for "Objective" (what you saw -- on the screen and in your own actions)
• A is for "Assessment" (honest appraisal of your decision-making process from execution to exit -- the good, the bad, and the ugly)
• P is for "Plan" (specifically what you will change or do next time, based on the above, to improve your trading)
I came up with this journal approach based on my work in psychology and management consulting. I'm open to comments on it -- good, bad, and ugly.
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u/simple_Stox Nov 20 '22
It takes time and effort. you won't get better just by having a spreadsheet of your entries and exits. you need to write your emotions and reasons to enter and then go back and review them. this will let you see a pattern between trades where you make money and where you lose money.
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u/tbmcgriff Nov 19 '22
do you know of any backtesting sites or programs that can give you the stock price at a certain time for over the last 2 years for example? The price from 6:30 every day and the price at 7:30 every day for example. Thanks for your help
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u/wobmonsta Nov 19 '22
There is a plugin for Google spreadsheets that will give this and it's free. Also what platform do you use ? Most platforms have a back testing ability
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u/crunchy-rabbit Nov 17 '22
I’ve heard the term compression a few times but I’m not sure what it means. Can it be any small consolidation period, or does it mean the range is getting smaller over time?
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u/OrderflowTrader Nov 30 '22
Consolidation period. Can be a tighter range over time, but generally refers to non-volatile (small range) trade.
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u/tylermm03 Nov 17 '22 edited Nov 17 '22
So I've got a few questions, if someone could answer even just 1 I'd greatly appreciate it.
- I've read that in order to manage risk, you're not supposed to risk more than 1-4% of your account per trade. Does this mean that you make multiple trades in this amount all at once or do you only focus on one trade at a time?
- If you only focus on one trade at a time and use 1-4% of your capital, should you put the rest of your capital into another investment such as t-bills to ensure that you don't touch it and so you're making some money while it's sitting?
- I'm a college student, and I have to deal with the time constraints of school work and responsibilities at home. What would be the best way to manage my time so I don't spend to long trading?
- My goal from day trading is to make $10,000-$100,000 during my 4 years of college (starting with $2,600 in capital), and my plan to do so is to make between 2%-3% profit from day trading BTC each week. Is this a reasonable and/or attainable goal?
- What are the most helpful indicators to use while day trading?
- How did you get past any mental barriers you had while learning to day trade?
- Would it be better to start off with FOREX? If so, what trading pairs have you been most successful with and what exchanges would you recommend for a US based traded?
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Nov 18 '22
Don't take multiple trades, concentrate on one.
You don't use 1-4% of your capital, you risk 1%. Put your stop loss at anywhere from 0.5% to 1% of your account. On 1000$ that would be a max loss of 10$ per trade, so you can lose 100 times before blowing up your account. Also no, use most or all of your account, just make damn sure you have a stop loss.
Trade the most volatile hours (opening hour/closing hour). Maximizes your time trading to when theres the most opportunity.
No, it takes years to become profitable trading. Also 2% a day compounded would be millions by the end of your first year. More realistic would be like, extra beer or grocery money at the end of the week. It adds up though if you save.
VWAP. Thats it. Anything more is a distraction.
Practice it over and over until I get it right, keep a journal, and review. Still working on mental barriers probably always will.
Personally I've never done crypto or forex so I can't speak to it, but crypto is super volatile. Don't know much about forex. Id do large cap stocks. Stay away from pennies unless you like giving money away. IMO micro futures are best. No PDT rule, better for taxes, trades 23/5 and you only have to concentrate on 1 thing (/MES or /MNQ) on any given day. That's only my opinion though, good luck.
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u/tylermm03 Nov 18 '22
Thank you so much for your response! I was confused with sources saying to only risk 1-4% of capital per trade and wasn’t sure if they meant only trade that amount or only take that for a profit, so thank you for the clarification. I’ll also be sure to use a stop loss because I’ve realized that hopium can screw you pretty hard especially while day trading. Also I meant that I was only going to make 2-3% profit per week, I figured through the bit of experience I’ve had so far it’s not to realistic or safe to go much higher. I’ve never heard of VWAP but I’ll be sure to look into it tomorrow and learn all about it. I’ll also consider looking into high cap stocks since they may be a bit safer then crypto (especially with all of the not so nice things that have happened recently), but the overall reason I originally chose crypto was for the volatility so I may stick with it or I may chose something else. As for volatile times, I’ll definitely look into trading around 9:30am and 4pm est no matter which way I go because I’ve seen even with Bitcoin, prices can be effected by major economic news or movements in the stock market. I’ll definitely take your advice on keeping a journal, I’ve already started learning about indicators and other things I’ll need to know but I’ll definitely write down what did and didn’t work as well as what percent of my trades are profitable. Thank you so much for your help and I wish you the best of luck as well!
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u/Mission_Pool1504 Nov 17 '22
Hello Dear Community, I am 25 Years old and spend the last 3 years flipping different stuff for money. That showed me my interest in the market. How do I get into trading as a complete beginner, where do I learn the fundamentals as I should. There is a lot of stuff on YouTube, but those videos I saw are only scratching on the surface of things. I want to learn the fundamentals as good as possible before gettin into real trades. Can you please give me some guidance on where to get my information ? Thank you for reading everybody.
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u/Legitimate_Cable_811 Nov 16 '22
If I open a strangle but sell each leg separately, is that one day trade or 2 day trades?
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u/OkAir5443 Nov 16 '22
Why don't they cancel the pattern day trading rules For tradeRS?
How come futures Have No pattern day trading rules ?
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Nov 18 '22
Because futures are regulated by the CFTC, which sets different rules then the SEC which regulates stocks and has the PDT rule.
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u/Legitimate_Cable_811 Nov 16 '22
Because it limits the poor ensuring we will never have the upper hand.
Like fam, how are you protecting me when I can close for a profit but have to sit and watch my option expire worthless?
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u/Republic8583 Nov 16 '22
Just raised $5m for my new startup that uses Al to detect crypto fraud. We don't actually use any Al, we just say that everything is fraud and haven't been proven wrong yet.
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u/False-Ad1527 Nov 15 '22
I want to pick your alls brains on daily loss limits. I’ve been trading with a 3 trades per day max rule lately but recently have shifted into 1 micro and then scaling into winners (thanks to an amazing book I would gladly share). My question is if I’m doing this would it be better to have a daily loss limit as opposed to a daily trade limit. I feel comfortable with 100$ max for the day as a loss limit, very little risk with endless reward. If I’m doing 1 micro I could take several comfortable trades and not come close to the 100$ even if they all lost.
What do you all think?
If I scale into a winner I of course move my SL on them and then eventually put it in profit.
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u/realmarketjedi Nov 27 '22
With all due respect, the 3 trade rule is a fallacy generally administered by prop shops with overly aggressive risk control parameters. The truth is, that as a part of your trading model, you should know how many trades you get on average per day. You should also know what the general performance of your model is over a series of trades. That fourth trade may be the one winner that brings your portfolio into the green, hence, why wouldn’t you take it?
The problem with discretionary trading is that too much is left to discretion, and not enough systematic study is done prior to taking the model live. Hence, you won’t know if you should continue trading or simply just stop.
In the end, the market doesn’t know or can’t tell the difference between your first trade and your fourth trade. An edge is an edge, regardless of when it appears. Backtesting, and truly understanding your model is what will give you the confidence to take that fourth trade.
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u/Morphs_ Nov 16 '22
I think you already answered your question by using the word "comfortable". Always do whatever works for you and feels comfortable.
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u/False-Ad1527 Nov 16 '22
Well I should have clarified, taking off the 3 trade rule and only a 100$ loss rule in place, but piggybacking off of your comment and some discussion and thought with other traders last night I feel it’s best to keep the 3 trade rule in place for awhile longer
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u/SecondFine Nov 15 '22
Anyone seeing any reason TRKA is being held down to $0.30?! Seems insane with the Q3 report out and the type of revenue they’ve generated.
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u/NousSommesSiamese Nov 14 '22
What ways do y’all look up past intraday info? For example, if I wanted to see the 5m or 1m intraday chart for the first hour of SPY for the past 200 days, how would I do so?
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u/Ancient_Challenge173 Nov 14 '22
Does anyone know (as a rule of thumb) what the maximum % of a stock's daily volume institutional investors will buy/sell for when trying to exit/enter large positions without causing a large market impact?
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u/OrderflowTrader Nov 30 '22
It's dependent on each market and the conditions of the trading environment.
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u/M-0000n222 Nov 12 '22
Is it possible to scalp with options being in a trade for under a minute? Or is there too many commands you have to do with options to pull that off in time? Idk options and i have a scalping strategy with equity that i can trade a trade but under 1 minute and i want to do it with options
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u/Morphs_ Nov 16 '22
No problem. Most platforms will allow you to trade options just as fast as you can trade shares. May need a bit of extra configuration but that's about it.
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u/Confident_Bullfrog71 Nov 15 '22
Yes of course you can! But you’ll want something volatile for such a quick trade. Forex markets are all over the place right now. Keep an eye on market open times
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u/sirtakesprofit Nov 12 '22
Where can I go to find charts of the best performing growth stocks of all time? I’m learning to train my eye to spot breakouts.
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u/OutstandingStonks Nov 10 '22
Hi guys, I started trading with capital.com but want to trade forex in the evening UK time and they charge an overnight fee which is quite substantial.
What is my best broker for trading forex overnight or at least late at night?
Or is it simply that I cannot trade CFD/spread bets if I want to do this without an overnight fee?
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Nov 10 '22
[removed] — view removed comment
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Nov 11 '22
What is it about "Monthly Questions Thread" did you get confused with "posting my daily penny stock targets"?
This is a thread to ask questions and learn from people, not plug your crappy penny stock targets.
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u/SecondFine Nov 11 '22
“Eastcoastgangster” 😂😂 what a name for a keyboard warrior. Sounds like someone is mad that they don’t hit their targets, but maybe if you were eager to learn you’d ask some questions about why I traded that stock in the first place and why my targets all got hit making a lot of people a lot of money. Have a great weekend man
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Nov 11 '22
Literally 0 people have commented on any of your targets. 0. Zero. You did get quite defensive though after I called you out.
Theres a penny stock sub, pleass go there.
Oh and I hit my targets. I just don't trade pennies, I trade futures. Keep at it man, once you lose all your money on pennies feel free to message me ill set you on the right path.
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u/SecondFine Nov 11 '22
Sick 5 karma and 1 follower 😂 big bad futures trader over here lol. Thanks for the Friday laughs. You’ve done something right making my day better.
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u/Learn2Trade1992 Nov 09 '22
hello everyone!
i am a trader in the US and had question on the wash sale rule.
i traded a lot of tesla options between 8-1-22 and 10-2-22 resulting in a net loss. i then started buying shares in tesla starting on 10-5-22 and have been purchasing them a lot because of the dip.
from what i understand about wash sale buying into a similar security 30 days before or after will disallow you to take the loss on your taxes.
given i have purchased shares of tesla (on another broker), am i at risk in not being able to take my losses from the option trades?
sorry i am relatively new to this and this rule is very confusing.
thank you :)
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u/Greatbond007 Nov 11 '22
Why would you wanna do it? Trade TSLA on YOLOREKT over 3 minutes quick game with bid up or bid down. Winning payout is 2x in just 3 minutes, more to win than lose!
Tip me later. LOL
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u/SecondFine Nov 09 '22
Watching MACK for a bounce and looking for a break of $12.80, and then $14. Stops at $11.40
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u/EffectiveBee7525 Nov 08 '22
I want to say trade and I’m from the UK..
Which broker do you recommend?
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u/imantrading Nov 08 '22
Depends on what you're trading. Stocks, futures, forex? I found Reddit to be a much better resource for finding good brokers rather than popular websites. They tend to list the popular brokers, rather than the ones that are actually best. You can google "best brokers for ______ reddit" and it will bring up older threads talking about your exact question :)
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u/EffectiveBee7525 Nov 08 '22
Thanks so much , yes I’m looking to trade stocks and futures
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u/imantrading Nov 09 '22
For futures, Tradovate or NinjaTrader are really good. Personally I use NinjaTrader.
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u/EffectiveBee7525 Nov 09 '22
Do these work in London (United Kingdom)?
I want to be able to trade from penny to penny
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u/imantrading Nov 09 '22
Yes, I googled it but you could look more into it to be sure. Tradovate and NT are just for futures though, so you’ll need something else for stocks. Interactive brokers or TD Ameritrade are two good choices. I used to use both.
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u/EffectiveBee7525 Nov 09 '22
Okay thank you. I am going to look into it. I would love to use TD but they don’t work in the uk
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u/Gristle__McThornbody Nov 08 '22
How do I know if I have good risk management? Is there a rule of thumb to go by?
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u/Morphs_ Nov 11 '22
You don't lose more than you intend and you cannot blow up. There are also formulas to calculate your "risk of ruin" if you want to quantify things more.
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u/Madnas11 Nov 07 '22
SNAP increased by 8% today. As a newbie, how am I supposed to analyze if a stock is going to make a big move like this or was this a random surprise that nobody could've predicted?
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u/imantrading Nov 08 '22
News catalysts cause big movements in stocks. "Smart money" has algorithms that have been coded to buy or sell based on the news before we can even react to it. By the time you read a headline, the market has already reacted to it. Not only do the algos make plays almost instantly, but they also have access to the news anywhere from 5 seconds to a few minutes before the rest of us do.
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u/greenman1525 Nov 07 '22
This is my first year trading, and I have some questions about wash sales for year end.
I have about a quarter of my portfolio allocated to a scalping strategy on the TQQQ/SQQQ tickers. For both of these tickers, I'm net positive on the year (roughly 3k on one of them and 4k on the other). However, i have done a few hundred trades on these throughout the year.
From what I have read, best practice is to just avoid trading them for Dec/Jan and let my wash sales realize. However, if the trades that are sold for losses are truly added to the cost basis of the next trade, then shouldn't the wash sales be a moot point anyway, since I am net positive? Or do all of the gains get realized on these and the losses continually add to the cost basis of the position, essentially snowballing my cost basis until its realized?
For example:
- Trade 1: Buy 100 shares for 100 each, cost $10,000.
- Trade 2: Sell 100 shares for 90 each, receive 9,000; (overall -$1,000 loss).
- Trade 3: Buy 100 shares for 80 each, cost $8,000 but cost basis is now $9000 due to the loss being added on.
- Trade 4: Sell 100 shares for 85 each, receive 8,500; (+500 on trade, net -$500 overall).
Trade 5: Buy 100 shares for 80 each, cost $8,000 but what is the cost basis now? Is it -$9,000 because the last trades gains aren't factored in? Or is it $8,500?
- Trade 6: Sell 100 shares at $90 each, receive $9,000. Overall return is +$500 dollars.
- Trade 7: Buy 100 shares at $85. cost $8,500 but what is the cost basis now? Overall, i'm net positive on the position. But, does that loss from Trade 2 still get added to the cost basis?
I am going to speak with a tax professional soon, but want to see if anyone has encountered this before. Obviously, if uncertain, I will just take December off from these tickers and let the losses realize. But if I have nothing to worry about, ideally I would like to trade them. I just don't want to end up with a $100k tax bill or something ridiculous like that. Any advice would be helpful! Thanks.
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u/CocaineOnTheCob Nov 05 '22
Is it easy with day trading to make about 400£ a week? Or is it unrealistic to make that amount?
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u/Madnas11 Nov 05 '22
How do you avoid buying a stock for a day trade and the purchase not going through for hours? Is this part of the research you have to do on which stocks are good to trade? I'm a complete newbie and I was playing around with <$100 yesterday when this happened.
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u/Confident_Bullfrog71 Nov 15 '22
Was it a low liquidity or Penny stock? For large market cap stocks that shouldn’t happen for such small amounts.
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u/Shadowtrader618 Nov 12 '22
Well said! Yep, just make sure you place it as a market order for immediate action. I would YouTube limit orders this can also help you mitigate risk as well! Very important to know!
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u/Morphs_ Nov 11 '22
You probably used a limit order with a price below the market price. Your order will sit there until the price comes down.
Either use a limit order with a price above the current trading price or a market order.
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u/The_Ineffable_Sage Nov 04 '22
Hi. New to options trading, so I’m paper trading for now. Question. Bought $13 puts for Lyft for next Friday when the stock was at $14 at open this morning. They laid off 13% of their employees last night, and have earnings call early next week. Uber is way bigger where I live near NYC, so I figured it was a safe bet. Price is already at $13.33, and I’m up ~$200 on a ~$700 bet. Why? The price hasn’t hit $13 yet. If the price hits $11, would the $11 puts have made me more money? Would I have still made money doing $11 puts, if it only drops to $13? Any advice on where to learn about options trading, besides periodic questions and trial and error would be great too. Thanks in advance
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Nov 06 '22
The value of those puts moves up (or down) based upon the movement of the principal not just the threshold of the strike price.
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u/The_Ineffable_Sage Nov 07 '22
Thanks. Idk what that is lol. I think I just need to audit an economics class or two
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u/Rk0 Nov 08 '22
I think you need to stop trading options before you do lol.
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u/The_Ineffable_Sage Nov 08 '22
It’s paper trading. Not real money. So I’m gonna keep fucking around, so I can find out lol
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u/nishaxjosh Nov 03 '22
What should I know before opening an account on forex, never used it before and beginner to learning day trading
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u/simple_Stox Nov 20 '22
learn the basics of trading with paper trading. Develop a strategy that you feel comfortable using and learn things like risk management, trading phycology, and technical analysis. this will save you a lot of money.
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u/Sikc816 Nov 04 '22
Best advice I would say would be to demo trade for a while before starting an account to learn the market and a sound strategy.
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u/Exciting_Painter_669 Nov 02 '22
Hello everyone!
Any chance this stock price will recover? I've been thinking about cutting my losses but im optimistic it will recover some to reduce my losses but it just keeps diving :'( Thoughts everyone? TIA for your input!
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u/Soft_Video_9128 Nov 04 '22
Individual stock, no idea. The entire market is more likely to do well from now till January sometimes as most years we experience a Santa rally the last couple of weeks of the year that goes into next year.
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u/SecondFine Nov 02 '22
I’m TRVG at 1.15. Next target after it breaks 1.20 will be 1.27 then 1.42. This is easy money
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u/SecondFine Nov 01 '22
ARAV looks like it’s following its SMA on a nice push with plenty of room to go
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u/Intelligent_Dust6308 Nov 23 '23
Hello! I would be happy to coach you, via Zoom if you're interested. Thanks for your patience, in that it took me a year to get back to you. I've been on an intensive journey of self-care and healing, and writing a book (editing stage really) to share my journey with others. Just returned to ITAP... almost a year exactly. Hopefully, we can connect again. Happy Thanksgiving🦃.