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Train Guy

03/06/03 4:46 PM

#83870 RE: Zeev Hed #83816

-- You may want to start with a hybrid, some five to 10 positions swing trading and 5 to 10 positions day trading. --

You can only do that if you have lots of money. Us paupers don't have that luxury. If your capital is small, to diversify that much you're only buying puny amounts and it's not worth the time to day trade it. You ain't going to make no money day trading 100-200 shares at a time. Costs will eat you up. Minimum I figure is about 500, and then you need a .20 move just to make $100. But I don't reccomend high beta stocks to someone just starting in day trading, so 500 shares might be small or they need to settle for smaller profits to start with.

Now 100-200 might work "ok" for swing trading, but swing trading isn't day trading. You than are opening yourself up to additional factors, such as over night news and economic numbers. So one can't look at swing trading just as slow motion day trading since additional risk is thrown in. That risk of course can be reduced by keeping the number of shares smaller than you would use for day trading.

And for those starting with "small" capital, margin is a fact of life, and just part of the "job". So somebody just starting in day trading, being risk adverse is rule number 1. I think that means, no Zeev rocket fuel stocks. <g>

I hadn't looked yet to see what INTC is saying, but I'm liking the red I'm seeing on my screen. Let's see, .75 there, about .30 there, and another .20 there. Sweet. Hm, to lock in profits or not. SPX futures only dropped about $1 on the INTC news, but closed at only .30 down. And let's see what happens on the reopen. Oooh, so far we've managed to lose 820.00.
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JohnVP

03/06/03 4:49 PM

#83873 RE: Zeev Hed #83816

Zeev, what is the initial capital that you think it's adequate to start day trading? 100K, 200K? I know you can turn 10K into million... :))
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gvj723

03/06/03 4:51 PM

#83874 RE: Zeev Hed #83816

Thanks very much! I really appreciate your answers.

However I would risk asking again for a very approximate estimate of the performance of the successful trader. I do understand, that most probably one would end up losing money. I am not asking about millions per day wonders.
But if there exist SURVIVORS, then considering day trading for a living as a regular job, what average (probable) return do you think could be a reasonable, humble goal?
If it a return of 1.5% a year, one would better put his money in a bank. So there definitely exists a lower bound.
Then what are the stakes a day trader is playing for?

Thanks again,
George J.