I heard there are groups of people that get together to share information, buy & sell stock, etc. etc. Any idea where I can join a group in Los Angeles, CA.?
Some good places online to share info with others and learn are;
investorshub.com (my favorite)
siliconinvestor.com
ragingbull.com
many boards are devoted to trading at the above sites. you can sign up for free memberships at all 3. Ask the traders on the trading boards what software they use.
I have been a trader, investor, broker, etc. and it is rare to see anyone who is not a professional trade for a living. If you got it, then you will know pretty soon. You have to be able to set your stops, take your losses if needed.
Also read "trading for a living" "come into my trading room" both great books from Alexander Elder.
Not all traders are day traders, and most are not, but they are not opposed to taking a profit when a position hits an early exit point.
Day traders get much press, good or bad, because many amateurs are amorous of the title and the action, but realistically they are not in the majority.
Many traders also are investors, and do buy for the long term. But long term to a trader is 9 months to a year. They'll use their equity positions to write cover calls especially playing the dividend. The equity is long term and the option is held only for a week or so.
Trading can afford one a very nice living and an above average life style.
All customers using US Broker/dealers would have to follow the rules that dictate policy & procedures to that broker/dealer.
If you going to play in the US, directly or indirectly, you have to play by the rules
What exactly do you think the "other" day traders do wrong?
If they are "ignorant" as you suggest – what should they know that would make them less unsuccessful?
If this is more than idle boasting – you should take your results in the real world to a publisher and get a book out that allows the ignorant masses to understand your superior techniques and live off the royalties!
i pump 1 lakh rupees
and even if i make 1% profit (after adding brokerage&taxes) i make 1 thousand rupees!
Till date there are not a single day trader who has consistently made money, without risking his sampatti.
My sincere advice would be to find a few really good stock and invest for mid to long term.
In case you are in a hurry. then I am afraid, there are no shortcuts.
How many shares (or amount of equity) of a heavily traded Fortune 500 company can you typically trade in a single transaction without getting partial fills. What about if you use Market orders vs. Limit Orders?
For instance, if you were to place an order for $100,000 of Google stock via a Market order, would you typically get the entire order filled immediately? What about if you try to sell $100,000 at Market?
What about if you do Limit orders vs. Market orders?
I would like to be able to trade very large quantities frequently during the day and would like to know if I'm going to need to account for partial fills.
Thanks so much!
(In response): Thanks, yes, I've been doing analysis for a couple of years now and know enough to be dangerous =).
The reason I mentioned the dollar amount as opposed to the number of shares is my assumption that there is a rough dollar amount to when you start reaching limits as opposed to quantities of shares.
For instance, which is more likely to get a partial fill (all other things being equal):
200 shares of a $500.00 stock
2,000 shares of a $50.00 stock
Is it better to day trader larger value stocks to reduce the chance of a partial fill or does it not matter?
Limit orders will only fill at your specified Limit price or lower (for a buy). If the stock goes up you won't get a fill.
If you don't want partial fills you can use "all or none" order. They will fill the whole order or nothing.
Another thing you should know is you don't place an order for $100,000 worth of stock. You bid for a number of shares at a specified price (limit price). Market orders you only specify number of shares.
No offense, but you should really do some reading before you start trading. It's a risky business and the more you know the better. The web is full of information, but so is a bookstore or a library.
Good luck.
I found the answers I was looking for at this site – http://www.traderstatus.com/whyanentity.htm
Depending on what you invested in, you could have to register with the SEC. Additionally, you would be signing up for double taxation! You would have to pay additional legal and accounting fees, and could have your quarterlies audited by the IRS.
There are absolutely no advantages to this scheme. Never mind that if you tried to become a trader for a living, you would become homeless, as more than 90% of "day traders" lose more than 2/3 of their capital in the first year.
Not to mention that this would look a hell of a lot like money laundering to an outsider (someone who creates a shell holding corporation to avoid having his name attached to the movement of significant amounts of cash moving across state lines is a pretty good way to meet some kind agents from the FBI).
It's never a good idea to try to outsmart the federal government – sure, they might not be the smartest bunch in the room, but they sure know how to hold a grudge.
Most highly trained professionals refuse to day trade. Many amateurs think they are smarter than the pro's and try their hand at day trading. Fools rush in where wise men fear to tread…
Read these links:
http://www.sec.gov/investor/pubs/daytips.htm
http://www.ftc.gov/opa/2000/05/daytrading.shtm
http://www.ftc.gov/bcp/conline/pubs/invest/daytrade.shtm
http://www.fool.com/investing/small-cap/2004/12/27/daytrading-dangers.aspx
Also read Tom Busby's book, Winning the Day Trading Game.
They'll give you a good primer. Fantastic books to get you started. After that, you'll have a much better sense on what and where to go next.
One option would be to work with a mentor. Todd Mitchell looks interesting at tmitchell.com or tradingconcepts.com for trading.
Though if you go to daytrading, you'll need to practice a lot more than a couple of weeks. Most successful day traders I know practiced at least months before being somewhat successful as there's all sorts of nuances, the shorter the timeframe that you trade in.
Let me know if you have any questions.
Hope that helps!