Is it true that brokers have different execution speeds for placing orders?
I enjoy momentum speculation and trading within a 7 day time frame, I seem to do well on the simulation programs.
I plan to start with $10,000 with $500 plus per month additional capital.
there are so many different reviews when i google this topic.
Dont trust the sim programs because on them, you get your orders right away. In real life when you do limit orders, you sometimes dont get in at the price you want. (or get out) Sometimes you place a limit order and you have several thousand shares ahead of you waiting for the same order then the price moves and you dont get filled.
I know they have a facility called Margin trading.However, I would like to know more details on this.
A scenario based response from an expereinced trader would be highly appreciated.
It would be helpful if somone can throw some light on the strategies of intra-day trading
Also what does the term "short" mean in stock trading?
Thanks
Especially since you apparently don't understand investing. If it were easy, why would people go to work? Learn how to invest the right way and prosper!
To "day trade" or "scalp": A trader MUST have – AT ALL TIMES – AT LEAST $25,000 U.S. CASH in his/her/their trading account.
This does not include any stocks or trades the trad err might be in. This is cold, hard U.S. CASH.
As soon as the account goes one cent below $25K, a whole different set of rules comes into play.
Check with your broker or any broker to confirm what I write. There MAY BE exceptions.
As far as penny shares:
They are far, far, far too risky and volatile.
Thanks for asking your Q! I enjoyed doing my best to answer it.
VTY,
Ron Berue
Yes, that is my real last name!
dont worry people i am a long term investor. 90 percent of my money is tied up in index funds and some quality stocks like garmin for long term.
to common sense:
you wrote "With BOA you get 30 free trades a month. But it costs you the difference of earning 5.30% (like www.GMACBank.com) vs. their very small rate"
I put the 25,000$ you need to get free trades in one of bank of america's high yield cds which i locked in at 5.34 percent.
The cds count towards eligibility for commission free trades.
to everyone else who said that I shouldnt do this because day trading is very hard and i am doomed to fail:
I will be placing limit order trades and just set the limits for the highs and lows that I want to buy and sell at.
I feel that is somewhat safer. I will try to buy on a down day and place a limit order sell for like a dollar or 2 above the price i bought it for depending on the stock price of course. The gains wont be too big but at least ill have no commssions eating away my gains.
what do u guys think of that?? still bad idea?
When you spread your time frame out a bit, you even the odds a little more and give yourself a better chance. It's still not easy, but why start off against impossible odds?
Here's some ideas that might help you manage risk a little better and actually have a chance: http://www.srsfinance.com/Smart_Money_Principle.html
Sorry if I'm raining on your parade. I don't mean to. GRMN, BTW, looks great. Just make sure you keep a stop loss under $95 and trail that up higher as the price moves higher. Nothing worse than letting a winner turn into a loser.
Best of 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.
For details on day trading kindly have a look at the following
http://ezinearticles.com/?The-Basics-Of-Day-Trading&id=1148430