Day Trading » tip

How Do Partial Fills Affect Day Trading Status?

admin — Sun, 23 Aug 2009 02:45:28 +0000

In the U.S. Stock Market, how do partial fills and multiple orders count in getting flagged as a Pattern Day Trader?

Day trading is buying and selling the same security within the same trading day (though if you don't already know that, you shouldn't be answering this question).

Suppose I process a series of buys on a particular security in the morning. Then sell them all in the afternoon.

Buy – Buy – Buy – Sell

Does this count as one day trade or three? What if either the Buy or Sell orders were partial fills?

Thanks
Thank you very much StopSpending.

What if the buys were separate orders, but you execute a single sell for the total lot?

My experience has been that a "trade" is considered to be the order ans all of its fills. In the attached link, the SEC makes it very clear that a pattern day-trader is supposed to be a real day-trader. Counting each fill would snare too many customers in the net.

From Rule 2520:
"The term "day[-]trading" means the purchasing and selling or the selling and purchasing of the same security on the same day in a margin account"

"The term "pattern day trader" means any customer who executes four or more day trades within five business days. However, if the number of day trades is 6% or less of total trades for the five business day period, the customer will not be considered a pattern day trader"

It's pretty clear to me that to "execute" a trade. I place an order and get fills. The order and the fills are a "trade". Now, if your two "buys" are based upon two separate orders, then the pattern you ask about would be two day trades.

Further info:
Interactiveborkers gives clear examples of day trades on their website. Another reason why I like that firm so much. Looks like your two buys and one sell example is just one day trade.

Share Future Trading?

admin — Mon, 17 Aug 2009 15:30:36 +0000

Please let me know the following. In future trading suppose if i purchase one lot of any share and i dont square the same on last day of settlement and keep the position open and vice versa. please tell me what will be my position and how it is settled. am i liable for any penalty. Please answer in detail.

Hi, i know what your question means. i also think stock market is a nice place for investing.

I found some useful tips in stock trading. It includes stock basics, how to protect your profit, find a potential increase share, control and manage stock risk, when to sell/buy stock and so on.

http://www.bernanke.cn/stock-trade/

Best Wishes && Good Luck!

Which Site Should I Use For Beginner Stock Exchange?

admin — Mon, 03 Aug 2009 00:57:23 +0000

Hey people,

I haven't touched stocks in maybe 10 years and I want to get into day trading sometime soon. I want to start off slow and low to get the hang of things and I was wondering if anyone has recommendations or tips for how/where to start? Preferably a place with low commission of course, I remember that much at least : P

Links would help the most. All tips and advice are appreciated!

Sincerely,
Jason H.

Some of the major trading websites offers initial 30 day or first 20 trades free….you can choose them and see how the service with them goes….I am sure you will find one of them better…good luck

Do You Know Anything About Stock Market Day Trading?

admin — Wed, 29 Jul 2009 19:52:29 +0000

If you have experience or links to information on stock trading would you mind sharing your tips and beginner info and a good place to get started for the individual investor. I know it's a risky business and you need all the information possible to have some skill before beginning. Thanks for any info!

Most people loose money bacause they do not have a strategy and money management rules in place

if u dont have disipline dont even start u will loose all your money

many people do trade and have become very very rich so it can be done

How To Keep Track Of Economic News/events When Trading Stocks?

admin — Wed, 29 Jul 2009 00:16:05 +0000

I am trading stocks (swing trading). I am using AmeriTrade, and I am using technical analysis to trade. When I loose money it's mostly becuase the whole market is down (caused by some bad news, etc). I realize now that I need to be watching the news more aggresively. I might decide to get out before any major news hit.
How can I get info about major "upcoming" economic news. Like govermnet reportings, and the like (in one single place). It seems like every other day there is some news poping up. Which web site is the best, in your opinion, in reporting this kind of stuff? Thanks

Stops aren't working? are they in the right places?
and you're not hedged with options, I take it.

***
with the current capability of computers, browsers and broadband, why limit yourself to only one news site?

you can have multiple such sites open in multiple browser tabs or multiple browsers.

look for the upcoming news/events list in places such as
money.cnn.com
yahoo finance
your TDAmeriTrade brokerage site

and/or any subscription services you get such as
investors.com
wall street journal online
bloomberg news
etc.

How To Select Stocks?

admin — Mon, 27 Jul 2009 04:57:07 +0000

I would like to start investing in the stock market. I am talking about active trading (but not day trading!). Something like holding stocks for multiple days or weeks (I think it's called position trading). Since there are so many stocks out there, I don't know where to start. I plan to stay away from penny stocks for sure. I am looking for a moderate return, nothing crazy. I don't plan to blindly follow tips however. I remember a tip that was given to me by a "so called financial" advisor back in 1999, where he suggested that I invest more of my 401K in Internet stocks. At that time, I resisted to do so!.

I would appreciate any advice of where to look. What's Your experience?

Thanks
Mutual Funds is what I have already in my 401k. I don't plan to touch that.

I am also not planning to do day trading, becuase of the high risk and lack of time (I have a day job). It looks like I will be doing what they call position trading (buy and sell in the time frame of weeks-months).

Which online broker do you recommend?
etrade, Scottrade,…?

We are of like mind, but because I only have $10,000 to invest, I'm forced to Day Trade index futures. I'm not a Day Trader, but have been a position trader off and on for 15 years, mostly with options and futures. Tough game for the little guy with weak hands.

Check outthis link at TerraNova Online. The Investor platform is an escellent trading tool for a beginner, and is limited to one screen. I use RealTick and five screens, but it costs $250/mo. Ask about a free trial.

http://terranovaonline.com/

A lot of online brokerages claim to give you direct access, but if they take more than a second to execute your trade, it aint direct.

Find the articles online that have evaluated and compared online brokerages. I found a good one online in Barron's, but you'll find others in the trading magazines.

This is worth putting a little time and effort into, because it's a pain to switch, so once you choose, you're kinda stuck with it.

Townsend Electronics, the Parent company of TerraNova, is the one that digitized and electronified the Nasdaq. They are technological industry leaders and have a powerful and well built trading system.

What you should try is a free trial of their Investor platform, which I think is free anyway. Their rates are good also, but of course, it depends on how often you trade. It will take you months to learn all the bells and whistles of what this program can do.

The other top-of-the line program is TradeStation, but it costs big bucks to join and operate. Some people consider it the Cadillac of trading and technical analysis.

TerraNova is the home of the Day Trader, so they think nothing of you making several hundred trades a day. You don't have to do that, but it's okay here if you do.

Read vociferously:
"Which Is Better, Buy-and-Hold or Market Timing?"

"Do You Have What It Takes to Be a Market Timer

The Beginner's Bible in Technical Analysis is:
Edwards & McGee"Tech. Anal. Of Stock Trends"

Droke, ClifTechnical Analysis Simplified

Kahn, Michael N.Tech. Anal. Plain & Simple

Kamich, Bruce M.How Technical Analysis Works

Lefevre, EdwinReminiscences of a Stock Operator

Lofton, ToddGetting Started in Futures

Lowenstein, RogerBuffet (Warren)-The Making of a Capitalist

O'Neil, William J.How to Make Money in Stocks

Oz, TonyHow to Make Money From Wall Street

Rotella, Robert P.Elements of Successful Trading, The

Schwager, JackStock Market Wizards

Schwager, Jack D.New Market Wizards

Sperandeo, VictorTrader Vic-Methods of a Wall Street Master

Wasendorf, RussellAll About Futures

Slutsky, Scot and Darrell JobmanComplete Guide to Electronic Futures Trading

You can get every one of these books from your local library. If they don't have it, ask about Interloan Library System.

Is It Good Or Bad When A Company Release New Stock ?

admin — Sun, 26 Jul 2009 04:39:49 +0000

We have double our stock amount, is this good for the company, since we had problems with cash, after the release the price/stock went lower and the trade amount was 58,000 stocks in 1 day, the company is 2 years old. So i`m wonderring if this is a good move for our company or I should be concern about my job…since the company stock didnt went up the next day…

Any tips ?

Releasing new stock means a company need more money. it is OK if they are reasons behind that. but to issue new stock just because to pay debt, that show your company is not doing that good. and a stock price fell after new stock release simply because it earnings is diluted. it is like so many investors sharing the same cake.

What Stock Is Going Up On Monday?

admin — Fri, 24 Jul 2009 14:52:55 +0000

Do you have any day or short term trading tips for me?

MSTR will go up – because you and a bunch of other people will see this "hot stock tip" and buy it. Then folks like me will sell ours and make money off of your investment, and then you'll wonder what happened when the stock drops.

Seriously, that is how most stock tips work – so be very careful.

PS – MSTR is a very good stock, I bought at $108 in October, and it has hit $130 several times since then.

Is It True You Need 25000$ Dollars To Be Able To Day Trade Using Scottrade?

admin — Wed, 15 Jul 2009 01:05:14 +0000

Will a 1000$ be enough to start a scottrade account. Also do you need a minimum of 25k to day trade using scottrad, for example if i buy a stock monday evening will i be able to sell it tuesday or do you have to wait for 24 hours to pass also can you make more than one buy a day.

Federal law stipulates that in order to day trade, buy and sell a security the same day 3 times within a 3 day period, you must have an account valued at $25,000 or greater.

In order to simply open an account… with scottrade your $1000 is plenty.

What Tips Does One Have For Day Trading?

admin — Mon, 13 Jul 2009 14:33:21 +0000

If you are serious about trading, get trained. There are good training resources out there. Try http://www.wealthconfederation.com/

Practice practice practice… open a demo account with a trading house and trade the demo account (not real money) for six months and learn what can happen.

Try: http://www.chspreads.co.za for a free demo account.

Once you have been trained and have practiced then you will be able to tip yourself.