Rabbit
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Watch it like a hawk.
Say you pick a time like 2 hrs after the market opens and pick the top gainers. Find out why. Look at the trend, is the company already trending up? Go for it (a little slice, not the whole pie, pace yourself). Does it still look ahead at the end of the day? Sell it. It will range and retrench during the day. If you held on and it is trending up two days in a row, back off, other traders will be taking profits. There is a touch of the casino in this, like at roulette, if the last two numbers were red, bet black.
Its a gutsy way to go (to go broke usually), but if you keep your losses small, never bet the whole pot, are smart about which stocks you play, then you will last longer than most. Remember, the difference between stocks and Vegas is that when you risk a chip in the casino you get nothing. When you buy into a stock, you still own a piece of a bigger game, you don't have to sell it, you still have an equity. Just as what goes up will come down, what goes down can come up. Stick with trading seasonal stocks that make profits or simply major-traded stocks that make profits. If you buy into profitable companies that have comparatively low price to earnings ratios, then even if it goes against you today and the next day, there is good cause to think a turn around is coming. Still, don't let your losses ride too far or too long--but then that's not day trading. |
stocker
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I have two friends who day trade; they both make about $100,000 per year. However, they do a lot of medium term trading (a few weeks, a few months).
If you want to be absolutely certain that you don't lose everything day trading, don't ever end the day with any open positions. Or if you do have open positions, make sure they are fully hedged with options. Don't over-leverage. |
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