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  • Modee
    started a topic Daytrading

    Daytrading

    This is the way day trading happens for close to 100% of people. They buy at a certain price, sell for a little more, feel like a king. But at some point later realize they would have made much more money just holding it longer.

    Then they figure they have the cycle of the stock down, buy back in, but eventually on one or more of the trades, the stock misbehaves and they lose more than they ever made.

    In short: day traders sell themselves short and do not earn enough money on the good trades, and when they get stuck on the bad trades, the slight profits on the good are eclipsed. Been happening every day since the beginning of human wagering on events.

  • Modee
    replied
    They say that only 5% of day traders make money, and that only 1% make serious money. Part of this is obviously because when you day trade, you are working against the number one proponent you have in the investing business - time. Over time, fundamentally sound stocks (and even many crappy ones) go up. Over long periods of time, it is pretty hard to lose money in the stock market.

    But take away that time advantage, and you have to not only be good - but good, in the allotted time.
    Trading is all about Timing - Free EBAY, PayPal, Business and Law Forums - Ebay Suspension, PayPal Limited

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  • Modee
    replied
    What is shorting a stock? What is going long? - Free EBAY, PayPal, Business and Law Forums - Ebay Suspension, PayPal Limited

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  • Hardway17
    replied
    could use some training. you posted that you shorted netflix 4 times, Im such a newb to it I dont even know what that means....

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  • Modee
    replied
    Just to show that it's all about timing...NFLX went up like 17 points today, and yet I shorted it successfully four times. On the fifth short I got caught as it did not drop enough, but the profit on the others made up for the last loss.

    Why did I short a stock that was going up? and more importantly HOW did I short it successfully? Well, basically, NO stock goes straight up - the road is always choppy with ups and downs, and within those fluctuations are opportunities to go against the grain. That's the how of it. Why did I short it at all, and not just ride it all the way up? Well, I was late to the party and was worried that it might sell off, which it did actually, at different times. Who could have known that it would close near the high?

    Hindsight always perfect, but whatever works along the way is okay too.

    Leave a comment:


  • Hardway17
    replied
    I actually did very well on FOMOCO (F) back in the day. Recently hit VNMC FOR ABOUT 9K.....sitting on a few things waiting to dump. I just dont know enough of the jargin...lol

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  • Modee
    replied
    Well I post some but not all of my trades here. Usually my trades happen so fast that I don't have time to post them though.

    Feel free to follow me here and yes perhaps at some point we'll collaborate closer. Thanks!

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  • Hardway17
    replied
    always been interested in the market. have a few positions currently. Have done decently since the auto bail out but would really love to learn more. Need an apprentice?

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  • Modee
    replied
    Today was a classic sell off towards the close of the day, and a fine opportunity to go short on some stocks as they peaked a couple of hours before the close. I did that today twice with NFLX, as it was easy to note that NFLX was having a hard time getting much above 425. I shorted it, the second time, right at 425.25 but it rebounded so quickly that it shot back to about 425 and I covered there for a paltry quarter point. Towards the close, NFLX dropped as low as 423 which means that I left based on how many shares I was shorting, two grand on the table. Oh well, money's money, and as they say no one ever went broke taking a profit.

    Still, in stock trading you must capitalize on what you can on the good days, so that on the days that you lose your profits eclipse your losses. Put another way, you can't be going around collecting a quarter or half point here and there and leaving many points on the table, because the day will come when the stock moves so fast against you that you will lose at least a full point or even two or more before you may pull the plug.

    Let your winners run, and cut short your losers.

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  • Modee
    replied
    DOW down -278 March 6, 2015

    Actually best if the DOW drops a lot today, and gets the bloodletting over.

    Also, the general pattern for the DOW lately is a shuffle between 17K and 18K. We've been above 18K for a while, so we might be on the path back down for a while, until the DOW roars again!

    CLEMENZA
    Probably all the other families
    will line up against us. But, it's
    all right. These things have to
    happen once every ten years or
    so...gets rid of the bad blood.
    You gotta stop 'em at the beginning.
    Like they shoulda stopped Hitler at
    Munich, they shoulda never let him
    get away with that, they were just
    asking for big trouble...

    Leave a comment:


  • CLTraderChicago
    replied
    Its all about scalping futures markets :P

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  • Modee
    replied
    Well, there are only two ways to win in the stock market - one is to be IN the market, as in constantly involved - trading and such, and even then, as you point out, usually long term wins out anyway.

    OR, buy blue chip or the technology stock equivalent, and hold.

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  • American Psycho
    replied
    So in short long term strategy wins out.

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  • Modee
    replied
    Back then it was "irrational exuberance." And the "catalyst" if you want to call it that kicked in full swing after a precipitous drop at the end of 1998. After that drop, which some people predicted was "the beginning of the end," the stock market roared crazily until Memorial Day weekend 2000, after which is was a steady downhill until September 11th. 1999 was one of the best years the stock market has ever seen, especially for tech stocks.

    Irrational Exuberance just means that a lot of people decided to buy buy buy at the same time. Simple as that - not as many people buying simultaneously these days. But, take a look at AAPL, a stock I have been accumulating for over six years now. My advice to my friends starting six years ago was to buy as much AAPL as possible and never sell. That stock can go up or down ten points or more in one day, and for a five to six hundred dollar stock, that translates to a lot of transactions.

    I still believe AAPL is a good buy, for a long term investment.

    Leave a comment:


  • American Psycho
    replied
    That's interesting, Modee. I've only really traded for the past couple of years so never experienced what the markets were like before, but it makes a lot of sense now. I often wondered how people could be profitable at day trading based on how I've seen the markets nowadays. How do you think the markets behave differently now and what was the catalyst in 2000? What's the best strategy for trading now?

    Leave a comment:

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