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TranceAddict Investors Club @ Marketocracy (pg. 63)
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| Krypton |
| quote: | Originally posted by Kinezi
Day-Trading never works, infact trading never works.. only 'investment' works.. IMHO. |
The weird thing is.. they both work. You don't have to trade just stocks. You can trade options and futures too. That's a whole other ballgame. Knowing the game, you can day-trade for a living. I've met a guy who has no outside job. He sits at home day-trading. That's the good life... |
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| Capitalizt |
| quote: | Originally posted by Krypton
If it works, it works. I plan on getting into day-trading eventually. But you got to have money to make money. I'm at the stage where I don't any money. Sold my portfolio to help feed the family while my mom lost her job. I would have had thousands of dollars today. She got a new one, so I'm going to ask for $2000 to restore my credit and savings like to the way they were before she lost employment. |
I wouldn't do that man..
You should never loan money to family members. If you ask for it back, it's like you just loaned it to her. That can only lead to uncomfortable situations and can really strain relationships. If a family member is in need, you either GIVE them money or you don't. Don't ask for it back unless you are in truly dire straights yourself. She knows what you did for her and I'm sure she appreciates it and hopes to return the favor when she is able. In the meantime, get a job tossing pizzas on weekends and you will have a few thousand $$ saved in no time. Many delivery guys make $17-18/hr in my town...more in rich areas.
And I agree with the other person above...Don't think you can daytrade and consistently win. You may have a small streak of wins, but it's very unlikely you can keep it up and much less live off the profits.
A good steady job and methodical investing is the key to success. Boring, but reliable. Don't expect to achieve all of your dreams just a year or two after you started having them. ;) |
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| mndeg |
daytrading is actually less risky than investing
your stops are predetermined and you simply trade your edge. there's no chance of gaping up or down.
http://greenonthescreen.blogspot.com/
these two are married and daytrade for a living, they also in the websites live chat during trading hours
it's about being able to get an easy 5% on one trade in a few hours instead of scalping 1/10th of a % or 8% in a month. |
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| Shakka |
| quote: | Originally posted by Krypton
He sits at home day-trading. That's the good life... |
Does he play WoW and have Cheeto stains on his pants too?;) |
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| Krypton |
| quote: | Originally posted by Shakka
Does he play WoW and have Cheeto stains on his pants too?;) |
No the guy runs his own company..;)
| quote: | I wouldn't do that man..
You should never loan money to family members. If you ask for it back, it's like you just loaned it to her. That can only lead to uncomfortable situations and can really strain relationships. If a family member is in need, you either GIVE them money or you don't. Don't ask for it back unless you are in truly dire straights yourself. She knows what you did for her and I'm sure she appreciates it and hopes to return the favor when she is able. In the meantime, get a job tossing pizzas on weekends and you will have a few thousand $$ saved in no time. Many delivery guys make $17-18/hr in my town...more in rich areas.
And I agree with the other person above...Don't think you can daytrade and consistently win. You may have a small streak of wins, but it's very unlikely you can keep it up and much less live off the profits.
A good steady job and methodical investing is the key to success. Boring, but reliable. Don't expect to achieve all of your dreams just a year or two after you started having them. |
There are hundreds of thousands of people who day trade successfully on a regular basis. But I would get into it until I had a set tested strategy.
I have a job and everything. But I lost my life savings, my investments, some of my gold, and my credit also went down the tubes. I paid 25% of a loan she got but couldn't pay for. My credit balances shot up to be over the limits. She definitely owes me. Anyways, I'de be using the money she returned to me to start a business officially. |
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| jerZ07002 |
| quote: | Originally posted by Krypton
No the guy runs his own company..;)
There are hundreds of thousands of people who day trade successfully on a regular basis. But I would get into it until I had a set tested strategy.
I have a job and everything. But I lost my life savings, my investments, some of my gold, and my credit also went down the tubes. I paid 25% of a loan she got but couldn't pay for. My credit balances shot up to be over the limits. She definitely owes me. Anyways, I'de be using the money she returned to me to start a business officially. |
dude, you're so young: life savings. :p |
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| Kinezi |
Trust me, I have been there... I have done that.. day trading can make you a living, but it will never make you rich.. and the amount of stress in day trading is enormous.. it takes a toll on your health and your social life too.. Sundays and Saturdays are like worst days of the week.. day trading is an addiction.. not a profession.. its part gambling and part slogging..
Best way to make money from Financial Markets is have a job, save money, keep tab on markets and when you see opportunity 'invest' in it.. when in green... either move your SL to breakeven if you think it will go higher and protect your equity.. or book profit without being greedy.. your first preference should be to withdraw back the initial amount you invested.. and than take risks from profit money you earned..
Name me one day trader who is rich and famous.. Buffet, Soros.. all invested.. noone slogged on computer screen day in day out.. and traded for few quids here and there.. |
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| jerZ07002 |
| quote: | Originally posted by Kinezi
your first preference should be to withdraw back the initial amount you invested.. and than take risks from profit money you earned..
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that's horrible advice. In general, people take on more risk and make plays they wouldn't have made otherwise when they think they're playing with 'house money.' The harm in this strategy is that the money earned over the initial amount is actually yours. you wouldn't take on 20% risk for money you earned at your 9-5 job and then 50% risk you earned on interest from your bank account; so why would it be different from gains earned in equities or long term debt obligations?
this strategy is for perpetually losing gamblers. |
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| Shakka |
| quote: | Originally posted by Kinezi
Name me one day trader who is rich and famous.. Buffet, Soros.. all invested.. noone slogged on computer screen day in day out.. and traded for few quids here and there.. |
Steve Cohen |
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| jerZ07002 |
| quote: | Originally posted by Shakka
Steve Cohen |
I don't know if i would label him a day trader. he's a hedge fund manager whos hedge fund makes a load of trades. doesn't a day trader make profits on riding market momentum? That's an awfully risky venture when you're taking 50% profits from your clients. I don't know his exact strategy, but if it's anything like other hedge fund managers, it is to take advantage of mispricing in the market and arbitraging. |
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| Shakka |
| quote: | Originally posted by jerZ07002
I don't know if i would label him a day trader. he's a hedge fund manager whos hedge fund makes a load of trades. doesn't a day trader make profits on riding market momentum? That's an awfully risky venture when you're taking 50% profits from your clients. I don't know his exact strategy, but if it's anything like other hedge fund managers, it is to take advantage of mispricing in the market and arbitraging. |
When I think of day traders, I just think of people who trade rapidly and frequently vs. the long-term buy and hold guys he was talking about. I don't define it over the course of the day, but just someone who is rapidly in and out (and yes, playing movement and momentum, but not necessarily trend).
Cohen moves big, fast, and often. For me that's close enough. I think that the day-traders of the late 90's did themselves in and are a dying breed if they even still exist. I'm sure there are still some of them out there.
For me a day trader is someone who trades every day. How much of a day trader he is will probably be reflected in his portfolio turnover rate. |
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| jerZ07002 |
| quote: | Originally posted by Shakka
When I think of day traders, I just think of people who trade rapidly and frequently vs. the long-term buy and hold guys he was talking about. I don't define it over the course of the day, but just someone who is rapidly in and out (and yes, playing movement and momentum, but not necessarily trend).
Cohen moves big, fast, and often. For me that's close enough. I think that the day-traders of the late 90's did themselves in and are a dying breed if they even still exist. I'm sure there are still some of them out there.
For me a day trader is someone who trades every day. How much of a day trader he is will probably be reflected in his portfolio turnover rate. |
i always thought of day traders as people who trade without really considering fundamentals, and who are trying to play market momentum. Cohen definitely makes his moves on more than a gut instinct. I guess it all depends on your definition.
i would be interested to know how much of cohens daily trading is influenced by benefits (not necessarily illegal) he gets from brokers. Since he's only indirectly paying the brokerage fees for the trades (by reducing the profitability of the fund), he would probably be more inclined to take a direct benefit from side deals given by brokerages based on his trading trading activity, from which he would be the only person benefiting. I'm pretty sure no anti-churning rules apply. |
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