Quote:
Originally Posted by NemesisX
Wow! No kidding?! People can easily make 2-5% (initially) per day through day trading?
Congratulations on easily achieving a level of performance that far outpaces even the top hedge funds on earth at the tender age of 18  |
I did say at the end that you can lose big too...
When I day trade I only look for a $.10 to $.15 gain. I use a 3 Day RSI indicator, 6 day RSI Indicator and, a 14 day RSI indicator.
For example with $100k and a $20/share security (That is high volume and volatility) You need a stock that has 10¢ or more swings in under 10 minutes.
You buy 5000 shares of company xyz @ $20.00/share. Set a limit sell order for $20.10 and a stop loss at $19.80 (Varies case by case**) You wait seconds to minutes for it to gain $.10 ($20.10), you pocket the $500 gain (Minus commissions).
Rinse and repeat. Now you will lose a few times from your stop losses. I minimize this from using the 3 indicators.
Say you made 11 trades today, you were able to get the $.10 gain 8/11 times. That's +$4000, but you lost on 3/11 trades -$1500. You netted $2500 today. (Minus commissions of course, and assuming you were continuously able to purchase 5000 shares after the few losses (have extra money in the account but only trade with $100k))
Look at it how you want though. I do have days where I am in the hole for $2k within the first few trades, I get discouraged and call it a day early on those days and take a breather, because emotions can really screw you.