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wayneb

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Everything posted by wayneb

  1. So I'm starting my 4th month in sim and seem to always be down most of the day and then make it up in the power hour. Does anyone just trade the close? Everyone tells me the open is the way to go but I cant seem to master it. Any thoughts? Thanks.
  2. wayneb

    Power Hour Trading?

    I guess you could call it a trend trade but a lot of stocks rally up or sell off at the close. Often I hold many trades till 5 sec before the close. Usually the opposition gives up in the last min. SPY lately has been selling off and I do very well in TVIX. When the SPY rallies up at the close I'll trade that. Spy can give a nice .30 or .40 cent move in the last 5 min. Today I made up a $1000 loss in the last hour after being down from the am. I feel it's not good trading however and will con't to work on the open sitting on my hands. I would be very profitable if I went into the power hour with a $0.00 P&L instead of down $800 to $1000.
  3. I have had my best and worst days on Fridays so I would guess it's like all aspects of Day trading, everyday is random and equally unique.
  4. So I'm gearing up to go live in a few weeks and looking into brokers. (Now I know why they are called Brokers.) After analyzing my current trading style it looks like commission + fees will be around $50.00 a day! Now if all your trades go well and you are up $500 bucks that seems doable but if you have a bad day and lets say you break even your still out $50.00 in commissions! If your down a couple hundred tack on another -50.00. I don't hear a lot of talk about commissions but it seems like they could become a deal breaker for day trading. I heard Andrew mention in chat the other day he would have about $500 in commissions for the day. Am I missing something? $1000 a month for a new trader seems out of line. Any input would be appreciated. Thanks
  5. Does anyone use an IRA account for day trading? I think I read IB has one but you cannot use it for shorts.
  6. wayneb

    IRA Accounts for Day Trading?

    In sim now but I'll try it. Who knows maybe I'll be a better trader! Thanks again.
  7. wayneb

    IRA Accounts for Day Trading?

    Thanks RTrader. I wonder if you can have a split account for shorting. I don't think you can DT without being able to short.
  8. wayneb

    Are commissions a deal breaker?

    Thanks Brian, that is around the number I come up with. I do almost all limit orders so ECN fees should not be as bad as commissions. In my example it was a tough day so this is probably the extreme. Some days I'm sure I'll only have 10 or 20 tickets. I'll also tweak my style a little and slow down on the doubling down and scaling out. Although I do like adding to a position because it limits my risk if a trade goes the wrong way. Once I realize my strategy is sound and working I'll add to my position in two or three stages. It also gives you a better entry point. If I go heavy right away and the trade has a big pullback It's hard to ride it out with big losses. I tried talking to IB but they would not give me pricing. They just refer you to the web page that is clear as mud. Now I know why 90+% of day traders fail! The commissions and fees eat you up! I guess I just found out one of the dirty little secrets of day trading.
  9. wayneb

    Are commissions a deal breaker?

    OK, so now I'm really confused. Just started filling out my application with IB. In the disclaimers it says this "Day trading will generate substantial commissions, even if the per trade cost is low. Day trading involves aggressive trading, and generally you will pay commission on each trade. The total daily commissions that you pay on your trades will add to your losses or significantly reduce your earnings. For instance, assuming that a trade costs $16 and an average of 29 transactions are conducted per day, an investor would need to generate an annual profit of $111,360 just to cover commission expenses." Does everyone make $200,000 a year day trading?
  10. wayneb

    Are commissions a deal breaker?

    Maybe were comparing apples and oranges. Today I traded only 4 stocks and ended up with 45 trades. This includes buying and selling. I like to average in and partial out. I traded a total of 8,020 shares 4,010 in and 4,010 out. It did not seem like over trading, very slow and boring at times. My profit target is usually .30 cents a trade. I ended up +$440.73 for the day with a $3.92 loose. I figure commissions would be about $35.00 based off of the Account Report in Das. Does anyone know if you put in a limit order and cancel it does that count as a trade? I do mostly limit orders. Does this sound excessive? Should I not partial in and out so much? Thanks guys.
  11. wayneb

    Are commissions a deal breaker?

    Thanks Peter, I was thinking the same thing last night. I need to make my trades count. I am now 8 weeks in sim and taking about 30 trades a day many at break even or + a few bucks. If your making $400+ a day you won't mind paying $50 in commissions but at break even or red for the day $50 bucks will hurt.
  12. wayneb

    Question for the consistent profiters

    After 3 loosing days in the sim I realized my trades were way too big and risk/reward ratios nonexistent. When I cut way back on share size and got out of bad trades quickly I made $1000 on 6 trades. The nice thing I noticed is if the trade went bad I did not loose hundreds or thousands just 10 or 20 bucks. It also was not as stress full watching that Neg # climb. My goal now is to never loose more than $100 day hence the 60% looser and still profitable principle.
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