or just work for your money

2% capital only per trade. No way that every trade you are making is that successful.

MetaformX count me in I always wanted to get into Stocks.

I am very interested in this top. I had some fun with stocks last year but I didnt know what the hell I was doing.

Yes, I pay on average $120 per day in commisions, but as a trader, since commisions are your only expense, you have to deal with it. It is part of doing business on wallstreet, which is why you have to keep them at a minumum and you can do that with Etrade or Ameritrade. Now, I make 10 trades per day, which is in actuality 5 stock transactions, because in each transactions, there are 2 trades that take place, 1 for when you purchase the stock, and 1 for when you sell it, so in actuality, your paying $20 per each transaction.

Out of those 5 transactions, I have a "winning percentage" of 80%. What this means is 4 of those stocks I will make money on after selling it, and 1 of those stocks will be a losing trade from the moment I buy the stock (I will get stopped out at 2%).

If you have a 80% winning percentage in the market, you will make ALOT of money, but believe me, when I started out, I had a 70% winning percentage which is incredible, but I lost ALOT of money, the majority of my starting capital in fact, simply because I would makesomething like 40% in 1 week, and then lose 50% on a single trade! That is why I talk so much about the 2% rule because your entire investment could be wiped out in 1 single trade, and believe me, that can happen very easily in this market.

If you can pick a winning trade 8 out of 10 times, or even 6 out of 10 times, and you keep EVERY SINGLE ONE of your losses to 2% (no excuses, if you don't follow the 2% rule, you will lose money), you will make good money in the market.

As far as your starting capital, I won't mention how much I trade with, it's a good amount, but I would recomend that you start out with at least $10,000, although since I trade low priced stocks (because they are the most volitaile) you can start out with as little as $5000 and still be able to grow that, although the more starting capital, the better. I use margin, but in order to use margin and you are classified as a day trader(you do 4+ trades per day), SEC rules mandate that you have a minumum of $25,000 in your account.

Here is the most important part about starting capital: The higher the reward, the higher the risk. My trading is high risk. DO NOT go and reach into your kids college fund or your rainy day/emergency money to start trading in the market. Use only the money you can afford to lose. I really hope everyone listens to this, because you can lose your money. Always think about the worst case scenario.

For taxes, you can look at it this way. In order to not pay the capital gains tax, you have to hold your stock for 1+ year. Buy and hold is a fools game. So you will have to pay the tax if you do short term trading and there is no way around it.

You can deduct $3000 per year towards your capital gains if you have had losses in the market, but that is about it. Since the more you make in the market, the more you pay taxes, I will happily pay the most amount of money in taxes that I can, because that means I had a good year :)

For those interested - ameritrade is your best bet.
They offer some nice tools to monitor and trade. I've gotten some freebooks and free shit from them in the past as well. The fee per trade is pretty good too.

I don't consider myself a day trader, I am a momentum trader. A day trader will do 30+ trades per day. I do 10 trades per day, and I hold many of my stocks anywhere from 3 hours-6 days. No GOOD day trader would EVER hold a stock overnight.

I am sure there are many proffesional traders who have made more money than me in the market, there is always a bigger dog around the corner, but I will take my 210% and be happy.

Haters are allowed to follow my picks as well. :)

No, you misunderstood. I DO NOT use 2% of my capital per trade, what I said is I lose a maximum of 2% of my capital on any single trade. So I set a stop loss at 2% below my starting price, when it dips below that 2%, it automatically sells the stock and I move on to another trade.

Also I already answered this above, yes, thats what I might do, but I should also mention that Ameritrade has level 2 charts as well! As a matter of ameritrade has just as good a tools as etrade, so you may indeed just need ameritrade only, I have just been using etrade for a while and am used to their tools.

if you are doing more than 5+ trades a day, you are classified as a daytrader and will be required to have the min capital for trading, which I think is 25k. Regardless, I find it hard to believe you are hitting 80%, 8/10 times you pick a winner? You could write a book and become a billionaire too while you are at it. Just take out a huge loan, and trade it, you obviously have special powers.

swing trading is the way to go, thats more what hes talking about

Yeah, read my previous post about the $25,000 minumum. The SEC classifies you as a "daytrader" with 4+ trades per day, but this is only for margin requirements to make sure that people don't go out and take a small loan to start trading in the market and put their capital at risk when they don't have the money to really trade.

As far as writing a book, hey, this system is not something I invented per say, I am sure there are other great traders out there who do some of these tactics...I am sure I did not invent them, but I am utilizing them and doing it succefully. It's natural to be a skeptic, thats your right. The proof is in the pudding, so once I post some future picks you can judge the results and the system for yourself.

the only time I listen to CNBC is when they do insider buying. if you can get into a stock lower than what the CEO just paid or the same 90% of the time you win on quality companies.

sure, i'm open to any ideas on trading. That's exactly what it is, swing trading. On your next trade, post the stock, position, and reason for trade, I'd love to understand your philosophy. Maybe you can make us all rich here.

I use esignal for my data feed. cybertrader/questrade is the online broker i use. awesome stuff, lightning fast trades.

I will definitely be interested. Post away, and i will read it.

I opened up an online account last month, but did not start using it yet.

Would be fun to see what you pick. Maybe I will join some of your picks, just for fun.

Can't wait for the system.

I am surprised you are willing to share.

Meta can you icq me 237842929 i would like to speak with you.
Thanks

If you have something, post it up. I am interested. I won't pay for it though, cause I already have a system that makes me money in the market.

Ive heard good things about Cybertrader as well.

Hey Meta,

Do you use the Waxie trendfund methods for trading?

Do you wait for a 52 week high on the stocks you pick?

Sounds like you are kicking major ass.

I don't mind sharing the wealth, the way I look at it is if you guys make money in the market, that will not effect how much I make since we are not directly competing with each other, so why not help people out. Why should the wallstreet whales have all the fun? :)

I added you.

Thats cool, no one has to pay for it, I do alright for myself, all my info will be for free.

I am somewhat familiar with Waxie, but not quite sure the methods he uses. I would guess though it is similar to what I do.

No, I do not wait for a 52 week high on a stock, although I do love to trade stocks that do hit a 52 week high.

Here are a few rules that will give you an idea of how I trade.

1. Absolutly NO bottomfishing. To buy a stock simply because you think it is cheap is the easiest way to lose your ass in the market.
2. Trade only stocks above the 50 day MA (with a few exceptions)
3. Trade Gap ups. (not immediatly though)
4. 2% stop loss on all trades, unless in the rarity that a chart suggest the stop loss can be more liberal.
5. I Hold a stock anywhere from 3 hours to 6 days. I let the chart tell me when to exit and when to enter.
6. I don't give one hoot about a stock's fundementals. If you are in a stock long enough to understand it's fundementals, you have been in that stock too long. I let the chart and the market tell me what to do, not what some wallstreet analyst thinks the company is about or what their profits will be in 2006. I don't care.
7. I have CNBC at the home and the office, but I do not watch it.
8. My final and most important rule: Buy only stocks that are in uptrend, and short stocks that are in downtrend. I would rather be shot than buy a stock in a downtrend.

So that is the jest of it. I take all those rules, and then each day I do charting on all 7000 stocks in the market and I find the top 10-100 stocks that meet my criterias. Then I get to know the charts on all of them, and I watch them for a few days. Everyday a few of these stocks break out. I wait for an entry point, get in, then ride the uptrend untill there is a change in the chart, and I exit, usually for a 5-15% gain, and sometimes I get lucky and hit a 50% one, like I did with GIGM last month. :)

I would not take advice from anyone
 

Here is basically what this guy does. He watches a certain amount of stocks. He waits to see the stock go up and then he buys into it hoping the momentum continues. In most cases it does not. What he fails to tell you and I am very leary about him is that you CANNOT put a stop loss in on a penny stock. If a stock is at .30 cents and you put a stop loss in at .26 cents you will start selling your stock. Then if it drops below .26 cents and you still have shares you WILL NOT SELL the rest of your shares.

Do yourself a favor. Do not take stock tips or take any advice on how to make money in the stock market from someone on the Internet. You will lose your ass.

He is not really giving stock tips. He has a method of momentum trading. Fundamentals don't matter. He has nothing to gain by telling us his method for free. Trading the gaps, momentum trading is what waxie teaches at trendfund.com . Sounds like you are having great success, and thanks for including us.

Yes he is
 

He sure is going to post certain stocks. You guys need to do your own DD. Do not take anyones advice on how to trade stocks. This guy is dead wrong about putting in a stop loss on a penny stock. IT CANNOT BE DONE.

can you send me a message?

Right, who said I will be listing penny stocks here?? If you were to read all my posts here(which obviously you did not), you would see that I emphatically stated that trading penny stocks is very risky, and I will not be listing my penny stock picks here since I know that most of the people on this board are not experienced traders.

And I am quite amused at the conclusion that you have arrived at, stating that "He waits to see the stock go up and then he buys into it hoping the momentum continues". All I can say to that is that If it was that easy, everyone would be doing it. But maybe your right, I bet Goldman Sachs could give you those 210% gains as well with their great buy and hold strategies. By the way, in a buy and hold, how long do you Hold till? Untill the company goes bankrupt?

You are right about one thing though, you should not take stock advice from someone on the Internet. This is why, if you were to actually read anything I said, you would see that I told everyone to follow my picks at the begining to see how they perform, and then do your own research, and then buy the picks after you have done your OWN research.

Thanks scar. Yeah, not like I am charging for my service. LoL. I just thought it be cool to have a daily stock session for those interested in it. There always has to be that one guy in the group who tries to screw things up for everyone else though.

Read my post before this.

I did just now, it sais you are offline

Sure, keep a thread going in here of your daily picks and any info on your methods would be helpful. I trade subpenny stocks and do very well, but I don't recommend it for anyone new. The last 4 days have been great, up 350% with hpon.

Will do bro. HPON, now that is really a penny stock. Look at that volume, I guess it's the SIRI of the OTC, huh?

You need to go back and read what you wrote.
 

You wrote that the MOST you lose on a stock is 2% because you put a stop loss in. Now you write that you will not post penny stocks on this board. You also wrote that when trading penny stocks you can have as little as $5,000. If someone only has $5,000 they can only trade penny stocks to make any kind of money.

It is IMPOSSIBLE to put a stop loss in on a penny stock. So when YOU buy a penny stock you can lose more than 2%. So by you writing that you can ONLY lose 2% is wrong.

The two stocks you mentioned in this thread are penny stocks. Why don't you list the last 20 stocks you have traded. I am not intereted if you made any money so their is no need to tell me how much money you made.

Now to answer your question about how long I hold a stock on a "buy & hold". Where did I write that I did hold a stock for a period of time?

Maybe 200% is possible over short term, but over long term that % gain will come down a lot especially with daytrading. i dont know what it would have taken to make 200% in the market over the last few months, but making A LOT of money in the market in just the last few months would have been very easy.

Market was up nicely since the summer, many stocks were up big

Here are few examples of where i made money over the last few months
MCHX +30% since early Dec
GOOG +100% since IPO
IACI +20%

and bunch of others in the same range