I'm up 210% in the Stock Market. Who wants Stock tips?
 

I am up 210% in 2 months. It takes most people 20 years to be up that much :)

It's all about minimizing your risk through technical analysis and then getting in and out, let those winners run and cut the losers loose right away. And most importantly, don't listen to CNBC or your broker for stock advice.

If there is enough people interested, I will start posting my stock tips here in like a weekly thread. Who is interested?

I would be interested, maybe you should just do a email newsletter

why not :)

yeah do a news letter and show scren shots of what is doing well for you and charge 30 a month for the newsletter

I bet you watched the movie, "WallStreet" last night

Good work! I'll tune in.

I used to watch Wall Street and Boiler Room almost nightly, I think got the majority of the good lines memorized at this point. Always a great movie night for some motivation to get work done the next day :thumbsup

I wouldnt agree that it takes most people 20 years to be up 210%. We should have a thread. Ill post pics too.

i want some tips

I am extremely interested. Post some tips DAILY! =)

definetly interested. btw do you use online brokers?

Hehe, well, let's not jump ahead of ourselves yet :)

No, I dropped out of college temporarly when I was 19 to go day trade full time for 2 years. I have been doing this a while, but I've developed a new technique the last few months which is working out really well.

and if yes, who?

Yes, I user Etrade's Power Etrade Pro. If you want to make money in the market, you have to use an online broker. Picking up the phone and calling your broker is not the way to go. Of course the way I trade, I have to keep an eye on the market every single day, so it's not for everyone.

sure, tips are always welcome :winkwink:

do you suggest etrade for daytraders?

Good stuff. Bring it on! :thumbsup

If you are starting out, I would recommend either Etrade or Ameritrade. They are both very fast with their trade executions, and the commision is about $10 per trade.

The GFY stock club ... count me in

210% in 2 months is 105% monthly, performances like that cant be done with low risk

Yes, etrade is great, ameritrade is good too. Etrade has the Power Etrade Pro that gives you level 2 charts (which show you the trades that people have in place at certain price points) and most importantly, it is not browser based, its an actual application that you download, so its very fast. If you make 50 trades per month, it is free, so if your day trading, its a good way to go.

The advantage that Ameritrade has, and it could be a big one, is that if you trade OTC stocks (penny stocks), Ameritrade will cost $10.99 for unlimited amount of shares where as Etrade is $10 per each 5000 shares.

I am starting to get into some OTC stocks (they are very very risky, I don't recomment anyone that is starting out to touch OTC's) and I bought a stock with Etrade that was 45 cents a share, and I bought 50,000 shares, and I ended up paying $100 on the commison on that trade to Etrade where as it would have only cost me $10.99 at Ameritrade.

You have to realize that as a day trader, your biggest expense is commision, it is imperative that you keep that cost down as much as possible, so if I continue to play the OTC's, I may switch to Ameritrade, or have 2 accounts, one at Ameritrade for OTC's and another at Etrade for regular trades.

No, let me make it clear, it is NOT low risk. But with the method I am using now, I am minimizing my risk to 2% of my capital per trade, so the most you will lose is 2% of your money per trade as long as you follow the plan. If you do not follow the plan, (set sell stops at certain price points) you could lose alot of money.

This is why you have to watch the market daily, and for some people, that is impossible to do, so if you fall into that catagory, this is NOT for you.

Never ever take advice from brokers/news sites.. very true ;-) Just learn to read the numbers! My portfolio is up quite nicely ;-)

Tips would be great. You might want to look into starting a newsletter if you get alot of interested people.

Just remember that you haven't made the money until its cash in your pocket. A lot of people had great returns in 99 and still lost everything.

yes id be very interested in a newsletter, or at least in hearing your system...
2% downside per trade.. what is the upside potential? at what point do u take your gains?

Yes. Think about this guys, when a broker right out of college is hired by one of the big wallstreet firms like goldman for example, they will spend their first 2 years as a broker on the phone only, calling a list of past or present clients like a TELEMARKETER and trying to sell them stock.

Of course they put a nice spin on it and pretending they are doing you and your retirement a favor, but the only favor they are doing is to their bottom line. Now, would you take tips on how to manage your money from a glorified telemarketer?

You should take matters into your own hands. Do your own research, and DO NOT trust you hard earned money with those wallstreet crooks. There were brokers that were still recomending Enron up untill it filed for bankruptcy. Learn from the past.

Paper profits amounts to zero untill it is realized, so yes, the key is to cut your losers fast and let your winners run and then TAKE PROFIT.

Unfortunately those movies dont make you smart :)

The upside potential diffrers from stock to stock, unlike the downside potential which is set at 2%, for the upside, we will let the chart tell us when to exit. The 2% rule for the downside is set at 2% because if you do not cut your losses at 2%, you are risking losing your entire capital, and for a trader, your capital is your blood, so it is absolutly imperative that you do not put your entire capital at risk on any trade.

And we will set the stops in manually, so it will automatically sell the stock once it goes down 2% from our entry point. This is because if you do not set the stop manually, when it comes to selling, many people will actually divert from the rule thinking "well, it will probably come back up, and this is when a simple trade could turn into a complete disaster.

I won't do a newsletter, I still have a Adult business to run :) but I will do a thread here where I will post the daily picks and my entry points and you guys can see if it is right for you. No one here should just jump in and follow my picks right away, you should do some research of your own (I will teach you guys how the system works) and then you can decide for yourself if it will work out for you.

Be back after lunch.

good stuff... please, continue!

Most Mutual Fund managers would kill for a 11% gain in 1 YEAR now a days. How about a 11% gain in 3 DAYS on a day when the Markets are down? :)

http://www.studiocash.com/stock1.jpg

Meta - do you have some spare min on icq nowadays ;) ?

Looking forward to it

Sure. 127-058-515

Meta, is it worth trading on a daily basis, do you take taxes into account, aren't they 50% on short term capital gains ( day trading ) ?

Also how much money are we really talking about here, because it seems that with the # of trades you're doing on a daily basis you lose quite a bit of your profit to comission and that probably means that there isn't much profit to begin with

And finally, doesn't it make more sense to use 1 broker say Etrade for its level2 app and say ameritrade for OTC stocks?

this kind of trading is done very often for daytraders. They calculate their risk, say R, and they won't risk more on every trade. They determine size of position based on R. I'm telling you that you will lose more often than not with this model, except, since you are only losing R on each trade, your winners will compensate for the losers. I know professional traders who've been trading much longer than you've been toilet trained and they don't make 200+%. It's not a special model you found, and the fact is, you're looking for certain criteria before you enter a trade and count on only losing R but possibly on a winner making 3-4 X R. So it's nice you made 200% in 2 months, but talk to me in a year from now, you may have gotten 1 or 2 lucky picks, but with your model I don't see you consistenly doing it.

Wow - You Are A Legend In Your Own Mind

:raises hand:

I'm down again, with this one evil tech stock.

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.