Trading

Q: Does anybody have input on trading stocks vice investing? I compiled a list of about 15 stocks that have a trading range of a dollar or more, every single day. If I buy slightly lower than the previous close, and immediately put in a sell order for 50 cents or a dollar higher, it seems to me this would be very, very lucrative. Can somebody offer me any advice before I take this plunge?

A: Your broker will love you...you say "If I buy slightly lower than the
previous close, and immediately put in a sell order for 50 cents or a dollar
higher"...putting in a sell order doesn't mean that you're going to sell the
stock - what are you going to do if the stock drops after you buy
it?...Don't quit your day job!!!

I suspect you w

ill find that spread and commissions keep you from
executing your strategy profitably, but you may get lucky for a while.

If you want to be a day trader, you'll have a better chance of sucess by
becoming an ECN trader, IMHO. Go to http://www.daytrading.com/
and learn more about ECN before taking the plunge.

Also, whether you'll use it or not, you should at least
know about NASDAQ Level II quotes and learn how the market works, IMHO.


If you have enough money that you can beat commissions, and beat
the bid, and ask spread, then it could be very lucrative for you.