Advice On Being A Day-Trader
Q: While I've been trading online for a few years now, I am thinking about become a day trader full time. A small company is willing to sponsor me for my Series 7, 55, etc...but I am a bit wary about coming into this field with no finance/statistic background.
A:
Okay, now you said "successful trader". That is a virtual contradiction to
what you were talking about before which was "day trading". For day trading,
you need gross credulity. Having a large fortune so that you can make a
small one (out of the large one with which you started, certainly not in
addition to it). Incredible naivete and f
scam you by calling it a "job" when all it is is a situation in which they
can fleece you of your capital. I'll get back to the successful trader
bit only if you or somebody in the news group really wants me to talk about
that. For now, let's just deal with your daytrading "job" offer.
I started my own career trading stocks just three months prior to the
beginning of the Crash of 1962. Anytime is a "good time" if you don't know
what you're doing and have money burning a hole in your pocket and a gang
of swindlers interested in fleecing you. Actually, anytime is a good time
if you do know what you're doing and already know how to avoid the swindlers.
Daytrading is for chumps. How often do you put your capital on the line in order
to turn a measly 25 cent/share profit, and how much work do you have to do to earn
that measly profit? I bought and sold some puts this week and made more than any
daytrader I know of, has made in the entire month. While they were staring at their
computer screens all month, I was loafing around at the beach for most of the month.
There are some very successful people here in MIS. Plenty of them post-numerous
picks that turn out to be dead on. Not to mention that the combined knowledge in
the group is astounding and has helped my success rate increase to unbelievable
levels.
I recently started as a day trader for a firm in Downtown Chicago,
although I am allowed to trade from my house. I answered an ad for a
daytrader a year ago from another firm who were more oriented to having
the public come in to daytrade. Even though I would be trading the firm's
money and was an "employee", I quickly figured out it was just another way
to generate commissions for them. The company I went with seems to be on
the up and up, as the public can not get "in the door", I would be surprised
if they paid you any salary. My deal is that I split all profits, AND LOSSES
with the owner 70-30 and I am responsible for all commissions. In return, I get
the use of a direct access platform for free and only pay 1 cent a share with
no minimum, so I can do a hundred share round trip for $2.00. I have 20 years
experience in the market as a broker and a trader, and I still lost money my
first 2 weeks of doing this. It's hard, but obviously rewarding if you do well.