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From IM'er to DayTrader - my story

Discussion in 'Making Money' started by SlappinDaBees, Feb 23, 2013.

  1. SlappinDaBees

    SlappinDaBees Regular Member

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    So yesterday I was sitting in my office waiting for the markets to open and all of the sudden I realized "Hey, I'm an actual daytrader". :)
    I started thinking of how I rolled into this world and turns out I have to thank BHW.. One of my first IM project was promoting a Clickbank product about a trading strategy. I learned the promotion method (youtube) from BHW and somehow I ended up being really fascinated about the whole global market and finance system.

    I started reading and reading and reading and then.. more reading. I think I 'studied' for about 3 months. Because I'm a pretty fast reader and learner I went through 2 or 3 books a week. In the fourth month I opened a paper account with a couple of trading platforms to experiment a bit. At the end of that month I turned 10k into 23k with futures trading so you can say it was a succes. I decided I was ready for the big step and try it with real money. Opened an account with 10k and well.. I started trading :D I do have to say my heart was pumping out of my chest when I made my first trade.

    I primarily trade futures. E-minis are my favourite markets and nothing tops a good day of scalping on a 1 minute chart. The recent markets are really volatile so it's harder to trade but the potential profit targets are bigger too. Anyway.. After 3 weeks of trading I'm up 5k USD. I was wondering if there are any trader here on BHW or people that have experience with the stock market? Would be nice to chat a bit, exchange strategies and other stuff..

    Maybe we could open a seperate section on BHW for this because technically I'm generating my income through internet :p

    Ooh yeah if anyone has questions, I'm here to help ;)
     
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  2. Mr Stark

    Mr Stark Regular Member

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    Nice, congratz :) Could you suggest some good books you've read, for a beginner?
     
  3. Duffers5000

    Duffers5000 Elite Member

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    Congrats man. I would love to get into this stuff but it seems to me that you really need to study and srudy and watch your trades like a hawk.

    Where would you point me if I wanted to open a small account for fun ($500-$1000) that doesnt require constant monitoring.
     
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  4. saonbd

    saonbd Regular Member

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    Congrats!!!
     
  5. xashishx

    xashishx Regular Member

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    Great! Congrats on that. Would you mind giving some suggestions on where to start off when getting into trading? Or any ebooks you suggest?
     
  6. JDIZM

    JDIZM Junior Member

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    Nice work turning a profit, tried a few test accounts myself but never actually got into it for real.
     
  7. ran60616

    ran60616 Regular Member

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    This is a great profession, that is...if you know what you doing. Found a guy to sub-lease the remainder of my lease (3 months in Chicago) early last year. He was a futures trader, the dude lived in the burbs and took over my lease coz he was apt hunting in the city. The dude makes 6 figures with no effort and he was 23. I met up with my old roommate after a while, and apparently he bought a 2 bed sky-rise apt in the city (N Columbus ave) within a month and paid rent $ for the next 2 months and left LOL

    Congrats and Good luck with this.. don't forget to share more info with us :)
     
  8. ice41

    ice41 Power Member

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    Good job! Care to share which ebooks would be best for noobs? Would love to switch career :)
     
  9. thetvnun

    thetvnun Power Member

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    stock market is boring trading, like the poker machine at the casino, futures (for me) is like craps. i'll never trade futures again, used to do heating oil but my broker broke me, never tried it without a broker. stocks are chill, need nasdaq level 2 to really do anything decent.
     
  10. blackhatfree

    blackhatfree Newbie

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    Congrats.... Don't forget about stop loss. Otherwise you will get margin call sooner or later ;)
     
  11. mkstromin

    mkstromin Power Member

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    Oh dude..i envy you!

    I traded Stock in the past! With Ameritrade (they changed the name to TD Ameritrade). Had 25k on it and with 1:4 = total of $100k

    Before i made first trade i did all that on simulator...and oh boy is it different! Simulator trades and Real trades are 100% different! :)

    Once i made about $500 in 3 minutes! Another time i lost $1500 in 72 hours...funny...exciting times! I wish i could do it again..now that i know all that i know!

    And the most important things i learnt were:

    1. Make a plan and stick to the plan! NEVER do anything that is not in your plan!
    2. For Day Trading - always follow the news..and stay away from trading on days with important upcoming news - Political or Financial!
    3. Always have stop loss!
    4. Establish a maximum daily loss that you can afford and NEVER EVER try to trade if you already lost your daily limit!
    5. Make a profit goal for the day: How much do you want to make? As soon as you hit that - close laptop or desktop and go have a beer!
    6. Be consistent...find 3 best performing companies in 3 top industries and always trade only those stocks. Dont jump from one to another.
    7. This is what killed me..i dotn have a rule..i will just tell you what happened:
    So i got 2000 shares of a pharmaceutical company and bought them. Also i broke my rule as i left them on hands overnight.

    Next day at market open i was already down $500. Did not have a stop loss. Also i dont remember why but i was almost sure they will rise again. So what i did is this: I bought 2000 shares again...to dilute the cost per share (i hope you understand what i'm talking about here).

    After the last 2000 shares i was down only about $150 if i remember correctly. So the stock only had to rise like a few cents and i would have sold and at lest get all my money back instead of losing! All this time the damn shares were steady...no loss no gain...so i took the risk and bought 1000 shares again..now i was down like $50 or so.

    Left them over night...next day...BOOM -$1500...i was in shock! And finally decided to give up and sold everything at market open! By the end of that day that stock went down so much that if i had all my 5000 shares i would have lost about $15,000!!! (dont remembered exactly..but around this much)

    These are my 2 cents about stock market..Also this happened in 2005...looong time ago...some of you readers might have been less than 10 years old ...LOL
     
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    Last edited: Feb 23, 2013
  12. LMS1066

    LMS1066 Newbie

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    Congrats and great job man! I've been thinking about getting into this but have yet to pull the trigger. But then again, this is why I'm on the outside looking in--for not taking action.
     
  13. cyberjunkie

    cyberjunkie Junior Member

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    =====
    Nice transition,

    I've always been fascinated by HFT approaches to Daytrading.
    Is this a strategy that you are active and successful in?
     
  14. SlappinDaBees

    SlappinDaBees Regular Member

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    Day trading IS constant monitoring. You've got to be ready every second to jump in or out a trade. Besides, if you wanna get into futures trading for 'fun' you really should know the potential loss is infinite. I recommend a starting capital of $4000 if you wanna start of with 1 contract trading. You'll be able to absorb some losses, which you'll definitly have..

    I suggest you look into long term investing if you don't like constant following of the market and news.

    My first book was 'day trading for dummies'. It's a great book to learn all the terms, markets and even some basic strategies. After that I hit the library and read every book I found :)

    To be honest, it isn't all that hard as it seems. There is just an incredible amount of information you need to know before you start to understand how the markets work, move and react

    Sad story man.. 2005 was a bad time but I was still 22 back then and no where near the stock market. The most important thing I've learned from these past 3 weeks is that you need to emotionally detach yourself from money and keep yourself to your rules. If you lose, you lose.. no big deal! suck it up and blame yourself because you're the one who made the trade. Sure there is market manipulation and other things that go above our hats but that has always been the case and still small time traders have been able to make a decent profit.
    I really hope you could afford to lose the 15k and you didn't take it to bad.

    As a day trader these are my own rules which might help you (or anyone else) if you ever decide to give it a try again;

    1. Don't use money you can't afford to lose.
    2. Put a plan together.
    3. Don't rely on to many indicators or anyone else besides your own knowledge and instinct.
    4. Manage your trades properly. 60% of your succes depends on how you manage a trade.
    5. If the market is slow, stay away.
    6. If you can't get your profit target within 20 - 25 minutes, get out.
    7. Focus on specific markets.. I'm currently going with e-minis, the russel and EUR/USD
    8. Slowly build up. I started trading with 1 contract and now I'm confortable trading up to 3 contracts.
    9. Don't be greedy. I've had countless trades of 4 ticks while I've could have had 12 ticks but that's part of managing your trades? I'm actually still working on that
    10. 1 good trade is better than 5 mediocre trades. I've had trades with a profit margin of 1k. If that occurs in the morning I just call it a day and hit the gym or do something else to enjoy the victory.
    11. Treat the market as a woman with moodswings. You'll never know how she will react.
    12. Stay away from the market when there is news coming up. For example when you're trading the mini S&P in the morning and some company relevant to the market will release a report or something at 14:00, get the hell out :D

    There a couple more that slip my mind right now but these are the most important ones I guess.
     
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    Last edited: Feb 23, 2013
  15. SlappinDaBees

    SlappinDaBees Regular Member

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    Nah I feel it's still to early for that. Like I said, I'm only 3 weeks in for real and so far its going good who knows.. by the end of the next week I could be back at 0 :) I'm just focussing on my current strategies and optimalizing them. It's like IM.. when you start, focus on 1 thing at a time untill you really rock at it
     
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  16. PeaceLoveSubmission1

    PeaceLoveSubmission1 Regular Member

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    If you follow http://www.goldtradingexperts.com/ and do exactly what they say you will make 500% profit per year. so if you start with $10000 at the end of the year you will have $60000. These guys are good!
     
  17. SlappinDaBees

    SlappinDaBees Regular Member

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    Thanks for the link. Personally I wouldn't believe them right away unless you can convince us with personal experience :) I'll have a look at it anyways because I love these types of sites
     
  18. cnick79

    cnick79 Jr. VIP Jr. VIP

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    This is a field I would love to get into, but there is so much to learn before jumping in. Where did you create an account for practicing and who do you use for live trading? Do you get hit with commissions when doing a lot of trades?
     
  19. Qokaine

    Qokaine Regular Member

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    great to find other bhw's trying to get into stocks, i've been looking into it and a method i've found of shorting promoted penny stocks, makes more sense to me. since even mark cuban said he doesn't dabble in stocks because he knows it's being exploited in this era to ways most stock traders don't understand or can comprehend.

    People run "Pump & dump" campaigns go on constantly, be it thru email spamming, blog spamming, and so on. And there are also things like botnet pump and dump schemes that have gotten caught (http://countermeasures.trendmicro.eu/belgian-pump-and-dump-botnet/) so you can imagine all the people cheating the stock market & not getting caught.

    Quite a lot of misinformation goes around so the news you may be hearing could be inaccurate also you don't know whose in the back of these companies that could be doing things maliciously to make money off their own shares, and you wouldn't even know.

    So to me, i much rather focus on a method that does not focus on an actual companies capability to maintain it's business.

    Does anyone else here know anything about shorting promoted stocks?
     
  20. SEO20

    SEO20 Elite Member

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    What trading platforms would you suggest from EU if you want to trade gold?
    Tons out there - but hard to compare the fees on each trade, fees on withdraw etc...

    Thanks