Day Trading for beginners

Novise_man · 3 February 2010

Hi’

I’m new to this and I’m looking to do some day trading on my off days, was wondering what your view is on day trading for beginners. Also could you recommend the best value for money in regards to online broker services?

Thanks

nuking · 3 February 2010

do a search.
you will find that has been discussed many times.
spend your time on it as a first step.

craigj · 11 February 2010

i find comsec is very user friendly
if you want to begin day trading learn by watching a stock before you start trading it.

Market Sniper · 11 February 2010

setup a demo account with ninja trader and learn to watch the action of the charts. Its free and a fantastic tool to start learning. DONT waste your money trading your hard earned until you have spent time figuring out some some repeatable and potentially high prob patterns.

SmellyTerror · 12 February 2010

Sir, I will also beg you right now not to put money in. Paper trade. Do it for a long time. Keep records just as you would have with real money. Day trading is not something to jump into unless you want to give your money away.

What are you going to trade, and how?

If you're open, I'd suggest Forex, since the data is free. Find a provider you like the looks of, and have a go with a demo account. When you lose a lot of fake money, go looking for ways to play the game better. :

You need to have a good bit of history to know what you're doing makes money. Keep in mind that a run of losses is part of any system: even a very profitable system can have bad runs. Without some history behind you, how will you know if you're losing money for nothing, or just riding out a bad patch? How will you make sure your money will survive a bad patch if you don't know how long that's likely to be?

...also, yeah, read more threads.

tech/a · 13 February 2010

If you choose to Day trade you'll be in and out same day
So the plan is to have far more winning trades than losing.
Your looking for excellent reward to risk but your challenge is to cut you potential losses as quick as possible .
Although my trades are rarely a single day the best way to tame little chunks out of the market I find you need to concerntrate pn rising your stop up as quick as possible.
Containment of losses and absolute minimization of accumulated losses should be your goal.
Understand to make a profit you need 51% winners with an R/R of 1:1.1 much higher for less.
A 3-5R winner can make a big difference to your days results
If trading technically you'll need access to realtime short timeframe charts.
Don't think you should dismiss Blue Chips if day trading either as here is where you will find liquidity and more reliable trading patterns in the lower timeframes.
Can be very rewarding in these times of minimal trending longer term

newbie trader · 14 February 2010

Hey,

I'm really new to trading but would have thought you would at least try day trading on some demo accounts/with a pen and paper before you do the real thing. Apparently a lot of people who go into day trading unprepared lose a large portion if not all of their money within 6 months of starting...and for your day off youre undertaking a very stressful activity when you should be relaxing by the pool :. I hope everything works out well for you. Just my .

N.T

SteeleBryant · 14 February 2010

As others have said, starting on pen and paper is the way to go. Maybe start off by watching stocks, seeing how they react throughout the day. Buy a few stocks and hold onto them and watch how they react to volume and watch their charts to see trends. Overall, I wouldnt jump into the market straight away! :

tech/a · 15 February 2010

Have a daytrade running so thought Id share it for those interested.
2nd by triggered as I type.
Second trade stop $23.39
This is WBC 10 min chart Tradeguider software.

tech/a · 15 February 2010

Position 2 which was 50% of position 1 now stopped.
Have another point for another buy but wont post it unless taken dont want people to think I'm recommending a trade.

CanOz · 15 February 2010

Good on ya Tech, too bad you didn't post it earlier i got a guy here interested in trading and i was showing him a few opportunities i was watching, BXB, CSL. I missed CSL when it bolted, BXB was doing nothing. So now we're watching the AUD.

Cheers,

CanOz

tech/a · 15 February 2010

Closed this position going out of the office--pretty dull just above B/E

$23.35

ginar · 15 February 2010

tech/a said:
Have a daytrade running so thought Id share it for those interested.
2nd by triggered as I type.
Second trade stop $23.39
This is WBC 10 min chart Tradeguider software.

I wouldnt be daytrading a bank of of such limited data , you were taking on a swing high from early feb not to mention abs data on lending finance that came out this morning .

http://www.abs.gov.au/ausstats/abs@.nsf/mf/5671.0?OpenDocument

i actually had WBC at top of channel and would have been looking to short above 2350 if i was watching it . no offence but you were taking a low probability trade imo .

tech/a · 15 February 2010

no offence but you were taking a low probability trade imo .

Certainly turned out that way.

They always look low probability when they fail to go on with it and higher probability when they do.

Next.

ginar · 15 February 2010

tech/a said:
Certainly turned out that way.

They always look low probability when they fail to go on with it and higher probability when they do.

Next.

Now you know thats not right tech , probability is defined before entry and not after , but hey whatever makes you feel better .

Proabibility doesnt preclude the possible from happening , just manage the possibilities

tech/a · 15 February 2010

ginar said:
Now you know thats not right tech , probability is defined before entry and not after , but hey whatever makes you feel better .

Proabibility doesnt preclude the possible from happening , just manage the possibilities

Its probably me but if I'm going to take a quick trade (Day or so) I dont need a great deal of analysis.
Price and volume with reactions to both are all I need.
Have taken some trades on no knowledge of why a volume price have started to move and exited based upon the same (reaction to volume/price).
Interested in R/R nothing more.
Today on that trade flat. Which in my view is fine.

Frank D · 15 February 2010

ginar said:
probability is defined before open and not after

SPOT ON!

tech/a · 15 February 2010

If then you are defining a probability to a move then you are predicting a move.

I dont believe you can predict a move with any certainty.
As such I cant see how you can define a probability level(High,low,average) to a set of analysis results. Particularly in various timeframes as they may and do often conflict.

You can however place yourself in anticipation of a move in a direction.

Those who believe they can assign a high probability (greater than 50%) to a setup move or level over a period of time in prediction of a move in a direction with greater than 50% accuracy over a long period of time--years are deluded.

I'm yet to see how this can be calculated on analysis as there are endless variables.

But I'm sure some of our more learned friends here will show me how they do it!
Havent seen it yet and Ive been watching you anticipate moves for years Frank!
The only time Ive seen a prediction confirmed or un confirmed is after a time period.
Ive never seen a probability assigned to an anticipation before.

Semantics---I dont think so there is a clear difference.

ginar · 15 February 2010

tech/a said:
If then you are defining a probability to a move then you are predicting a move.

I dont believe you can predict a move with any certainty.
As such I cant see how you can define a probability level(High,low,average) to a set of analysis results. Particularly in various timeframes as they may and do often conflict.

You can however place yourself in anticipation of a move in a direction.

Those who believe they can assign a high probability (greater than 50%) to a setup move or level over a period of time in prediction of a move in a direction with greater than 50% accuracy over a long period of time--years are deluded.

I'm yet to see how this can be calculated on analysis as there are endless variables.

But I'm sure some of our more learned friends here will show me how they do it!
Havent seen it yet and Ive been watching you anticipate moves for years Frank!
The only time Ive seen a prediction confirmed or un confirmed is after a time period.
Ive never seen a probability assigned to an anticipation before.

Semantics---I dont think so there is a clear difference.

I cant talk for frank but i must be deluded then . i aim for and achieve a better than 50% success rate on trades , must be pure luck as probability has nothing to do with it . you just keep trading breakouts with no regard for previous and current energy levels (action/reaction) on various time frames and i will just muddle along

trade well

tech/a · 15 February 2010

ginar said:
I cant talk for frank but i must be deluded then . i aim for and achieve a better than 50% success rate on trades , must be pure luck as probability has nothing to do with it . you just keep trading breakouts with no regard for previous and current energy levels (action/reaction) on various time frames and i will just muddle along

trade well

Everyone aims for a winning trade.
but before each trade is taken we have no idea whether it will be a winner more so how much it will win---we can determine loss.
We can look at 100s of various analytical tools and feel really comfortable that ALL those tools align before we take a trade but the hard truth is that we cannot be certain at the time of the trade whether in fact THIS trade has a higher probability of a winning trade than the LAST trade which also ticked all the boxes.

Unlike you I don't aim for a certain % winners only a positive R.
I can do that with far less than 50%!
I don't have to be right more often than I'm wrong.

Ill just muddle along with you.

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