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day trading?
Hello everyone.
I have question about day trading. Let suppose you buy three stocks during market hours and sell it after hours. Will it still consider as a day trading pattern .
Let suppose by mistake you trade more than four stocks and sold it same day than what would be the consequences for it. I know they would ask to deposit 25k. What happened if you don’t have 25k. Thank you
Day Trading?
I need to find information on day trading, does anyone know a good online broker, with a low minimum initial investment, low commission that executes trades quickly. Any other information would be helpful. Can I Day trade without a broker and how would I do that.
day trading stock buying power?
I currently have $4,000 in a discount brokerage account. This allows me to buy up to $12,000 worth of stocks by using margin. Since I was off work this past week I decided to buy a couple stocks and not hold them more than a day or two. The brokerage firm said I am now considered a patterned day trader and will restrict letting me buy stocks. They say I need $30,000 to be a daytrader. What is the difference if I make a lot of stock trades or not? Does anyone understand this daytrading rule and why I get to be considered a patterned daytrader just because I made about 3 stock trades a day?
You have been labeled a pattern day trader because you have made 4 "round trip" trades within a 5-day period. The pattern daytrader rule is not your firms rule-it is a rule that all investors must abide by, according to FINRA and the SEC. It is the SEC’s designation, and not up to your firm to decide. The only difference here seems to be that while the normal minimum equity for this type of activity is $25,000, your firm is requiring an additional $5,000, which they can do, since this is more strict than the federal requirement.
It is a risk control measure, in part because of the higher amount of buying power that you are receiving-whle you may be very careful with your loss control, and you may make money making day trades, most people do not, especially accounts with lower balances. Inexperienced traders, big and small, tend to hold on to their losers longer, and cash out of their profits too quickly. This activity tends to create an overall drawdown in most active trading accounts. The SEC places this rule in place so that smaller accounts do not end up with negative balances-to ensure that traders have enough equity to cover any losses that have been incurred.
If it is your first time, you should be eligible for a one-time exception. Call them and explain that you were not aware of the rule. It happens all the time. They probably don’t want to lose you as a client over this, but they have to follow the rules just like everyone else. You may have to put in a request to the margin department, so be patient and persistant. Good luck trading and remember to keep track of how many you have made, so that this doesn’t happen again until you have equity that is above the minimum.
About Intraday trading in Indian Stock market?
I am a new Trader in Indian stock market and i want to know that is there any charges for intraday trading.. and how can we do intraday trading when we got our DEMAT shares after two days from the day of trading…??
Intraday Trading is one in which u r buying and selling those shares, dat very day itself, here only your profit or loss will get added in the margin. here u r not talking delivery of shares.
Brokerage(Standard)0.1% of volume
Service tax12.24% of total brokerage
STT 0.025% of the total vol traded-only for sell
Stamp duty0.002% of the total vol
Turnover tax0.0035% of the total vol
Is there really some kind of logic to short term FOREX trading? Or is it the case that…?
… only over longer periods of time can there be any rationale to currency price movements, as regards the fundamentals of the economy.
In other words, is intraday trading more like setting chips on a roulette table?
Also, how much of the future (i.e., to what period of time in the future) is priced in to a currency? Does trading in anticipation of the future (speculation) create severe irrationality in price movements in currency? Is speculation a majority of the force behind currency price levels?
Technical analysis sometimes feels like meaningless, wishful thinking.
Also, how do hedge funds trade currencies? Which market do they go through (directly through banks and central banks?) or do they use the market makers that individual traders use?
What is the most theoretically (and practical) way to go about trading currencies? I don’t mind sleeping 3 hours a day for fundamental analysis, I’ve done it- but am I winning for the reasons I think I’m winning?
Great questions! Some of these require a far more extensive answer than this space is designed for, but I’ll give them a shot and invite you to explore the subtleties further on…
Q1: Is it the case that only over longer periods of time can there be any rationale to currency price movements, as regards the fundamentals of the economy?
A1: Most people tend to think that there’s some kind of disconnect between technical and fundamental analyses that compels them to choose between one or the other as a trading style. The fact is they are simply different ways of looking at the same thing – the history of human responses to changes in international economic circumstances. In our classes we view market fundamentals in the same way you might review a weather report and a contour interval map before going into an unknown territory. Like those tools, fundamental perspectives will give you a sense of the overall terrain (is the land flat (common to the EUR/GPB, for example), filled with steep and sudden rises and falls (perhaps the territory for the GBP/JPY), gradually sloping (the USD/CHF), full of rain and thunder (highly volatile due to changes in the political climate), etc. Technical analysis is like the road map, GPS unit and compass that you take with you as you set out.
By knowing the territory from the broader perspective of the fundamentals you will know better if a turn in the market represents a probably avenue to an 8-lane expressway (large trading opportunity), or is more like to dead-end quickly, or offers access to a lovely country lane with some pleasant views (a modestly successful, short term trade). A keen understanding of the Technical indicators will keep you on course to find the turns in the market and also help you gauge how long to stay on that road once you’ve made the decision to turn into it (take a trade).
Q2: Is Intraday Trading more like setting chips on a roulette table?
A2: No, for starters, trading is not at all like gambling where there are clear boundaries and limits that don’t exist in trading, or are at best less clear. In Roulette, for example, if you place a bet on one number, you have exactly a 35:1 payoff if that number is rolled and a 2.67% chance that it will be. Your maximum loss will be the amount you place on the table and never more (see: http://wizardofodds.com/roulette – for a precise table of odds, etc.) In the market you can lose more and gain more than is implied at the start of any trade because the market conditions, unlike the Roulette table are constantly subject to changing world events.
Still, intra-day trading can be just as effective and profitable as any other trading term because market patterns are fractal in nature, which means that they reproduce chart patterns that reflect human response at all scales of time. So a short term pattern of response, which typically represents fewer players, still looks very much like the longer term patterns produced by more players so long as you don’t try to trim it to too small a period of time, and thus reduce the liquidity and predicability of the trade by doing so.
The fractal nature of the markets bear witness to the consistent nature of human responses, which reflects, among other things, the way our brains are wired, which changes not at all over time and thus our collective behavior tends to replicate history over and over again.
The real difference in the markets today is a consequence of the ever increasingly rapid availability of data,which requires faster and faster adaptation to market stimuli/response patterns. This means that if you have the proper skills, you can be even more successful in collecting pips as an intraday trader than are inter-day and longer term position players who simply weather the ups and down of a pair while you can benefit on both sides, long AND short, if you understand how to. Hence the comment by one of the other people here that those with the large accounts tend to win more often – I disagree that that’s necessarily true even though it’s an historical truth because the speed with which market participants are now engaged is changing the entire dynamic of trading in ways never seen before. I predict that the successful short term traders will soon begin to outdistance and out perform the trend traders and long-term position holders, if they haven’t already done so. It’s a matter of re-calibrating your understanding of the market to see more clearly what’s going on in there. We’ve tested both methods and our traders are far more adept at collecting profits on an intraday basis than are those who trade longer terms. Hands down. No contest.
Our traders learn to not only take over a 1,000 pips a month from the market, but to do so consistently, which, through qualifying for our professional trading team, gives them enormous benefits in being able to trade proprietary accounts that are several times larger than any average individual is likely to have available – and at no risk to themselves. They get hired as independent contractors – truly independent! – and earn large portions of the successful trades they place in our system, benefiting from a unique system of computer-based interactive elements that give them access to appropriate amounts of capital and leverage in proportion to their skills.
Q3: how do hedge funds trade currencies?
A3: The answer to this is as variable as the number of hedge funds are in relation to account size, fund objectives, and bank relationships. Larger ones have access to a more diverse range of bank rates since banks compete more aggressively for their business,but to some degree you can shop for a broker that gives you multiple bank feeds and better spreads, though this takes some doing. Some can even trade with negative spreads, whereas retail players almost never see such things. (the banks offer such things for somewhat the same reason they pay swap rates for holding overnight positions
The majority of hedge funds work to neutralize market fluctuations on behalf of international corporations and sovereign funds that need to offset any potential devaluation in the currency of a trade partner.
For example, BMW makes cars in Bavaria, and pays its workers in Euro, but they sell their cars all over the world. It takes more than 24 months to deliver and get paid for a planned version of a new car: e.g. the BMW 7 series starts at USD $76,200 right now – but they planned for delivery of the 2008 model sometime back in 2006 when designers were employed in Germany to start designing it. So BMW in 2006 had to figure out what the exchange rate would be for a 2008 Model 7 series vehicle AND they had to hedge against any variations from their estimate. So if they calculated what it would cost to design, tool, manufacture, warehouse, and ship one car based on the 2006 EUR/USD exchange value, they might have first determined they needed something like € 56,445 to make the profit they wanted and then taken a Forex position to hedge themselves and protect the needed profits by the time the cars sold in 2008.
For the purpose of illustrating this, I’ll assume the exchange rate at that time was $1.35 (I could, but didn’t look it up). That would mean they would price the car at 1.35 x €56,445 or USD $76,200. Then they’d hedge their position by taking a long position in the EUR/USD pair so that if the USD declined, they’d make money in the currency market to offset that decline. If the USD gained strength, they’d still be good because the price they set for the car would be paid back in dollars that would buy more Euros, offsetting the losses in their long EUR Forex position. Incidentally, this is one of the reasons why the Forex market trends so nicely over long periods and yet another why participants don’t like volatility in it.
Hedge fund managers can use any one or a mix of the various services you mention to place these trade. They can also mix in a variety of options, and, depending on what they’re covering, futures too. This is why understanding those two markets can help your currency trading. Doing so would be to add to your fundamental market analysis skills, like knowing the importance of various news releases is.
Q4: What is the most theoretically (and practical) way to go about trading currencies?
A4: That’s a remarkably personal question. The answer would actually require me to know a good deal more than I do about you since it depends upon many personal factors related to your psychology, account size, temperment, education, flexibility, tolerance for risk, etc. Your comment suggests strongly that you’re far too uncertain why you’re winning, which suggests you don’t really have a fundamentally necessary component to successful trading – a well tested trading plan. If you did, you’d know why you were winning.
You can read more about our approach to teaching at http://www.fxdimension.info if you download the file available there. No personal information of any kind is required to secure it for review.
Trade well, Live free,
Greg
Director of Trading Team Development
FX Dimensions, Inc.
Online Trading Day Trading and Stock Market ideas for Monday
http://www.todaytrader.com. Day trading in stocks is both risky and difficult. Please consult your financial advisor before attempting to trade actively. TodayTrader is not responsible for any content that may be viewed on this channel. These videos are not meant to be recommendations in the market. Day trading equities requires a retail account balance of at least $25,000 and must remain at or above this level to trade stocks actively. This website is not a solicitation to buy or sell securities, options, or futures. The purpose of this content is educational only.
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Follow this link to view other Emini Trading high definition videos:
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I am receiving Unemployment Insurance Benfit and I am about to open an Day Trading Stock Account. Am I still?
I am currently receiving Unemployment Insurance Benefit and I am about to open an "Day Trading Stock Account"…that I buy and Sell stock several times per day. For some reason, I am expecting to earn some $$$ regulary…per month.
Does it consider as an "Other Income"????
Some people say it’s not because it’s an investment.
However, what i going to do is not a long term investment and there will be lot of buy, sell transactions per day. – I will be expecting some thousands of dollars per month.
Am I still eligible to receive unemployment benefits????
I am in California and……to open an stock trading account, i will submit my Social Security # and all the information.
Please advice. thank you.
Your gains will be capital gains, filed on Schedule D. You should consult a tax professional. Early, not at the last minute.
If you really make "thousands of dollars per month" that will probably disqualify you for unemployment benefits. Keep the unemployment office informed of your income. That way you will avoid an unpleasant surprise later.
As a day trader you will need a margin account and $25,000.00 minimum balance. SEC rules! While you are on unemployment some (maybe all) of the mainline brokers will balk at giving you a margin account.
Before jumping into this, you should realize that most day traders do not make money. The thousands of dollars per month you hope to make, is more likely to be a loss.
