I have zero experience with the stock market, is day trading a bad idea?
I basically suck at my jobs, and i HATE working for the man. My life long dream, or day dream has been to make lots of money with stocks.
I am in a situation where I have disposable income, and was wondering if playing the market is a good or horrible idea.
Please dont advertise to me, just let me know from experience or stories of people who have day traded…
I’ve been trading for 2 decades and the markets are a lot more complex now than they were just even 3 years ago. I would not advise trading if you don’t have full time attention, the right technology, understand the basics of fundamental and technical analysis, a basic education in market history, market psychology, a ton of experience with depth of understanding on how markets really work, and the capital to play in this big game.
I would start by reading this excellent book.
"Manias, Panics, and Crashes: A History of Financial Crises"
http://www.amazon.com/Manias-Panics-Crashes-Financial-Investment/dp/0471389455
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day traded? it depends where u live? if its on the east coast than yeah maybe dayish trading but if its west coast, u better get used to getting up at 6 am every monring because thats when the stocks are open. and btw u should try playing around on stock market games taht keep track of real stocks as in if u have actually invested in them heres a site i used to use.
http://www.howthemarketworks.com
by the way i am in NO WAY advertising im just explaining how this site works, ur gonna have to make an account and then u have to think of companies or such things that do WELL in recession, its called the lipstick factor, people cant afford to go out to nice restauants or buy nice things anymore because its recession and theyre depressed financially so instead theyll buy nice " pick me ups" things that make them feel good temporarilly, i.e. lipstick. enuff said i think u can figure it out 
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Do you have companies in mind to invest in?
Most strong comps will grow… but times are a bit volatile. If you’re serious about it, pick a few stocks and just watch for a few months. See how they ebb and flow according to the market. Or you can just diversify and spread it out mutually and see what happens.
I tend to follow the tech market and it’s usually a win because of the competition. (meaning I spread investments) If you have the means you might be better off investing in something you feel strong about. and making it work to your means.
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Start off by investing a little money to get a feel for it. Do some research and figure out which stocks to purchase. Day trading does require doing some research and checking up on your stocks to make sure they’re doing well. If you do well and feel comfortable with it, then invest more money.
That’s what I did and it worked for me. I was 19 working at a bank getting paid $15 an hour, which is not bad for a college student. I opened up an online brokerage account and during off time I researched on stocks. I invested a little bit and went up. Invested more and went up. Since I was making enough money from stocks, I quit working at the bank and now I can fully focus on school. Now, I’m 21 years old and I don’t have to worry about money and at this rate, I should be able to pay for grad school without getting loans.. All I do is check on my stocks a few times a day on my Blackberry while I’m at school. Pretty chill. Plus, as a finance major, I’m learning more and more about investing and crap like that.
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Personal experience
there was a survey a few yrs back that MOST day traders lost money for the year.
on the other hand, the stock market does go up on long term, and thus favours buy and hold for good solid companies.
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yes. it is a bad idea.
dont trade if you do not know what or how. educate yourself first.
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I’ve been trading for 2 decades and the markets are a lot more complex now than they were just even 3 years ago. I would not advise trading if you don’t have full time attention, the right technology, understand the basics of fundamental and technical analysis, a basic education in market history, market psychology, a ton of experience with depth of understanding on how markets really work, and the capital to play in this big game.
I would start by reading this excellent book.
"Manias, Panics, and Crashes: A History of Financial Crises"
http://www.amazon.com/Manias-Panics-Crashes-Financial-Investment/dp/0471389455
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— Finance & Risk Management Consultant
— 21 years in the financial markets (see bio. add me to view post history)
I would suggest you go to a free site where you can learn the basics and also be exposed to successful methods and strategies. Do a search for free day trading courses. After learning the basics you can make a decision as to whether it is really something you want to be involved in. The great majority of people jump in and lose their account quickly.
Once you have your feet on the ground and realize that it’s not an overnight way to riches(hype), then you can learn a method with your eyes open. The dream you have is fine but there are a lot of people out there who use your dreams to separate you from your money. I’ve been involved with many.
What you will need to deal with eventually is the emotional part of trading. That is where you face yourself and have to overcome the faults of lack of discipline, overtrading, etc. Not trying to be negative but I want you to be aware that it’s a tough go but can be done.
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http://www.makemoneytradingforexblog.com
ideas and strategies to help you trade the forex market
Day trading is a very bad idea. You should not do day trading unless your full-time job from 8-5 is to look at stock charts.
Also, you need to have large amounts of money to be an effective day trader. The reason is that you will likely have to pay fees for trades, which will eat into your gains. Therefore, your transaction should be large enough that the fees cannot take away too much from your profits. Just so you know, traders on the New York Stock Exchange buy blocks of 100 shares or more.
If you buy one share of any stock, if the price goes up by $1, you make $1. If you buy 10 shares of that same stock, the stock price has to go up by $0.10 in order to make $1. If you buy 100 shares of that same stock, the stock price has to go up by only $0.01 in order to make $1.
Also, it’s a bad idea to be a day trader without a stable source of income, especially since you are using your own assets to trade stocks. Professional day traders typically work for investment banks and do not use their own capital to trade stocks because they trade on behalf of the bank.
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before investing even a penny, learn vaery basics of what you are going to deal with.i suggest go to web sites like http://www.investrational.com
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day trading is bad for starters.start with medium term view. I had lost money in day trading earlier and learnt the tactics by experience.
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April 6th, 2010 at 5:06 pm
it depends on the one you have brought is in a huge inflation or a steaty rising ,
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http://www.ledlightsworld.com