lead_dogg_one wrote:


I have read a few books and have become interested in stock options. I am a looking for a way to test myself without losing my shirt. Ultimately, my goal is to work from home around trading hours so that I can support my children in their after school activities. I don’t need to be rich but it would be nice to be self sufficient.

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knight2167 wrote:


I am pretty new to this so I am just looking for some pointers. I love palying volitility and momentum. Google, CME, stocks like that. What works for you? what are your success stories? I’m addicted to the rush! I’m always willing to learn new stratagies.

white_putter wrote:


I have lost about 30K daytrading. I don’t even know what line in the tax form I would put the claim since there are hundreds of stocks I bought and sold on the Canadian stock exchange.

Search Engine Placement

Markus Heitkoetter wrote:


In my opinion backtesting can be a very powerful tool if used correctly.

The problem is that many trader over-use the functions provided by the different backtesting software packages and think more is better. Many so-called system developers try to imply that the longer you backtest the better and more robust your system will be. That’s not always true.

Let me use the e-mini S&P as an example. In 2000 the average daily range was 100-150 ticks per day; in 2004 it was only 40-60 ticks per day. If you backtest any trend-following daytrading system in the e-mini S&P you will see that it worked perfectly until 2002 and then suddenly fell apart. It seems that there are no more intraday trends. That’s not surprising as the daily range of the e-mini S&P decreased by more than 50%.

What happened?

There are a couple of reasons. Probably the most important one is the introduction of the Pattern Day Trading Rule in August and September 2001by the NYSE and NASD: If a trader executes four or more day trades within a five business day period then he must maintain a minimum equity of $25,000 in his margin account at all times. Because of this rule made traders stopped online daytrading equities and started trading the e-mini S&P future instead.

Look at the sudden increase in volume in the e-mini S&P in the beginning of 2001:

Many of these stock daytraders used methods to scalp the market for a few penny. Using the e-mini S&P they suddenly had a much higher leverage, paying less commissions, and their methods were extremely profitable.

Unfortunately, these scalping methods kill an intraday trend almost instantly, making almost every trend-following approach fail.

Another reason for the dramatic change of the market was the introduction of the automated online daytrading strategy execution in TradeStation. In 2002 TradeStation’s customers who were using this feature increased by 268%. Overbought/Oversold strategies became very popular and when the market made an attempt to trend these online daytrading strategies immediately established a contrary position.

Conclusion

When backtesting you need to know these things. It’s not enough to just run a system on as much data as possible; it’s important to know the underlying market conditions.

In non-trending markets like the e-mini S&P you need to use trend-fading systems, and in trending markets like commodities you should use trend-follwing methods.

And that’s when clever backtesting helps you:

If your backtesting tells you that a trend-following method worked in 2000-2002, but doesn’t work in 2003 and 2004 then you should not use this strategy right now.And vice versa: When you see that a trend-fading method produced nice profits in 2003, 2004 and 2005, then trade it.

I haven’t yet seen an online daytrading strategy that works in all market conditions: trending and non-trending. Usually a strategy works very well in ONE market condition (e.g. trending) and produces small losses in the OTHER market condition. That’s why you need to alter daytrading strategies.

And THAT’S where backtesting can help you.



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bdhamrait wrote:


Please elaborate from opening a demat account to the actual shifts of money when a transaction is made. Which is the best online trading website and why?

Online Dating

Garry wrote:


If I buy a 50 shares of say QID in the morning. Then later buy another 50 shares of QID later that day. Then before market closes the same trading day, I sell all 100 shares. Does that count as 1 or 2 roundtrip trades?

Motor Scooters

beststock wrote:


Two popular types of stock analysis include technical analysis and fundamental analysis. Technical analysis is a financial markets technique that claims the ability to forecast the future direction of security prices through the study of past market data, primarily price and volume. Technical analysis in its purest form considers only the actual price and volume behavior of the market or instrument, on the assumption that price and volume are the two most relevant factors in determining the future direction and behavior of a particular stock or market.

Technical analysis is embraced by some and hated by others. It is widely used among traders looking for stock trades and deciding how to trade stocks. Technical analysts consider stock trends based on their chart and stock market close each day while completing stock technical analysis.

Technical analysts say that a market’s price reflects all relevant information, so their analysis looks more at “internals” than at “externals” such as news events. Price action also tends to repeat itself because investors collectively tend toward patterned behavior – hence technicians’ focus on identifiable trends and conditions.

When completing stock market analysis it’s important to consider stock market trends and look at the macro environment of the economy. One should study the stock indices and how they have performed lately and even years in the past by considering the stock chart of the market. Stock earnings can affect the stock market as a whole or just a few industries.

An industry that is hot could have many hot stocks within it and momentum stocks that could be very good stock ideas. Some investors decide to daytrade individual stocks that are hot and may trade up during one stock market session. It is important to do technical analysis when day trading. Investing should be considered risky and each investor needs to consider their risk tolerance.

Individual stocks can be undervalued stocks or bargain stocks that are cheap stocks. It is important to look at a stocks PE and other ratios that act as tools for investors. When considering the value of a stock, an investor needs to look at the company’s market capitalization or market cap to first have a point of comparison while researching stocks. Stock trends are also important to pay attention to as well as general stock market news for stock market analysis and stock news for individual stocks.

Stocks trade on several exchanges including the NASDAQ, AMEX, NYSE, OTCBB and Pink Sheets. This is where buying stocks occurs by online brokers for their clients. Investors can look for value stock or any other kind of stock they want. It is important to find as much stock market information as possible to experience new information and facts.

There are many stock tips and penny picks out there that investors can start to build a stock list or screening NASDAQ and AMEX stocks with a stock screen for new stock ideas. There are lots of investment opportunities out there in the stock market.



Buying a Dog

eric r wrote:


I’m 19 years old and I want to start trading stocks online. I was wondering how much money I should save to start trading and also which online company would be the best for me to use. Any useful tips are also appreciated ( ;

Motor Scooters

daytraderbm wrote:


I’m about to start daytrading for a living. What all do I need to do? Do I need to get a business checking to keep things seperate from my regular checking account? What forms do I need to fill out for tax purposes? Do I need to send in money monthly or quarterly or just at tax time? Any help on this stuff would be greatly appreciated!

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courisousgeorge wrote:


i want to learn how to daytrade. maybe take a practice run for a couple of weeks. any good websites?

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