imported_Lofty

MY parents are getting into a 'day trading system' It's a complete package for ALOT of $$$$$,
I know the basics of daytrading but never got into it due to lack of money. They want me to help them out (I get a % of money earned )

So..... If ANYONE here daytrades please contact me, I need to get more info.....

PM is good or mail@lofty.ca


many thanks

imported_gatherer

1) there is no set system for playing the stock markets...

2) the short term movement of stocks is super high risk

3) the long term movement of stocks is alot lower risk

4) be very very very careful

imported_kane2k

You forgot rule #0:

Stock markets are a zero sum game. That means that any gains are someone elses losses. You're playing this game against hundreds of financial institutions which are multibillion dollar institutions with thousands of employees who commit all of their resources to winning the game. Good luck.

imported_Lofty

Remember this isnt for me - It's for my parents - they have been using brokers and had long term stocks for awhile. Now they are being offered daytrading..... It's a friend of theirs that got into it a few years ago and recommended my parents get into it.

so I really want to 'see' daytrading in action AND if I try it out it's not my money - My parents think I'm smrt so thay don't mind my 'playing' wit sum of their mon-ee.

cosmicjim

only advice i can give is:

know how to read a set of financial statements

understand how the markets move ... i understand day trading is based on volitility and all ... but the basic concept of finance is valuation and risk pricing.

if you know how to value stocks and price the risk to determine you acceptable level ... then go for it ... if not, i suggest you treat it as gambling and expect to lose

imported_twinbros

There are hundreds of books on day trading. Just goto the chapters and read them.
Why would you ask this question in the Civic forum anyways?
I doubt anyone here can really help you.
The big boys on Bay Street drives German cars, not Civics man.
Let us know how it goes. Good luck.

DJTre

Watching day-traders at work used to be awesome...running back and forth, station to station.
Now it's all computerized

Like gatherer said, be careful.
It's not a very wise thing to do for someone who has a family, mortgage, or any financial commitments.

imported_gatherer

thats where your wrong.... while in principal your correct. that discription only works for a market where the size of the market doesn't grow. where the overall market value of all companies combined, doesn't change.

the overall value of the S&P 500 has grow 11% per year on average over the course of it's life since 1928 when it was created. the dow industrial average wasn't always sitting at 10,000+ points (or whatever it's at now).... markets gorw and it's this growth that negates your rule.

bbarbulo

iTrader: (2)

irrelevant... all of this!!

he's banking on regular and normal fluctuations - NOT on the viability of the business or anything else. therefore, financial statements = irrelevant!

it's kinda like rolling dice, the outcome is never known. All I can say is, at least do it with blue chip stocks, so when you tank, at least you don't lose ALL the money and you can leave it in there for a long term comeback.

imported_kane2k

Gatherer, you're talking about blue chip investing. He's talking day trading. One is zero sum, the other is an investment.

edit - bbarbulo: you can't make a decent return day trading blue chips, they don't move fast enough to counter the trading fees. Those are for long term. The only way you make money day trading is jumping on volatile stocks with knowledge that you just got and 90% of people don't have yet. Again, this is where the huge financial institutions come in, they have the knowledge before you and by the time you get to buy into something, its price has already adjusted itself and you're just another patsy who bought a stock for 30% more than it started at in the morning and 10% less than it will close at in the evening.

NoSpleeny

You can make money daytrading blue chip stocks if you have THOUSANDS AND THOUSANDS of dollars to sink into 1 stock.. if a stock can move up 10 cents and you can cover all the costs and gain profits.. you're rich enough to day trade blue chips...

But remember... the volume you're trying to buy at your desired dollar value may not have anybody selling that amount at that dollar value which makes it hard to day trade that stock.

Smaller stocks are easy to daytrade but remember... the stock may be up 1 part of the day and down the next..... and it may stay down for a while...

Don't sell yourself short... if at all possible... most stocks don't go belly up (unless they're crusty companies with not enough revenues to even cover their variable costs). Don't invest in those. If you sell yourself short... you'll end up losing all your money and that won't benefit you any.

And a lot of the Big boys on Bay St do drive German cars.. don't forget.. they also drive Japanese cars too... just the higher end ones.. like Lexus and Acura.

Remember what they say.. if daytrading was as easy as it seems.. we'd all be millionaires now and NONE of us would be going to work... and therefore, we depreciate our money and therefore, our money can become like the Mexican Peso. That's why there's a balance between the rich and the poor.

Daytrading is an easy way of making money but it's also very easy to lose money.. So don't go in there thinking you're gonna make $10000 in 1 week... (it's possible to tho... but you just never know which stocks are like that).

Be careful... That's all I can say to you.

imported_Lofty

Thanks for all your imput...It's been very helpful.
I read a book about daytrading and checked out ALOT on the internet.

I'm meeting with a trader sometime next week. They are going to show me the ropes and test me to see if i can handle it...(hey maybe I found that job i was looking for).

AS for the money thing - it's my parents - they got most of it as an inheritance--ask anyone over 50 and have lived if Toronto if they remember "Presswood Meats" - thats mE (well actually my grandfather) .


Anyways thanks everyone -- who knows what will happen???