The Stock Market Thread

[treggs]

I'm am finally diving into the world of trading. Anyone else on Farkin day trade? I'm currently reading everything I can get my hands on and I have a trading plan for trading options that I am currently testing (paper trading).

For those amoung us that trade, I have a few questions.
1. What Charting software do you use?
2. Full service broker or discount internet broker?
3. Who is your broker?
4. What sort of returns are people achieving and how?
5. Part time or full time trader?
6. Long term Goals?

I tested a few charting programs such as NetQuote, Incredible Charts and The Bourse. I found The Bourse to be the best for me.
I use the National Bank as a broker because they offer on line options trading. They have different levels of services offered as a broker and I'm using the middle level.
I haven't achieved any real returns yet and looking at my ASX Share market game portfolio I have a bit to learn still. I'm in profit but only just. I've been using it to test a few ideas and they sort of work.

Let the discussion begin....

 

[scblack]

OK, if you're only day trading so far, get used to the term slippage (execution slippage). You have done some reading, so you may know what I am talking about.

It means if you day trade, and want a SPI contract at say 5225, you write down your contract, and if you make a profit, all is good, and you may use that trading strategy. Slippage means that you MIGHT NOT get the trade you want for the price you want in real time trading. If there is little liquidity in your market at the time of your trade, or you hesiatate at the moment of execution, your profit on that trade can be wiped out. A lot of strategies will manage 6 profitable trades out of 10, and if you get slippage on 2 of them, your trading profit is GONE.

In my mid to late 20s I also looked very closely at day trading futures and options markets, but eventually decided against it. For my fairly conservative trading outlook - I am more an investor really (looking at longer term trading than day stuff), it was too close in some senses to gambling. I tend to be a poor gambler (at least I am sensible enough to realise it, but especially to ACT on it), so I stayed away.

A few general rules of trading:
Have a trading strategy and STICK EXACTLY TO IT.
Do not let your emotions guide any decision.
Let your profits run, cut your losses.
Use stop/losses.

There is also a huge amount of psychology in successful trading - you will learn a lot about yourself, and actually VERY FEW people make a genuine profit from day trading, let alone a living.

Also, this is not a question, but something to think about. How much is your net worth? And compare that to how much you are prepared to lose in this trading plan. If you are worth $500k, and prepared to lose $50k, not really a problem, losing 10% net worth. But if you have got little real assets, and think you'll borrow the $50k required, you have lost everything you presently own.

Sorry if I sound negative, but as I say, I have also looked very closely at doing this, and I do know VERY FEW people make genuine profits.

 

[rickazz]

im currently in year 10 and for a subject that we are doin CCV we have to play a stock market game where we have $50 000 to spend on 5 shares and at the end of 4 weeks whoever has the most wins voucher. but yeh thats about all i no about shares.