Comments on: How many stocks or derivatives should a day trader focus on?

By: iluv2tradestks

iluv2tradestks — Wed, 14 Mar 2007 09:13:52 +0000

Day trading is a name that insinuates that people make a lot of money in a day. Don’t be fooled. You need to be in the right envoironment to do this. Today is special and might be just one of those days because of ***** and Freddie. Think more about short term trading. In short term trading you will need a list of about 25 stocks, you have to understand your trading strategy, and know what return you are looking for once you have bought. When you buy, you put in an immediate sale at your designated price. You will have 7-10 stocks that you will be invested in at any one time, and you will have about one execution a week for 10-15% profit
Do you have a strategy? What rate of return are you expecting? (not hoping) Do you have at least 5 active web sites to do your strategy check. I liked the strategy of short term trading, vs day trading. Short term trading I would execute 1 trade every 5-8 trading days. I set up to make a profit of 8-15% every trade. I developed my strategy over years of trading then found out that Wade Cooke used a similar but refined strategy. He invests in rolling stocks. Finding a stock that rolls 8-12% over a short period of time, alway repeating the highs and lows. I would average 40 -55% a year in good trading years. Stocks are volatile, but in a bear market right now, and that is good and bad for this strategy. I suggest buying the book on Amazon.com “Wallstreet Money Machine” by Wade Cooke. The work comes in finding the stocks that roll. YOu can buy a hard cover for less than $1.00 used.

By: raincrowd

raincrowd — Mon, 12 Mar 2007 11:35:37 +0000

day traders mostly focus on their favorite stocks/derivatives. that’s because their “working strategy” works on those already. one of the best advice traders give is to not trade stocks/derivatives you are not used to trading. if you want to trade new stocks/derivatives, you have to spend time on learning how to trade them (their techs and fundamentals – what drives them), then you can put that on your list of favorite stocks/derivatives to trade. also, never trade a number of stocks/derivatives you cannot possibly handle. one cannot look at 500 stocks at the same time. unless it’s a purely technical strategy where your strategic model is a program set to alarm on your platform. but even with that, you should have sufficient amount of capital to trade them.

By: Alexandra

Alexandra — Fri, 09 Mar 2007 03:26:55 +0000

of course, the maximum is 3 positions. i don’t recommend more than that in a day.

By: Bhupesh Saxena

Bhupesh Saxena — Mon, 05 Mar 2007 16:10:42 +0000

Depends on level..
If he is a Jobber he ll keep on selling n buying different securities n make money out of small margin.
if he is Specialisthe ll keepon buying selling a particular stock n side by side taking position wd derivatives,,