So You'd Like To DayTrade(Or Not)

Posted By Team iBizExpert On March 11, 2022 07:47 PM Hits: 74

How to (not) Trade Every Day

So you want to make a living from DayTrading?

You've all heard stories about DayTraders who lose their money running through the streets shooting people, right?

Before 2001, when Bush became president, the.com days were very exciting. Three or four times a week, stocks went up by 30 to 200 percent a day.

If you knew what you were doing, you could look up which stocks were running in real time and why before the market opened.

And if you had a fast electronic brokerage system, you could jump into the market, buy a bunch, and sell them all the same day.

About 1% of people who did this regularly made money from it.

I saw a private person make $1 million in one day by selling short Corel stock. And then there was someone who lost a lot of money because they held on to the WWWF IPO for too long.

Taking inflation into account, the bottom line is that since 2001, you would have been better off putting your money in an old sock.

So what should we do?

Don't want to give up on the stock market, let alone day trading?

Don't give up on the Stock Market. If you use the right system, which is a simple set of formulas, you can still make 30 percent or more on your money every year.

Using this simple method, $11,000 that was put into the market 17 years ago would be worth more than $1 million today.

But it's not DayTrading, and you'd still need a strong stomach to wait 17 years, because some of those years would have negative returns.

In the end, if you want to DayTrade, there is only one way to do so right now.

So much for MINDBLOWING News.

NEWS that will blow your mind, like:

A company called XYZ finds a cure for cancer. The Eternal Life Pill is made by ABC Inc. A car that runs on water is made by DreamCar Corp.

You know what I mean.

Then I'll add another qualification:

You should find out about this news BEFORE most people do.

Here's how to do it:

You can sign up for real-time market news for about $10 a month.

About 6 AM Eastern Standard Time, you can get Real Time Market News.

Say you hear in real time that a company has made a car that runs on water.

Check the time the news first came out to make sure that it wasn't out yesterday.

Buy the stock now with money you can afford to lose, USING A STOP LOSS AT ALL TIMES.

Most online brokerage firms today don't let you buy NASDAQ stocks before 6 AM EST.

At 9:28 AM EST, when traders are just getting up, sell the stock to them.

You could conceivably double your money.

So, would you trade in this stock again when the market officially opens?

I wouldn't do that.

Market makers will play too many mind games with the stock that caused the mind-blowing news on the first day.

Don't forget what was said above:

"Since 2001, there haven't been many days when stocks went up more than 30% in a single day. Both the Nasdaq and the Dow have lost their oomph."

Don't keep a stock with mind-blowing news overnight, because most people will sell it the next day.

Another tip:

Don't buy IPOs on the day they go public.

People lost the most money on the second day after the IPO that was the most talked about. This means that almost all large brokerage houses were singing its praises to the sky.