Day Trade Like a Pro - Part 3

Lets start by talking about commissions. When I was a broker commissions were+$2.00 per share for most trades. I always look for the trades that would afford me more commissions. I made a living on commissions as a stockbroker for 20+ yrs. I learned a lot of psychology about people and trading to write a book. When I retired from the brokerage trade in 1992 I was glad I did. I was tired of prospecting for new money to invest every day, that was a tough way to make a living Back then you could not do what I do today mainly because of commissions and the advancements of computers. Who ever I owe thanks to, “THANK YOU”!!!!!!!!!!!!
I have use a number of brokers in the past 14 yrs, always looking for lower transactions cost, lowest margin, advanced charting, instant execution and all for free. Yes Virginia there is a Santa Clause! Ha, Ha. Today you can trade for $1.00 - $7.00 per trade and get all these services free. Yeaaaaaaa!
As a trader you need to define several things and this is where it gets very personal. First what is your style? The most active group is scalpers making several trades in a single day. Then you have the momentum traders. These people try to spot a stock that is, “in play”. You know the ones I am talking about, these are moving consistently in one direction. Next, the technicians. These are the guys in who believe that they can tell the direction on the market even if they were locked in closet with no outside communications just watching their numbers. Next are the, fundamentalists. These groups of people are the bible-totin day traders. Fundamentalists are looking for financial value to change in a company. Since there are little fundamental changes daily there are fewer fundamentalists day traders. Last but the groups that I love are the dabblers. They trade on emotions, or hot tips, never have a profit point of a stop point.
Next you have to define you time line. Will you trade in minutes, hours or days? You will need to decide these because it is you money were talking about. Whether you win or loose this is a great deal of emotions that you will have to succumb to.
The last thing you will have to decide on is what will I trade, stocks, options, bonds, mutual funds, and commodities?
You will need all of the following: passion, patience, concentration, discipline, skill, stamina, money, knowledge, confidence, willingness to-accept failure, responsibility, willingness to try, to learn. I know that it seems like a lot but the better you are at each of these the greater you chance of success. It is all up to you, no one can do this for you.

I’m tire of bogging that is all for the day ;-)