Day Trading Like a Pro - part 2

I believe half of all mankind believes that investing in the stock market is gambling. Well, my views are half of all mankind are ignorant about money, financing, history, and psychology. The more you know about money, your education begins, now add financing to that pot of knowledge. Are you beginning to see how all this is coming together and taking it out of the realm of GAMBLING?
Most online brokerage accounts offer some type of trading station that will let you paper trade. That is what we call trading with play money, just for fun. The beauty of this type of account is it lets you buy and sell then post your trades all in real time but no money is involved. Huh! It is just for fun and is a good trading tool to learn your style and prefect it. Go ahead and test you newfound skills, practice your skills.
How much can you make? That is the $64,000 question. It depends on a couple of things:
1. How much you invest . . .
2. How aggressively you invest . . .
Most of your online brokers require a minimum of $25K in investment capital if your going to be a fast trader/daytrader. Although I have seen some people trade as low at $5K. Some traders trade minimum 1000 share lots, others 100, 200, 500 share lots. Just remember a move of .10 can earn you $100. On a 1000 share lot.
3. The net gain per trade . . .
4. The number of trades . . .
5. Commission (transactions) cost.
Some day traders make 100’s of trades per day and may only win 5 -10 more trades than they lose. This is a very credible strategy is you can maintain it. I personally could not.
When tax time comes around you better have prepared your accounting and statements before hand or you’ll never get ahead. You know how your trading profits are counted by your great uncle Sam? . . As ordinary income. Boo hoo, boo hoo ☹.
Money makes people do strange things is why I am giving you this WARNING. Day trading is not a game for beginners. It would be considered irresponsible if I were encouraging readers to sell everything and risk it all on the off chance that they might make a fortune day trading. NOW HEAR THIS . . . Do not quit you job, mortgage your house, cash out your children’s college funds or dip into your retirement account in order to become a day trader. Yes day traders can make money but they can loose money in the wink of an eye. More tomorrow I’m tire of writing

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