Registered User
Joined: 1/8/2005
Posts: 118
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I trade in a small IRA and can basically only take one long trade per day - does anyone have any suggestions how to find that trade with a good possibility of being successful that day? Thanks for your help.
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Registered User
Joined: 1/28/2005
Posts: 6,049
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I dont think it makes a lot of sense to "daytrade" an IRA
type account.
Thanks
diceman
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Registered User
Joined: 1/8/2005
Posts: 118
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diceman
What would you suggest? I nearly got wiped out last year trying to hold any length of time. Thanks
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Registered User
Joined: 1/28/2005
Posts: 6,049
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Some type of stop loss.
I use a 40 to 45 week moving average on the SP500.
(along with some of my own indicators)
(got out in Nov 2007 also 2000 to 2002)
You can even hold shorter than that but I think
daytrade is too short.
Thanks
diceman
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Registered User
Joined: 2/5/2006
Posts: 1,148
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QUOTE (lsaloga) diceman
What would you suggest? I nearly got wiped out last year trying to hold any length of time. Thanks
I'd suggest you rethink your trading strategy, if you nearly got wiped out. an ira is more suited to a "swing" trader rather than a "day" trader.
also, in an ira account, it takes 3 days for settlement, since its not a margin account. so your moneys tied up.
usually when you make a trade you put a stop just below a support level and where a 1:2 risk:reward is satisfied.
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Registered User
Joined: 1/8/2005
Posts: 118
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I was swing trading at the time and I kept getting stopped out. That's when I started day trading, but I haven't been able to gain as much as I would like. If a trade goes against me and I get stopped out, I can't enter another trade until the next day unless I take smaller trades.
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Registered User
Joined: 7/1/2008
Posts: 889
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Isaloga,
You can hold more than one position at a time right, but you can't trade more than once a day?
Also, is your objective to have good returns or to "trade"?
if it is the former, what would you define as a good return?
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Registered User
Joined: 12/31/2005
Posts: 2,499
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You could change your perspective and use 5 day charts instead of daily and entend your hold period. Just change the frequency of your trading.
Also if getting stopped out is putting you on edge, having more than one position to monitor might settle your mood. Then you won't be in or out as much.
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Registered User
Joined: 1/8/2005
Posts: 118
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ben2k9
Let me explain: there is no limit on the number of positions held, there is no limit on the number of trades you can make subject to available funds. There is a 3 day settlement period - when you make a trade in an IRA those funds are not available again for 3 days, so when I daytrade I buy in with 1/3 of the account, that way I have funds available everyday. I could make smaller trades but then commissions affect the returns (I have a small account).
Good returns are more important than "trading". I am looking for returns of 10% or more per month - do you think that is unreasonable?
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Registered User
Joined: 1/28/2005
Posts: 6,049
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I don't get it.
With a 10% per month return
a $5000 account becomes 1.5 million in 5 years.
(who cares how big your account is?)
The real question is what type of returns you can
generate reliably.
(since your asking here I'm guessing the 10% per month isn't happening)
I would slow down in the IRA.
Focus your fast trading outside of it.
Thanks
diceman
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Registered User
Joined: 12/31/2005
Posts: 266
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isaloga-post a few trades for the board to comment on.
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Registered User
Joined: 1/8/2005
Posts: 118
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I appreciate the suggestions and opinions of other traders but this has got away from the question I originally posted:"does anyone have any suggestions how to find that trade with a good possibility of being successful that day? Thanks for your help."
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Registered User
Joined: 10/7/2004
Posts: 2,181
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Please don't get upset but I think the answers you are getting are more on point than you may realize. You might want to listen more carefully to what the board members are really asking you.
But then, it's your money.
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Registered User
Joined: 4/13/2009
Posts: 122
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Let me see what we have here. First you swing trade but get stopped out!! WHY?? Then that didnt work so you start to day trade..trade goes against you and you get stopped out!!! WHY?? You trade 1/3 of your account per trade??? WHY??? You can make as many trades as day as you want but if you get stopped out, you (quote) "can't enter another trade until the next day unless I take smaller trades." You want "returns of 10% or more per month - do you think that is unreasonable?"
Fisrt let me ask the age old question...Is the glass half full or half empty?? Before you answer you must first look at the history of the water..was it being poured into the glass or being poured out of the glass.
If it was being poured into the glass...then it is half full. If it was being poured out of the glass then it is half empty.
Now that being said, you have to ask yourself the "WHY's" above.Why are you stopped out? Why do you trade 1/3 of your account? If you had a million dollar account would you make 1 trade for 300k? You failed at swing trading, WHY? So then you go to day trading and fail, WHY? The only plan you have is to make 10% or more per month!! HOW?? How do you pick a stock? So far it seems you are picking the wrong stocks, or should I say the wrong time to enter into those stocks.
Maybe you should look at your plan and not look to make 10% per month. Do you have a plan? How do you scan for stocks? Try to make $10 per day..day trading or swing trading or holding. Pick one style and work at it till you know why you are making money or failing. Correct what you are doing wrong and maybe...just maybe some day down the road you will begin to make your 10% per month.
(QUOTE)
I appreciate the suggestions and opinions of other traders but this has got away from the question I originally posted:"does anyone have any suggestions how to find that trade with a good possibility of being successful that day? Thanks for your help."
Look for stocks in an uptrend with good volume. Look for support and resistance points. Look for the main moving averages that EVERYONE trades. Dont enter when the market open if you are day trading. Wait till at least 10am but then watch out for a reversal at 10:30 or 11am. Let the trend develope first. Dont buy stocks that all the news media are talking about. The pros are sell them as you are buying them. Make a plan that you only trade when certain criteria is met and only then your trade. You DONT have to trade EVERYDAY. You only have to trade when it is right for you and your plan.
Good luck in finding what is RIGHT for YOU!
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Registered User
Joined: 7/1/2008
Posts: 889
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QUOTE (lsaloga) ben2k9
Let me explain: there is no limit on the number of positions held, there is no limit on the number of trades you can make subject to available funds. There is a 3 day settlement period - when you make a trade in an IRA those funds are not available again for 3 days, so when I daytrade I buy in with 1/3 of the account, that way I have funds available everyday. I could make smaller trades but then commissions affect the returns (I have a small account).
Good returns are more important than "trading". I am looking for returns of 10% or more per month - do you think that is unreasonable?
uhh - yes.
I think 10% per month is totally unreasonable. You do 10% a month consistently, you are the Michael Jordan of traders and you can quit your job now and start shopping for your yacht.
You do 6% per month consistently and you're doubling capital every year. This is achieveable (more likely with the use of margin/leverage, so forget the IRA) but again this puts you in the top ranks of all traders in existence. Maybe after 5-10 years of obsessive study and trading experience you could get here.
I think the first step is having more reasonable expectations. Do you want more consistent winners or bigger wins? These two goals are usually contradictive. Bigger winners comes with bigger drawdowns.
Day trading will not generate big gains, and is probably a huge waste of your time with a small account.
I think you need to take a look at the CANSLIM system. You could also look at high probability winning strategies. (ie Larry Connors) tradingmarkets dot com.
At the end of the day no one is going to tell you how to get there. Trading excellence is a long personal journey that doesn't come easy.
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Registered User
Joined: 8/19/2009
Posts: 170
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have you considered using a covered call strategy instead? this is a good/safe way to bring income into your account while protecting it somewhat. also there are no requirements needed in order to get approval for covered call writing
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Registered User
Joined: 8/8/2007
Posts: 42
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QUOTE (driger) isaloga-post a few trades for the board to comment on.
I visit the board briefly maybe every other day, and I'm a very infrequent trader due to my time constraints. I definitely consider myself a novice, but I'm trying to learn what I can.
Most of my trades this year were successful, mainly because the overall direction of the market is up. At times like now, I'm unsure of myself.
I'd like to post a few trades I've made or considered, along with charts I used, and get feedback.
Thanks,
Mike
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Registered User
Joined: 12/31/2005
Posts: 2,499
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QUOTE (ponchomike) QUOTE (driger) isaloga-post a few trades for the board to comment on.
I visit the board briefly maybe every other day, and I'm a very infrequent trader due to my time constraints. I definitely consider myself a novice, but I'm trying to learn what I can.
Most of my trades this year were successful, mainly because the overall direction of the market is up. At times like now, I'm unsure of myself.
I'd like to post a few trades I've made or considered, along with charts I used, and get feedback.
Thanks,
Mike
Start a topic. I'm sure you will get feedback, maybe conflicting. You may want to state your style, trading goals as well, as each person brings their trading view to a chart and their answers will be wildly different.
Also as a good learning exercise, before post any chart, try writing your own feedback about the chart as if someone else was going to review it.. That is writing it down, Do this on a number of charts and it will clarify things in a much better way than "thinking" through the same issues. A trade diary is a hard thing to do but doing it consistently can improve ones results.
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