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Its tough to swing trade with only a cash account. Its a guessing game knowing which stock or stocks to buy into just before an uptrend or ride. Usually by the time I know about a stock or read about a stock going up(usually right back down again for a bit), its too late for the swing. Its stressful,but fun playing this game. Even with a $2500 margain account, your trades are still limited. How can we make the maximum money with only a cash account? It gets aggravating. I mean, who all has $25,000 min. in an account to do day trades? Sorry, but I just had to vent for a moment and let out some aggravation, but I am having fun!
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It's a guessing game... but thats why you use Technical Analysis to try to take the guessing out of the game.. by using charting, oscillators/indicators, news etc... tell us what you do to make your stock picks? perhaps you are doing something wrong that we can suggest otherwise...
-------------------- Let the world change you... And you can change the world.
posted
choice trade will probably give you a margin account. Ameritrade wouldnt give me one but choicetrade did. I had pretty good success swing trading with not much money to start with although im not currently swing trading. What I would do is find about 50 or 100 stocks with good uptrends and wait for one to have a big pullback. If it would drop from 33 down to 30 and then later in the day go up to 31 I would wait for it to drop down to 30 and buy there. It has to have that bounce to 31 otherwise it will likely break under 30. For a while I was getting within 1 percent or under the daily low and within 3 days to a week it would make up the 10 or 15 percent that it pulled back. In a bullish sector this worked for me about 90 percent of the time. I dont do this anymore cause I was doing this in energy stocks and gold stocks which have sucked latley so ive switched to pennies. Another problem I found was that I had found such good stocks from getting all the stocks on strong uptrends that I made my 10 to 15 percent now and then but I should have just held on because many of them ended up doubling. Im starting to think that on the big board stocks there is more money to be made long term than daytrading but with pennies there is more money to be made daytrading than long term. Just my opinion. Or I suppose on the big boards going in for 1 to 3 months would be most effective since thats about the amount of time a trend can typically last. I daytrade without 20,000 but I only make 1-3 really good trades a week. This week I found only 2 good stocks but I still came out of the week with a good percentage gain. Just two stocks a week at a 10 to 20 percent profit is plenty of money. It adds up quickly.
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The main thing is dont ever buy a stock because it is pumped here or anywhere else. Many of them are obviously going to fall but mob mentality prevails and many people loose a lot of money. I read Darvas's book recently and he talked about how he was doing so good trading away from wall street but once he went to wall street and started listening to others and there rumurs he started loosing all his money. I find some of the posts humerous. Someone will say something like "news is coming this month" with nothing to back it up and everyone jumps on board and they all loose there hard earned money because some person theyve never met told them this nonesence. The post will have 20 pages with everyone talking about how high the stock will go on there imaginary news. Sorry now im just venting. If someone post something that is high quality and has real potential I may buy that stock, im just saying a lot of people come up with strange reasons to by stocks.
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LoL Tree ... i just reread Darvas book while i was in vacation in Costa Rica... what he says is so true.. ever since i first bought that book and read it long time ago.. i dont listen to things on boards no more about certain stocks.. rumors, news etc.. anymore...
-------------------- Let the world change you... And you can change the world.
quote:Originally posted by Machiavelli: It's a guessing game... but thats why you use Technical Analysis to try to take the guessing out of the game.. by using charting, oscillators/indicators, news etc... tell us what you do to make your stock picks? perhaps you are doing something wrong that we can suggest otherwise...
Its obvious I am new to penny stock trading. I am still learning charts. I read what others are doing here and then do my own research and go from there. Ive made a little off bign and I am currently in motge. I am in a couple of others too(holding for now).
quote:Originally posted by treemoney: choice trade will probably give you a margin account.
Whats the minimum? I can get one where I am now with $2500.
Thanks guys for the advice and information.
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Has anybody mentioned that one must also look the fundametals of a stock too , before you buy not just charts. I statred my choice trade account with $150 two months ago. I've made some off AMHD and holding CWFG and ICMH. waiting for news .
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You can still daytrade a little with a small cash account. I believe the rule states that you cannot make more than 3 daytrades within a 5 day period. It does not say a week it says a 5 day period. Weekends don't count. The trouble you can get into will be using unsettled funds. It is OK to buy a stock with unsettled funds but you cannot sell that same stock until those funds are settled.
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It does with Scottrade, or at least that is what they told me. I could be wrong. They told me I had to have at least 25,000 to not have to abide by the rule and I have a cash account.
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Gets a little confusing. You need $25K for a margin account to get around the 3 in 5 rule. If you have a margin account with less than $25K then the rule applies and you can get your account flagged, frozen or called if you screw up. But the rule has no effect on cash accounts regardless of the balance. I confirmed this with Ameritrade and others some time ago, but I'll add an IMO for the heck of it. You might double check with another broker.. some of them do get it mixed up.
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quote:Originally posted by Polarbear17: Has anybody mentioned that one must also look the fundametals of a stock too , before you buy not just charts. I statred my choice trade account with $150 two months ago. I've made some off AMHD and holding CWFG and ICMH. waiting for news .
Fundamentals can pretty much be meaningless in pennystocks since most if not all pennystocks have sucky Fundies... another reason Fundies are useless is because they only tell you the health of a company.. not when to enter or exit a trade.. and also if you haven't noticed.. the market is very much manipulated by insiders/mm's ... no fundies in the world will help you when your stock is manipulated... fundies should be scanned briefly but its not carved in stone for trading... for investing perhaps.. but for trading.. nahhhh ....
-------------------- Let the world change you... And you can change the world.
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