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Hi Mark:
Before this year I was mainly a position trader, buy and hold on tech
stocks.
This year I am day trading only one stock, because I think the market
is high.
In 96 I did over 6 figures, last year I was down 40k.
My friend Wai, has gone from less than $50,000 in 1991 to as high as
$6,000,000
last year.
I got him into IBD, see page A8 Investor Business Daily, Aug 7, 1996
He is down to 3 mill, lately. Tech stocks are a bitch. So are the $5
gap downs.
My story see: http://www.seattletimes.com/search/ look for story June
9,1996
on wages, Bob Kodama front page. If you are interested.
We are both full time bedroom office or kitchen table stock traders.
We use discount brokers.
I use regal 1 800 876 6761 ask for Cliff or Paul in customer service.
Tell them I sent you. I will get a free trade if you open an account.
I have use them since 93. They are ok.
We phone in our orders.
We use real time quotes. Trade only tech stocks. Mainly semi's.
Wai has made most of his money with a buy hold strat on tech stocks.
Buy 100,000 shares and hold. Get 20 points.
The $5 gap down days are a bitch. He uses max margin. I will start.
He short term trades and does options also. Mostly writes them.
The reason I like day trading. In and out in the day. I have carried
over to
the next day, sometimes. No margin interest, if in and out same day.
I like to travel so I am out of the market totally when I travel.
I don't have to really follow the fundamentals and the story of the
stock.
I figure 200 days per year at $1 per day on 1000 shares is 200k.
I will go up to 5000 shares or more, so 50k should be easy to make this
year.
I think $20k is enough to make a good profit with. Buying power is 40k
on margin.
40k will get you 1000 shares.
I am using two p200 computers with 64 and 88 megs. I have 3 monitors.
My compaq
3060 has a wireless mouse which is great.
I have one monitor on the floor. So I can sleep when things are slow.
6:30 am is
a bitch for me. I like the alarm lines in supercharts because you move
them with
a mouse and when they are hit, it wakes me up. I just have to reach for
the phone.
Press the speed dial and give my order.
I sleep on the floor so when I wake up. I turn on the monitor. Hit the
remote for
cnbc. And have a phone by me. I trade horizontal or vertical. Depends
on how I feel.
It's a bitch trying to get my eyes to focus on the screen in the
morning.
Anyway.
This is what I have done.
I scanned 700+ stocks I have in supercharts. The criteria was: find all
stocks
that have a daily hi to lo greater than $2,daily range.
>From that list I looked at the number of shares traded per day.
I think two million or greater is good.
The spread must be 1/8 or less.
I have about five stocks on my short list. klac is the one I am trading
for now.
I don't know if I have a system. Once you watch just one stock every
day you get
to know it pretty well. It's nature/character.
I have done 7 trades this year. 7 trades, 7 winners, no losers. Up
about $8000.
In March + $3125 on 4 trades. March will be a full trading month for
me.
In April and May I will be traveling.
I was using signal cable but have switched to bmi cable. It is alot
better.
The data comes in faster, plus the volume for each trade is better than
signal.
The total volume is more accurate on signal. I watch the time and
sales.
I will be using bmi lite. If you are interested call Jacques Richards
bmi
1 800 287 9520. Tell him I sent you.
I was using supercharts rt, but am using Ensign software that came with
bmi box.
I like it because the time and sales update
progressively/automatically. I think
superchart/ts does that but have not tried.
One of the most important things in trading is what you do after you are
in a position.
You have to follow your exit rules.
It is pretty mechanical. When I position trade I have my spreadsheet
set to calc my
exit points. When they are hit, I get out.
I love stock trading. I have had 6 businesses. All have made money.
I retired at 45 to just trade stocks from home and so I can travel.
Have been to Japan, Australia, Mexico, Scotland, England and Utah
skiing.
Stock trading is a pure business, just buying and selling. No BS.
It does not care who you are, color, race, IQ, how much money you have,
etc.
You are right or wrong.
My goals are:
To be on cnbc sometime, just for the fun of it.
To have a non profit foundation to give disadvantaged kids scholarships
and to
teach them how to trade.
To write a book on trading and how Wai and I have made our money kitchen
table
stock trading.
All my writing and teaching money will go to the foundation.
I make my money from trading.
All the info you need to trade and make money is free.
Go to the library and read and understand. I have read most of the
books. They all
have good info.
As my past marital arts instructor Dan Inasanto says, Absorb what is
useful.
Anyway.
This is what I have told my students.
THE EXCUSES ARE THERE ARE NO EXCUSES.
THE ONLY ONE HOLDING YOU BACK IS YOU.
You are RESPONSIBLE, ACCOUNTABLE, AND IN CONTROL OF YOUR ACTIONS.
NO WHINING.
MAKE MONEY, KEEP MONEY, HAVE FUN.
We are all millionaires, you just have to know how to make withdrawals
from the
Bank of Wall Street.
Enough for now.
Good trading.
Have a good weekend.
Forgive the spelling, grammar, topo's.
Bob
Mark Perrucci wrote:
>
> Robert,
>
> I noticed your comment in the Omega forum and would like to ask a couple of
> questions, if you don't mind. Please don't feel obligated to respond....
>
> I am a novice futures trader. after trading for 10 months, i have lost a
> considerable amount of money. mostly due to inexperience and lack of
> knowledge. it's a tough business out there.
>
> anyway, you said you have been day trading stocks and get anywhere from
> $.50-$1.00 a couple of times a week. are you using a system for that or
> have you the knowledge and experience to know what to look for. i would be
> interested in finding out how you select the stocks you trade with or any
> information you are willing to share. it's seem that stocks may be less
> riskier than futures.
>
> thanks so much for your assistance and cooperation. it sounds like you are
> on your way to a successful trading career, somthing i desire myself.
>
> thanks
>
> mark
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