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I guess that leaves out the starting or aspiring daytraders from your
standpoint. There is no argument about your input about being successful.
Not everyone starts out with a golden egg in there lap with a gift to trade.
I sure didn't get it when I started. Hell, I got into the field with $2800
and worked that up to $30,000 to apply to be professional. I would call that
successful wouldn't you. By the time I got my license (Series7) and was
hire, or shall I say accepted, I had a lot more capitol to trade. But my
point is that it was a tool that I used, a great tool for that matter, that
allowed me to achieve what my account is today. I don't care how good you
are with your money management and trading, true capital conquers all.
Trading successfully will bring you a nice account, trading with large
capitol will bring it faster.
What rules, as they have not changed for me. Oh, there is one. I get fined
a $100 if I short a stock on a downtick, and only after my third warning. I
guess that the software has not put a block in that problem. The only
disadvantage that I see as being a broker is that I pay $200 more dollars in
data fees, as required by NASDAQ and NYSE. I see no argument what so ever
about paying such little amounts to gain so much. Lets squabble over dollars
so we can earn pennies. Let us pay $17.99 a trade, or be a Series7 and pay
$1.50. I think the math speaks for itself. I guess I feel that pain all the
way to the bank. For all that are interested, you do learn a few things
while studying for this test. It is called financial planning for the rest
of your life. Learning about bonds for you retirement, options, history,
rules of the road so when you retire, you know what to look for in hiring a
professional to manage your retirement capital.
Holding a long term position can be good and bad. Depends how right you
are. My average position lasts 6-10 bars. That would be close to 1-2 days.
But if you hold the long term position, then why are you a Daytrader? Why
would you need to classify yourself as a 'Mark to Market" trader when you
are holding for weeks or months a time. This email was directed towards
those quick positions, with ultimate tax benefits. I have explained it
before, and there is no need to go over the math again. It is quite simple.
I don't have a 200 IQ, but my CPA sure does, and we worked out all the
options before I even thought of going professional. Let's not forget a
business expense is a loss as much as a bad stock trade is a loss.
Successful daytraders, financially wealthy and experienced, as we all are
on this list, need every tool that they can grab. If you have millions in
the bank, then I bet you are chuckling at this moment about several traders
saying "Do it my way! I got the best route!" Hey,,,,, to each is his own.
But for the volume of personal emails that I have gotten over this ( I do
apologize if I have not gotten back to you, as I cannot answer everyone, I
would be here all day typing on the computer), there seems to be quite an
interest. Don't listen to my positive input, don't listen to the bashing or
the negative input. Take the time to research this yourself as I did, and
choose the right path for your trading style and motivation. You would learn
some things, and maybe find something interesting. A person would get
nowhere if he was told that everything was a pain in the ass to
accomplish.......
-----Original Message-----
From: Sigstroker@xxxxxxx [mailto:Sigstroker@xxxxxxx]
Sent: Tuesday, July 24, 2001 10:35 PM
To: Omega-list@xxxxxxxxxx
Subject: Re: looking for retail day traders
By the rquirements given, successful documented track record etc., the
typical trader that meets those requirements doesn't need the capital. They
have, by definition, been successful enough to have built their account.
Most
stocks that are the best for daytrading aren't liquid enough to move more
than 2 to 5 thousand shares at a time anyway. A Series 7 is not only a pain
to get, but it can be a detriment in a lot of situations because of the
rules
you have to follow. Trader tax status can be declared by most daytraders
anyway, and as someone pointed out, is a disadvantage if you keep any long
term stuff. The ability to claim losses is moot, because we're talking about
successful daytraders.
In a message dated 7/22/01 10:13:56 PM Pacific Daylight Time, Sethw2@xxxxxxx
writes:
> It is nice to see someone finally post a positive response to what I have
> been commenting on. I have received more positive responses than negative
> ones, but it is funny that only the people that want to be critical feel
the
>
> need to cc the list with their responses EVERY time.
>
> Good luck trading,
>
> Seth
>
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