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In the old days, 3 to 5 cents was enough for most daytraders. But then, a
good daytrader could make that fairly easily. It's a lot tougher now and
different techniques should be used. A friend of min mostly daytrades and is
generally happy with 10 cents. Even with only 1000 shares that's $100 gross
and probably about $80 net. 4 of those a day and you've got a comfortable
living in many parts of the country. Of course, you'd want to increase number
of trades, lot size, and win size to compensate for losing trades. But I
would consider 4 wins of 10 cents at 1000 shares as "reasonable" minimums.
Why would a person care about "reasonable" minimums? Because then you can use
techniques such as trading a double lot size and selling half at the minimum
gain. Stop the other half out at break-even but let it run for more profit.
It's very relaxing being in a trade that you know cannot lose you money. :-)
(unless you get halted, which happens from time to time)
In a message dated 8/1/02 9:30:49 PM Pacific Daylight Time, cayenne@xxxxxxxx
writes:
> Just a quick question from a futures trader: For a trader daytrading stocks,
> what is considered a "reasonable" or "profitable" trade? I mean, if the
> stock goes from 48.25 to 48.45, is that a good move for the average, well
> capitalized trader? Or would a successful trade mean a greater margin, say
> from 48.25 to 48.85?
>
> Obviously I know that a trade with 100 shares will not equal the gross
> profit of that with 1000 shares. I'm just trying to get a feel for what a
> stock daytrader is looking for in a daytrade in regards to margin, and
> perhaps time, too.
>
> Thanks.
>
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