Day Trading Stocks : Progress Thread

[Jonleehacker]

i dont want to sound like a a**hole, but keep in mind that 90%< of day traders are going to fail.

As the article says, this applies to any business, so you could post this on every thread in this forum.

This forum is more about how to be the 10% that make it

 

[MJ DeMarco]

day trading isn't vvhere it's at.

vvho get rich

vvhere millionaires are made

Curious, do you NOT own a computer keyboard that has a "w" hence the two "v"s? And are you going to give an intro, or are you just gonna troll trading threads?

 

[bmw335isedan]

Result of March 26, 2013

Alright guys, here's the result

I have made 4 trades today

032580, Bought at 4360, sold at 4320 = -1.24%
089150, Bought at 3135, sold at 3160 = 0.46%
041590, Bought at 4550, sold at 4695 = 2.85%
041590, Bought at 4800, sold at 4920 = 2.16%

Total comes out to be about 4.2%

I just broke 20K mark.. currently 20.1K!

I did not read any news, but I guess there's something going on in 031590 company.

By the way, I usually aim for breakouts of today's starting price or previous high of the day.

 

[AllenCrawley]

I expected a lot more professionalism on this board....Seems I am wrong.

Hmmm... maybe you should have approached this board with more professionalism yourself. You just joined. You did not post an introduction thread. As a result we don't know who you are, what your experience is or why anyone should listen to anything you say regarding this topic. Your posts were confrontational at best and showed no respect for the owner of this forum or any of it's members.

 

[bmw335isedan]

Hello everyone

I joined Fastlane forum yesterday and I have introduced myself on introduction section. However, let me briefly introduce myself again in case anyone missed it.

My name is Austin. I am 24 years old male from South Korea and live in Seoul. Currently I am trading Kospi (it’s like SP500 stocks in USA), and Kosdaq (it’s like Nasdaq in USA) stocks only in the morning just for an hour for quick speculative profits.

Just like everyone else in this section of forum, I wanted to start my own progress thread to the road of Fastlane.

As of March 22[SUP]nd[/SUP], 2013, my statement shows that I have about $19K USD. Obviously in South Korea, we use Korean WON as currency, but to make it simple I will convert it to USD.

My initial goal is to increase my balance to $100K USD by end of this year. After that I will take $50K to US Brokerage such as TradeStation to try out American stocks and leave rest of $50K to trade in Korean market.

Ultimately, I want to trade twice a day. One hour in Korean market session and an hour or two in New York session.

From now on, I will be posting results of my trade everyday after I am done trading.

My strategy for quick profit is a trend following system only targeting very liquid stocks, which I have been using for a while.


I will be very interested to hear about anyone doing similar business as I am doing. Also I am interested in Forex, Futures and automation of strategy.

So feel free to share what you know!

Any tips and comments will be very appreciated.

 

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[loop101]

Is it really from 5k to 100k? By the way, I will not be using any leverage

If you are not using any leverage it will take longer. You will have to be much more consistent in your wins.

There are basically two trading methods, but it boils down to how are you going to take your losses. If you are using a method where you win consistently, you will be at risk of infrequent massive losses. Option sellers use this method. They make money selling options, and occasionally they lose big. EFT trading methods that claim 80% winning trades use this approach. Trend trading uses the opposite method, they take a lot of little losses, and infrequently score big when a good trend develops (like Seykota or the Turtles).

If you start with $6,500, you have to double your money 4 times to get $100k. It's like flipping a coin and getting heads four times in a row, somewhat common. If you double your money *another* 4 times, you will have $1.6M. I might bet $6,500 that I would get 4 heads in a row, but I would not bet any money that I would get it 8 times in a row. This is called Martingale trading, double-or-nothing until you attain your goal or go bust. Stock market trading forums are replete with people who went from $5k to $100k and back down to $5k.

If you are doing Forex, you could carry trade or grid trade, and you would make consistent money for a long time - until the prices went to a new place, and did not come back. That method is referred to "picking up nickles in front of a steamroller". Using that method, you are betting that a trend will *not* develop.

All trading comes down to guessing whether prices are going to remain the same, or go to a new level. You can add leverage, time, and other complexities, but the basic bet is still the same. If you can consistently be a better guesser, the rest of the stuff is academic.

Some traders use "random entries", not because they think they are better guessers, but because they think they are better traders than the average. Their whole method is about getting out of a trade at a profit. If you are doing micro-forex trades, you might want to try it, it is actually very liberating, because you don't have to worry about which way the market is going to go.

 

[bmw335isedan]

Okay first day of trading with Fastlane forum

I actually did pretty well for Monday. Usually Monday and Friday suck because on Monday, New York market hasn't started yet so less volatility and on Friday everyone is closing their position so market tends to go South.

I bought it at 2945 and sold it at 3065 = 4.07%, but after taxes and broker fees it came out to be 3.73% profit for today.

South Korea charges 0.3% taxes on the value of stocks when sold. For example, when I sell 100K worth of stocks, I get taxes of $300 regardless of making money or not.

Broker fee is 0.04, so my net profit will be Profit - 0.34%

It sounds horrible, but there's no capital gain tax. No other taxes to be worried about if you make under 5 million dollars a year.

Let me explain my screenshot, the one circled in blue is like a ticker symbol, but instead in korea, we use 6 numbers.

If you want to take a look at the chart, then go to Yahoo! Finance - Business Finance, Stock Market, Quotes, News and type 900050. You will see the chart.

The one I marked skyblue is where i bought and sold.

I had little less than 19K about 18.8K, but now it is showing 19.4K =D

 

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[loop101]

Wouldn't it be a bit unrealistic to turn 19k into 100k in one year when you're fairly new to trading? I'm not saying that its not impossible, just highly unlikely.

Actually, it is pretty common for someone to run an account from $5k to $100k in a short amount of time. You can take risks and use leverage when you don't have much to lose. Making the next 20x increase from $100k to $2M is an entirely different story. No one trades $1M like it is $1k. After they run their account up to $100k, they get very defensive, and usually churn or give back their profits.

 

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[loop101]

I doubt that it is "pretty common"

Then you would be surprised by the returns people can get when they are willing to blow their entire account.

 

[bmw335isedan]

Result of April 18, 2013

Hello guys

I have made 2 trades

I bought at 1123.30 and sold at 1123.50 = 2 ticks
I bought at 1125.00 and sold at 1126.30 = 13 ticks

15 ticks x 36000won = 540,000won = about $480

now I have about 25K

http://img716.imageshack.us/img716/2770/4182013.jpg

I am happy that I am ahead of my schedule =)

my initial goal was to make 23K by April 22nd

By the way, does anyone know if I can trade USD/KRW Future via USA broker?

 

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[AllenCrawley]

if you want real world trading go to Elitetrader....ask many pro's about real day trading..Not o.p who as about 2 min's experience and pours scorn on anyone dare questioning his wisdom.

I see you got the "w" key on your keyboard fixed. Well done. :groove:

 

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[KeonTheGreat]

I remember skipping the first half of classes my senior year of highschool because i would spend that time trading stocks. Made $300 in one morning and to me that was a lot of money to make just sitting on my a$$. It currently takes me a week to make $300. Do you read any books on it or are you "self taught?"

 

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[CommonCents]

Someone should write and sell an ebook on how Americans can buy Samsung and Hyundai stock.

 

[bmw335isedan]

Welcome Austin,

Let's see some Koreean Stock market action around.

Yes you will! Everyday starting tomorrow morning! (Monday).. Keep in mind that South Korea moves 16 hours a head of California and 13 hours a head of New York.

Welcome Austin, or should I say Anyung ah say oh! (I go to school with a few Koreans)

I am EXTREMELY fascinated by day trading, and will most definitely follow your daily updates.

Really good to see you on the forum, welcome and I hope you can reach your trading goals!

I received your PM and you may definately ask any questions you have. I created this thread to share knowledge so ask away!

Sent a PM

I remember skipping the first half of classes my senior year of highschool because i would spend that time trading stocks. Made $300 in one morning and to me that was a lot of money to make just sitting on my a$$. It currently takes me a week to make $300. Do you read any books on it or are you "self taught?"

Jesus, I can't remember how many books I read on the subject of trading stocks. If you go to Amazon and type "day trading," I probably read most of them. Spent about $3000 in books. I also read almost all books related to trading stocks in Korean book store as well.

To make long story short, eventually you have to come up with your own idea. There is no such book that will teach you EXACTLY how you can make money in the market. Simply everyone is different. Some people are comfortable holding position over night and some people (myself) want to take their money out before the market closes. My current trading method is made by me so I guess I am a self taught, but I got ideas from reading books.

Welcome Austin!
Your strategy looks a lot like the strategy I had when I used to daytrade a year ago (I was a trader for 3 years).
I traded only crude oil futures and usually 2-3 trades a day, and not a single trade more.

May I ask why you chose stocks over futures?

I choose stocks because simply there are more choices. There are about 2000 stocks to choose from in South Korea and about 12000 stocks to choose in New York (correct me if I am wrong). I am a trend follower, so I cannot trade all the time. I always have to wait for chart to signal. There are more chances to find signals from 2000 stocks than finding signals from 20 futures (not sure how many there are accurately, but much much less than stocks). Sometimes futures do not give me any signal at all and waste all my time.

Someone should write and sell an ebook on how Americans can buy Samsung and Hyundai stock.

haha, for a day trader, those stocks are too big to trade and they have low volatitily. I think US market provides plenty of opportunity so no need to look else where.

Care to share your current experience? You don't sound like a newbie at this.

How long have you been doing this? How did you start?

We've got a lot of people who will be interested. Also, for keeping a progress thread I'll give you some speed+

Sure, I've been doing this for 3 years. First 2 years no success, but last year was pretty good. I got started because before even reading MJ's book, I realized that even with IVY League degree, it looked tough to get very rich. Trading stocks looked like the only way to get rich comfortably in my home. It is also Extremely scalable, you just need to add earnings to make more earnings doing the same thing.

 

[loop101]

To me, the crux of the trading question is: Do you think you will be a better guesser? You don't have to be the best, just better than the people who are taking the other side of your bets. Any time there are small profits to be taken somewhat safely, the people on the other side of the trade are usually the professional traders. If you have 6 months experience, and are buying options, the person selling them to you probably has 20 years experience. On average, who do you think is the better guesser? Yet amateurs do sometimes make it big. Often they make it big because they are able to integrate new data that has not been digested by the majority of the pros, such as Mart Schwartz ("Pit Bull"). Sometimes they beat the pros because they are able to limit their trading (Nicholas Darvas). Or they might notice a repeating pattern before anyone else ("Dogs of the Dow"). Th best trader ever, Peter Lynch, claimed that he operated on the edge where uncommon knowledge became common knowledge. He regretted spending his life doing that, because it took a huge toll on his family. He basically had to become the system to efficiently operate within it.

Most of my approaches to trading are based on mining historical data. Due to governments influencing the markets much more than they use to, my approach is basically invalid now. So I am out. However, it might be a good time for traders who are not making their decisions on past statistics. It might be the best time for them.

 

[bmw335isedan]

If you are not using any leverage it will take longer. You will have to be much more consistent in your wins.

There are basically two trading methods, but it boils down to how are you going to take your losses. If you are using a method where you win consistently, you will be at risk of infrequent massive losses. Option sellers use this method. They make money selling options, and occasionally they lose big. EFT trading methods that claim 80% winning trades use this approach. Trend trading uses the opposite method, they take a lot of little losses, and infrequently score big when a good trend develops (like Seykota or the Turtles).

If you start with $6,500, you have to double your money 4 times to get $100k. It's like flipping a coin and getting heads four times in a row, somewhat common. If you double your money *another* 4 times, you will have $1.6M. I might bet $6,500 that I would get 4 heads in a row, but I would not bet any money that I would get it 8 times in a row. This is called Martingale trading, double-or-nothing until you attain your goal or go bust. Stock market trading forums are replete with people who went from $5k to $100k and back down to $5k.

If you are doing Forex, you could carry trade or grid trade, and you would make consistent money for a long time - until the prices went to a new place, and did not come back. That method is referred to "picking up nickles in front of a steamroller". Using that method, you are betting that a trend will *not* develop.

All trading comes down to guessing whether prices are going to remain the same, or go to a new level. You can add leverage, time, and other complexities, but the basic bet is still the same. If you can consistently be a better guesser, the rest of the stuff is academic.

Some traders use "random entries", not because they think they are better guessers, but because they think they are better traders than the average. Their whole method is about getting out of a trade at a profit. If you are doing micro-forex trades, you might want to try it, it is actually very liberating, because you don't have to worry about which way the market is going to go.

A lot of good information! thanks Loop. Let me clarify what my rules regard to stoploss. I do 2% trail stoploss regardless of any entry. This means that there is no way I can lose more than 2% per trade. For example, after buying a stock, it goes up 1% and moves down 2% then I will be stopped out with 1% loss. 2% trailing stoploss calculate 2% from the highest price since the purchase of the stock.

Good luck; i dont want to sound like a a**hole, but keep in mind that 90%< of day traders are going to fail.

The Top Seven Reasons Why 90% of Daytraders Fail

Sounds good haha, if there were no failures then I would have no opportunity to make a lot of money.

 

[InLikeFlint]

Wow, you did really well today!

Could you explain why you chose to buy and how you predicted the big rise? Was this considered a risk in your eyes?

Looking forward to tomorrow's update!

 

[bmw335isedan]

That freaks me out

So this stock was up 15% on the day, how did you select it as a trade possibility? Did it have had news coming out, or earning report so you knew to be watching for your setup?

South Korea has 15% limit rule meaning, in any given day stock can only go up to 15% and go down 15%.

I looked for 3 major things.

1. Liquidity, as you can see on chart it traded 200k volume in one minute that is about 600k worth of dollars traded in 60 seconds. That might not be big if you compare it to APPLE stock, however I am only dropping about 18K so more than enough.

2. very clear up trend with huge red bars (redbars are good! dont be confused)

3. it broke above starting price

 

[InLikeFlint]

Damn! Great work Austin, good to see you recovered from the negative today and still came out on top!

 

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[bmw335isedan]

Result of March 27th, 2013

I have made one trade today

035610, Bought at 5120, sold at 5050 = -1.69%

There was no mistake in Entry and Exit, but North Korea threatening South Korea caused Kospi, Kosdaq Index to drop significantly .

I am not so upset about result cause I followed my rule and I also have profits I gained from Monday and Tuesday.

Take a look at Kospi, Kosdaq Index, I have attached it.

Now I have about 19.8K

 

[InLikeFlint]

Stop the crap with Starcraft. Focus on what helps, even if a Starcraft player is seen as a rockstar in Koreea, it will not bring you far ;-)

^^^^^^^^ this for sure..

When I am home from school on break or whatever I never get as much stuff done as I would hope because I end up playing CoD or FIFA..

Then recently I started telling myself that I won't play any games before 11:00pm, and only then once my To-Do List for the day has been completed.

It does wonders.

 

[bmw335isedan]

Result of April 5, 2013

This trade looks different than your others. Previously you seemed to be trading over one of the opening bars, this one seems to be later in the day, and also, counter trend.

Can you explain what the thinking was with this trade?

Hello actually it looks very deceiving, but I was following the trend. Originally it gapped up meaning, it is trending north, but it is ideal to see some selling pressure prior to going up higher. There are a lot of people who want to sell right away when gapping up because they made profit over night. Also i bought it when the price was higher than all the moving averages so actually i was following the trend.

Also I was trading starting price breakout

Anyways today's trade

I bought it at 1125.50 and sold it at 1126.70 = 1.20 = 12ticks = 35 x 12tick = 420,000won = $373

now i have just under 22k

here's the chart http://img163.imageshack.us/img163/7984/452013usdkrw.jpg

 

[bmw335isedan]

Result of April 9th

Until 9:42, I was extremely disappointed. No good signal, same as yesterday, boring sideway action.

I was like not again! I have to report no trade to the forum?? ahh

Guess what at 9:43 I got a reliable signal so I got in right away.

Check out the result

http://img41.imageshack.us/img41/6622/492013usdkrw.jpg

Short at 1141.70 and covered at 1136.80 = 49 ticks, 49 ticks x 35000won = 1,715,000won about $1500 !!

Now I have about 23.4K

I guess patience is the king!!

 

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[bmw335isedan]

Really enjoying your updates, keep up the good work. +Speed

Thanks.. I am not familar with speed. What happens when my speed goes up?

Why did you join the stock market at such a young age?

I want to buy a Ferrari and that is pretty much it haha.. Dumb reason sorry

 

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[bmw335isedan]

Result of April 11, 2013

Hello guys, I have made 2 trades today

I shorted at 1130.60 and covered at 1129.90 = 7 ticks
I shorted at 1129.50 and covered at 1127.80 = 17 ticks

Total= 24ticks = 24 x 35000 = 840,000won about $744

http://img9.imageshack.us/img9/6186/4112013usdkrw.jpg


Now I have about 24.4K

Just for what happened on second trade, I should have made more money, but then I made a mistake. Accidentally clicked buying it back so it got covered on wrong place. Anyways I was making money so it was alright, but I was surprised and disappointed.

Anyways I am up for today so I am good to go.

 

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[bmw335isedan]

Rather than just posting pure facts of you trades, I would love to hear some of you decision making behind what you did each day.

Why, specifically, didn't you take any trade? At what time or place in the chart, did you face the decision to trade or not and why?

Stuff like that would be more interesting than just P&L updates.

Actually, you know what I am already doing that on my blog, but it is in Korean language. www.blog.naver.com/bmw335isedan

Starting monday, I will be posting in both Korean and English. Also I will update this thread as well.

 

[bmw335isedan]

Hello guys

I am expecting account to be ready by today and send wire tomorrow. I very excited about this new opportunity!

 

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[Held for Ransom]

Curious, do you NOT own a computer keyboard that has a "w" hence the two "v"s? And are you going to give an intro, or are you just gonna troll trading threads?

That is probably one of the funniest things I have ever read. It is hilarious on so many levels...

 

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[AlexV]

Welcome Austin,

Let's see some Koreean Stock market action around.

 

[InLikeFlint]

Welcome Austin, or should I say Anyung ah say oh! (I go to school with a few Koreans)

I am EXTREMELY fascinated by day trading, and will most definitely follow your daily updates.

Really good to see you on the forum, welcome and I hope you can reach your trading goals!