Notice….THIS CHAT ROOM IS DIFFERENT!
I write this blog out of frustration and concern because I truly care about every member in this room! I started this room because I want to help people make money NOT because I need the money! I could just grow my room, keep adding new members and taking their money, throw out entries on stocks and let you all figure it out. But I don’t want to be like those other rooms. This is NOT a typical stock chat room. I want it to be a great room where all my members make money. Is that an impossible goal? People tell me it is… but that’s my goal. It is because of my “goal” that I write this today.
I write this to help re-enforce how to be successful in my room and to ask the question for you all to answer for yourself “Is Day Trading Right For Me?” The answer could be yes, but maybe not in my room using my style. Only you can answer.
So, What started this rant?
This afternoon around 350p I came back from the beach to find 40 or so members still sitting in the chat room, even though I mentioned/warned everyone that trading after the morning runs can be difficult during the slow, choppy afternoon time frame. In reading through the chat log, what I saw was beyond belief. Several members were buying things in “hopes” their position would go up, and still others were still holding positions after I had alerted them to put a hard stop to avoid a big loss. I am not offering a buy and hold service. I’m sure there are plenty of swing services out there you can join. I pride myself on offering a momentum based, high profit potential service that can eventually make you some serious money, that is if day trading really is for you.
So why isn’t anyone listening to me? Are old habits really that hard to break? With this blog, I decided to ask the question. Is day trading really right for you?
1) If you can’t take (3) $100 trades a day for a $300 profit out of this market, then day trading isn’t for you. Quit trying for home runs and concentrate on taking singles. I stress that $300 a day = $72,000 a year. It isn’t that hard to do if you follow the rules.
2) If you want to save money by paying $2 in trade commissions, then day trading isn’t for you. The old adage is you get what you pay for, and in this business, you need the fastest streams and the fastest executions. There are no two ways around this. If you can’t pay $20 round trip for a trade when you have the potential for so much more, this isn’t the place for you. You need to step up to be with the best online broker who will get the job done.
3) If you’re working a full time job and are trading on your phone, day trading isn’t for you. You need a screen with a daily chart, a 3- 5 minute chart and L2 open at all times. Two screens is always better than one as you can add more charts. E-Trade Pro allows me to click on a scanner alert and all my charts and L2 populate within seconds. Trading on your phone or via a text alert is like putting a blindfold on in hopes of catching something. It won’t work.
4) If you can’t walk away after the first 2-3 hours the market is open and feel you must sit all day in hopes of catching something, then day trading isn’t for you. The best profit potential is during the first two hours and after that, everything becomes choppy and volume subsides. You will lose more money by over trading in the afternoon than any other time. You need to have discipline to step away after the morning rush and live life. This doesn’t have to be a full-time endeavor.
5) If you can’t stomach the thought of taking losses, then day trading isn’t for you. I stress to my members that there are going to be losses, but to keep them at $100 or less. Are there times when something gets away from you? Absolutely. But with my system, I play a law of averages which says for every 6 winners, you might have 2 losses. I’m not perfect but for the most part my winning calls will make you far more than your two $100 losses. Take a few minutes to peruse my daily trading logs and you will see this for yourself.
If you’re looking for a chat room with lots of ideas and banter, then my service isn’t right for you. Yes, there are some great ideas from members but for the most part, my members are in the room to get my picks that can make them lots of money. Do we have fun when the market is slow? Sure. But the bottom line is that everyone is there for a reason, to make their daily goal and then go about their day.
If you don’t feel my system is working for your trading style and/or account balance, ask me directly how I might help you determine what you might be doing wrong. I am constantly offering advice to help everyone as helping my members make money is a very personal thing to me. My system and strategy isn’t for everyone and I’m OK with that. I’m sure there are many other services out there that might fit your style of trading better.
But if you do decide to stay and learn from me, you must follow the rules. There are new members who don’t take the time to read through the web material and learn the acronyms I use. There are new members who don’t take my suggestion to watch the room for a week and paper trade to get a feel for how fast things can move. These simple steps before you put real money into trading is essential.
So, is day trading right for you? Is my chat room right for you? Only you can answer that question!