Forum Archive Index - July 2000

[jesse <johne777@hotmail.com>]

Hi Marg
my 2 cents, from a 'sit in front of 'puter all night, buy/sell in
minutes' point of view. (daytrading only)

A living from Aus/NZ trade only? yes, but why restrict yourself?
combined, they represent less than 3% of the world sharemarket pie.
Overall, they are relatively 'steady  as you go markets', meat and
potatoe pie.  Sure, you get some good moves, but if your trading daily,
you want two things above all.....volatility and liquidity.
Better is hot curry pie. Nasdaq.  Cost of getting money to US, maybe
$NZ25 TT. Exchange rate risk...eliminate  for no cost with forward
contract on the Kiwi $.
Ask yourself why you dont want to invest beyond AUS/NZ. If it's just
because you perceive some risk of sending $ to US, then you should
reconsider trading. The risk you face trading is way greater than any
risk to sending your capital offshore to a broker. If it's because you
are unfamiliar with US stocks, you'll learn soon enough. Start with 1
stock and read.

How much do you need to invest? None. It's not investing, it's trading.
How much to trade?  Depends on many things. How moderate is your living
standard? Will you leverage your capital? I have traded full time last 2
years unleveraged. Couldnt do it without at least $NZ100-150K.

more important than the markets though, is you. You have to treat this
like a business. And like most unplanned business ventures, they fail,
quickly and  painfully (financially).

Rob Rak, trader at about.com has some sound advice on becoming a trader.
'Trading for a living or a hobby' and see further done more detailed
series on 'How to become a trader'.

http://daytrading.about.com/money/daytrading/


j


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