Forum Archive Index - September 2002

["Mr Nua" <mr_nua@hotmail.com>]

Hi Holden,

If you are new to this game, Day trading is definately not the place to
start. You will get beat up.

If you think that you suit a TA profile as opposed to a fundamental profile.
Learn about end of day trading techniques. This means that you make your
trading decisions outside of market hours, and review your shares on a daily
basis (rather than during the day). This has a lot of advantages, namely -
being able to hold down a job, less stress and...as Snoopy pointed out...you
get to go outside.


Also, if you are starting out Australia/NZ is probably the best way to go.
Mainly because of the hours (AU market opens at 12 noon our time and closes
at 6pm) which makes for easier analysis. The volatility is much less in the
AU market than US (often non existant in NZ) and there are 200-300 easily
tradable shares in the AU market with sufficient liquidity.

If you are into computers you may eventually want to get a copy of Metastock
and learn about that. You can learn to write your own filters which will
allow you to generate a list of stocks that meet your criterea for further
analysis. In the short term there is good software available on web sites
etc.

Also, forget the notion that you will be buying and selling shares every
day. If you decide on end of day trading. There will be weeks that you buy
or sell no shares. Think about the US and day trading when you have a fair
amount of local success and experience under your belt.

Thats my advice anyway,

Nua

> >-- are there any major concerns people have with investing
> >into US markets versus NZ or AU? From glancing over some stocks I
> >have noticed that they tend to have larger high/low ranges for the
> >day but that would be attributed to the increased activity in the
> >market, wouldn't it? Which for a short term end of day trader this
> >would be a more suited market to dabble with, no?
> >
> >Thanks in advance for correcting any false assumptions I may make :)
>
> You know that room in your house that you get to by going through
> the front door?   The really big one with the blue ceiling with the
> big yellow light that moves around at roof level?  Well if you start
> day trading in the US, you may not have time to go in there for a
> while....
>
> Perhaps you might want to read the trading section of the aus.invest
> FAQ
>
> http://www.travismorien.com/FAQ/main.htm
>
> then select 'trading' from the top RH corner.
>
> Here is a short extract to whet your appetite:
<8-------------- snip a great extract -----------------8>

Wow - This FAQ is pretty much against TA day trading techniques. Some quotes
that I couldn't believe where true...

"Secondly, apart from the information gap, the pit traders have a lot more
money than you, and they can see your buy and sell orders on their computer.
They often deliberately conspire against the public traders to blow away
their stop-loss orders and activate their buy stops by dumping large orders
onto the market."

And...

" The amateur day trader is little more than cannon fodder for professional
traders."

Amateur trader is me.

Perhaps I need to reassess 'what sort of person' I am. Its kind of crazy
though because I am a technical person (software developer for work) so I
thought this style would fit the type of person I am. After reading through
some of the above (still reading through it) it would appear that I perhaps
need to alter the type of person I am.

A strange world this sharemarket one.
- --
Signed,
Holden Glova
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