Forum Archive Index - September 2002

[nickk@quicksilver.net.nz]

Hi Holden 

So you want to be a day trader???????????????? 

I want to retire at whatever age money allows me to (60?) and day 
trade.......at that age I will have had about 45 years stock market 
experience yet still won't know what I'm doing........i think starting off 
like that is suicidal. 

Cheers 

Nk 

tennyson@caverock.net.nz writes: 

> Hi Holden, 
> 
>> 
>>-- 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: 
> 
> ---------------- 
> 
> Trading has a surprising amount in common with combat.  To become a 
> veteran you must first survive your first week of battle, and 
> casualty statistics tend to show that green troops are far more 
> likely to die than veterans. You need to learn trading survival 
> before you will learn to profit by it.  
> 
> I am firmly convinced that most amateurs prefer technical analysis 
> because it is easy to use, especially compared with the detailed 
> analysis of company accounts and business economics needed to achieve 
> good results from fundamental analysis. It takes days or weeks of 
> hard work to decide based on a thorough fundamental analysis if a 
> stock is worth buying or not, but a chartist can buy based on a quick 
> glance at the trend. 
> 
> Of course professional traders are as far above the amateur 
> speculators as the professional investor is above the guy that buys a 
> stock just because he thinks the price/earnings ratio is attractive. 
> Professional hedge fund managers do not dabble in speculative penny 
> stocks drawing funny lines and boxes on a chart, they use advanced 
> knowledge of money management and risk management as well as 
> sophisticated quantitative techniques. It wasn't my intention to 
> produce a FAQ on advanced hedge fund trading techniques, but perhaps 
> to produce something that bridges that gap and gives you information 
> somewhere in between the chartist and the professional trader. 
> 
> I have based some of what I have written on talks with traders that I 
> know, and they say I'm on the right track. If any reader has material 
> to add to this FAQ, or constructive criticism, I'm all ears.  
> 
> 
> ------------------ 
> 
> 
> SNOOPY 
> 
> ---------------------------------
> Message sent by Snoopy 
> e-mail  tennyson@caverock.net.nz
> on Pegasus Mail version 2.55
> ----------------------------------
> "Sometimes to see the wood from the trees, 
> you have to cut down all the trees." 
> 
>  
> 
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