DTers after Market Lounge 28th Nov, page-64

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29/11/17

07:55

Post #: 29199320
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Originally posted by demoniaco ↑

Anything loosely related to day trading and the ASX is welcome here

The <$200M MC game is a different beast to the midcap/large cap stocks. It's full of sharks with big pockets that have enough cash in a position to influence swings and momentum.
The bots in the lower cap market also have more influence in both the intraday and daily charts.

I feel there are a lot more rules to follow such as understanding the concepts of:
- Buy the rumour, sell the news (If you know news is coming, buy early and sell on the day of news because by then the stock price already has factored in good news)
- Sector hype (Lithium boom lasted like 2-3 months last year, then got quiet and has had a recent resurgence. Weed stocks boomed for about 2 weeks, all went hyperbolic then crashed at roughly the same time etc.)

Those are some examples, you'll learn a lot more in the future through mistakes.

I do, I have very little choice but to survive this way.

Many >$60m MC stocks move slowly thus it may require a few days of holding. In the case of ICT for example, I held at 50c and saw that there was strong buying interest however it was on low volume. I knew this was going to take a couple of days so I just longer and sold where I saw appropriate.

A small portion of my holdings is long term so for me that is 6-12 months.
A bigger portion is 2 - 4 week holds, these typically get 10-20%. A lot less risk, but less money too.
A majority of my capital is in cash to allow me to day trade. I have enough to ensure that I can comfortably hold about 6 stocks at a time with wiggle room in case I get caught in a capital raising or a trading halt which prevents me from selling for an amount of time

I think I am in the minority when I say most of my capital is day trading. I'm sure many here would scoff at the thought of doing things that way.

I use Commsec so my fees are double most others. $20 per trade instead of others who use CMC or Bell's @ $10 per trade.
Brokerage isn't too bad. I find that even if I put a small parcel @ 20c, as long as I hit 20.5c I've covered brokerage and made at least $50 profit (pre-tax of course)

For me I consider "break even" (buying and selling at the same price) to be a loss. I try to aim for covering brokerage if things go awry.

It's a vague answer but, I have a 'resaonable' amount in cash to cover any holdings that get trapped in trading halts and such.
During a DT that is 100% in and out within a day (usually within an hour), then I'll just over-draw if need be from Commsec which allows me to access more money than I have.
People have cautioned me on this repeatedly, but I've never once had issues doing so. Works for me, might not work for you.

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cool reply

My add:

there are only:
Cost trades or
Income trades

get that mindset going and ya have that ideas of a business
1 Upvote

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