Does anyone here trades in the stock exchange? (U.S)

[SW VandeCarr]

I

Lastly, the basics of entering the market:
My last buy was $7500 and it was divided in the following way:

1. ~40% S&P 500 Index ETF (SPY)
2. ~30% Corporate bond fund (for a high-yield) ETF (HYG)
3. ~30% Long term bond fund (for a steady-yield) ETF (BLV)

I would caution against long term bond funds at this time because of very low interest rates and the corresponding high bond prices. Bond prices fall as interest rates rise. It's a mathematical relationship not based on market whims. The quality of long term bonds are reflected by their yields. High yields are associated with greater risk. In any case, the potential for rising interest rates and falling bond prices is substantial over the long term.

 

[russ_watters]

How so? You need a margin account to day trade...

How is the key word of margin to confusing for me?

Here:

Day traders sometimes borrow money to trade. This is called margin trading.

http://en.wikipedia.org/wiki/Day_trading#Characteristics

Sometimes.

So you're probably correct that many if not most if not the vast majority of day traders trade on margin and therefore need to follow rules for trading on margin, but there is nothing stopping someone from daytrading with a very small amount of real money.

 

[ModusPwnd]

That makes sense. But I think that if you do day trade with a small amount then you will be compelled to apply for a margin account or you have to slow down your trading. I have gotten this warning a few times before for using unsettled funds. I ignored it because I was only trading a lot for a day or two then I sit on it for a while and all my transactions cleared up.

I think you would be hard pressed to day trade without getting flagged as a pattern day trader. I don't even day trade and I have gotten the warning. You could probably vary which stocks you buy, while staying in the same sector or something like that. Or just day trade one day a week or so.

 

[krash661]

actually, majority of these so called professionals, daytrade futures more than anything.
stocks suck in reality,
they take a lot of money to make a little money.

it's usually funds(mutual,hedge and such) and home owners as it's called(retail traders) who play stocks.
and even then mutual funds and such do not daytrade stocks much.just homeowners really.

look up payout per contract on some of these futures and commodities futures.
it's a lot more, but it is also just as easy to lose.

there's also things that outsiders do not know about that occur on any time frame.
i'm not going to get into that. to much to type.

an example are the wall street movies.
things like that occur on a daily bases.it's the big boys game.
and that's all it is,nothing but a game.

actual economics and such is just a small part.

 

[krash661]

That makes sense. But I think that if you do day trade with a small amount then you will be compelled to apply for a margin account or you have to slow down your trading. I have gotten this warning a few times before for using unsettled funds. I ignored it because I was only trading a lot for a day or two then I sit on it for a while and all my transactions cleared up.

I think you would be hard pressed to day trade without getting flagged as a pattern day trader. I don't even day trade and I have gotten the warning. You could probably vary which stocks you buy, while staying in the same sector or something like that. Or just day trade one day a week or so.

i would say you were receiving this warning because you were about to be margin called,from your purchasing power,(which is for clearing by the way)(because it's a margin account)
which occurs from making losing trades or being in a losing trade close to the amount of the margin requirement of the account.
the reason why you did not get margin called(or you did,which is more probable)is probably because what ever you were in( assuming buy side) went back up, and the losing amount decreased,
am i correct ?

 

[ModusPwnd]

No, I don't have a margin account. That was the problem. I traded one symbol too much and didnt wait for my sales to settle and cover my purchases. No big deal if its a once in a while thing. The first time I got the warning was an accident, the second I knew it would happen. :p

I hardly trade at all these days. Just anxiously wait for dividend month to pay off some bills.

 

[Julio R]

What benefits? They are different, depending on your goal:

-I'm retired and want 100% guaranteed returns, with no chance of loss. (Don't invest in the stock market).
-I'm 30, single, making a lot of money and maxing out my 401k already with an S&P Index fund, but I'm bored and want to play a little some of my spare cash. (Try daytrading with your play money!)
-I'm 30 and want to buy a house next year; how should I invest? (something safe, not stocks.) The ratios are different and types of stocks (or index fund) are different. And just beating the savings rate doesn't require stocks at all. And saving for a house depends on the timeframe.

How about "I'm under 20 and want to get into the game not necessarily for long term reasons"?

 

[ModusPwnd]

For a quick buck the market sure does beat vegas! But know that is pretty much what you are doing. Speculating for a quick buck is much like gambling. Thats not to say that the house always wins though...

 

[krash661]

No, I don't have a margin account. That was the problem. I traded one symbol too much and didnt wait for my sales to settle and cover my purchases. No big deal if its a once in a while thing. The first time I got the warning was an accident, the second I knew it would happen. :p

I hardly trade at all these days. Just anxiously wait for dividend month to pay off some bills.

who's the broker ?

 

[jhae2.718]

I had a professor who used turbulent flow theory to model the stock market with one of his grad students. They made loads of money and started a company based off of it.

 

[Julio R]

I had a professor who used turbulent flow theory to model the stock market with one of his grad students. They made loads of money and started a company based off of it.

Definitely beyond my level of knowledge.