Do people need another opinion on day trading?
Probably not.
Do people need something like some proof on whether or not day trading is actually profitable?
Well, if you are anything like me - more than dreadfully curious about it all, finding yourself entertaining thoughts of what life would be like if day trading were profitable, and wondering what it really takes to pull it off - then yes, this blog has a place in the world.
This is my real world experiment in day trading (or rather, at this point, short term stock market trading). I plan on documenting - for the sake of posterity (and simply because writing about all of this keeps me on track) my successes, failures, frustrations, and any of the yet-to-come hard earned lessons, in real time. I think there is a very real chance of failure - Anne Logue cites an 80% first year failure rate for day traders (Day Trading for Dummies), and I remember reading somewhere that typical losses while learning the hows of day trading are around $20,000. I still have a ways to go.
The last month and a half has been profitable, after actively trading - and losing - since last spring. I am not conceited enough to pretend to be an expert, but I have learned a few things that I wish I had known when I started; and I thought someone else might appreciate the real-world application.
Which is why I decided to start a blog.
If you have done any research at all on trading/investing in the stock market, you come away realizing that there are a lot of things to think about when starting to trade. I found it all quite overwhelming: which category of approach, which markets, propensity to risk, initial sources of funding, brokerage, tax considerations, etc., etc. All great information, and worthy of considerable thought - I slogged thru it all. But when it comes down to it, to find out if day trading is actually going to work, a guy needs to start trading. This is the story of what happened - and what is happening - as I am starting: what I personally find important, what I find out about myself, and how much money is floating around. Un-rehearsed and no guarantees.
What you won't find on this blog:
A list of which stocks I currently own, or recommendations on what to buy, or my exact buy criteria. (I am somewhat dubious of personal buy recommendations, I come away thinking they are self serving, or that I am getting the information too late...)
What you will find: a lot of messy honesty, a lot of evolving personal opinion.
When it comes down to it, no matter how complex the tools and approach, the value of the trading account has to increase. And if mine is not, then I will try to figure out why and change my approach.
So - if you have questions about day trading, questions like:
* Can I make money doing this?
* How much money can I make?
* How much money do I need in order to make money doing this?
* Do I have what it takes to make money doing this?
* How much time does it take?
Then keep reading! Not that my answers to the questions will be right, but if you are willing to benefit from my mistakes, I am sure there will be plenty of material for lessons. There are a lot of people writing a lot of stuff on how to be a successful day trader... one question that has always bugged me - if these people are so successful at it, then why aren't they doing more trading and less writing? Maybe I will be able to ask the same question about myself some day. =)
