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SixCoins

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Apologies if this is in the wrong forum, but it seemed like a good place to put the question.

 

I haven't gotten the answers I've been trying to find, and I think it might be because my questions are too loaded, or because they aren't specific enough. So I think I have a new way to ask it.. Hoping to hear from the pro's on this one.

 

I have 3K that I can afford to lose right now. If I wanted to try day trading, what market would you tell me to look into?

 

To save you all some time, lets assume that I don't start trading until I've done months of studying, and practicing, and paper trading. Also assume that I realize pulling the trigger with my own money is a completely different animal from practice trading.

 

I know there is no single best answer, and I know that this advice won't amount to a hill of beans if I don't do the appropriate studying.....

 

I am just trying to avoid putting too much of my study time into an area that isn't feasible with such a small amount of money.

 

If you knowledgeable and experienced traders had to start over with 3k, where would you start?

 

Listening Intently,

 

Steve.

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Two roads, IMO. I know you asked what market to trade, but if this is just recreational, you should consider swing trading stocks, since you can avoid overtrading that way.

 

Trade stocks with a regular brokerage, (TDameritrade, Etrade, Scottrade, IB)

 

Or

 

Trade ES with a futures broker. ( IB, Oanda, Open E Cry, Mirus) Big brokers also do futures with higher commisions

 

Obvious disclaimer is that 3k is not enough to avoid risk of ruin. Your bankroll is to small to begin with, but have at it. As they say in the poker world, all you need is a chip and a chair.

 

You'll be able to build up your account faster trading ES, but you'll risk getting whittled down, if you have a lot of losing trades, since you can trade as much as you want.

 

Safer route is probably trading stocks. You can make 3 day trades for every 5 business days. And unlimited non day trades.

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I would stick with stocks and with the market showing some strength now may be the ideal time to swing trade. I would focus on strong relative strength stocks, preferably under $15 a share. Look for tight consolidations after a prior price run. For example, look at SABA and RPTP from last week. In 2003 I had 5K in my account that I was able to compounded significantly. I happened to begin trading at the perfect time as 2003 was a strong year for the market. This led to trading problems later on for me but that is a different issue. There is a pay site that I highly recommend for anyone who wants to swingtrade so PM me for details. I do not run the site nor am I a current member but I learned a lot there. Good luck.

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...I have 3K that I can afford to lose right now. If I wanted to try day trading, what market would you tell me to look into?

 

To save you all some time, lets assume that I don't start trading until I've done months of studying, and practicing, and paper trading. Also assume that I realize pulling the trigger with my own money is a completely different animal from practice trading...

 

Hey Steve,

 

You're undercapitalized as in your small trading account puts you at a disadvantage to properly mange your trades due to the fact you're an inexperience trader.

 

Yet, if you feel you need to get involved in the markets...find a good data vendor and test your trade strategy on as many different types of markets to determine which market your trade strategy performs the best when traded. For example (hypothetical), if you did the proper backtesting and discover your trade strategy performs the best on Treasury ZB futures and performs poorly on Emini NQ futures...don't trade Emini NQ just because some anonymous poster at a discussion forum recommends its a good place to start. Also, don't trade Emini NQ just because your online friends are trading it.

 

The goal is to be profitable...not fashionable nor a member of the popular crowd.

 

Another example, I've met many traders that were "consistently losing" while trading a particular trading instrument not suitable for there specific trade strategy...then when they backtested their trade strategy on many different trading instruments...they discover they should have been trading something different. Then when they made the switch even to something they really didn't want to trade or knew few that were trading it...they then traversed from losing to either profitable or marginal profitable.

 

Thus, spend the dollars on a good data vendor that will give you access to data on many different types of trading instruments and test thoroughly your trade method to determine which trading instruments are suitable for your specific trade method..do such again if you experience a drawdown period.

Edited by wrbtrader

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