Tuesday, November 23, 2004

Tuesday

Several trades this morning and zero, nada, nothing going on this afternoon. So a good time to blog. My pick of the day is ELAB, bought on the Open today and I'm holding most of my position for a few days at least, maybe weeks. That leaves me holding, in addition to ELAB, LPSN, WSII and TINY as day-trades evolving into position trades. What's that all about? I don't know, but they're all going in the right direction.

11 comments:

Greg Reiman said...

Hi Allan:

Lets start "the education of Greg" with a few questions. How much (what %)of your trading capital do you risk on any given day? How much capital would I need to get started to day trade for a living and ditch my day job if I could learn your system successfully?

In other words, if I could learn to do what you do, what kind of capital would I need to get started if my family needs me to earn a minimum of 80 grand a yr gross.

Thanks.

By the way, is anyone else out there in AllAllan blogland?

Greg

Allan said...

Greg, there is no easy answer to your question, but how about a question to your question? If you can make 1% per day on your account, i.e. on a $50K account make $500 per day (about 250 tradng days a year), can you make enough? Then you have to figure in leverage from daytrading margin, then figure out all your mistakes. See, I told you it's not an easy question to answer. But it's a start.

Anonymous said...

Hey Allan and Greg, I am hear, as I suspect others are as well. This is going to fun, glad you are sharing Allan.

Mose Kiser
mose@aura-tech.com

Anonymous said...

ahh..that is "I am here", rather than hear. However, hear is what I am to do.

Allan, looking at PCU tomorrow, have an order in tonight that is not hitting...any thoughts?

Allan said...

Mose, I hardly ever mess with after-hours or pre-markets anymore as there is plenty of opportunity in regular market sessions where liquidity lends itself very well to my methods. Glad you're aboard.

Greg Reiman said...

OK Allan:

I did some math: based on the amount of capital I am willing to put at risk each and every day and the number of days I would like to be trading (less then 250), I would need to achieve an average daily return of .83%. Does this seem realistic using your system?

Greg

Greg Reiman said...

Hi Mose:

Howyadoingwhereyoubeenwhatchabeenupto!

Greg Reiman

Allan said...

"Does this seem realistic using your system?"

As for my system, yes, my daily real time. real money, average going back 18 months is well above that threshold. But it is important to understand the ground rules, that whatever methodology you chose to trade needs to do that well to accomplish your goal.

BTW, when I posted ELAB yesterday as my "Pick of the Day" it was around $24.00 a share. I had gotten in ELAB earlier at a lower price. But as I type this Wednesday AM, ELAB has just printed $24.50, 2.5% above the $24.00 blog price. That's not to say that I was recommending anything yesterday, only that you don't have to move mountains to average 1% a day, just string together a bunch of nice little gains. That's the mind set it's going to take to be a successful day-trader.

Allan said...

Make that 2%, not 2.5%.

Allan said...

Make that +4%, ELAB printing $25.

Anonymous said...

yo Greg! Happy Thanksgiving to you and A. Been around doin the livin thing. Hope all is well with you and the brood.

Mose