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AbnormalReturns
07-23-2014,
Good Morning im David a 26 year old graduted student and I just started trading. Now I have some basic questions I just dont really seem to understand and I hope you guys can help me with.

- Why do you need more capital to gain more profit? What the difference in making 10% with 1000 =1100. Or make 10% with 100 and 1:10 leverage = also 1100? What is wrong in my simple calculation?

-What return in percentages can professional traders make with stocks and leverage in a day, month and year? Is it 5% profit per day or 50% per month or 100% per year? whats average?

- I think a question many beginning traders have.. What is the most proftibale type of trade you can do? Is it also stocks with leverage? Cfd'smaybe?

Thank you very much

HarryAloof
07-23-2014,
With more capital you are able to make larger purchases. For instance I can buy one share and let it go up one dollar and I have made...a dollar. If I am able to buy 3000 shares of the same stock and let it go up only 50 cents I have made 1,500 dollars. As you know prices go up and down all day long. I look for one that is bouncing good and let it go down and buy in quantity. Just a 20 cents increase at 3000 shares makes me 600 dollars.

I don't look at percentages of what I am making. I might spend 150 thousand to buy one stock, keep it a few minutes and sell it for 500 dollars profit.

As far as most profitable trade I can't tell you but I can tell you the most that I have made in a week is 4 thousand and the most I have made in one day is 2,400. It is not always wins. You are going to have some loses in there also.

Now as to what stock I work with. The higher priced ones usually. On my candle chart you have stocks that go up in cents all the way from the bottom to the top of the screen. Others go up several dollars. You can either work with cents, or dollars. For instance KO is cents and PCLN is dollars.

AbnormalReturns
07-23-2014,
Ok so now it starts to make sense. With regard to the capital. if you buy 3000 shares and let it go up 50 cents, you make 1,500 dollars. I get this so far. But what if you have 3000 dollar capital and buy the 3000 shares or you have 300 dollar capital with 1:10 leverage and then buy the 3000 shares. Isnt this the same? Cant you just replace capital with leverage as long as you dont make to much risk?

Also there is in the news that a plain crashed, which is offcourse a very terrible event for a lot of people.. However this also effects the stock markets and traders? Now for me I have long term stocks (for a few years) and short term stocks (for a few days). How should you react to this as a trader?

I guess I just hold my long term stocks and my short term stocks are now downtrending (yesterday). What should I do, wait till they will recover? Or sell them and buyback when they are uptrending again? What do you do when an unexpected negative event hits the stock market and your trades?