First I have been investing for 30 years, and a "Gambler", although I prefer active trader, on and off for the last 10 years.
I do not Gamble, if you knew how I trade it would scare the pants off ya, in the past 3 weeks I have executed 56 trades (round trip), 53 winners, 2 losers, and one +/- a couple of bucks. While this is above average for me, it isn't far.
BUT I do not recommend anyone to get into it, the stress is brutal, and the hours are terrible. I spend hours and hours every night studying, researching ... although it is starting to pay off well.



Onto the purpose of this thread.

I would say anyone with under about 10k to invest find a good No-Load Mutual fund and put it there. You won't be able to buy enough shares of most stocks to make a profit after commisions.
Many No-Loads allow you invest with them directly, for no fee. Although I think most have a 2500 minimum for Non-IRA. Your bank may offer this service or any of the name brokerage firms, not the full service, just don't go to joe's investment house.

TD Ameritrade, Schwab (who I use), or any of the others mentioned here will do nicely.

Pick up something like the Forbes review of Funds, they have a good review of all of the funds. Look for a fund that has delivered well over the longer term, 5 or 10 years. The Forbes review also shows performance in up vs. down markets. So if you get a fund with an A in an Up, and D in a Down and the market tanks you get hosed bad.
I would look for an A or B Up and B or C down.

There are other reviews, Forbes is my favorite.

Even the small investor has to do some research.

Finally, setup an automatic transfer 50 bucks every paycheck, whatever amount, into the account. Or even into a plain old bank savings account.
This "becomes" a bill, before long when you sit down to pay your bills just becomes on of them. Doesn't sound like much, after a while you'll be surprised. And since it is a "Bill", at least in your mind it gets put away every month.

Pay yourself first !!!!!!!!!!!!!!!!

Do ETFs skip fees and loads altogether?

Sixto
87 300D

Basically yes, but you would have commissions to buy and sell.

They are basically sector focused Mutual funds.

For a small investor, a regular Mutual fund provides better diversification.

Also, I would look for a fund that has some international exposure.

What type of net, post capital-gains is "really well," for your 3 weeks trading? Reason I ask is because no one in my social and investing realm that is into this type of trading, ever has any profits to talk about. --Ever.. I have to believe they've made none. One guy that trades like crazy, is still driving the 13 yr.. old Lincoln Town Car that he had before he started trading...... Cars usually tell a story about their owners.....

Like Warren Buffet?

I rarely put more than about 15k at risk, I trade options primarily.

Usually 5 to 10k, that too is if I let it all get away from me, Stops limit that.

That said, I was averaging a rate of 5% / day, although that was a lot of up today down tommorrow ... Since I locked onto a special technique (If I tell you I will kill you), 10 to 20 % / day, with fewer and fewer down days. I have only lost money once in that 3 weeks at EOD and did extra well these last 3 days with the market in the toilet.

I am averaging just over 3k / day for the last 3 weeks, net commisions still have to pay taxes, though. The number has been slowly rising since mid summer.

I use the 3 week figure, as I do my stats based on Options Expiration, so my "Month" ends next Friday. Just my way of doing things.

I am still trading lightly. For a long time I was like that guy with the lincoln, maybe a bit better. Making a decent living, but not the big $ that people think of when they hear you are a trader. And a lot of up dwn up down ... fortunately the ups were a little better than the downs.

As I get better with these techniques, I will slowly allow my at risk to increase. Although, reviewing my trades, I think as I get better with these techniques I should/could at least dble the return without risking any more.
I netted 4100 yesterday, if I would have done it by the book, 10+ easy, but I still take my profits early, and enter later than I should.

I have had high stress corporate jobs etc over the years, just a walk in the park compared to trading. Although as a Nerd working with 24x7 systems, the hours aren't a lot different.
I figure at the low end 60 hours a weekly, on the trading and studying. Not counting the bookkeeping etc at EOD. Hopefully if I can keep this up, maybe I'll turn it over to an accountant.

Remember too, I'm not a newbie. I bought my first stock in the early 80s, my first option in the late 80s. Although it wasn't until the mid 90s that I day traded. Then I took a break, LUCK not skill, got a job offer I couldn't refuse right before the 2001 meltdown. Y2k stuff actually, so the account got hit then, but so did most peoples.


PS I drive a 2004 Escape, 11k miles, never leave the house.
But I'm a cheapskate, I prefer Frugal, so I wouldn't buy much more no matter what.
Even the SL, I'd probably go older, ie 107, if I found a good one.

Most of what you posted is not correct.

ETF's (exchange traded funds) are index funds that are listed on an exchange and can be bought and sold like any other listed security.

They still have fees, just like any mutual fund. They are very low.

An ETF provides the same diversification as the index fund that they are emulating.

The difference is that an ETF trades like a stock, so the investor can control capital gains distributions, which makes them very tax efficient and are excellent for you taxable account.

Yeah they spend their money on more important things?

Not really incorrect, yes they have very small built in fees.

But depending on the ETF they are more like sector focused Mutual Funds.

For Example OIH is an ETF based on certain Oil Companies, drillers and explorers more specifically. SMH tracks Semiconductor companies.
There are ETFs for various industry sectors, Retailers, Financials, even country specific etc.
These can be good to get some diversification within a sector, but you have to do more homework than a mutual fund, less than specific stocks.

The more commonly know ETFs, DIA, QQQ, ... are index funds and match the index they track.

All are still more narrowly focused than most Mutual Funds.

There are now dble long (they use margin heavily), Short, and Ultra short ETFs as well.


I would never do trading based on Taxes. Fundementals, or technicals Only.

Possibly dumped a big loser to offset a big gain, maybe.

Or a trick I sometimes look at, find stocks that have had a HUGE gain during the year, many people will dump them near year end.

Not necessarily........

I like your jib 'n detail to my Q......thanks! Keep tabs on your annual income from your annual trading labor.....AFTER INCOME TAXES......and keep a solid eye on your trading's net worth.......(if you are really interested in your progress)

--The words in your quote I bolded, are usually the downfalls of your trade-profession......that is, if you need to increase the $3K a day income you are now earning, ($750K a year) you will likely keep shooting for the Moon......you're eventually going to crash and burn. Rarely will someone make, OR KEEP earning $3K a day.....

You may be an exception to the stencil-traders.......time will tell..

Keep us posted!......and GOOD LUCK!;)

Thanks Joe.

First I am a cheapskate, again I prefer Frugal.

Our needs are significantly less than what I am making, and I don't see that changing much. I am a simple person, not into show.

For example when we bought our house 20 years ago, we could have afforded much much more. But I put a cap on the Mortgage amount that would actually have (and has) allowed us to live comfortably on either income. It helped that we found a house we both loved, actually below the cap I put in.

My plan and goals are much less than I have been making, once I hit that goal each day, I significantly throttle back. Going for near perfect setups, in smaller quantities, with tighter stop loss #.

I plan to be slow and cautious, the "Ego" factor is an ongoing problem, heck the trading mental frame of mind is difficult to manager.

I will try and post a note or two, and if this continues maybe share the techniques. Actually where to learn them.
It's not Wiztrade or Teach Me to Trade or ... Don't bother, some people do reasonably well with them, most do not. I have not taken these classes, I just don't trust people that sell systems, that don't use them.

The gentleman that teaches my system severely limits class size, only a few a year, and the rest of the time is online with us Trading, has been for years. Interestingly they aren't that expensive, much much cheaper than any of those you see on the infomercials.

I think he honestly enjoys it.

Trust me though, it still ain't easy, and you have go into it 100%.

There are a few necessary steps before you do this. I've been trading for a few months and I can say with certainty that it needs fixing. I have a full-time job as a programmer and have a pretty good steady paycheck. So I decided to start investing or trading. After thinking and researching online sources, I chose trading because it seemed more profitable. I also took a specialized course. Then I learned how to use classic pivot point formula, so my passive income became more stable. So I suggest you have a job, don't rely on trading, at least at first, and use proven sources and programs to improve your trading. Let me know if my comment was helpful

Buffet has a much lower cost class of stock that is worth looking at as well in my opinion. My only concern is how the stock of that company may react. When Warren Buffet becomes incapacitated or dies. He is in his nineties.

A big deal to me is the man seems ethical besides smart. His operation is pretty broadly based so that is also somewhat of a safety factor. They are flush with cash and have been buying back stock. That also helps you gain.

Joe remember that when we die we both take the same dollar amount with us. No exceptions.

I would suggest to any young person to take care of owning a home first of all. Eliminate any debt. Especially any higher interest debt. As quickly as personally possible. We seem to have been entering a period of far too many people just being essentially debt slaves.

To me the standard of living has been falling really. The illusion it has not is created with accumulated and accumulating debt. In far too high a percentage of the society of north America. Plus at all government levels it seems.

Do you know you are writing a dissertation to a bot?😃😃😃