hello,
just starting to study basic day trading and will ask a question that (as of yet) I cannot find
a good answer for. And i will admit that i'm completely and totally green in this.
i think my focus would be on day trading only (equities) during the mornings with a starting brokerage
acct of about 30k. I'm in the USA.
since i'm totally green and don't know what i'm doing my obvious need is to eliminate as
much risk during my learning process.
i am mostly interested in momentum trading, closing out my positions at the end of each day.
and i'm thinking of using a scanner such as the "momo" IOS app to find possible buy positions (long) in
somewhat "real-time". (or an alternative scanner tuned for the best setups---i don't think momo is tuneable)
anyway, let's say that there might be about 20 or so possible buy positions avail per day. (i'm seeing this in momo testing now)
based on what i've studied so far,
it seems like if you bought modest positions in these daily (bullish) momo picks and didn't invest more than about 2% of your trading acct combined on any given day and set ultra-tight stops (the minimum the broker would allow) and bought only after you verified in the morning that the momo stock was heading up when you bought, you could achieve profit on every position that was not stopped out. And i understand that i would be stopped out many, many times.
and i understand that the brokerage fees on these stop outs would be a significant % of costs, but if you are investing only on bullish momentum trades and closing out all positions in the afternoon, seems like you could not help but have profitable days right out of the gate.
and if you added some trailing stops as necessary to preserve the gains you could improve on this.
am i missing something here?
thanks!
pick apart this newbie day trader strategy
