CoalMiner41
6 posts
msg #80834
- Ignore CoalMiner41 |
10/8/2009 3:33:14 PM
I just started a tradestation account and partly funded it, but the main purpose of starting it right now is to learn the programming for strategy creations... I really dont want to trade right now. I am paying $100/mo just to learn this program and I really dont want to do that. Is there an easy, safe equities trade I can make each month to get me the 5000k shares a month i need to make that platform free?
I was thinking something like trade a penny stock that is worth less than 1 cent.. Even though it is low liquidity, I might be able to jump in and out at the same price, so I would only be paying the transaction costs.. and at worst, that stock could go to zero and I lose ten bucks... still better than $100 - $150 per month isnt it?
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Walid
130 posts
msg #81989
- Ignore Walid |
10/28/2009 11:43:12 PM
But you forgot to account for transaction cost. Assuming you are on per share plan, your fee for 1000 shares per trade (buy only or sell only) is $8. $16 per round trip * 5 (to hit the 5000 shares) = $80. Close enough to $100 without taking the risk of actual trading.
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TheRumpledOne
6,411 posts
msg #82001
- Ignore TheRumpledOne |
10/29/2009 9:29:56 AM
Trade 5,000 shares of a stock like ABK. Sell for $.02 more than you paid.
That covers the cost.
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starbreaker
4 posts
msg #91996
- Ignore starbreaker |
5/3/2010 5:28:14 PM
I now found myself in the same boat. I came up with a plan. I work full time, so I'll have to work from home at least one day a week, I'll have to try to forecast an up market day. 5000 shares round trip needed, 2500 to open, 2500 to close. Commisions will be 17.50 x2 = $35. A $0.50 move will cost/gain me $250. A $0.02 move will cost/gain me $50. Here is the scan I will try:
Show Stocks where Average Volume(60) is above 150000
and Close is greater than 2.0 and Close is less than 4.0
and ATR(5) is less than 0.2 and ADX(10) is greater than 20
The first line is to make sure that the stock can absorb 2500 share transactions all at once. This is just a guess. going to an intraday 5 min chart I see volume bounce from 28K shares to 100 shares without any big price swings. EXPERIENCED TRADERS(The Rumpled One?) please chime in. Am I on the right track here for volume?
The second line is to reject stocks not around $3 a share. The assumption is for a $10000 trading account that is already long for most of the account, so the quick trade will utilize margin < $8000($3 x 2500shr).
Third line weeds out volatility. I don't want to get killed by some sudden price spike, so I want typical high to low for the past 5 days to be about $0.50 a share. Then ADX(10) > 20 says some trending is going on.
Sit at the computer the next morning and wait for the SP500 to start trending up, choose the stock from the scan that is moving in unison and limit buy with limit price = stop price. Then once in-trade take profit with limit price + 0.02.
I've never tried this, but I suppose worst case would be buy price = stop price. $35 to trade the software that month. Best case would be $15 gain and free software that month.
EXPERIENCED DAY TRADERS: Please correct this logic if incorrect, can this be made to work in real life?
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moby
314 posts
msg #92019
- Ignore moby
modified |
5/4/2010 12:28:18 AM
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