Any money to be made day trading?

I plan on moving about $10,000 around in one or two stocks to have bigger payoffs. I also buy in to stocks $5.00 or less to make my earnings go up alot or down alot. any tips for an amateur stock broker.

Public Comments

1. Long term investment is safe than trading. Share trading is risky. Particularly this is not the proper time. Broker will charge and his self interest will always keep in his mind.

2. The average (successful) day trader makes about 20% a year. 95% of those that try day trading fail in months. It generally takes the few that make it, 3-5 years to become "profitable" year to year.

Most day, swing & position traders will tell you it's mostly amateurs that trade in stocks below $5. It's not important how many shares you trade....

To avoid being labeled a "pattern day trader", you'll need 25K or more in your brokerage account.

To day trade successfully, you generally need three skill sets (or at least the first two), in order of importance;
Trading Psychology (yours & the markets)
Risk Management
Technical Analysis

A risk/reward ratio of 2/1 or greater is an absolute must.

Reading lists;
http://joefahmy.com/2010/03/17/recommended-reading-list-2/
http://www.chrisperruna.com/2010/01/10/2010-stock-reading-list/
(Never stop reading books on trading)

3. You're setting yourself up to lose your shirt. You have no concept of risk/money management and you clearly have no idea of what a stock broker is. Go ahead and try it, they'll be money to be made fleecing a newbie like yourself.

4. You are like the guy that just started indoor rock climbing and feel he is ready to climb Mt Everest. You will lose it all since you think you can't lose money by putting it all into 1 or 2 stocks. That increases your risk.

So you are definitely not ready to day trade. Just do long term investing for a few years and keep learning and reading. Day trading is for professionals with deep pockets, years of experience, and good risk management skills.

Don't trade stocks uner $5. They are that cheap for a reason.