Hi everyone, im new to MoneyAM so I just wanted to say hello and discuss a few aspects of daytrading with anyone who can be bothered. I've read some of the threads and picked up on a few things. Anyway, here goes >> I graduated with a business/finance degree in summer 02, itching to get into the stock market. I finally opened an ISA account just before the tax deadline in April'03 and havent looked back since. Im loving the thrill of buying and selling shares, though I dont day-trade. I have to say, the concept of daytrading has got me intrigued. I am however asking myself why people on this board say that ones first experiences of daytrading will inevitably be loss-making. Since starting to trade in mid-april Ive made 10 deals on a handful of FTSE100 companies i like, and feel pretty happy with my 26% profit. Sometimes I buy and sell on the same day, ranging to once holding a stock for three weeks. The average holding time is 7 days. So should I just take from this that daytrading is much more difficult than longer-term trading? Are the rewards that much greater? I have a few questions, if anyone can answer some it would be great.

How reliant is daytrading on technical analysis and how much is gut feeling? I use Reuters 3000 Xtra at work, do you guys get more / less information than i do?

Do you trade blue-chips or small-cap?

How much % change in share price do you typically need to break into profit?
With the typical size of my trades I need 1.35%.

Im assuming you need to identify a few volatile stocks, buy them near day-lo and sell near day-hi. Whats your success ratio and how close do you typically get to the actual day-los and his?

This one sounds silly, so forgive the ignorance, but do you always close a position on the same day you open it? Wouldnt be daytrading otherwise ;)

And finally, how successful are you at being 'detached' from your investments? The moment after i sell to make a profit, i need another 'hit'. It's getting a little better (i think) though i could just be deluding myself. I dont really have the time (at work) to daytrade but i think my 'need' to trade more regularly should be fed somehow.

thanks
elchicodor

IB is Interactive brokers (www.interactivebrokers.com), on the fly i mean minute by minute, second by second(not really jargon just me being lazy, its direct access trading and gives you gateway into the order books direct. Here you can "advertise" your buy and sell price and trade directly with other traders). You can buy instantly and sell seconds later if you want (as long as you can meet your margin requirements).

To understand level 2 you need to speak to someone who uses it, as I recall there is a guide posted on these boards, just search lev 2. But in reality the way you learn is by watching.

As for background your degree may add to but not enhance your understanding of the market. All you really need is to know the basics of supply/demand, psychology and human nature. With lev 2 you see some clever tricks played, but you only learn them from experience and seeing them done. I would reccommend just seeing lev 2 in action, it will change your investment strategy entirely(most importantly timing your trades).

Discipline, discipline and discipline are the most important things when trading, it's what keeps you afloat when the market moves against you and what keeps your head below cloud level when it carries you away.

thanks for the advice