Online Trading in the Offseason?

Discussion in 'Business Operations' started by HOOLIE, Dec 11, 2004.


    HOOLIE LawnSite Gold Member
    Posts: 3,981

    How many of you guys do daytrading over the winter? I've been looking into these foreign currency exchange websites (Forex) lately. It's relatively new, and haven't heard much about it. Went to Barnes & Noble tonight, couldn't find a single book devoted to the subject.

    I set up a demo account today, where you can practice trading without using real money. Unfortunately it ending at 4:30 (opened the account at 4). Runs 24 hours a day from 5pm Sunday thru 4:30 Friday.

    Anyone have any experience with Forex?
  2. AintNoFun

    AintNoFun LawnSite Bronze Member
    Posts: 1,807

    2 winters ago i did a lot of day trading... it was up and down I think i made a little at the end... Wasn't really worth it for me..... It was fun though....
  3. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,448

    hoolie, i'm going to take a guess and say that you are well-versed in the financial markets and investing? if you are going to dabble in currency trading, make sure you know exactly what you are doing. the complexities of foreign markets can be head-spinning and more of a gamble than you might want. if you haven't done trading in foreign stocks, you might start there assuming you've "mastered" the US markets.

    good luck and let us know how it works out for you if you go the forex route.
  4. GatorLawnCare

    GatorLawnCare LawnSite Member
    Posts: 59

    i did it and still do 52weeks a year. 6months ago i made $25,000 on xm radio i got it at $10 a share sold it a $30. :blob3: payup

    HOOLIE LawnSite Gold Member
    Posts: 3,981

    tony- I've never actually done any real investing, but I've read books, articles, the business section of the paper, I guess I'm a "career student" so to speak...LOL. Anyway, I've read opinions on Forex ranging from a no-brainer to extremely risky. They'll give you up to a 200:1 leverage on trades so the potential is there to incur a catastrophe if you're not careful.

    I ordered a book off Amazon, plan on trading with the demo account and reading up some before I do any real trading.

    25g off xm is nice, did the stock take off after Howard Stern signed on?
  6. T Edwards

    T Edwards LawnSite Member
    Posts: 230

    Online trading and day trading are 2 different things. XM radio shares (XMRS) have gone from $5 to $38 over the last 24 months. I believe Howard Stern signed with Sirius (SIRI) and they have been running recently.
    The people that make the most money off day trading are the brokerages because they are debiting a fee from your account for every buy and sell order placed.
    Best of luck, and sign me "In The Market" since 1979.
  7. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,448

    in that case, hoolie. i would not gamble your money on foreign currency markets if you don't have much or any experience in the good ol' USA's markets. i have been an active investor, and sometime day trader, since my sophomore year of highschool and find the complexities of foreign markets to be another playing field altogether. i focus on US markets, through stock and option trading, and over the years have owned many Russian (mainly oil) and Chinese (tech) stocks. the biggest problem with foreign markets, as i've seen, is reliable information that doesn't take an economics phd to figure out. due diligence on just foreign stocks can be quite difficult, so when you add in the ridiculously fluid geo-political climate, it can be scary.

    personally, i'd start with US stocks and look for those that you like based on familiarity with their products and go from there with your research. it's a safer, more fun way to get involved. above all other investsments though, i'd tout real estate above all else. currently, the majority of my stock investments are earmarked for rolling into additional real estate investments.

  8. muddstopper

    muddstopper LawnSite Silver Member
    Posts: 2,342

    One of the safest ways to make money in the quick flip of stocks it to look for stocks that pay good dividends. Realestate investment trust and utilities are a couple. These stocks always run up before dividend payout date. As long as you are the owner of the stock on the dividend xdate you are entitled to the dividend.. I used to have a list of all the realestate trusts and I would select the ones with the highest dividend payout to keep up with. Their stock price always seemed to flucuate with the dividend xdate. price going up as the xdate approached and declineing after the xdate pasted. I would purchase at the start of the price runup and sell the day after the xdate. This way I benefited of the stockprice runup and the additional dividend payout. I couldnt sell on the xdate or I risked losing the dividend payout so I would endup taking a smaller profit on the stockrunup. This wouldnt be considered daytrading as you had to hold the stock for a while before selling them. Dividends are usually paidout quarterly so this cycle would repeate 4 times each year. And since you where holding the stocks for less than a year you also had to pay the bigger capital gains tax. It also wasnt without risk, if the company declared a dividen reduction the stock price would take a big hit as well as a reduction in dividend payout. I chose real estate investment trust, REIT's because they are required by law to pay out 90% of profits to shareholder as a dividend. I think the % is now 95% or maybe it is vice-versa. dont remember now. At any rate it was easier to track these companies to see if they where doing well or doing poorly which would effect dividend payouts.
  9. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    Check out the pennies at
  10. out4now

    out4now LawnSite Bronze Member
    from AZ
    Posts: 1,796

    Two important sources of info, The Intelligent Investor by Benjamin Graham (get at library) and Motley Fool web site also check National Public Radio for their radio show time in your area and call in for some advice. Personally I think the Graham theory is more sound than constant trading. Warren Buffet thought so too. While his stock has taken a hit due to insurance claims from the Florida hurricanes it's still over the 80,000 per share mark (was last I checked anyway).

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