Questions tagged [day-trading]

To be used for questions related to trades squared off the same day and do not involved deliveries. Typically used in the context of Stocks trading, can be used for Options or other trades. Related tags are trading, trading-volume, online-trading.

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Best approach to select strike prices for an Iron Condor?

Options beginner here. I'm aware of three popular ways to select strike prices for Iron Condor. Select strikes such that they are equidistant from the CMP. Select strikes such that the they form a ...
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18 votes
2 answers
4k views

What's the point of the wash rule?

I don't understand the 30-day wash-rule. Someone please set me straight. So let's say I purchase 100 shares of Hot Stock X, for $100 apiece. So $10,000. Let's say that the stock goes down 50% on a ...
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At the time when market opens what is the best way to know if market will go up or it will go down [closed]

I know markets are driven by multiple factors and any news, any time can cause market to go up and down. Assuming there is no major event/news during the day, at the time when market opens, what is ...
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Does this limit order book (depth chart) look legit?

I am reconstructing the limit order book on Binance. I get a snapshot at a particular time and update this snapshot based on the updates for each level that come every 100 ms from the exchange. Most ...
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Equity curve money management strategy to minimize drawdowns

Some high risk/returns automated trading systems requires an on/off switch as a fail-safe feature and to minimize drawdowns. Besides using a moving average on the equity P&L curve to turn on/off ...
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Why up bar always show greater volume than a down bar in a High volume Trending up stock?

This question is related to Intraday (i.e. Day trading). In a "High volume" trending up stock, When the Trend is still strong, I have noticed that the relative volume of "Up" bars ...
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What's the practical risk of reusing trade proceeds?

I built an algo that buys and sells securities in a few minutes. The idea would be to let it do that hundreds of times a day. After some paper trading tests, I wanted to test it with a couple real ...
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Huge transactions in the last minute before the end of day after persistent downward pressure on stock [duplicate]

I've noticed many times a phenomenon of downward pressure on a stock for half an hour or more before the closing bell and a huge purchase in the last minute at a resulting very low price. I find it ...
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2 answers
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If 90% trader lose money can you do opposite of what they do and make money? [closed]

Say you have a friend Bob that is bad at trading and loses money consistently. Can you take position opposite of Bob for example if he buys a stock you secretly short it and when he sells you cover ...
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Daily stock deals with high risk

I am new to stocks world. I was talking to someone few days ago, who is expert in stocks, and he was saying that in the morning when the stock market open, he starts his job by buying and selling X (...
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What is the disadvantage for trading stocks with access to real time data for only one exchange (Webull on Nasdaq)?

There is no realtime data for other exchanges like EDGX, ARCA, BATS, etc for Webull. I'm a bit concerned about this because if were a scalp trader, I would want good execution when reading the level 2 ...
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An Option order conditional to ticker price

On thinkorswim, preferably within ActiveTrader somewhere, is there a method for placing a Call/Put Market Buy that is triggered by the ticker's stock price reaching a specified value? (As opposed to ...
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Intraday margin rates from futures brokers

I think I have a decent grasp on how initial margin, margin calls and maintenance margin work, but FCMs/brokers add their own intraday margin rate, and I need to clarify exactly how to calculate the ...
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How to calculate a trailing stop loss for a gamma squeeze?

I'm pretty sure AMC is going to hit crazy prices in a couple of weeks to months. A Korean AI traded fund just dumped Facebook and Wallmart for AMC. Plus, I got in a pretty big fight with some ...
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Calculating an accelerating rate of growth as a formula

Suppose I start with a $1,000 trading account. During each 30 day period my account earns $1,000 in net profit from a trading strategy using one contract per trade. The max amount lost across any ...
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Is it wise to day trade without being subscribed to real-time data?

If data is delayed then am I literally trading on data or events that already transpired? How does that effect what I see on the DOM, the charts, time & sales? The bid/ask are always fluctuating ...
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What is happening during the maintenance hour of E-Mini S&P 500?

I'm trying to better understand the trading hours of the E-mini 500 S&P, which according to the CME Groups web pages are shown like this: This is, however, rather incomprehensible for anyone non-...
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How do you overcome the boredom (and loneliness) of Forex day trading? [closed]

I have two trading plans which I use to day trade in the Forex market for 2 hours a day (8-10 am UK time). Usually I will have between 2-4 valid trading signals each day. I have made more than 80 ...
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13 votes
9 answers
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What is the point of using a limit order?

I'm pretty new to trading, more specifically day-trading, and on my paper trading account, I am given the option to trade at the market's current value vs. putting in a limit order. I could understand ...
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Pros and Cons of getting around Pattern Day Trader (PDT) rules

I have done some trading in my time, and I wondered how to get around the Pattern Day Trader (PDT) rules (this does not directly relate to me because I prefer swing or long-term investing.) I have ...
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14 votes
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Why don't traders place limit orders at all prices to be first in line when the price moves?

In markets with price-time priority, why don't traders enter limit orders at all prices, so that they could be first in line when the price moves? For example, if the current best bid is $10 and the ...
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What are SEC issues I should know about when using my automatic stock trading software?

I created software that does automatic stock buying and selling through Interactive Brokers' web/API. Does the SEC regulate this?
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Wash Sale Rule While Holding Initial Investment

I have a question for those familiar with the wash sale rule. I understand what it is, basically, if you sell shares of XYZ at a loss and buy it again within 30 days, you can't claim those losses on ...
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1 answer
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Can a day trading taxable income be more than the actual capital gain?

I've day-traded (in USA) actively during 2020, mostly short trades. Never kept positions overnight, so carried no positions into 2021 (and, similarly, no positions were carried from 2019 into 2020. ...
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2 answers
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If I show a total loss for the year, will I be impacted by wash rule disallowed losses?

I tried day trading after losing my job. With a $25k initial investment, I traded heavily for a few months using margin. I was up about $5k and then took a huge hit on some options when the market ...
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Day Traders from Germany/Europe? [closed]

I've recently taken a liking to the whole idea of trading and read some books on trading (day trading in particular). All of them suggested to do paper trading first and that's also my idea. I wanna ...
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1 vote
2 answers
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Is it possible to have an individual brokerage account where taxes are paid on portfolio, not individual positions?

Suppose I have an individual brokerage account with a number of positions. As far as I found, the taxation takes place per position, i.e. I can be forced to pay tax even if the portfolio loses money. ...
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Bought coin for $30k, sold at $40k, and buy more in $46k. Makes sense? [closed]

Numbers are for example. Does it makes sense to engage in such day trading? (For bitcoin)
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-2 votes
1 answer
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Can I reverse flip a bad low win rate trading strategy?

Let's say I have designed a terrible trading strategy with a poor win rate of 20% or less. We are not risking more than 1% in a single trade and an excellent risk management and position sizing are in ...
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0 votes
1 answer
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Capital Gains taxes [duplicate]

I used to be an amateur options trader and lost several thousand dollars over the past 2 years. I understand how the wash rule works but here is my question. Let's say I lost 150,000 dollars over the ...
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1 vote
1 answer
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Does FIFO still trigger day trading? (using Robinhood)

I am using Robinhood and wondering how day trading is triggered and how first-in-first-out (FIFO) selling order works. I bought GME stock yesterday and bought GME stock today. If I sell 1 GME share ...
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5 answers
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What's stopping me "day-trade" mutual funds?

I invest monthly into several funds, such as this one. Last week, I noticed a new fund I'd just invested a small amount into ($100) had grown by 12% in one week (now worth $112). I investigated the ...
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1 vote
2 answers
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Offsetting capital gains with previous losses

I only trade options. Nothing exotic but just buying and selling CALLS and PUTS. So for example if I lost 30,000 USD trading options for the 2020 Tax Year. In 2021 I go on to profit 40,000 USD. Does ...
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-1 votes
2 answers
305 views

Options trading and wash rule

For example, I buy a PUT option on TSLA for 3000 dollars and realize it's not working and sell it to close for 2000 dollars. Thus I have lost 1000 dollars on this transaction. Within thirty days of ...
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1 answer
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Day Trade $25,000 again

If I have a margin Day Trade account, after some transactions/tradings there is only $25,000 cash in this account now. There are some cases for this Day Trade account I need to know its status. Please ...
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1 vote
2 answers
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help me to understand the day trade requirements

I am new to the stock market and the Day Trade. I need your help to clarify some definitions (from Fidelity): "A Day Trade is defined as an opening trade followed by a closing trade in the same ...
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How do we trade and earn profits in future contracts? [closed]

Suppose there is a future contract with a market price of $100 and its lot size is 50, so can I purchase the lot at $100? And while selling before expiry or in intraday, suppose the price is $150, so ...
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-3 votes
2 answers
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Stock market day trading etf new please help

I am really new to this and I need your help. Let's say I have 50k: I buy 100 shares of a stock, sell them at $5 profit for each share and do it again with 50K+plus. How much I made on the last trade? ...
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Does the Pattern Day Trader (PDT) rule apply on all brokers?

Does the Pattern Day Trader (PDT) rule apply on all brokers? or some brokers can ignore it
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1 vote
3 answers
595 views

Why did I pay a different price than the chart shows?

I bought a stock in paper trading. The chart showed that the price was $5 and I ended up paying $6.17. Did higher volume cause that? *I bought at 18:50(Central European Standard Time) on margin acc ...
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Difference between depth of market and the limit order book

In trading terminology, is there a difference between "depth of market" (DOM) and the limit order book? I suspect that they are the same because a limit order book shows the "depth"...
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2 answers
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Why wouldn't a stock sell below the bid-ask spread?

In the TD Ameritrade cellphone app and in the browser site (I tried both) in post market after hours, I can't seem to sell Facebook at $261.06 a share even though the bid is 261.30 and the ask was 261....
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2 votes
4 answers
3k views

TradingView and Thinkorswim have very different candlestick charts. Which one is correct?

I compared 30 minute candles for AAPL in two platforms: TradingView and Thinkorswim. I was astonished of the discrepancy. The differences are HUGE! Here are screenshots as of Sep 25 2020. TradingView: ...
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1 vote
3 answers
152 views

Viability of day trading stocks without using charts

When I learned about investing, I was told that the methods generally fall into two camps: fundamental analysis (annual reports, competitive advantage, intrinsic value, etc.) and technical analysis (...
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How does day trading work regarding waiting for funds to clear?

So, I understand the PDT rule, needing $25k in an account to day trade, however... If a person is day trading, don't they need to wait 3 days to use that money again? Do they just have very large ...
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14 votes
1 answer
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How is it possible that these deep ITM stock options on DISH went from 52,000 volume, 550 open bids, 550 open asks to being completely dead overnight?

I bought 16 years of historical hourly stock options data for my personal investment study to test how particular strategies may have played out over a long period of time. I'm looking at the data for ...
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Options flow? Is it worth it?

How do you effectively use options flow to make better trading decisions?
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1 vote
1 answer
83 views

Which of the following satisfy the pattern day trading rule?

I have confusion about the day trading rules. From below scenario, which is pattern day trading? I bought 1 Apple share in pre-market and sell it in the after-market hours (within same day). I bought ...
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0 votes
3 answers
120 views

How to take advantage of a trading opportunity

You hear or read something that makes you know 100% that a CFD market price or Stock Price of company X is going to go up or down ...there is no denying it ...(as a noob at trading) i wait until ...
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1 vote
1 answer
79 views

Why is Trailing take profit a non existent functionality from brokers

If i understand this correct a trailing stop loss line can be put between the current market price and what you bought it for and your taking an L on the trade ...etc... but why is the opposite ...
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