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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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I am finding hard to understand the trading charges and brokerages. can someone please answer the below queries

I am new to trading a finding it difficult to understand the below. Can anyone please clarify? Thanks in advance As per the attached screenshot at 12:09 PM today i have cancelled ‘Cover Order’ which i ...
Semicolon's user avatar
0 votes
1 answer
31 views

How does one decide Moving average and its cross-over parameters to use

For the purpose of trading options of a volatile index, I want to understand how to decide between the following for a particular indicator, say, RSI: Assuming that the RSI changes from 0 to 100 in a ...
user173399's user avatar
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0 answers
57 views

IBKR Cash Accounts

Scenario is for day trading with IBKR Cash Accounts. Let's say I purchase one stock of ABC at $100 and then sell(on the same day) when the price reaches $103. After this is done, since I am selling at ...
FloralFinger's user avatar
0 votes
1 answer
131 views

Why am I not getting a margin call when using all my available margin?

I'm in the UK and have several broker accounts, all of which have a 50% margin call requirement. I thought I understood how margin works and the reason for it. As I am a retail trader, I use 30:1 ...
Lyall's user avatar
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14 votes
2 answers
14k views

Is my algo trading illegal?

I have algo trading program (written by myself) and when it detects that price are going down it's going to sell shares (if I have one) wait a couple of sec/min and buy the shares on lower price. Last ...
Andrew Sasha's user avatar
0 votes
1 answer
109 views

Option trading to avoid overnight fees over a short position

I do a lot of short selling as a day trader. There is a pattern that I trade often. This one asks me to short and keep my position for several days. The problem I have is that the broker charges too ...
David's user avatar
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-2 votes
3 answers
147 views

Mathematics and Accounting of withdrawals and deposits in a shared portfolio

My friend is a day trader and works with money, after days of research I still haven't found a method or approach to accounting our shared account. I've came across keywords such as pooled funds, ...
Erfan Ahmadi's user avatar
2 votes
1 answer
142 views

How is an ETF fee calculated in a trade that ends in less than a year?

If you sell an ETF before a year, intraday or in a swing trade, then is the fee prorated or is that just the flat rate you pay when you sell, when you buy or does the broker pay it at some point in ...
Lowbrow's user avatar
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1 vote
0 answers
95 views

Judge the amount of money to trade

I have been day trading for about a year. I got some statistics on a stock market pattern. The latter gives me an 82% probability of occurring and an expected gain of 13% per trade. I'm having trouble ...
David's user avatar
  • 13
0 votes
2 answers
161 views

Can a self-employed add a new mark-to-market account for day trading?

I am self-employed in USA. I am available during the stock trading time. I am thinking of starting day trading after a few months of preparation. I may begin with scalping. I will keep my current ...
peterB's user avatar
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0 votes
1 answer
43 views

How do you analyse components of Index option to help you get more accuracy while trading options?

Suppose, you trade in options, Option index comprises of Many stocks, so how do you analyse those stocks in order to determine the movement of price in options while doing intraday trading?
Romieo King's user avatar
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1 answer
89 views

What is the benefit of scalping options on short intraday time-frames rather than trading large equivalent stock positions?

I see a lot of traders on fintwit (to name a few: @UmarAshraf and @RealNourAtta) using ITM or 40-60 delta OTM options to place quick day-trades on 1-5 min charts. They're out within seconds, minutes, ...
maverik's user avatar
  • 119
2 votes
1 answer
313 views

Does one stock market buy order that fills through multiple executions count as one trade for PDT rule?

Scenario: you place one stock market order to buy 1000 shares. The order ends up needing multiple executions to get completely filled: 200 shares, 300 shares, 400 shares, 99 shares, and then 1 share. ...
mg1075's user avatar
  • 131
-3 votes
2 answers
106 views

Why does this 5m candle open with a large body?

I grabbed this screenshot from TradingView on the AUDUSD chart from CityIndex at just a few seconds after the 06:45 candle opened: Why is the candle so large? I am expecting that when a new candle ...
Matt W's user avatar
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-1 votes
2 answers
136 views

Please explain buy stop for a noob

My understanding of a buy stop is best described with these steps: Price is at $100 I place a buy limit at $110 with no take profit or stop loss I place a buy stop at $120 Here is where my ...
Matt W's user avatar
  • 549
1 vote
1 answer
1k views

Understanding P&L from tradingview position tool

I'm really trying to understand how much profit and loss I would make when placing the LONG or SHORT position tool in TradingView. I understand that with a $1000 account size, 0.01 lots == $10 and ...
Matt W's user avatar
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0 votes
1 answer
88 views

Does confluence improve the winrate of a system?

We have a discussion with some friend on another forum about confluence : let's say I have two systems, one with a winrate of 56 % and the other with a WR of 63%. Now if we take trades only when both ...
Jeff's user avatar
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2 votes
1 answer
747 views

Moving from Robinhood to TD Ameritrade: Can I use specific-lot-matching method?

I've been using both TD Ameritrade and Robinhood for a while. I just learned that on TD Ameritrade, you can use the specific-lot-matching method when you sell your shares. It's in My Account -> ...
CodeOwl's user avatar
  • 313
0 votes
1 answer
88 views

What's the negative about buying contracts 1 month out when scalping options? (Is it buying same day or 2-3 day contracts are way cheaper?)

What's the negative about buying contracts 1 month out when scalping options? (Is it buying same day or 2-3 day contracts are way cheaper?) I don't want Theta to negatively affect my gains.
Sed Mc's user avatar
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0 votes
1 answer
175 views

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 ...
Ronith 's user avatar
19 votes
2 answers
5k 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 ...
CodeOwl's user avatar
  • 313
-1 votes
2 answers
185 views

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 ...
OpenStack's user avatar
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0 answers
123 views

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 ...
MegaNightdude's user avatar
1 vote
2 answers
95 views

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 ...
Mysterry's user avatar
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0 answers
81 views

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 ...
Stephen Shipley's user avatar
0 votes
2 answers
375 views

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 ...
Lightsout's user avatar
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0 votes
1 answer
116 views

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 (...
Minions's user avatar
  • 151
0 votes
1 answer
318 views

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 ...
ZeroPhase's user avatar
2 votes
1 answer
110 views

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 ...
eComEvo's user avatar
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1 vote
2 answers
1k views

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 ...
Smtih's user avatar
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0 votes
1 answer
177 views

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-...
not2qubit's user avatar
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1 vote
0 answers
173 views

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 ...
Jean Diharo's user avatar
13 votes
9 answers
5k views

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 ...
CaOv235's user avatar
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-1 votes
1 answer
225 views

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 ...
mteam88's user avatar
  • 55
14 votes
6 answers
8k views

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 ...
Flux's user avatar
  • 17.1k
1 vote
1 answer
98 views

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?
Doug Null's user avatar
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0 votes
1 answer
95 views

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 ...
Chris's user avatar
  • 103
2 votes
1 answer
119 views

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. ...
giorgijaparidzevillanovaedu's user avatar
0 votes
2 answers
67 views

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 ...
Yerggy's user avatar
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1 vote
0 answers
136 views

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 ...
gettingintoit's user avatar
1 vote
2 answers
116 views

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. ...
James's user avatar
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-3 votes
1 answer
243 views

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)
Juh Hty's user avatar
-2 votes
1 answer
220 views

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 ...
Curi0usM3's user avatar
0 votes
1 answer
45 views

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 ...
OptionTrader's user avatar
1 vote
1 answer
330 views

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 ...
user105949's user avatar
0 votes
5 answers
514 views

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 ...
Cloud's user avatar
  • 3,655
1 vote
2 answers
60 views

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 ...
Options Trader's user avatar
-1 votes
2 answers
546 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 ...
Options Trader's user avatar
0 votes
1 answer
264 views

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 ...
peterB's user avatar
  • 421
1 vote
2 answers
283 views

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 ...
peterB's user avatar
  • 421