How do people day trade shares?

[Lloyd Blankfein]

im new so this may sound stupid. how do people day trade shares? i was playing the ASX share game and the brokerage makes day trading impossible. $40 to buy and sell lol. shares dont rise anywhere near enough in 1 day to even kill the $40.

 

[ROE]

im new so this may sound stupid. how do people day trade shares? i was playing the ASX share game and the brokerage makes day trading impossible. $40 to buy and sell lol. shares dont rise anywhere near enough in 1 day to even kill the $40.

With large capital you can.

$40 get you 50K - 100K parcel depend on who is your broker
1% move $500 to $1000 profit bucks minus $80 broker.

obviously you got to have the stomach and system in place to deal with the down side when it move against you.
take your upside profit and put a minus in front

 

[CanOz]

im new so this may sound stupid. how do people day trade shares? i was playing the ASX share game and the brokerage makes day trading impossible. $40 to buy and sell lol. shares dont rise anywhere near enough in 1 day to even kill the $40.

SMB Capital at one time were arguably the best Proprietary Trading Company focusng mainly on day trading stocks...

Google them, lots of free stuff around...

 

[burglar]

im new so this may sound stupid. how do people day trade shares? i was playing the ASX share game and the brokerage makes day trading impossible. $40 to buy and sell lol. shares dont rise anywhere near enough in 1 day to even kill the $40.

Obvious: You need lower brokerage, bigger parcel, a little luck and a big push in Share Price.

 

[lesm]

With large capital you can.

Actually, doesn't necessarily require a large capital base, but is dependent upon the broker used.

Trading halts can be a day traders worse nightmare, as they may not be in a position to fund the full share purchase if it goes to settlement.

Their actual settlement costs need to come down to the nett position (+ve/-ve) + commission.

Day trading is not impossible, but you need to try and bring your cost of doing business (commissions, plus any software, platform and/or data fees) down as low as you can.

 

[banco]

I think it's near to impossible on the ASX. Shares with sufficient liquidity don't move much and the commissions are a killer.

 

[Rubberneckin]

Actually, doesn't necessarily require a large capital base, but is dependent upon the broker used.

Trading halts can be a day traders worse nightmare, as they may not be in a position to fund the full share purchase if it goes to settlement.

Their actual settlement costs need to come down to the nett position (+ve/-ve) + commission.

Day trading is not impossible, but you need to try and bring your cost of doing business (commissions, plus any software, platform and/or data fees) down as low as you can.

Does anyone have any advice regarding cheap brokers with user friendly platforms. Checked out Interactive Brokers, decent costs, but horrible platform. I'd like to be able to access ETF's on the American markets too without having my money held in an account off shore?

 

[karmaD]

Hi Lloyd,

Have you considered trading CFDs for shares listed on ASX 200?
There are a large number of brokers offering these at a much lower cost - when compared with brokerage for shares.

You must indeed be very selective and choose the shares that offer enough volatility in price and have large volumes of shares traded each day.
Also must be aware of the higher risk of trading CFDs as they are leveraged products.

I've been trying to share some of my experiences in my blog http://www.aussiedaytrader.com.au/aussie-day-trading-tips/

Good luck
karmad