Doing Day trading online, like the TSP

Frizz B.

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How does one start doing the day trading, outside of using the brokers. I would like to be able to invest, using the S&P 500, an Internation Fund, The Wilshire 500 and a money market fund (like the G fund), without having to pay a big percentage for each transaction, and be able to make as many moves as I wish. Basically the same strategies we are using now with the TSP funds, but not have to wait till I retire.

Frizz B.
 
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hehehehe...I was thinking the same thing, using ETFs!

Symbol - Management fee - Fund

EFA - 0.35% - iShares MCSI EAFE Index (I)

IVV - 0.09% - iShares S&P500 (C)

IWM - 0.20% - iShares Russel 2000 (sub for S)

Scottrade charges $7 per trade, no limits, and can be on margin.
 
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I took a look at both traders, thanks. Will I be able to trade in the funds that Rolo provided, and if I can work with them, is there a G fund out there, where if I want to pull back for a while, I can still get that penny every 5 to 7 business days. I want to get my feet wet, does anyone else work with either of these two brokerages. They do have an 800 #, probably call Monday and start something up.
 
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I use Scottrade. http://www.scottrade.com They have local offices. You can request the application on the site.

The real-time quote feed is really nice.

Keeping cash in your account bears interest, .1%daily.

Samples from mine

I got 7 cents:
CR INT 4 DAYS @ .1% AVG CREDIT BALANCE 5,995.33

Here's your penny:
CR INT 1 DAY @ .1% AVG CREDIT BALANCE 2,078.88

I rarely have cash in it though. I usually have:
MGN INT 31 DAYS @ 5.45%; AVG DEBIT BALANCE 10,881.26
 
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Thanks for the tips, I am meeting with scottstrade today at 4 to get the paperwork started, I will wait to get my feet wet when the F differential is around 270. Then I am planning on using the F R O to work with my outside investing. I have done well with the TSP and I will be trying to use the same funds and strategies.
 
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I think I may be joining you in that endevour, especially since that will have the real-time advantage.

I hate not having a Wilshire 4500 ETF for accuracy; an approximation may throw the FRO system off. We need to find the closest-performing ETF as possible.
 
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I do like the fact that it will be a 5 second trade instead of the end of the day or next day, should make for bigger possibilities, except for $7 fee everytime. I think you will be able to make that up in the long run, expecially if the markets start losing and you can put a stop to your account if you wish.
 
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As long as your trades earn you more than the commissions ($14, two trades), you'll be alright. Also, don't forget that each trade triggers a taxable event, so you will have to earn x% more over the buy-and-hold result, where x = your income tax rate. The more money you involve in this, the less of an issue fees and taxes are.
 
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I went to Scottstrade today, looking forward to doing this in the now and not for the future. I will have to wait for the market to take its blunders before I start. I want to be able to jump right into the S and I funds. Going to start with the $500 base and then instead of putting my 14 % into the TSP, will only do 5% and put the 9% extra into the Scottstrade. Looking forward to be able to do (now money), instead of future money.
 
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heh, wow, I thought I was a "I want it now!"-Me-Generation-Xer.

I do not know if you will get ahead by siphoning from your TSP. You lose the tax advantage andyou will pay more taxes due to daytrading. That is a lot of gain required to break even. Also, there is a 30-day cost-basis rule that I have been meaning to research.

Waiting until you are 59-1/2 is not absolute; you can withdraw early if you follow the rules.
 
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More than anything, this is for my kids college fund, I have no control over the fund when it is in the 529. Not sure if I just wait 4 years and take a draw, but then have to pay it back, which might be better.
 
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It sounds like you need to get a tax guide. Ernst & Young's is pretty "user friendly".
 
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The one thing I am looking to see, if I can make my trade and it takes 5 seconds for this to happen, instead of waiting for the next day or the day after, might be well worth it, and not worry about taxes, we will have to pay it sooner or later. I want to work for some upfront money.
 
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Your order will be placed within five seconds; that does not guarantee that someone will agree to your trade within that time. Rarely have I had a market order not execute within a few seconds. I think only once it took almost a minute and volume was outrageously high at that moment. For the most part, they are instantaneous.
 
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That is what I'm looking for. How many times did we want to make the change and had to wait. Sometimes good, sometimes bad. Once I get started I will show the process. Still waiting for the market to crumble then jump in.
 
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Well, I went to Scottrade and started my account. I tried to find which fund follows the Wilshire 4500 and they said the $dwcp and ^dwcp are not funds I will be able to invest in. Is there another fund that tracks the Wilshire e 4500 throught the american exchange. I did like the fact that I can do short trading in the same fund and as I understand, it will only be one trade. So if my differential goes to 315, as it did last week, I would be able to make my trade and put all my money in short trading. The question I have, would I still have the stocks in the fund that I am in at the time or would all my shares go to short tradiing.
 
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The more investigations I am doing the harder it is to believe I will be able to invest online. Weshouldbe quite pleased that we can do as many trades as we want in the TSP with no fees. What I have learned is that if I traded the S fund to the G fund, this would cost me $14, and when I wanted to go back to the S fund, another $14, a total of $28. The same way for Short selling if I wanted to take all my money out of the S fund and put it in Shorting the S, $14 and the move it back to the S fund, another $14. Not cost effective, especially if you guess wrong.
 
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I wrote about this before... I tried my hand at daytrading a few years ago. The problem is not onlythose commissions, you can add slippage (when you get a worse price than you thought you would on a trade), spreads, (the difference between the buy and sell price), and the fact that there are pros out there waiting to take your money, you can see why it would nickel and dime you to death. It is a tough game. Intermediate and longer term have worked out better for me. I still would love to be a daytrader, but I also want to play shortstop for the Mets. :) Neither future looks bright for me.
 
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