Regarding my background and trading history - I have an MBA and have worked in the financial industry for years. As such I understand fundamentals, derivatives, and quantitative statistical methods involving such technical trading aspects such as relative strength index, moving average convergence/ divergence, and varied stochastic processes. In addition I understand merger arb and merger play investing/trading, earnings announcement trading, long/short hedge fund type investing tactics, and use of options/futures.

I began more active trading over the last 2 years, now enacting about 50 trades per month with as much as $30,000 active and as little as $5,000 working at a given time. My style is a synthesis of the varied methods I have mentioned but are naturally tailored more to a short-term perspective and thus incorporate more stochastic and charting techinicals. I have really combined day-trading with holding long and short positions over a short -term horizon of 2 days to 30 days depending on the market climate, sector standing, and individual stock. I have not been active in NASAQ Level 2 but have not ignored order-flows entirely in making trades. My gain/loss limit range varies from $0.50 to $2 per share although I faired better than that with recent earnings plays. These trades may not constitute day-trading since they were bets placed 2-4 days prior to earnings announcments and encompassed valuing the company and gleaning the meaning of recent company news.

~~~Christopher's Response~~~

Jim,

My best advice would be to make sure that you are consistently profitable with your own account before attempting to move on to trading for others. You sound a bit more "fundamental" than most day traders and this may prove a hindrance in a more active trading environment like the floor of a day trading firm.

All firms will want to inspect your trading records and will seek assurances that they will receive a decent return on their investment in you. Also, keep in mind that you are adding risk to your trades when you trade someone else's capital and that you will undoubtedly feel pressured to trade larger lots (that could be larger than you are ready for).

With this in mind, just make sure you are ready to accept the added pressure that will come with the job of trading others capital before you take on the responsibility. I would suggest that you only entertain this transition once you are consistently profitable and comfortable day trading at least 500 share lots of your own capital. Start small and work your way up to larger lots on your own. Get rich slowly and survive!

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