For surely nobody would charge $3000 for a set of MA lines you could get for free...

September 26, 2006 11:13 PM

I need a replacement for day trading program WizeTrade for my mother. Neither of us know anything about the day trading scene.

So my mom came home today with WizeTrade. Apparently the infomercial had led her to the seminar and she came home with this. She told me about how she has a week to test it before returning it and how easy it was ("Click on green right below the peak" or something).

The software cost $3000.

I did a quick google and came up with exactly what I was afraid of, a bunch of reviews trashing it and saying it wasn't worth $50 and that there were free reports out there that were just as good.

I know nothing about this, but I applaud my mom's curiosity and drive to do more. But I just need to get her something to replace this so she can return it without feeling empty handed.

Apparently, from what I can skim, it does exponential moving analysis. or something. Man, I'm totally lost in here, but I think getting ANYTHING to get the three grand back would be a good idea.

posted by Brainy to work & money (8 comments total)

Well please do ANYTHING else but try to day trade.

That's a very, very time and capital intensive approach to the markets. Not to mention perhaps the most risky.

If she's truly interested in the markets, FANTASTIC!!

But she'd be far better off getting the $3K back and using that money for some academic courses. She won't be making money at the end of her courses, but then she'll have a better idea why day trading (at the retail investor level) is a scam.
posted by Mutant at 11:20 PM on September 26, 2006

If you can return it and get a refund, do it. Wizetrade is a black box. A sucker's tool. If she's really interested in markets, start with some books...

Trading for a Living by Alexander Elder is a good starting point.
posted by jclovebrew at 11:40 PM on September 26, 2006

* BigCharts is remarkably useful
* as is Clearstation

I was successful at something like day trading in the late '90s (I mostly held positions for more than two days, but less than two weeks), and havn't been actively in the markets since, because I havn't seen a free-money opportunity like what we had back then. Some of my friends still trade actively, but they are geneally extremely cynical and extremely scientificly-minded people.

Your mom should try some paper trading before she buys anything else. There is a lot of really good free stuff out there, and a lot of really terrible expensive stuff out there.

About the only thing I'd pay actual money for is a bloomberg box. (your mom can't afford one and doesn't need one, neither can I)
posted by b1tr0t at 1:24 AM on September 27, 2006

If you go to Java Chart mode at bigcharts, you can get plenty of exponential moving averages, as well as a number of other, more useful indicators.
posted by b1tr0t at 1:28 AM on September 27, 2006

I trade daily. For a living. Return WizeTrade.

I do not have time to post the list of books I would read. I will post later today, after the close.

Software is not going to do you any good until you have a thorough understanding of the markets and what you want the software to do and what you want it to scan for.
posted by JohnnyGunn at 6:22 AM on September 27, 2006

If you know nothing about something, then it's a really bad idea to get involved in it deeply. This is the exact same thing as walking into a casino to play some games, but not having a clue about how the games are played - as you would expect, the only possible outcome (barring some extreme amounts of luck) is that you'll lose your shirt. Except that your chances of winning at the casino are significantly greater.

If your mom wants to invest, that's great, but she should first do some heavy reading about investing first, before laying down a single dollar.
posted by gwenzel at 8:46 AM on September 27, 2006

In the long (or even moderate) term, the only way to make money day trading is to get lucky once then stop and write a book about your "system".
posted by Riemann at 10:20 AM on September 27, 2006

As someone who has been trading for over 20 years, I have to disagree with Riemann. If you lo$t trading, I am sorry to hear that, but there are many successful independant traders who make money year in and year out.

As I said earlier, I would return the software and start educating myself. Slowly.

The first books I would read would be ones that give you a background for what it is like to trade and more general thoughts.

Reminiscnces of a Stock Operator, Edwin Lefevre
My Own Story, Bernard Baruch
Market Wizards, Schwagger (All three or four in the series)

Then, after reading those, I would spend some time defining my risk parameters (how much can I afford to lose and how much am I willing to lose) and what my goals are. I would determine in what time frame those goals were to be met.

Then decide on a style that suits your risk/reward parameters and your personality. WRITE OUT specifically how you think you will make money and wht your edge is. Do not traqde without an edge.

I would also read:

Trader Vic, Victor Sperandeo
Technical Analysis of Stock Trends, Edwards and MaGee

Then after a small initiation period I would start to read about other's specific methods.

There is a lot of crap software and hucksters pushing ther latest and greatest method. The only way to beat the Street is to outwork them and get to the trade first. It takes discipline, creativity and tenacity.

Good luck.
posted by JohnnyGunn at 2:12 PM on September 27, 2006 [2 favorites]