Another day trader bites the dust

[teewoods]

No criticism from me, 8-10 trades per year is very quiet. Yourself, also quiet on a similar annual trade count?

I shared the same setup but I do more trades than him around 30 trades a year. Only because I have more capital than him. And that's a lot of position trading especially when one holds some positions for 6months to 1 year pending if its stocks or futures.

What really matters is the returns, not the activity - as Warren Buffet said trading is supposed to be boring.

 

[athlonmank8]

Defining your risk isnt an edge, its a principle you fuckwit.

An edge is having a PROBABILISTIC edge of the market doing one thing over another.

*PART* of the edge. That's what I said. Honestly, you can't read for shit. Is english your 2nd fucking language?

How can you have an edge if you dont know what your risk is?!

 

[teewoods]

what is position trading? Is that short term swing trade where you hold a stonk for days, weeks and months? You btfd every time it pulls back a little bit? Do you have a stop loss? When do you exit a winning or losing trade?

I don't have a stop loss in position trading and I have never exited on a loss. I pretty much hold the trade till it comes good. Longest I have held is 14 months. But I only buy stocks that have had a significant drop. 40%+ It's very boring stuff. Not for many people here. How many traders can wait 2 months for a trade?

That said I have an account for swing trading. Only 10% of my capital in that account.

 

[deaddog]

I don't have a stop loss in position trading and I have never exited on a loss. I pretty much hold the trade till it comes good. Longest I have held is 14 months. But I only buy stocks that have had a significant drop. 40%+ It's very boring stuff. Not for many people here. How many traders can wait 2 months for a trade?

Interesting concept; Where do you exit?

 

[vanzandt]

I said it guys no one on this planet and consistently make money day trading.

I do lol. Its easy if you're not greedy.
Whatever.

 

[IamTheCasino]

*PART* of the edge. That's what I said. Honestly, you can't read for shit. Is english your 2nd fucking language?

How can you have an edge if you dont know what your risk is?!

you are a fuckin clown. ITs not PART of the edge either.

Defining your risk doesnt give a you probabilistic edge on if the market will move one way or another (Which is what/how and edge is actually defined in trading imbecile). No matter how much you THINK you are right, defining the risk isnt a fucking edge nor part of the edge.

Please go choke yourself until you understand what has been spoken here you fuckin pleb. because you obviously have no idea wtf is going on.

 

[themickey]

Please give it a rest.
This is an interesting thread, doesn't require this tit for tat stuff.
Cheers.

 

[Millionaire]

No matter how much you THINK you are right, defining the risk isnt a fucking edge nor part of the edge.

The confusion is because:

Your exit strategy is part of your edge and it is also part of your risk management.

It is not the entirety of your edge nor the entirety your risk management.

 

[teewoods]

Trading profitably for the past 6 years? WTF does that mean? Just about anyone who has bought anything and has held that position has been trading profitably for the last 6 years. The last 11 years to be exact.


Well, obviously there is one thing you could not teach your friend in all those hundreds of hours of tutelage, and that is discipline. Discipline is required in all styles of trading and you either have it or you don't.

Besides not having discipline it sounds like your friend has an issue with greed as well. As the saying goes "It's easy to cheat a greedy man" - 'sucked into day trading' - 'falling for the flashy trading literature' - You make it out that he was victimized by something other than his own greed.

And with $450K positioned how did he not have $10K days? That's only a 2.2% day, there have been plenty of them in the last 6 years.



Well, that sucks. I'm sorry to hear that but it could have happened in any high risk business. He could have invested in a restaurant in January 2020 and lost it even faster.

This statement is not true. Some guys make it and get out, and then there is Jim Simmons.

The general definition of scalping is not just trading the spread which for retail traders is really only left in crypto. HFT has erased that from all other markets. I consider my self a scalper among other trading designations because I trade a system that uses a 1 point target on the ES. Trades last take between 10 seconds and ten minutes on average.

Some traders prefer daytrading, "they are much happier" because they are not thinking of their position during the night or on the weekend. Its more like a job that is resilient to 9/11 type events.

Ultimately, I think most all traders are happier after saying adios to trading, after finding something better, after making a substantial amount or certainly after losing a substantial amount.

It's funny you say anyone who just about bought anything and held it for 11year would have been profitable. Not something you can say about 99% of day traders. How many people who started day trading 11years ago are still trading? I bet if I went through the day trading journals on this forum it will be a graveyard - many vanished or threw in the flag.

FYI my friend started 6 years ago with $100k made it to $480k to be exact and averaged about 8 trades a year. He still worked full time so he never really drew from his account. Not bad for an inexperienced trader right?

You say many day traders are happier not having to think about overnight positions?. But that's part of the false sense of security sold by trade system sales gurus. "Day trade, no overnight risk make $1000 day in 30mins" It's a bunch of bs lol.

Let me explain, when we had the big crash this year, I went all in. 100% of my capital buying some really good stocks for 80% below market price. I was happy to hold my position for 5 years. I slept pretty well knowing these types of opportunities only come once a decade or so. In 4 months I got over 400%+ return on my capital.

The point is day traders are not making the big 7 figure profits. They trade defensively risking only 1% of their capital and will never truly leverage their capital and even when they do, they get wiped out. If my friend had stuck to the game plan, I am very certain he would had made a cool $2m from buying cheap stocks that were there for the taking. But alas he wanted excitement and quick returns. Patience is the name of the game let the market come to you. Day traders do the opposite they go chasing the market.

My friend said he will never trade again not even position trading because the journey will be too painful for him knowing he missed so many opportunities.

 

[IamTheCasino]

It's funny you say anyone who just about bought anything and held it for 11year would have been profitable. Not something you can say about 99% of day traders. How many people who started day trading 11years ago are still trading? I bet if I went through the day trading journals on this forum it will be a graveyard - many vanished or threw in the flag.

FYI my friend started 6 years ago with $100k made it to $480k to be exact and averaged about 8 trades a year. He still worked full time so he never really drew from his account. Not bad for an inexperienced trader right?

You say many day traders are happier not having to think about overnight positions?. But that's part of the false sense of security sold by trade system sales gurus. "Day trade, no overnight risk make $1000 day in 30mins" It's a bunch of bs lol.

Let me explain, when we had the big crash this year, I went all in. 100% of my capital buying some really good stocks for 80% below market price. I was happy to hold my position for 5 years. I slept pretty well knowing these types of opportunities only come once a decade or so. In 4 months I got over 400%+ return on my capital.

The point is day traders are not making the big 7 figure profits. They trade defensively risking only 1% of their capital and will never truly leverage their capital and even when they do, they get wiped out. If my friend had stuck to the game plan, I am very certain he would had made a cool $2m from buying cheap stocks that were there for the taking. But alas he wanted excitement and quick returns. Patience is the name of the game let the market come to you. Day traders do the opposite they go chasing the market.

My friend said he will never trade again not even position trading because the journey will be too painful for him knowing he missed so many opportunities.

Look man. there is a right way and a wrong way to approach day trading. Sadly to say, your friend approached wrong, just like the other people.

However, that is not daytradings fault. So while the "studies" and whatnot may be right when they say 98% of daytraders fail its not taking into account how one should approach daytrading to be successful or how those 98% approached it.

Again, just because the average person is a moron, whether they have money or not (you arent smart just because you have 500k in the bank), doesnt mean daytrading is the bad guy and that you cant make money. Its as simple as that.