Another day trader bites the dust

teewoods said:
My friend who has been trading for profitably for 6 years moved from position trading to day trading. He got sucked into day trading

This is a guy I spent hundreds of hours a year teaching him the ropes about position trading. He made very good money trading 8 - 10 times a year but he wanted more - he wanted the $10k+ a day big trades. Thanks to falling for the flashy trading literature and false promises doing the rounds everywhere

And so he took the plunge Jan 2019 with his account size of $450k. Less than 18 months everything has gone. Vanished not a dime!

I said it guys no one on this planet and consistently make money day trading. You might have a few lucky years but the market is going to take it all back.

As an ex-floor trader, if you want to be in the day-to-day action, you might as well take the lesser evil and start scalping provided you have the right exchange fees, broker agreements etc. Scalpers don't have to worry about overtrading (The number 1 killer for day traders) and just trade the spread. I only know of 2 former colleagues who were still scalping the bund via Kyte Brokers. But even they have packed it in and gone into property development. They are much happier after saying adios to 30 years of scalping
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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?
 
vincentnyc said:
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?
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8 trades per year, so will be holding stonks for months or even years.
 
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Unless he paid a ton in commissions there are winners on the other side of his trades...

Maybe he had ended up on the wrong end of pump and dump nano and microcap type of trades... ?
 
vincentnyc said:
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?
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It depends on your capital. The more you have the more you have to play long term. You dont see billionaires going in and out daily. But generally it's a few days to a few weeks for most people.
 
JamesJ said:
Unless he paid a ton in commissions there are winners on the other side of his trades...

Maybe he had ended up on the wrong end of pump and dump nano and microcap type of trades... ?
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Chances are good, he was trading penny stocks and lined up against Timothy Sykes, Ross Cameron and other day trading gurus out there. In that field, a lot of front loading happens. Legions of day traders being led to slaughter. Like the Gaul warriors being slain by Julius Caesar and the superior Roman legions who knew how to fight.
 
HolyGrailSeeker said:
Just curious what do you think is a good annual return in terms of percentage?
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Im a day trader.

But warren buffet reckons he can make 50% a year on an account less than $1million. That would be the upper end.

I use Buffet, because i guess he only makes a few 'trades' per year as well.
 
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Millionaire said:
Im a day trader.

But warren buffet reckons he can make 50% a year on an account less than $1million. That would the upper end. I use Buffet, because i guess he only makes a few 'trades' per year as well.
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What do you think is a good return for a day trader on a small account then? I see trading gurus like Ross Cameron, Steven Dux etc making very high returns but you yourself also said such is not sustainable or only a smalk handful can do so..

Personally, I feel swing trading is best. Day trading 99% of people who try it will go broke.
 
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