Day/SWING/POSITION ?? TRADING

Quote from ProfLogic:

Participation is volume. It makes no difference as to whether 100% or 5% of those trading are participating in those unique trading or investing increments; intraday, swing or position. What matters is the accumulative volume and price action taking place at any given moment on the particular chart you are watching and trading.
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Agreed !! Thats the goal of this blog is to prove at least theoretically (if not Practically) that there is No difference in Day/SWING/Position trading(strategies). Its only "experience that makes the difference. Stress/ Pressure are by- products of lack of experience when your brain is working exponentially hard to predict future without enuf Data of its OWN. Juast like driving a car. A new learner always twist their neck around looking into mirrors, klooking at the stick while making a shift, jerks the cluch and slowly these movements smooth out and become subconcious functions.

Quote from ProfLogic:

It isn't just new traders that are looking for mindless set ups and plug and play methods, everyone is. What I want you to understand is that there is a compromise point between where you think the length of time it should take to learn this and an alternative to the complicated environment you and most other traders have created for yourselves.
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Complications arise from extra data that we start feeding our mind at the very beginning, NEws/scans/price alerts/ patterns/Pit noise?/TICK/TRIN/averages/Bolinger/RSI/STOCh/MACD/3-timeframes/WATCH LIST/Indexex/currencys/ETF!!!!!!
these are so many variables - imagine a computer trying to solve an equation with these many variables. Its only a untrained - inexperienced brain of a beginner.
On top of the processing capacity, we have to manage the trade after the entry and deal with a whole slew of emotional issues.
Its just a mix for disaster.
Understanding this is important. and then coming in terms with these facts will ease our subconcious mind.
One chart, one average, one larger timeframe and simple entry-exit is the way to start this. Build stemina- upgrade your computing power, your own brain will create these algo's inside and you will get better.
Anyone can do day trading - anyone!!!! Are you listning to me WallStreet !!!
 
Quote from jokepie:

Agreed !! Thats the goal of this blog is to prove at least theoretically (if not Practically) that there is No difference in Day/SWING/Position trading(strategies). Its only "experience that makes the difference. Stress/ Pressure are by- products of lack of experience when your brain is working exponentially hard to predict future without enuf Data of its OWN. Juast like driving a car. A new learner always twist their neck around looking into mirrors, klooking at the stick while making a shift, jerks the cluch and slowly these movements smooth out and become subconcious functions.

Complications arise from extra data that we start feeding our mind at the very beginning, NEws/scans/price alerts/ patterns/Pit noise?/TICK/TRIN/averages/Bolinger/RSI/STOCh/MACD/3-timeframes/WATCH LIST/Indexex/currencys/ETF!!!!!!
these are so many variables - imagine a computer trying to solve an equation with these many variables. Its only a untrained - inexperienced brain of a beginner.
On top of the processing capacity, we have to manage the trade after the entry and deal with a whole slew of emotional issues.
Its just a mix for disaster.
Understanding this is important. and then coming in terms with these facts will ease our subconcious mind.
One chart, one average, one larger timeframe and simple entry-exit is the way to start this. Build stemina- upgrade your computing power, your own brain will create these algo's inside and you will get better.
Anyone can do day trading - anyone!!!! Are you listning to me WallStreet !!!
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Nicely stated.
 
Keeping the thinking growing.
Current Market SPY as an example.

I know alot of threads going around with People wanting to SHORT.
Attached is a chart of SPY Daily but with no price or time axis.
IF this was a 5 minute chart ...the question is WOULD YOU SHORT IT ???

I would not!! There is no Price action supporting it.
Momentum is strong. and UP.

Comments please.
 

Attachments

Quote from jokepie:

Keeping the thinking growing.
Current Market SPY as an example.

I know alot of threads going around with People wanting to SHORT.
Attached is a chart of SPY Daily but with no price or time axis.
IF this was a 5 minute chart ...the question is WOULD YOU SHORT IT ???

I would not!! There is no Price action supporting it.
Momentum is strong. and UP.

Comments please.
More...

No way would I short that chart!
 
Quote from ProfLogic:

Day Trading can be noisy but we have tools at each of our disposals to quiet that noise. We can either learn to use them or ignore them. I mentioned these to you in another thread. There is no element of gambling embedded inside of these learned environments.

Participation is volume. It makes no difference as to whether 100% or 5% of those trading are participating in those unique trading or investing increments; intraday, swing or position. What matters is the accumulative volume and price action taking place at any given moment on the particular chart you are watching and trading.

I will take it a step further than your comment. It takes far longer than 10 years for the average person to learn to understand how to take consistent profits from their charts the way you are learning it. It is the above average person that learns it in 10 years. It absolutely doesn't take 10 years to learn this environment using better tools. I have a 29 year old part-time farmer in my office that has been self evaluating these environments for right at one year and is consistently profitable. I have another gentleman in my office that was in a motorcycle accident and has mild brain damage and he is a consistently profitable trader and he has been at this for far far less than 10 years.

What we do is not brain surgery. It is far less complicated, unless you make it that way.

It isn't just new traders that are looking for mindless set ups and plug and play methods, everyone is. What I want you to understand is that there is a compromise point between where you think the length of time it should take to learn this and an alternative to the complicated environment you and most other traders have created for yourselves.
More...

+1
 
Quote from ElecEquity:

It's awesome that you've daytraded for 25 years, but your assessment of 1:1 risk-to-reward for intraday trading of stocks is wrong. Maybe it was right for the type of trading that you did, but in my trading for the past 4 years (currently in my 5th year full-time) it isn't right at all.

I do agree that there is much more money to be made with less activity in the longer-term.
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Your disagreement is right.

Your agreement is wrong.

I am sure handle will come back in 2 years and give a different opinion on swing-trading.
 
2-24-2011

Considering the DAILY SPY as a 5min chart. I would not enter yet.

Chart below without the price or time info. If some one would pay me to get in LONG now I would not !!!

Comments please.
 

Attachments

Quote from jokepie:

2-24-2011

Considering the DAILY SPY as a 5min chart. I would not enter yet.

Chart below without the price or time info. If some one would pay me to get in LONG now I would not !!!

Comments please.
More...

Why not? Do you know whats going to happen next?
 
Quote from Shagi:

Why not? Do you know whats going to happen next?
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Thank you for your comment.

The purpose of this thread is to experiment with some of the "illusions" that differentiate various TYPE of trading as listed in the Title of the thread.

So, I usually remove the axis information, leaving the chart open to Objective assesment.

I choose SPY not to PREDICT the market at all. In case of the chart in the last post. if you were DAYtrading and that was a 5 min chart of SOME security. WOULD you have OPENED a LONG at the close of that candle ??
 
Quote from jokepie:

Thank you for your comment.

The purpose of this thread is to experiment with some of the "illusions" that differentiate various TYPE of trading as listed in the Title of the thread.

So, I usually remove the axis information, leaving the chart open to Objective assesment.

I choose SPY not to PREDICT the market at all. In case of the chart in the last post. if you were DAYtrading and that was a 5 min chart of SOME security. WOULD you have OPENED a LONG at the close of that candle ??
More...

There are several strategies there -

1. Long on the sell off 2nd day lows with a wide stop but bigger profit pontential

2. Long at the close of the candle of 3rd day sell off with a tighter stop

3. Long on the highs of the candle of 3rd day sell off with a tighter stop but smaller profit pontential

4. Long on the lows of the 3rd day sell off on trend-interpolation of the 2 prevoius major lows - projected from start of trend on left side of chart - wide stop


Its S&P daily chart and yes one can see similar price behavior on 5 min charts heck even 2min. Its a matter of trader preference but on smaller time frames over time and a higher series of trades you will get whipsawed more often and lose more but if you can handle the whipsaws then good for you. Well I can't so I don't try.
 
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