1000% accurate, i used to think i was successful in the first 8 years, until tax returns came around and i find out i lost money overall
Day Trading for a Seasoned Swing Trader
- Thread starter systematictrader
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1000% accurate, i used to think i was successful in the first 8 years, until tax returns came around and i find out i lost money overall
Man, I hope to change that in a year. I...I see things. I see trades, and they don't even know they are dead (lol, sorry! bad!)
I don't even think this far. I'm talking seconds really. Its like when you see the DOM, and lets say you have 500 at each level. Then out of nowhere, bam, an order for 3000-4000 lots comes in and clears a few levels in seconds. Truth be told, I don't even know what is happening at the micro second level. I'm sure those resting orders probably can move out of the way in even a matter of a micro second, but still, you get the point. Its a way to see what orders are real perhaps. Of course you have many firms that can, for a few seconds, push through thousands of contracts to move it up or down 4-8 ticks, and if they start playing with eachother, who knows how that turns out. But this is what I mean.
If its anything like even a minute, I wouldn't consider this HFT firms but simply the regular grind of trading. So often you see price move for the first 30 mins in one direction, and then right around 10, the real move starts.
The thing with day trading is also this. (and keep in mind I don't have it all figured out) But where you doing swing trading might be looking for trends, in day trading, I'm not sure that this is the best strategy. How often are we actually trending in any given 2 hour period, or even the 6.5 hour day? Most day traders are looking to get their little slice and move on. If your strategy would be to try and get 10 points, well, good luck to that. Many days you would probably have nothing, and maybe some days you get your 10 points. Contrast this with maybe making 2-4 points per day, but every day (on average of course for the winning days). When you consider this, then clearly looking for trends isn't the strategy they are using, but more so, higher probability reversal setups, or even continuations after a retracement of a certain length, etc.
Be aware of a potential problem in trying to integrate one time frame with another. Specifically, much of your success in swing trading is likely due to having your attention drawn away from the markets while involved in other activities. Day trading will draw you into all the market fluctuations and emotional challenges you don't experience now, which may in turn also impact your swing trading. So...don't assume a cake walk of a transition. But good luck.
i think my biggest challenge is going to be knowing when NOT to play, something i dont have to worry about in swing trading since i ALWAYS play every hand
Is it possible to fully systematize the trading process where no thinking is involved in day trading or during trading hours, not saying i wont be present, but more so is it possible to set in advance well defined boxed up rules where if x occurs do this, if y occurs do that, or are there too many variables in day trading where its too difficult to fully systematize and structure its rules to the point there is no thinking involved?
Yes... I think this a tough one. Since getting stats or trade call from people in not possible, seeing what others do is a challenge. But after scouring the forums for years, and seeing bits and pieces, I've come to think that years of experience helps many traders. There is something to be said about how certain days look/feel that is difficult to code I think. So although its true that you never know what will happen next, or which trades will work and which won't, the discretionary traders with years of experience I think do have a sense for this.
Now perhaps this isn't the type of thing where you say "i think this level here will hold", because I can't believe how often I'm wrong, but more so perhaps based on direction, such as "today I'm only going to look for longs". Even if a short sets up perhaps, you skip it in favor of only looking for longs.
Clearly the absolute best thing to do is to sim trade, in real time, make careful notes about trades you take and trades you skip and see if there is actually a statistical edge to your intuition vs. not.
sim trades i assume means demo trades?
and yes i see what u mean on the discretionary trader getting a sense for the market, i never had that edge and i dont know if i do, when ever i in the past was trading discretionary (and losing money) and i formed an opinion or a feeling or an idea, it was as worthless as the used toilet paper, at least in trading terms, however things couldve changed now, we will see
Rufus, it seems like you are all over the place. In just a few threads I've read you're asking for help in a bunch of different areas.
If you make so much money swing trading, why do you act cluelesss in regard to day trading? Between this and several other "red flags" something just doesn't quite add up. Anybody agree?
If you make so much money swing trading, why do you act cluelesss in regard to day trading? Between this and several other "red flags" something just doesn't quite add up. Anybody agree?
Daytrading is different from Swing, you just want to jump on current direction when therevis strength, ride it as long as you dare or till it starts to turn and repeat.
Easier than Swing but timing is everything, no time to think, i hesitated just, missed an entry would of made $50 in 3mins, wanted tad lower.
$50 in 3 mins works nicely for me.
Easier than Swing but timing is everything, no time to think, i hesitated just, missed an entry would of made $50 in 3mins, wanted tad lower.
$50 in 3 mins works nicely for me.