Day trading is losers game

[trickshot]

Quote from oilfxpro:

Day trading suffers from spread costs which make a large % of profits , small profits /larger losses , not enough big trends intra day , noise and wind technical analysis , plenty of false breakouts and reversals , high volume trend breakdowns ,much false volatility due to economic news etc

There are plenty of false breakouts and reversals on the higher time frames too, the only difference is that you don't suffer from exceptionally high frictional costs when you trade the higher time frames.

Take the ES for example, you lose 2 ticks (spread) + comm + potential 1 tick slippage each time you enter an intraday trade, its nearly impossible to overcome such costs unless your win rate is extremely high, or at least its impossible unless we get 2-3 times the trading range we are getting now.

 

[Cheese]

Trading costs are immaterial to successful trading and are immaterial for successful day trading also.

Using CL the opportunities in each daily session follow each other just as night follows day - without fail. The essence is simple: if price starts going up you buy and if price starts going down you sell. That being so you are using probability for entries (or reversals).

Now you put in place a reliable system giving you your buy signals and your sell signals. To this you add your capability to trade with confidence.

As always, as in any serious endeavour to make substantial money, it is the few and not the many who succeed.

 

[trickshot]

Quote from PHOENIX TRADING:

Not really day trading fails primarily due to higher overhead costs than other time frames.
It really isn't all that hard to see.

It's kinda funny when you think about the HFT firms battling it out for 1 tick.

HFTs are buying at the bid and selling at the ask, they can't lose unless they are doing something wrong.

 

[PHOENIX TRADING]

Quote from trickshot:

HFTs are buying at the bid and selling at the ask, they can't lose unless they are doing something wrong.

Sure they can, they lose out to the firm that somehow can do it faster.

I can't think of a worse business model, unless your firm is top dog.

 

[PHOENIX TRADING]

Quote from Cheese:

1)Trading costs are immaterial to successful trading and are immaterial for successful day trading also.

That's the stupidest idea I've seen outside the P&R forum.

Maybe even including P&R.

 

[oilfxpro]

Quote from PHOENIX TRADING:

That's the stupidest idea I've seen outside the P&R forum.

Maybe even including P&R.

+1

The main difference between traders who run their profits and day traders is the commission and slippage.A day trader might pay spread 5 to 10 times for entries and re-entries of say 1 tick , the trader running his profits with one trade will pay 1 tick , whereas the other trader paid 5 to 10 ticks daily.The less spreads make the trader profitable .

 

[halfwaythere]

Hey all, first time poster, and this thread was really quite amazing.

It's really no wonder to me why there are so many losers in the name of day trading, just look at the rampant pessimism and negative attitudes. Trade doesn't do my way? "IT MUST BE RIGGED" What a bunch of whiny girls.

I become profitable after 3 months of trading the TF. It's not rocket science, and I don't consider myself above average in intelligence.

Those who can - do. Those who can't - put there account in mine

 

[cornix]

Quote from oilfxpro:

+1

The main difference between traders who run their profits and day traders is the commission and slippage.A day trader might pay spread 5 to 10 times for entries and re-entries of say 1 tick , the trader running his profits with one trade will pay 1 tick , whereas the other trader paid 5 to 10 ticks daily.The less spreads make the trader profitable .

Let's take an example of two trading businesses:

#1 has monthly trading cost expenses of say 50% of the profit and net ROC of say 100% per year.

#2 has monthly trading cost expenses of 10% of the profit and net ROC of 25% per year.

Which one would you prefer to run?

 

[oilfxpro]

Quote from halfwaythere:

Hey all, first time poster, and this thread was really quite amazing.

It's really no wonder to me why there are so many losers in the name of day trading, just look at the rampant pessimism and negative attitudes. Trade doesn't do my way? "IT MUST BE RIGGED" What a bunch of whiny girls.

I become profitable after 3 months of trading the TF. It's not rocket science, and I don't consider myself above average in intelligence.

Those who can - do. Those who can't - put there account in mine

That is what is good about this forum , rebuttal recruits turn up regularly.Thank Baron for this forum!

 

[oilfxpro]

Quote from cornixforex:

Let's take an example of two trading businesses:

#1 has monthly trading cost expenses of say 50% of the profit and net ROC of say 100% per year.

#2 has monthly trading cost expenses of 10% of the profit and net ROC of 25% per year.

Which one would you prefer to run?

This is theoretical rebuttal ,but has no relevance to day trading

1) has cost of 80% of sales (day trading)

2) has cost of 20 % of sales (day trend/ swing trading)