Daytrading drawbacks

spreadem · Feb 24, 2003

"The hourly return is lower than someone working in MacDonald's."

Not so ... If I consistently trade using the edge and with discipline I can buy a MacDonald's franchise.

Also 100,000 pounds should be used to decrease overall risk per trade, rather than excess leveraging

MondoTrader · Feb 24, 2003

you see Seth, there is always a new one coming in to take the place of those that leave

Wappers2 · Feb 24, 2003

Quote from spreadem:

"The hourly return is lower than someone working in MacDonald's."

Not so ... If I consistently trade using the edge and with discipline I can buy a MacDonald's franchise.

Also 100,000 pounds should be used to decrease overall risk per trade, rather than excess leveraging

You want fries with that?

spreadem · Feb 24, 2003

You want fries with that?

I bet you for every french fry in your happy meal, I'll make more profitable scalps this week than nonprofitable ones.

It's a numbers game when you have a strategy ... see.

Wappers2 · Feb 24, 2003

So do you want fries with that then? Supersize it?

Magna · Feb 24, 2003

Quote from Wappers2:

So do you want fries with that then? Supersize it?

Let's try and stay on topic, please. Thanks.

spreadem · Feb 24, 2003

Getting back to the subject ... daytrading has many forms. There are those who daytrade just for the action, experimenting with several different strategies. Such an one was I. After many months of losing I found something that worked.

Herein lies a major drawback ... finding the right combination of markets, strategies, risk parameters, trade frequency, trading equiptment, etc that works for you. Most of the time finding that combo is quite expensive.

Wappers2 · Feb 24, 2003

Quote from spreadem:

Herein lies a major drawback ... finding the right combination of markets, strategies, risk parameters, trade frequency, trading equiptment, etc that works for you. Most of the time finding that combo is quite expensive.

Good point. Part of the problem always was (and always will be) position sizing. Keep it small suckers, until u know what u r doing....

spreadem · Feb 25, 2003

Part of the problem always was (and always will be) position sizing.

Which brings up another fallacy in the world of daytrading. Many discount brokers give their clients a "daytrading margin". This give the impression that it takes less money to daytrade than it does to position trade. Many a novice trader will take the bait and overtrade, thus blowing themselves out of the market.

My point is that because daytrading ( as promoted by brokers ) lends itself to overtrading then we have a trader who can't win. If said trader will use the same position sizing philosophy as the pros use, he(she) gives themself a chance at success.

Ron In-a-sauna · Feb 25, 2003

yeah dude, i could still be playing golf right now if i had just bought in 91, held, sold beginning of 2000, then putting a short on and leaving it, maybe covering last october and back in the chair now after 12 years. sweeet!

Daytrading drawbacks

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