Daytrading drawbacks
- Thread starter MondoTrader
- Start date
...........I agree NYSE, you get the point. 
HERE'S a stunning revelation:
you sit there every day staring at the same stocks, trading them for pennies and dimes. after staring at them all day long, you MUST have some idea of who the players are and what the stock will be doing over the next couple weeks.
use that information to take longer term positions in the same stocks.
i won't lie - most of the $$$ i make comes from positions, not from daytrades. i like daytrading, and LIKE the aspect of being able to control risk and do more size than i'd be comfortable with overnight, which is the big plus of trading intraday. the bigger profits (and losses) i make by holding positions for a week to a month are supported by the smaller profits i grind out intraday.
also, if i can tell that the bigger players are buying or selling my stock, it gives me more of a bias on my intraday positions.
this has been one of the hardest things for me to learn as a trader. what has also been difficult (since for some reason I tend to be blind to trends) is keeping the bigger trend of a stock in mind. unless you are paranoid and actively look to get stopped out whenever possible, you can be a terrible trader and still usually be right if you go with the trend.
just MY .0000025
you sit there every day staring at the same stocks, trading them for pennies and dimes. after staring at them all day long, you MUST have some idea of who the players are and what the stock will be doing over the next couple weeks.
use that information to take longer term positions in the same stocks.
i won't lie - most of the $$$ i make comes from positions, not from daytrades. i like daytrading, and LIKE the aspect of being able to control risk and do more size than i'd be comfortable with overnight, which is the big plus of trading intraday. the bigger profits (and losses) i make by holding positions for a week to a month are supported by the smaller profits i grind out intraday.
also, if i can tell that the bigger players are buying or selling my stock, it gives me more of a bias on my intraday positions.
this has been one of the hardest things for me to learn as a trader. what has also been difficult (since for some reason I tend to be blind to trends) is keeping the bigger trend of a stock in mind. unless you are paranoid and actively look to get stopped out whenever possible, you can be a terrible trader and still usually be right if you go with the trend.
just MY .0000025
Quote from spreadem:
quote from bungrider :
This my friends is another drawback to daytrading. As we get so involved in the micro moves of the market we lose focus on where the current market price is ... relative to the overall trend.
amen brother
the trees are those one minute bars, and the forest is the S&P daily...
This is what I am working on:
Always keep an eye out for stocks that I want to invest in and as these stocks/ the market get cheap enough (where u see blood on the street) buy these and keep them longer term. This will only happend 3/4 times per yr. The rest of the time just daytrades.
Could a good daytrader do both strategies well enough to really make decent money in the market ? For me ~100K /yr.
Always keep an eye out for stocks that I want to invest in and as these stocks/ the market get cheap enough (where u see blood on the street) buy these and keep them longer term. This will only happend 3/4 times per yr. The rest of the time just daytrades.
Could a good daytrader do both strategies well enough to really make decent money in the market ? For me ~100K /yr.
unfortunately I feel that the overall trading game is over, the stock moves don't move enough to justify the commissions and fees. It was a good thing when the market was flying,but now with all the programs and lack of volume and momentum, only the best of the best traders can earn an average living. If your average trader was qualified in another field and if this wasn't so addictive the trading rooms would be pretty empty.
Quote from traderJ:
unfortunately I feel that the overall trading game is over, the stock moves don't move enough to justify the commissions and fees. It was a good thing when the market was flying,but now with all the programs and lack of volume and momentum, only the best of the best traders can earn an average living. If your average trader was qualified in another field and if this wasn't so addictive the trading rooms would be pretty empty.
do you have a penney broker or a 1.5cent broker, or are you still paying ticket charges?