Daytrading leads to Inevitable Failure? Is Swing Trading the only Viable Path?
- Thread starter heynow
- Start date
Ah yes, I see. You trade extreme pullbacks in one direction even though they can go either way. Now that makes sense.
Very nice post! Kudos....
I actually day traded stocks/ETFs but no prefer FX due to the ability to both day trade and swing trade accordingly...still getting used to controlling my execessive leverage usage tho.
I personally feel that swing trading is a safer option - as long as you ONLY trade hardcore strong trends...
GL!
I can vouch that it is: www.collective2.com/go/pairsqidqld
Not to mention that it's a whole style of trading that is very easy to get use to if you have faith in your own research. I certainly don't have any respect for discretionary trading, b/c there isn't enough evidence for me to believe that discretionary trading works. All of the c2 gamblers I've seen with no plan have failed. That site is as close as you're going to get to seeing how well you can do on your own compared to mechanical systems.
Swing trading is about finding signals that you sift through sufficiently in at least an hour after the close anytime. You take your position the next day based on what you think the market's going to do <i>the day after, not the day of your entry</i>, and that's the biggest factor that goes into succesfully swing trading. It's not just about picking your spot to enter, but about sufficiently guaging the move <i>the day after</i> that will lead to success swing trading. This is the best explanation of how to be succesful swing trading that you're going to find. I'll admit, I'm frequently down the day of my entry, but I don't let it run against me, and I don't panic sell. The next day is usually when I'll be presented with my out, and could occur as early as on the open the next day after my entry, or a couple day's after before I'm proven right. You can make at least $100k in a day if you're really willing to risk $25k on a trade, which I'm assuming is somewhere near your stop loss.
EOD daily systems produce larger profits, and, as long as you win both at least 60% of the time and your profits are sufficiently greater than your losses, you can win.
On the intraday scale is for algo's and market maker's playing volatility trades arbitraging out the few tenth's of a percent of market inefficiency to revert back to equilibrium. Daily systems allow you to summarize the market and pick a direction. This is more like what a person with a job is capable of doing.
It's doubtful, though, that discretion will succeed at this scale. Putting in the time to find that edge is needed.
But if you're making $600/day (hmm, over how long? A year?), and risking $75k in any time period given these returns per day doesn't sound particularly appealing, so I would understand why you'd want to try something else.
The mountain of cash was enough to convince me, but I guess that's not enough for you.
Discrectionary traders post daily on the p/l thread. I have left nearly 4 years of blotters there myself. If you have no respect for us, that's fine as we have no respect for you.
I guess we should have put all out trades through on your dungeons and dragons site.
i have traded with folks that make consistent money with systems like intraday and/or swing pairtrading or even simple tight stop turtle trading and those that are more discretionary, using a slew of indicators to determine the moves with each indicator having more or less weight on any given day or even changing throughout the day. seems like it takes a special breed to do discretionary trading well, waaaay right brained.
the succesful system guys that i know tend to be a tad more consistent but both types can definitely make heaps of cash.
either way, best of luck whatever you do.
the succesful system guys that i know tend to be a tad more consistent but both types can definitely make heaps of cash.
either way, best of luck whatever you do.