Daytrading or Swing Trading or just trading

[amtrak]

Without hijacking the thread,
I'm interested in a slightly expanded question.

Am I correct in my gross generalization that:

1) Non-discretionary (automated) trading of futures has a potential of 30% annual return on money risked,
with the potential for both large drawdowns and occasional large trend-following profits;

2) Discretionary swing trading of equities has a potential of, say, doubling the S&P 500 return on an annual basis,
with the additional potential of some homeruns;

3) Discretionary daytrading of equities or futures has a greater return potential than either of the above
(and I'll be able to sleep at night by being flat)?

 

[lindq]

Quote from amtrak:

Without hijacking the thread,
I'm interested in a slightly expanded question.

Am I correct in my gross generalization that:

1) Non-discretionary (automated) trading of futures has a potential of 30% annual return on money risked,
with the potential for both large drawdowns and occasional large trend-following profits;

2) Discretionary swing trading of equities has a potential of, say, doubling the S&P 500 return on an annual basis,
with the additional potential of some homeruns;

3) Discretionary daytrading of equities or futures has a greater return potential than either of the above
(and I'll be able to sleep at night by being flat)?

The very concept of "potential" in trading is meaningless as regards the value of a trading style or strategy. In any strategy, your "potential" for gains is unlimited. As is your "potential" for massive losses.

If you are trolling for ideas on what you should be pursuing, the most important factors are what fits with your personality, and your resources.

 

[sunggong]

Why generalize anything in this profession...unless you want to be just another mediocre trader???

Stereotyping and generalizing will only limit you.

Quote from amtrak:

Without hijacking the thread,
I'm interested in a slightly expanded question.

Am I correct in my gross generalization that:

1) Non-discretionary (automated) trading of futures has a potential of 30% annual return on money risked,
with the potential for both large drawdowns and occasional large trend-following profits;

2) Discretionary swing trading of equities has a potential of, say, doubling the S&P 500 return on an annual basis,
with the additional potential of some homeruns;

3) Discretionary daytrading of equities or futures has a greater return potential than either of the above
(and I'll be able to sleep at night by being flat)?

 

[jenek-cowboy]

Quote from sunggong:

Why generalize anything in this profession...unless you want to be just another mediocre trader???

Stereotyping and generalizing will only limit you.

very wise words

 

[gaj]

i (almost exclusively) daytrade.

i find it works best for me.

what works for me won't necessarily work for the next person, and vice versa. the (non-equity) traders i know generally have a core longer-term position, but will trade short-term for scalps. i've read it working in equities as well.

 

[luckyluciano]

Quote from gaj:

i (almost exclusively) daytrade.

i find it works best for me.

what works for me won't necessarily work for the next person, and vice versa. the (non-equity) traders i know generally have a core longer-term position, but will trade short-term for scalps. i've read it working in equities as well.

I've been swingtrading in & out of TBSI all of 2007. This stock is up approx 1000% going back 1 year. I should have just bought & held this stock and good night Louis!!! How many daytraders or swingtraders make that kind of return?

Lucky wants to get luckier!