Of interest to me would be traders that spend less than two days in any trade.
optimal time, and of primary interest to me would be for trades lasting entry to exit for a duration of minutes = .1 to 100 minutes. That'd be 6 seconds to an hour, rarely two hours.
Now for my rude question:
Have you seen anyone use *anything* to trade successfully?
Timeframe?
Method(s)?
Poduct: futures, stocks, options?
View attachment 207997
Sorry for taking a while to respond, and NP -- not "rude" to ask at all. Will do my best to respond...
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My own main interest/focus is daytrading (no overnight holds) using stocks... so that's mostly what I’ve seen directly, and am able to describe in relation to your question. And which kinda fits with your duration of interest.
As far as narrowing it down to the specific, optimal time of focus you mentioned (< 2 hrs), I’d probably generalize “*what I’ve seen* work" under two categories (made up my own names):
“Momo” scalpers
Description: “Vertical" type traders who play gappers or stocks-in-play (SIPs) (due to some type of catalyst). (Note: My experience is mostly with long-side traders, although have seen others who short or play both long/short.)
Timeframes: 1’/2’/5’ plus daily S/R
Trade Duration: mostly 15 sec - 5 min, up to maybe 30 min
Method: “Scalping” fast moves on momo stocks using simple TA*, simple PA** and basic Level 2/tape reading. Defensive management focused more on protecting entry and getting trade to break-even or better by locking in partial profits on way up and aggressively raising mental stop to breakeven as quickly as possible. So not very "systematic" on taking profits per se, other than PA, chart "targets" and L2.
Product: mostly lower-priced, low-float stocks (though not exclusively -- can do pricier stuff under certain conditions)
Tools/indicators: conventional candlesticks & volume; MAs (i-day & daily); VWAP (occasionally); Level 2/tape; other***
Discretionary TA/PA traders
Description: Discretionary traders who play gappers, SIPs, or stocks with 60’/daily patterns
Timeframes: 1’/2’/5’/15’ plus 60’/daily/weekly for longer TF bias, MTF alignment and S/R
Trade Duration: mostly 2 - 30 min (?), but up to “all day” depending on management and what stock does
Method: Using some combination of simple TA* and simple PA** to trade stocks that have some kind of higher TF catalyst or pattern which establishes directional bias. Mostly R-based management (using technical stop) for timing and initial targets, but often trailing back portions. Methodical hard stop adjustment, either R-based or technical (e.g., pivots).
Tools/indicators: conventional candlesticks & volume; MAs (i-day & daily); VWAP (occasionally); Level 2/tape (occasionally -- mostly for specific applications); other***
(I was originally gonna mention “pure scalpers” as a third category, but my experience with those has been more anecdotal, second-hand (albeit from people I trust).)
* “Simple TA" = basic S/R, trendlines, candle patterns, MAs, multiple TF alignment, etc. NOT “Bukowski-ish” patterns or “Nison/Bigalow-ish” candlesticks. Have seen some individuals seem to successfully use other indicators like RSI, MACD, etc. to help them time entries/exits.
** “Simple PA” = basic PA, NOT “Al Brooks”-level PA
*** "Other" = miscellaneous factors, rules-of-thumb, etc. which provide additional (but important) context to the trade. May include: individual stock characteristics, overall market environment, market behavior, seasonal factors, time of day, etc.
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And then of course, they do all the other (harder?) stuff right — have clearly defined plans/setups, stick to the plan/follow rules, control risk, money management, emotional management, tracking/stats, etc., etc.
Hope this answers your question. Did you just get back from vacay in the Caribbean, lol? Like the "in-character" mode! Have a great long weekend, and stay safe in you're in the Dorian area...
