I'm daytrading futures now...
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Forex Daytrading a Losing game?
- Thread starter GaryN
- Start date
Quote from sakhter:
Already gave up "BANG" options?
http://www.elitetrader.com/vb/newreply.php?s=&action=newreply&postid=2583329
Quote from increasenow:
IncreaseNow's "EXTREME-HIGH ENERGY" Trading Journal...WELL...here it is...thanks to many for the encouragment to do this all in 'one place'...my trading journey will be 'mostly here'...
As of 9/22/09 @ 2:42 CST I am into trading Futures! They are awesome!!
I love trading with the Global Strategy Trader (basically the same as Strategy Runner)...it rocks!
Gonna be zoning in on trading:
ES
Comex Gold
CME Euro
Corn
Soybeans
Wheat
DAX
FTSE
...for now....will keep all updated...thanks for the encouragement to start this journal in one place...
Of course this is as of Tues 3:42. Tomorrow does bring another day and another "asset" class. If we had a stamp or coin section here on this board, you bet your ass he would be trading those in "real time" as well.
Quote from Kassz007:
Slapping an RSI under your price chart and selling when the line crosses into overbought will not make you money.
true. Too many twnds of thousands+ newbie traders usually start this way and fail. If that easy, all the investment banks and hedge funds would be doing this.
Knowing and understanding proper TA and how to use it will make you money.
Maybe. Any profitable method STILL has to show some kind of predicable outperformance effect on the instrument being traded.
If traders stopped using things like this based on belief, opinion, intuition or feel, and instead, learned to backtest their concept over a long time and then live walkforward test it over a sufficient time period, they would either see it has no value, or perhaps is worth further consideration.
Too many traders read about something like MACD, and somehow think it must automatically work.
Slapping an RSI under your price chart and selling when the line crosses into overbought will not make you money.
true. Too many twnds of thousands+ newbie traders usually start this way and fail. If that easy, all the investment banks and hedge funds would be doing this.
Knowing and understanding proper TA and how to use it will make you money.
Maybe. Any profitable method STILL has to show some kind of predicable outperformance effect on the instrument being traded.
If traders stopped using things like this based on belief, opinion, intuition or feel, and instead, learned to backtest their concept over a long time and then live walkforward test it over a sufficient time period, they would either see it has no value, or perhaps is worth further consideration.
Too many traders read about something like MACD, and somehow think it must automatically work.
Quote from TraderZones:
Quote from Kassz007:
Slapping an RSI under your price chart and selling when the line crosses into overbought will not make you money.
true. Too many twnds of thousands+ newbie traders usually start this way and fail. If that easy, all the investment banks and hedge funds would be doing this.
Knowing and understanding proper TA and how to use it will make you money.
Maybe. Any profitable method STILL has to show some kind of predicable outperformance effect on the instrument being traded.
If traders stopped using things like this based on belief, opinion, intuition or feel, and instead, learned to backtest their concept over a long time and then live walkforward test it over a sufficient time period, they would either see it has no value, or perhaps is worth further consideration.
Too many traders read about something like MACD, and somehow think it must automatically work.
Indeed. Which is why the 90%+ of traders fail statistics that people throw around are bogus. That statistic may or may not be true, but even if it's true, it doesn't mean anything. You have Joe Blow come into the market and sell everytime his RSI says overbought. Shockingly, Joe Blow blows out his account in a month and quits. He's considered a failed trader. Does this mean that most traders CAN'T win? Or that most traders won't put in the necessary work to win?
Quote from Kassz007:
Indeed. Which is why the 90%+ of traders fail statistics that people throw around are bogus. That statistic may or may not be true, but even if it's true, it doesn't mean anything. You have Joe Blow come into the market and sell everytime his RSI says overbought. Shockingly, Joe Blow blows out his account in a month and quits. He's considered a failed trader. Does this mean that most traders CAN'T win? Or that most traders won't put in the necessary work to win?
The latter. People are looking for the quick buck without the work.
Quote from GaryN:
I keep running across articles like this:
Having been a forex trader for 25 years it amuses me when I see writers defend day trading. They say it really can make money! - Of course they have no track record to back it up just empty words. Fact is you are guaranteed to lose in day trading for one simple reason:
All Movements in Short Time Frames Are Random
Trillions of dollars trade hands each day and million of traderâs trade, all with different objectives and opinions and to say that you can predict what they do in a few hours or a day, is ridiculous. You canât.
Volatility takes prices anywhere in a day and support and resistance levels are meaningless, so you would have the same success rate flipping a coin.
Itâs absolutely impossible to get the odds on your side â PERIOD
This is of course why you NEVER see any of the vendors selling these systems give you a real time track record â Why?
Because they donât dare trade it!
They would rather write some enticing copy and appeal to the greed and naivety of traders and make their money selling you the system â they win you lose â period.
But I have seen a track record you may say and yes will have, but itâs NOT real.
If you check the disclaimer on it you will see there all hypothetical!
What does that mean?
It means done in hindsight knowing the closing prices!
Now who canât do that itâs not exactly hard.
If we all knew tomorrows price today we would all be millionaires but we donât â and neither do we know what will happen tomorrow, so there not worth the paper their written on.
Day trading is a good story but the logic doesnât add up and the biggest lie about day trading is you can make money at it longer term.
If you could you would see a track record or the vendor would shut up and trade it himself and not need your few hundred dollars.
If you want to win
Appreciate that trading is an odds game and to trade the odds you need to trade over longer periods, where the data is valid and you can have a chance of getting the odds on your side.
Finally
Donât day trade, get real and trade with the odds on your side.
Article Source: http://EzineArticles.com/?expert=Kelly_Price
I am exploring currency trading and after watching for a couple of weeks it does appear to me that currency fluctuations are more random than stocks and indexes. The books I have read are almost unanimous in saying that you must trade longer term to be successful in the currencies. Does anyone have links to traders who are daytrading currencies profitably?
gary,
Charts are not random, on any instrument or timeframe, u see, theres all the different players on all the different tfs...... and of all those different players some are weak and some are strong..
not that I dont believe money can be made intraday trading fx, but can you briefly explain how, without benefit of hindsight, you know which of the 100 different patterns each fx pair will respect next?
There are a lot of ways to make money but I think your explanation does not really support such claim. Sure, I can look back and draw all kinds of angles, circles, and what have you, but none of those patterns may repeat itself again in the same month or even year.
There are a lot of ways to make money but I think your explanation does not really support such claim. Sure, I can look back and draw all kinds of angles, circles, and what have you, but none of those patterns may repeat itself again in the same month or even year.
Quote from Anekdoten:
I think it's baloney, perhaps it does not offer as frequent good setups in comparison to the e-minis because FOREX is a bit more erractic, for a lack of a better word, but a chart is a chart.
Here is a recent intraday chart of the EURO/USD Pair and I see two perfectly working common patterns in a single day.
Anek