Quote from bighog:
Who has looked into there average daily "take" from the days range?
A good well disciplined day trader with an "EDGE" defined and constructed by that individual only should be able to average approx. booking 1/2 of the daily range. That includes all whip-saw days that can be rough on the best of us. What douses the bad days are the runner (trend) days where we get more than 1/2 the intraday range.
Anyone that can get a consistent 1/2 booked on average is a really good trader. The key to hitting that nut is understanding what worked yesterday is out to fool you today. There are only a very select "action" moves that work for whatever your 'edge" is. Momentum works for me while chop eats me alive if I try to outsmart anything but momentum runners. True, at times the daily range can get rather punk which must be considered. (there are other toys to work in times of slack though if desired)
The days we get a bunch of handles, ticks are sweet, the days we see less workable moves are not to be discouraging because we know the average will be ok. The good news about tough days is we no longer give back profits, like in the beginning where a weeks charmed trading got trashed by being a fool.
An interesting stat would be if anyone that has been showing consistent profitable trading can feel good by knowing "ON AVERAGE" their trading has improved by booking larger and larger amounts of the days range............Not the amount of money made, that can always be improved by adding cars. But real improvement.
:eek:
