How is retail day trading anything but a gamble?

[kmiklas]

I can leverage up about 4x when markets are open (only 2x overnight). I'd like to employ the capital that magically comes available every day--which means day-trading--but how is day trading anything but a gamble?

With all the talk of resistance levels, moving averages, trendlines, etc., what stops a big player from dropping a massive trade and smashing your position?

Perhaps in the ULL world where you're first to market on everything, I can see an advantage; or, if you work for Goldman and have every advantage at your fingertips; even better, a connected hedge fund with billionaires in their golf course foursome and a trading app... yes.

But retail day-trading seems to sit in the "no-man's land" between the above and swing trading--a dead zone where no discernible advantage exists.

 

[fan27]

I can leverage up about 4x when markets are open (only 2x overnight). I'd like to employ the capital that magically comes available every day--which means day-trading--but how is day trading anything but a gamble?

With all the talk of resistance levels, moving averages, trendlines, etc., what stops a big player from dropping massive trade and smashing your position?

Perhaps in the ULL world where you're first to market on everything, I can see an advantage; or, if you work for Goldman and have every advantage at your fingertips; even better, a connected hedge fund with billionaires in their golf course foursome... yes.

But retail day-trading seems to sit in the "no-man's land" between the above and swing trading; a dead zone where no discernible advantage exists.

A few can make a go of it but the problem is opportunity cost. If I am "day trading" then I can't be working my six figure job cranking out code. I understand others have different life situations, but if you need steady risk free money, day trading is a tough racket. Now if you can automate, that is a different story.

 

[destriero]

Alas, he's getting whipped:

https://www.elitetrader.com/et/threads/im-getting-whipsawed-and-i-need-advice-opinion.341576/

PLOT TWIST! He found his Adderall in the couch cushions and had an epiphany. One short fantasy convo with his bank officer and voila!

https://www.elitetrader.com/et/threads/loan-application-why-you-must-trade-this-market.342015/

And... it's gone:

https://www.elitetrader.com/et/thre...ng-anything-but-a-gamble.345731/#post-5118369

 

[qlai]

but the problem is opportunity cost. If I am "day trading" then I can't be working my six figure job cranking out code.

To me, it’s the other way around - your job pay is not scalable. Day traders during volatility, like we had recently, can make six figures a day easy.

 

[easymon1]

every advantage at your fingertips;

What would you say belongs in a solid trading plan?
https://elitetrader.com/et/threads/what-would-you-say-belongs-in-a-solid-trading-plan.340340/

 

[Tradex]

what stops a big player from dropping a massive trade and smashing your position?

What "big" player?? And what financial market are you talking about ?

Even central banks cannot move the Forex market for any significant period of time.
And try to move the S&P 500 or the Euro Stoxx just 1 tick see if you can.

 

[SanMiguel]

That's what they do at support resistance levels, it's why you almost always see a pierce of the lines for stop hunting.

 

[Tradex]

stop hunting.

So what, we can use these stop hunting zones to make money. There are tons of Youtube videos that explain how.

 

[fan27]

Day traders during volatility, like we had recently, can make six figures a day easy.

Man...with claims like that, you should seriously consider getting into the trading education business.

 

[KCalhoun]

It's all about risk & trade management. Plus knowing how to recognize and trade specific patterns that are known to potentially work out often. Like today's LK DAL TVIX etc

Gambling would be random trading without risk management.

It also helps to use defensive strategies, eg to minimize stop hunting impact I never trade obvious s/r levels. If resistance is for example at 22, I won't buy til 22.3 to avoid false breakout etc