In your opinion/experience, what are the most succesful trading styles/methods etc.
- Thread starter Savoy
- Start date
Diego, very true, with Pattern day trade i only have 3 day trades based on how much capital I have right now. On the bright side, this will help me not "overtrade" what are your thoughts on that?
As far as papertrading being different, I agree...however, I have always been relatively objective when it comes to sports betting etc, I tend to not get too emotional. Also, to counter act emotion, I want to build a system based from my papertrades and then use it exactly the same with real money...no exceptions. I will only make changes that I believe will improve my success ratio and dollar win/loss ratios.
Basically what I am getting from your perspective, is that swinging might also be my best option versus daytrading, solely based on undercap?
The most successful trading method is the one where you have a probability of profit, and that you are psychologically able to trade. The biggest problem with daytraders is they tend to overtrade--jump on trades with no reason. It's also difficult to recover mentally from the intensity of a trade, leading to execution mistakes after even a good trade. Most people coming from school have a belief that one must work hard to succeed. This leads to an attempt to extract every nickel from the market by pushing buttons and making trades. Try to find one pattern a day or over a couple of days that you would agree with and just do that. Then try to execute it over and over. In the meantime you will discover your psychological issues. Then try to do it with real money.
Love your response, reminds me of the fundamental principals of great traders...
Since I am going to be undercapped, i am going to have to deal with only ~3 day trades per day--since this is the rule...this should keep me from overtrading.
However, from the tone of your message, it sounds like you might advise on swing trading instead? What are your thoughts, would love to hear this.
Yes Diego, even Sim trading is dif than paper trading. Handling the psych. of trading was the hardest for me. What I've heard over and over the past two years is find a trading model and an instrument and stick with it. Also finding a trading community that you can go to for advice and input has helped me tremendously.
Find your own path, there are as many ways to trade as there are traders. Take what you read on these forums with a healthy dose of skepticism. Any ideas for a trading plan whether third party or self-generated (ultimately, this is what you want) have to be thoroughly tested for efficacy and it has to fit your personality traits.....and be prepared to work on behavior as that is where the rubber meets the road.
I don't think it's that important about time frame. It's more important in the beginning to find a pattern that repeats in the market. If you say I'm only going to do three trades a day then that pattern has to be trade able in one market three times a day. Very rare. You can trade multiple markets, but that's not really a good idea right now. You can watch other markets, which I recommend to see how they all fit together. Or not. Try to define support and resistance in the market you want to trade, for starters. Is the market going up, down, or sideways? On daily, hourly, and smaller time frame. The swing trades that work for me are when the hourly wants to resume into the daily trend. A daytrade would be when say a 15 min. Wants to continue into the hourly. I almost always trade only one side of a market, as was recommended to me by a well known woman trader. It keeps it simpler and I'm forced to look for the daily trend. If you do that for awhile I think you will make some progress.
Capitalization is the the least of your problems. Finding/defining edge and perfecting execution of it are your major roadblocks. Most don't make it. It requires diligence and observation beyond what the average person can handle
This is critical. Unfortunately, it can't be done properly without getting kicked in the balls repeatedly
Daytrade leverage/options. go all in. -- and repeat. only one big trade per day required.