Is day trading worth it?

[Laissez Faire]

Many day traders don't spent all their days in front of screen at all. Proper understanding of daily market cycles is the key.

Please enlighten me.

If you know in advance what the day looks like, yes, you may not have to watch the screen all day long.

Still, market hours is 0930-0415. With swing trading and EOD order placement, you have more flexibility and freedom.

 

[Laissez Faire]

A previous post summed up the question- it's worth it if you can do it. Not worth it if you can't. What a revelation.

Yeah, I guess that's a good way to put it.

Although I just wanted to open up a general discussion on the subject, it would perhaps be more accurate to compare profitable day trading with profitable swing trading.

For day trading to be worth my time, I would at least want to make a solid return on my capital and not just barely break even.

 

[lescor]

Please enlighten me.

If you know in advance what the day looks like, yes, you may not have to watch the screen all day long.

Still, market hours is 0930-0415. With swing trading and EOD order placement, you have more flexibility and freedom.

I've spent a good portion of my career only trading the open and the first hour of the day. Market opens at 7:30 am here and some days I'm already out golfing while other people are just getting to work. Daytrading can mean a lot of different things.

It can also be more or less profitable than swing trading. All sorts of methods can be profitable, one isn't better than the other.

 

[dbphoenix]

I've spent a good portion of my career only trading the open and the first hour of the day. Market opens at 7:30 am here and some days I'm already out golfing while other people are just getting to work. Daytrading can mean a lot of different things.

It can also be more or less profitable than swing trading. All sorts of methods can be profitable, one isn't better than the other.

Plus there's no law that says you can't do both. I rarely trade past noon. But I don't just daytrade, either.

 

[NoDoji]

Please enlighten me.

If you know in advance what the day looks like, yes, you may not have to watch the screen all day long.

Still, market hours is 0930-0415. With swing trading and EOD order placement, you have more flexibility and freedom.

The opening couple hours are generally productive enough that I could call it a day on most days. I enjoy day trading, though, and there are a few chat rooms to shoot the bull (or bear) if the PA is in a non-inviting phase.

 

[cornix]

Please enlighten me.

If you know in advance what the day looks like, yes, you may not have to watch the screen all day long.

Still, market hours is 0930-0415. With swing trading and EOD order placement, you have more flexibility and freedom.

Statistically, most action happens around the first couple hours after opening (different time for different markets) and maybe the last hour too.

I strongly believe many traders could avoid significant amount of their losses by just NOT trading the "wrong" time of the day. As one good trader told me once: midday is for holding, not entering.

P. S. Actually most markets are not 9:30-4:15, but rather 24/5 nowadays. Doesn't mean we should watch them 24/5, right?

 

[cornix]

The opening couple hours are generally productive enough that I could call it a day on most days. I enjoy day trading, though, and there are a few chat rooms to shoot the bull (or bear) if the PA is in a non-inviting phase.

Yea, that's what chat rooms are for.

 

[Laissez Faire]

Thank for your replies, everyone.

To bring another perspective back to the discussion, here's what a day trader wrote on page two:

So is day trading worth it? If my son came to me and wanted to learn, I would steer him to long term stocks and commodities spreads. Still have to do backtesting and develop method, but the reward to risk is much higher, much less time involved to do.

I've spent a good portion of my career only trading the open and the first hour of the day. Market opens at 7:30 am here and some days I'm already out golfing while other people are just getting to work. Daytrading can mean a lot of different things.

It can also be more or less profitable than swing trading. All sorts of methods can be profitable, one isn't better than the other.

Nice.

Do you mind saying what instruments you are day trading?

 

[Miltiadis]

If you make money it is def worth it.. Best career to have if you are successful. Do you use any outside services to trade? i.e. Briefing? Flyonthewall? TheTradeXchange.com? Options play? If you are good at those and are fast I am sure you will make money

 

[Visaria]

Laissez Faire has asked me to comment on why i no longer daytrade. I haven't read through this thread so may be repeating what others have said.

Basically (in no order, what just comes to mind):

1. Feels like a job rather than a means of becoming wealthy (or wealthier).
2. The moves in general are too small in relation to the cost (will expound on this if asked).
3. I have some suspicion that the smaller the time frame, the more random, meaningless price action.
4. I have nothing against day traders. I fully accept that some people are good at daytrading. Indeed, I am not half bad at it myself!
5. Advice for newbies:try daytrading for a few months, maybe 6 months? If you are any good, continue, if not quit.
6. I don't like looking at a screen all day long. I would rather have a life.
7. Generally, speaking, the big macro hedge funds and managers aren't where they are now by day trading.
8. Day trading feels like you are working for the markets...when you really want the markets to work for you
9. I did a study of all my trades in the past...returns from longer term trades dwarf anything i made from daytrading