With a job you have consistent income even if you have a bad day and you don't have to worry about a market that's consistently changing (I hear you complaining about volatility a lot).
Is day trading worth it?
- Thread starter Laissez Faire
- Start date
With a job you have consistent income even if you have a bad day and you don't have to worry about a market that's consistently changing (I hear you complaining about volatility a lot).
this site must have the most inappropriate adjective for its content
I vaguely remember, but it's been a while since I've been here. I seem to remember that I didn't follow completely. Either you didn't answer my last questions or I forgot to answer you.
If you're bored, you could repeat it quickly here if you want to. If not, I'll look it up.
Some people make money consistently day trading. Great, and more power to them. Maybe they've been successful for 6 years in a row. But we've also been in a bull market now for 6 tears in a row. Every trader knows that any gains you have now are not yours until you're completely out of the game and not trading any more. Any day you have a market position on that is marked to market, you're exposed to potentially substantial losses. So, even if youre up 15 years in a row, it don't matter if you lose it all in year number 16 doing what you've always been doing and betting large.
Traders just need to focus on what works for them. Whether that is a day trade or swing trade, or something longer term.
Having the ability to use higher leverage isn't exactly a winning strategy. It can also be the surest way to financial ruin. As for running a higher leverage day trade vs a lower one with a swing trade? If you're holding 10 lots in a day trade that you cash out with +1 tick, you make a +20 tick gain. For someone with 2 lots in a swing trade but take home +10 ticks, they take home +20 tick gain. Same or more money with less leverage. Ultimately its about taking home the $ however its done. There is no right or wrong method. Swing traders are not inferior to day traders. In fact, day traders fear the most because they fear market risk from overnight events. Actually, overnight events often present the best opportunities. There are times when overnight markets gap leading to substantial gains that you can't hope to realize and catch during a day trade in normal trading hours. Something to ponder about. You risk a lot every day using maximum leverage in a day trade, vs someone using less leverage in swing trades and has lower execution costs.
that bring us back to the 'edge'. one better have it. the edge that been correctly(IMO) described by pauk. as i said many times before- the edge to me is a either technological ,regulatory or any other advantage over other participants that basically guarantees profits. and it has to be big enough to provide all above described by austinp. then it worth it. chances to find one in this particular field for retail trader in current market and regulatory environment? i agree with Mav here. chances are very close to ZERO. and as he perfectly explained in some other thread-one have better chances to exploit inefficiencies in some other places. such as healthcare for example. his post where he compare PC industry with trading is literally an eye opener for me. i'm trying to get into the different field as we speak.
i use to have the edge. it was simple ability to be ahead of a big players in the plays that are small enough for them to consider. combined with constant stream of new technological features and markets from IB it worked very well for me. but slowly and surely big boys eventually did catch up. back in a day to me trading goes like this-it's wasn't a question if i'm going to make a money or not. the only question was-how much.
TA? i have not seen a trader,who performed well each and every day for very long period of time thru bull and bear markets.
to earn more than most in any profession you need an edge obviously. i doubt that many who earn well really are even aware they have the "edge" so many here talk of...they just are too busy going forward doing better than others around them.
i have said here before, despite what others here say about success rates; to actually out earn your needs imo is worth the hard work and luck to find that so called edge.
You leaving trading to go into the PC business?
yeah..going to invent and produce a totally new PC
great industry with a lot of inefficiencies to be exploit
and no competition btw
on serious note-looking to get into a software company in healthcare sector
You missed or purposely dismissed the assumption of "all things being equal" as the qualifier there.
Tell Lescor he could as easily work his prior firefighter job for a "consistent" income these past seven - ten years instead of what he's made from trading. Send him that PM, and see what he has to say.