Is day trading worth it?

AdrianHagh81 said:
so your describing an online machine learning algo, ive experimented with those but still prefer to do manual adjustments on my systems.
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No not an online earning algo. I created a system myself and defined all the rules. The machine should check all the time which rules should be applied. He proposes me the optimal setup, but I decide and execute. The machine does not place any orders. I keep control of everything.
 
Laissez Faire said:
Okay. I'm curious about that as well...

I made over 100% on my risk capital on my recent long-term trade that lasted me 5 months where I virtually did 'nothing'.

In a day trading position, my working hours would be at least 500 hours during the same time period.

So, I'm thinking that with the added stress and extra hours put in, it would not be worth it unless my return was at least better than 100% by a wide margin.

That's why I'm also curious about the return from the gurus in this thread. Being profitable is simply not enough. You need to look at the alternative cost here. Some people park their money long term in an index fund and is infinitely better off in the end than many day traders who assume huge risks and barely break even if they're lucky.

I think it's possible for a few to be very successful as a day trader, but for those who are merely grinding it out, win some, lose some, I'm thinking it is probably better to simply invest their money in an index fund and do something else with their time.
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Do you honestly think 100% returns over 5 months are consistently achievable. All it takes is one bad earnings report to halve your money.

That's why daytrading is better as you can diversify much more and you don't suffer from overnight news announcements. A solid strategy offers at least some kind of consistency, putting 100% of your equity into one company is very very risky.
 
marketsurfer said:
http://www.jamesaltucher.com/2010/11/8-reasons-not-to-daytrade/
8 reasons not to daytrade
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And when you follow the link there is a lot of publicity for things Altucher is selling. And believe me according to him these things he sells will work!!!
Altucher stopped as a daytrader so he was a loser. And like Marketsurfer he also knows many stories about all these daytraders that lose everything. But you never read a name or address so that you can check their stories.
Traders trade, writers write. This is confirmed again.
 
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There are days when you should be day trading and then there are days when you shouldn't. I have no idea atm how to distinguish between the two, so i don't bother day trading.
 
Visaria said:
There are days when you should be day trading and then there are days when you shouldn't. I have no idea atm how to distinguish between the two, so i don't bother day trading.
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The first sentence is not correct. The word YOU should be replaced by VISARIA. You cannot make a statement saying what others should do, you can only speak for yourself.

PS: your statement can be applied on anything. LT there are moments too it is better not to trade for some people. Even in business there are moments you better not start a certain kind of business. Your statement is not exclusively for daytrading.

But I respect your opinion. Everybody should decide for himself what to do, or not to do. And use common sense.
 
d08 said:
Do you honestly think 100% returns over 5 months are consistently achievable. All it takes is one bad earnings report to halve your money.
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Yes. Why not?

d08 said:
That's why daytrading is better as you can diversify much more and you don't suffer from overnight news announcements. A solid strategy offers at least some kind of consistency, putting 100% of your equity into one company is very very risky.
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Assuming a solid strategy, yes. Easier said than done, perhaps?

And how much does a solid strategy pay you?

I'm thinking day trading can be VERY profitable for the few who really master it. But for the rest of the crowd who's barely breaking even and don't even beat the market indexes after busting their ass off and assuming a ton of risk, it's probably not.
 
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