Is Daytrading difficult or impossible ?

comagnum said:
The problem is fund managers get paid no matter what. Virtually no mutual fund managers ever have their own $ in their own funds. Some hedge funds have skin in the game - they usually do better.

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comagnum said:
The problem is fund managers get paid no matter what. Virtually no mutual fund managers ever have their own $ in their own funds. Some hedge funds have skin in the game - they usually do better.

http://www.institutionalinvestor.co...game-outperform-study-shows.html#.WV9hm1G1thE
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Agree ,and amen when one gets paid on the gross, net profit may not be real important to some.LOL I thinks its about 20% beat it; 80% DO NOT beat the benchmark S&p 500.
Other problems include;
[1] SPY includes commissions , slippage in price, most benchmarks do NOT.....
[2] Much easier to do something one year or 2 years + fail to do it 10 years.
[3]Most long only mutual funds stay real heavy invested on a % basis ;panic sellers force sales, even if they did not want to=LOL
[666]Some funds [appear to]do better because they switch benchmarks real often; @ least they disclose that in a 777/+ page prospectus LOL...........................................................
 
toc said:
But year after year, most of the fund managers lag behind the index returns pre or net of the fees. what are the main reasons?
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Let's see, SPY returns ~8% a year on average, 1 sigma ~10% so 1 sigma is ~+ - 7.2% a year. If a fund average expense is 1% + commission and slippage of ~0.1%, and they overall achieving average SPY returns, the net return would be 6.9%.

So, if mutual funds made up the majority of the market, 75% of funds will perform worst than average SPY return, no matter how hard they try.
 
I'll change my vote to 'impossible'.I don't know how to do it on short time frames.I said 'difficult' because I'd like to think someday I'll think of something but intraday I have nothing.
 
Mtrader said:
No you should not change your vote. It is difficult for you but that does not mean that it is impossible. At this moment it is impossible for you.
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Well said sir.

ET has two brigades, "It Can't Be Done" and "There's Only One Way".

It can't be done they define as "I couldn't do it so it can't be done" = impossible, and there's only one way they define as "This works for me so it's the only way".

Bollocks to both.

I'm hopeless at day trading, I just hate the immediacy of the losses I take. I have no problem taking losses of the same value when I swing trade. I suppose a psychologist could sort me out, I mean losing is losing, what difference does it make if it happens in 20 minutes or tomorrow as long as the win rate is the same, but I hate 20 minutes.

Yet I know people who successfully day trade, one a lady who only does CL. She'll take a big loser and get it all back and more with a string of winners. I look and shake my head, I couldn't put up with all that. The worst part is she finds it all boring so nowadays she doesn't trade as she prefers to spend time with her cats and other stuff. Sheesh.
 
justrading said:
It can't be done they define as "I couldn't do it so it can't be done" = impossible, and there's only one way they define as "This works for me so it's the only way".

Bollocks to both.
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Exactly. People can only judge on their own experience which is limiting the validity to just that 1 person. I cannot play golf, football or tennis, so it cannot be done?

justrading said:
I'm hopeless at day trading, I just hate the immediacy of the losses I take. I have no problem taking losses of the same value when I swing trade. I suppose a psychologist could sort me out, I mean losing is losing, what difference does it make if it happens in 20 minutes or tomorrow as long as the win rate is the same, but I hate 20 minutes.
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I understand your problem very well as I had the same problem for a few years. Tried everything to remove the psychological block, but without results. Till the they I managed to have very high winning rates and very small losses. That boosted my confidence enough to overcome the psychological block. I would never be able to trade with 60% winning rates and a 2:1 ratio profits to losses.
Did a few things like Neuro linguistic programming and other stuff, visited psychologists and even psychiatrists. Nothing helped. Psychological blocks are very hard to remove. I daytrade a mathematical model but have to push the button manually for each entry and exit. So mentally can be very difficult.

http://academictips.org/blogs/the-elephant-rope/
 
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