Is it dangerous to be completely out of the market

kashirin · Mar 20, 2020

trdes said:
No one can answer this question for you. If you mainly day trade, does it really matter if the market opens up or down? You can always adjust your chart size and position size based upon where the market is and how it's acting(that's what I do as I only day trade)

If you think or know you won't be able to day trade it properly if it goes way up, than you have to decide if it's worth buying some here or not.... but you said you usually day trade if you bought here long term, that would be more like investing?

Because cash is no different from other asset class. If you have wealth it's always invested even if it's cash. Given explosive growth of USD against everything else in the last month I find it somewhat risky to stay invested in cash 100%

zoned_post_meridiem · Mar 20, 2020

NY_HOOD said:
do not day trade !
hold your cash. i am very serious.

why? Not holding overnight and trading momentum is a good place to be right now.

Amahrix · Mar 21, 2020

kashirin said:
I don't know but I feel it's quite dangerous to be completely _out_ of the market

It's even more dangerous if you're in the market whilst not knowing what to do or how to behave or how to survive under uncertainty or not have a rigorous approach to dealing with risk.

kashirin · Mar 21, 2020

Amahrix said:
It's even more dangerous if you're in the market whilst not knowing what to do or how to behave or how to survive under uncertainty or not have a rigorous approach to dealing with risk.

I was already burnt through hyperinflation event holding cash
If you never experienced inflation doesn't mean it can't happen

Stocks might be dangerous cash can be catastrophic

d08 · Mar 21, 2020

NY_HOOD said:
do not day trade !
hold your cash. i am very serious.

Why not? It's a great market for daytrading. What am I missing?

Amahrix · Mar 21, 2020

kashirin said:
I was already burnt through hyperinflation event holding cash
If you never experienced inflation doesn't mean it can't happen

Stocks might be dangerous cash can be catastrophic

Can park the cash in TIPS. Can change currency. But don't gamble in the market using this excuse....right?

schizo · Mar 21, 2020

kashirin said:
Not tomorrow but if market closed for 8 weeks. Pandemia ended. In the mean time Fed prints 10 trillion inflating 20% and interest rates still zero

This is a classic symptom of overactive bladder. Before you piss away all your hard earned cash, go check out a shrink.

ET180 · Mar 21, 2020

d08 said:
Why not? It's a great market for daytrading. What am I missing?

The moves are greater, but what makes it a better market for daytrading than less volatile markets? In less volatile markets, one can more comfortable trade larger size to compensate for less volatility. I don't daytrade though, just curious.

Sekiyo · Mar 21, 2020

Thought danger was only inside the octogone.

fractalize · Mar 21, 2020

ET180 said:
The moves are greater, but what makes it a better market for daytrading than less volatile markets? In less volatile markets, one can more comfortable trade larger size to compensate for less volatility. I don't daytrade though, just curious.

I'm not buying it either. In hindsight, looking at the daily ranges, these large moves appear easy to capture. In reality, the intraday variance is so high, that you simply can't capture the moves without ridiculously widening your risk per trade. Successful intraday trading in index futures requires much tighter parameters, to survive through the majority of days, where markets don't trend. I've caught a few nice price runs, but this hasn't been an easy or perfect daytrading environment. I challenge anyone here claiming to be "killing" it recently daytrading, to post March broker statements showing proof. I doubt anyone will bite.