Is this a bad equity market?

[Spydertrader]

Quote from mr roboto:

Thanks very much for taking the time.

Not a problem. Many of the traders frequenting this web site have helped me in the past and continue to offer me their advice. "Paying it Forward" is the least I can do to return the favor.

Quote from mr roboto:

So, it sounds as if we're both in the same ballpark in terms of method.

Based on what you've shared, we might reside in the same section - if not adjacent seats.

Quote from mr roboto:

A few more questions, if you please:

Sure thing. Fire away.

Quote from mr roboto:

1. Are your exits dictated by your system, or is there some discretionary aspect on your part?

The system almost always dictates the exit. In the last seven months I have experimented with using various exit signals in an effort to improve profitability. MACD Histogram reversals, Stochastic Divergence, price targets and numerous other techniques have yielded mixed results. Currently, I use volume or time (end of hold period) as an exit. Occasionally, an exit results due to a trailing stop trigger.

Quote from mr roboto:

2. How has the continuing decline in overall volatility affected your trading rules, other than a shorter holding period?

Other than shortening the hold period, I have not fundamentally altered the rules in the last seven months. I have slightly modified the culling procedures used to obtain the stocks in which I anticipate making a trade, however, these slight changes have resulted in an increase in the number of possible trade signals rather than improve the number of profitable trades. In other words, I get to swing at a few more pitches, but my batting average has stayed the same.

Quote from mr roboto:

3. Do you enter trades intra-day based on intra-day data?

Yes. After determining on which stocks to place my focus, I look for price and volume (along with a confirming indicator or two) to determine if a signal for initiating a position (long or short) is warranted.

Quote from mr roboto:

Again, thanks for any input, and feel free to ignore any or all of my questions. I certainly want to respect your right to protect any info that might compromise your edge, but it sounds like our methods are similar and I'm really curious why yours is operating normally, while mine has stalled.

I appreciate your consideration with respect to public 'edge' disclosure. However, I have already posted 100% of the methodology I use beginning with the second post in my Journal. Due to the collaborative efforts of the many individuals posting their insights, I have slightly altered the culling process in the past seven months, as well as, improved upon the automation process. However, the fundamental theory behind the methodology has remained the same.

I hope you find the above information helpful.

- Spydertrader

 

[mr.nononsense]

spydertrader has it right..you have to have to have much more of a system. Gone are the days of " gee GS is outperforming ,and if the spoos turn around, I will buy the GS offer". you have to have much more,and you have to be disciplined enough NOT to trade, if your criteria for entering a trade isnt met. Too many people had it easy for along time,which is why their are fewer traders around and firms continue to consolidate. More consolidation is on the way as the lack of vol and decreasing rates means the economics of running the business have been negatively skewed, altering the risk/reward of doing so.
Bottom line is, try to make yourself as much of a machine as possible, think in terms of proabilities,and manage your risk. The rest is out of your hands.

 

[Boy Plunger]

Quote from risktaker:

Sounds like small potatos. The fact is, most who claim to make any money are doing so at a fraction of their usual size. I'll say it again, this market sucks. There's no range expansion. No investors buying/selling. Just traders and sharks screwing each other.

what do you do when you are daytrading a STOCK and you are hitting your points when a big fish arrives and starts knocking out pivots, then leaves and, you are left with garbage?

alex

 

[dvshucks]

Quote from Nutzo:

I keep hearing experienced equity day traders here on ET saying that this is a bad market for new traders coming into the game.

What is everyone's comment on this?

Look at it this way. If this is a "tough market" for new traders and you are able to learn how to make any money, you should be in good shape if and when it ever does get good again. You aren't held back by having traded in the past and knowing how good it was. You don't know any better so you can take this market as it is (not what it was) and figure out what it takes to get going. I know a lot of traders that made money a few years ago and because of that can't figure out how to make money today.