Is trading really this easy ?

W

wiesman02

Is daytrading equities really this easy ?

If you all remember, I'm the guy that posted in career trader about trading full time retail. Well i've decided to take everyone's advice and think it through a lot more clearer, as well as write a business plan to outline my setups to entry.


Here's one extremely obvious entry. 95% of ET knows about it. But sometimes I wonder, if emotions and psychology did not play a factor, how many people would actually be profitable daytrading.

Or is it that most are just so stupid.

Well anyway, look at this: Resistance at the intraday morning high. Resistance broken around 1:50ish and a long entry for about 10-30 cents. Easy money for a $13 stock.

I've always thought daytrading is more COMPLEX than this. Well, to some degree, its not. Daytrading is what you make of it.
 

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This one worked great for you. The problem comes in when you place your stop loss. If you are doing a 3/1 risk reward, the stop is 3 to 10 cents below entry. Alot of times the stock will bounce a little and hit your stop before climbing upwards.
 
Your stock has an implied and historical volatility of over 140%.

You have to research and decide if this is likely to be sustained for a reasonable period of time.

If the vol for the stock ever goes back down to 20% or 30% - you are rarely going to see the stock take out resistance and run 5%.

So ... is it this easy? Depends on the vol and how you adjust to it if it drops.
 
Just to clarify. I'm scanning for gap ups in the morning. This stock would not have been traded had it not gaped up and came up on my scan.
 
Quote from Morton's:

Wise


What is the minimum gap up for your screen?
More...


Right now, I haven't decided yet. I'm still in the process of working things out. So far, i've been scanning NYSE and NAS gap ups / downs, and scanning at 10:00 for high % price movers.

This stock I hadn't put on my watch list until 10:00 when I scanned for big price movers.
 
are you taking into consideration slippage, sometimes it will be a much bigger factor than you think...give you an example WWAT today had order in for 30k limit 2.16 when it was 2.14 filled 20k avg 2.155 thats not much slippage (only 300 bucks) but you can't just look at a chart and say oh yeah i woulda bought here or there and sold here without actually trading it and seeing how they are filling on it, not to mention the pschological aspect of being down big or up big on something which could cloud your judgement
 
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