Late to the game

[Stockolio]

Im sure there are 10 hour traders. But this is not my experience. I traded the vast majority of the 251 trading days in 2019. There was not a single day this year I traded for more than 5.5 hours. A typical day, Im sitting at a desk for maybe 2-3 hours, or perhaps laying on the couch with computer in lap, or laying on my side, or at a standing desk. Personally, I'm able to focus in all of these physical positions.

The strategy I trade averages 5 signals a day. I can easily see the choppy periods, and at this time, I do not trade. I set some alerts for price levels which I think indicate the choppy period is over. In the meantime, I do something else around the house.

Once I enter a trade, I have a fixed target/stop and there is nothing to do in that time but wait. The computer will tell me when one of those exits is reached, at which point I get back to trading. In the meantime, again, I'm free to move about or do anything else I want. Call family/friends, read something, enjoy some food, stretch, take a nap. I also usually have foreign language audio playing in the background, as I try to develop this skill when trading is slower. So all of the hours have some value to me.

Moreover, while the early part of the US trading session is quite active, the afternoons are typically slower and yield less signals. I could turn a profit if I only traded the first 2-3 hours a day. However, I ENJOY trading, and I don't feel the latter half of day is a burden to me or that it erodes profits. If some days I don't feel like trading, then I do something else.

Certainly there are many, many times I spent 10+ hours sitting, but that was outside of my core trading hours, when I was analyzing countless charts, looking for recurring signals, and beating them into my brain. The learning process / "getting there", is brutal and will require a lot of hours and likely multiple years. Yet it's a mental challenge and will sharpen your mind. I never found it to be sleep inducing, or mind numbing. But that's just me.

Prior to leaving my profession to take up trading, I worked in a heavy analytical field for a decade. There were many days early in my career where I spent 10+ hours sitting at a desk and doing mind numbing work. Searching for needles in giant haystacks of data. I would often sneak away to the bathroom or my car, and take naps. If I did that at my desk, I would no doubt be reprimanded. As I climbed the ranks, my role switched to overseeing others. I hated this as well, managing the personalities and conflicts and work ethics amongst those below me, while simultaneously dealing with the bullshit from those above me. I was making a solid income and living very comfortably. Still, I dreaded Mondays, I hated the endless meetings, playing the office politics, and feigning enthusiasm for a job I truly despised. Here is a quote that has always resonated with me:

"If a man makes two-thirds of his existence subservient to one-third, for which admittedly he has no absolutely feverish zest, how can he hope to live fully and completely? He Cannot."

Your right. You are either busy building your dream or someone else's dream

 

[trickshot]

Clearly a windup thread. Who in their right mind would give up a 600k income in their late 30's (in London - one of the most expensive cities in the world) to trade a 10k day trading account?

Someone who thinks that daytrading is a 1-2 hour daily job and he probably expects to double/triple his account every year .

 

[rivarama]

The one big positive, trading is interesting for those who live the game.
It involves finance, politics, psychology, risk, reward, adrenelin, constant anticipation, planning, discipline, constant education, hard work etc..

I can absolutely relates to that. I am fairly certain that unlike 99% of the people on this forum and who trade either successfully or unsuccessfully, my definition of success isn’t really about making tons of money. If it was, my wife and I would be keeping our high paying and low stress jobs, continue to climb the corporate ladder and probably pass the $1m /yr threshold within the next 5years.
Success in trading to me means being connected to the market, use it as a way to stay sharp, stay up to date and educate myself about world events, politics and the economy. The money is only a bi-product of that. Also, trading off a $100k account will never make me rich. Let’s be honest... a 20% growth annually (which would be amazing) would really be immaterial in the context of my passive investment returns.
Even if I was only breaking even over 10years of trading at my own pace, while I get to do what I love... I would find it amazing; that would be successful trading to me

 

[qlai]

Success in trading to me means being connected to the market, use it as a way to stay sharp, stay up to date and educate myself about world events, politics and the economy. The money is only a bi-product of that.

Still not clear why you chose day trading specifically.

 

[rivarama]

Still not clear why you chose day trading specifically.

That’s a v good point. Originally I liked the idea of being liquid at the end of everyday as a way to both limit the amount of stress at the end of the day and also enabling me to disconnect for a week or a month without really looking or worrying about any open position.
However, thinking about it now, it doesn’t have to be. I can imagine my system and my R-model with intelligent stop to still give the flexibility I need.

What is your view on day trading vs mid term trading? Keeping in my that 98% of my invested NW is already fairly passive / invested over the medium to long term (as previous posts detailed)

 

[qlai]

What is your view on day trading vs mid term trading?

In your situation, definitely mid term. I would use options ... Selling premium most of the time and buying calls/puts at turning points. This doesn't require seatting in front of terminal for hours. However, you still get lots of satisfaction from playing the game and putting big scores on the board without putting overall NW in jeopardy. In fact, I will most likely do the same when I retire.

 

[imjohn]

What is your view on day trading vs mid term trading?

In a few hours, when I shut my trading computer, I'll stop thinking about trading until the next session begins. I'll enjoy the rest of my life, living 100% in each respective moment.

I made money swing trading stocks before, but never enjoyed scanning my long stock list looking for setups. I didn't enjoy thinking about positions over the weekends. I didn't enjoy having positions in the back of my mind when I was doing non-market related activities... I didn't enjoy the pace of waiting several days or weeks to see the result of a trade. Basically, I made some money, but I didn't enjoy the process.

I do enjoy the fact that day trading basically requires world-class discipline. When I get a long streak of days where I've abided all of my rules, not taken any impulsive trades, or had any meltdowns, I gain a quiet confidence which carries over into the rest of my life. Even if the monetary results from such a period are lackluster, I enjoy the process. Would I do it if there was no absolutely no money involved - No. But that's not the case, and I greatly enjoy the challenge of making money this way.

 

[Stockolio]

That’s a v good point. Originally I liked the idea of being liquid at the end of everyday as a way to both limit the amount of stress at the end of the day and also enabling me to disconnect for a week or a month without really looking or worrying about any open position.
However, thinking about it now, it doesn’t have to be. I can imagine my system and my R-model with intelligent stop to still give the flexibility I need.

What is your view on day trading vs mid term trading? Keeping in my that 98% of my invested NW is already fairly passive / invested over the medium to long term (as previous posts detailed)

Never day trade don't even try, algo's will eat you. Focus on identifying momentum,trends,liquidity and market sentiment. Learn how to read charts, financial statements and review after hours when trading is done, that is when decisions should be made, never intraday really... Trading is more profitable then investing ( buying and holding ) and you constantly gotta shuffle your longs, buy options only, selling options is market makers game, not retail. Options will bring you wealth if you are good, bull market 80 stocks/ 20 options, bear or close to recession 80 option 20 cash. I advise getting Quote Stream as your data and analytic's software, pay 90-110 a month and you will be set.Generally when a momentum ( either up or down ) is going a certain way for a company, it stays the same unless other wise corrected through market sentiment, news or financial report. Technically you can keep your trades for up to a year, if you due diligence wisely it should range from a few weeks to months at a time for stocks and options close position to your discretion

 

[newwurldmn]

I take back my comment about this being a wind up.

 

[zenostiffler]

I wonder how many people on this forum are successful traders in their imagination. Or people who have had a lucky run over the shorter term. My suspicion would be that longer term success is more likely to be achieved through running this website for a bunch of dreamers. Or am I too cynical.