i would like to hear, your style, and especially what the pro and con are in scalping, and technical analysis in day trading. what works for you and what doesnt. what you guys think its the best method for quick money and growth in day trading ( nyse and nasdaq).
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Pro/Cons Day trading/scalping/technical analysis
- Thread starter tradekilla
- Start date
I'm an NYSE scalper with an average holding time of under a minute, so I'm biased, but:
Pros:
Very high probability of making money on an individual trade (60-75%).
Very low risk - time spent with market exposure is minimized.
I find it much, much, much more possible to predict what a stock will do in the next minute or two than what it will be doing an hour from now.
Teaches you the discipline of admitting you're wrong on a trade and getting the fuck out without question.
Teaches you how markets actually move.
Just because your risk is small doesn't mean you can't have huge winners. Sometimes the market offers you the opportunity to make a point or more on a trade despite the fact that your initial risk was 3 cents.
Cons:
Limited position size and limited scaleability of strategy.
Transaction costs will kill you, even with great rates; with bad rates or a mediocre deal, it's very difficult to make money.
Extremely time consuming. You have to spend your whole day staring at the screen (at least the way I scalp; I'm sure someone can just scalp the first 90 minutes of the session, and perhaps the close).
Pros:
Very high probability of making money on an individual trade (60-75%).
Very low risk - time spent with market exposure is minimized.
I find it much, much, much more possible to predict what a stock will do in the next minute or two than what it will be doing an hour from now.
Teaches you the discipline of admitting you're wrong on a trade and getting the fuck out without question.
Teaches you how markets actually move.
Just because your risk is small doesn't mean you can't have huge winners. Sometimes the market offers you the opportunity to make a point or more on a trade despite the fact that your initial risk was 3 cents.
Cons:
Limited position size and limited scaleability of strategy.
Transaction costs will kill you, even with great rates; with bad rates or a mediocre deal, it's very difficult to make money.
Extremely time consuming. You have to spend your whole day staring at the screen (at least the way I scalp; I'm sure someone can just scalp the first 90 minutes of the session, and perhaps the close).
I'm the type of person that dwells on everything. I absolutely can not hold a position over night without adding a large amount of stress to my life. I like knowing weather a setup will work within a few minutes or hours. I truly feel free by the end of the day with scalping.
CajunSniper / Puretick.com Administrator-Trader
CajunSniper / Puretick.com Administrator-Trader
Quote from tradekilla:
i would like to hear, your style, and especially what the pro and con are in scalping, and technical analysis in day trading. what works for you and what doesnt. what you guys think its the best method for quick money and growth in day trading ( nyse and nasdaq).
Quote from tradekilla:
i would like to hear, your style, and especially what the pro and con are in scalping, and technical analysis in day trading. what works for you and what doesnt. what you guys think its the best method for quick money and growth in day trading ( nyse and nasdaq).
TECHNICAL ANALYSIS:
PROS:
Probable that only things like support/resistance & trendlines have value.
CONS:
This is a large & complex belief system, that in spite of very significant tested evidence to the contrary, absolutely does not work.
Adherents rise up in defense of their faith, making this more of a religion than anything else.
Their statement of faith usually resembles "you have to know how to apply it" or "you have to combine indicators" or "you have to know when to apply it."
>>rcanfiel
>CONS:
>This is a large & complex belief system, that in spite of very >significant tested evidence to the contrary, absolutely does not >work.
After 35 years of using nothing but TAÂ@to put food on the
table, I tend to disagree with you. However, if you truly
believe TA 'absolutely does not work', you should make
every effort to learn it and then do just the opposite of
what TA indicates to do! Then it will work.
>CONS:
>This is a large & complex belief system, that in spite of very >significant tested evidence to the contrary, absolutely does not >work.
After 35 years of using nothing but TAÂ@to put food on the
table, I tend to disagree with you. However, if you truly
believe TA 'absolutely does not work', you should make
every effort to learn it and then do just the opposite of
what TA indicates to do! Then it will work.
Quote from rcanfiel:
TECHNICAL ANALYSIS:
PROS:
Probable that only things like support/resistance & trendlines have value.
CONS:
This is a large & complex belief system, that in spite of very significant tested evidence to the contrary, absolutely does not work.
Adherents rise up in defense of their faith, making this more of a religion than anything else.
Their statement of faith usually resembles "you have to know how to apply it" or "you have to combine indicators" or "you have to know when to apply it."
He said about "your style."
He didn't ask for yet another stupid ignorant half-arsed critique of someone else's style. He asked about your style.