Recommend to trade for a living ?

Street Trader said:
Hi ironchef,

What you mean by "periods"?

Thank you for your comments.
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From your chart, I assumed it indicated cum gains and each hash mark was one week (you only demo traded for three months). If not I stand corrected. If so, only three of the weeks showed cum gains whereas the rest were mostly flat or showed losses.
 
propwarrior said:
Just an observation but when you say 'look around' do you mean on trading forums and social media. If so you will rarely find anyone admit to being a losing trader. The majority of traders at these venues claim to be consistently profitable. My own view is that the vast majority of them are not being truthful for a host of commonly known psychological reasons.

Secondly from the small number of consistently profitable traders I have met and/or worked alongside in real life the timescale of their trades has not been a factor. I know of short term traders who do very well and longer terms traders who wouldn't dream of putting on a day trade.

What I did notice though is they had some common traits.They were all outwardly humble people who didn't get involved with social media. They were very flexible independent minded not ruling anything out or in. I also noticed that they were quietly very competitive minded which would overlap into non trading activites.

GL
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You are a pro.:thumbsup:
 
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ironchef said:
From your chart, I assumed it indicated cum gains and each hash mark was one week (you only demo traded for three months). If not I stand corrected. If so, only three of the weeks showed cum gains whereas the rest were mostly flat or showed losses.
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Yes, it's a swing trading strategy so not close trades every day. Some open positions even last for a few weeks.
 
Trading Education Buyer said:
This is incorrect statement .
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You may very well be right about the statistics. I quote 95% because that was what everybody said (also most investment books' quotes).

I am aware of only one comprehensive study on day trading: http://www.econ.yale.edu/~shiller/behfin/2004-04-10/barber-lee-liu-odean.pdf

But it is a study of day traders in Taiwan, not the US.

Here is a quote from the study on outcome:

Our analysis of performance indicates day trading is treacherous, but not entirely a foolísh game. Heavy day traders, as a group, earn gross profits (before transaction costs). Thus, heavy day traders do appear to have a trading advantage over other investors. The stocks bought by the most active day traders outperform those sold by 31 basis points per 21 day. Unfortunately, the gross profits of heavy day traders are not sufficiently large to cover reasonable estimates of transaction costs. Thus, as a group, they lose money. In contrast, occasional day traders experience both gross and net losses. The stocks bought by occasional day traders actually underperform those sold, even before considering transaction costs. There is considerable cross-sectional variation in the performance of day traders. Over the typical six month horizon, using lower range assumptions regarding transaction costs, less than 20 percent of day traders earn profits net of transaction costs.

The take away for me is: In a six month period, only 20% of day traders were profitable. Most likely, not the same 20% would be profitable the next six months so the net/net is less than 20% will be profitable long term.

Regards,
 
ironchef said:
The take away for me is: In a six month period, only 20% of day traders were profitable. Most likely, not the same 20% would be profitable the next six months so the net/net is less than 20% will be profitable long term.
Regards,
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In a six first months period, only 1% of day traders were profitable ;)
 
Hi all,

Thank you all for your feedback. I am thinking about idea:
1. Sell signals via email
2. Offer copy trades via third party like Zulu, mql5...
3. Offer account managed service
4. ...

How do you think?
 
Street Trader said:
Hi all,

Thank you all for your feedback. I am thinking about idea:
1. Sell signals via email
2. Offer copy trades via third party like Zulu, mql5...
3. Offer account managed service
4. ...

How do you think?
More...
How is that different from competition ? Appears the same as other services. What is your competitive advantage?
 
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