Short term trading

[Gasparov]

As a "volume trader" I agree with that ... but in reality, the volume at one time of day can be about a thirtieth of or thirty times as much as much as that another time of day - not just "half" or "double", and that certainly matters.

Are you talking about stock trading? Do you mean like earnings reports days?

 

[comagnum]

Wyckoff, who worked with JP Morgan,Jesse Livermore & the big hedge funds of the 20's/30's tried to teach the retail some 100 years ago that big volume spikes were the stop & go for price movement - volume proceeds price movement. Big volume spikes after major sell offs signal the weak hands have capitulated into the smart market participants - this plays out over and over again and is well proven in academia. Tops are a just a tad more involved. Volume is everything for equities - I trade futures off the spot charts, you can make a nice living trading these big spikes - when everybody is puking is were the big $ is made.

 

[Newc2]

A low risk trade is not defined by your stop level, and your stop level is an integral part of your risk management strategy.

Stops are used to preserve your capital in case you are wrong on the next trade, so will prevent you from losing more than your allocated risk per trade.

Would you like to give another take on what constitutes a low risk trade?

A setup with trend?

 

[lovethetrade]

Whether or not trading is "swing trading" is not duration-dependent: there are fast-moving intraday swing traders, too. (The idea that "swing trading" is "something slower/longer than daytrading" is a very widespread misconception cleared up on page 1 of the standard, accredited swing-trading textbook - The Master Swing-Trader, by Alan Farley, and right at the start of several other swing trading texts, too.)

Very widespread, every definition I just read through a Google search, including Wikipedia, notes duration (i.e holding for longer than a day) as intrinsic.

 

[THIEN KIM]

i think we should pay attention on Daily chart, the price action pin bar usually a great signal for us to warning the activities of the hegde fund. I have a profit of arround 100pips yesterday just by using the price action with a short position on USD before releasing the new of interest rate in USA

 

[Xela]

I am guessing FX (but no volume!)without checking any of your posts, correct?

Not sure whether you're being serious: I said I'm trading from volume, and you think I must be trading forex, which is a type of instrument that has no volume available, because there's no centralised exchange and no way of recording it? Ok ...

I trade oil and e-mini Nasdaq futures ("CL" and "NQ").

You might find this funny. I thought your avatar was an "ear", until I clicked on your profile and seen it was a picture. No offense intended!

Ok ... none taken. It's an unusual avatar, I suppose. I made it at one of those free websites where you can upload your own photo and it gets "put into the cappuccino froth" and you can download the result. Evidently it hasn't come out very well in that tiny "avatar size". Maybe I'll change it soon, for something a little clearer.

 

[Newc2]

i guess holding for a day on the daily chart might encompass some nice swings on the 5 minute chart.

 

[Xela]

Very widespread, every definition I just read through a Google search, including Wikipedia, notes duration (i.e holding for longer than a day) as intrinsic.

Thanks - I didn't know that.

It is odd, how textbook writers still mean the same as the original meaning, and even take the trouble to start their books by explaining the widespread misapprehension. It's obviously much more widespread than I thought, if everything a Google search brought up shares that perspective (not surprised about Wikipedia, though).

Sometimes misunderstandings and erroneous usages become so widespread that they're eventually accepted as "normal", and the "normal meaning" can therefore be said to have changed.

If that's happening here (or even "has happened here"?!), then maybe someone should tell Alan Farley and those other guys?!

 

[lovethetrade]

It is odd, how textbook writers still mean the same as the original meaning, and even take the trouble to start their books by explaining the widespread misapprehension. It's obviously much more widespread than I thought, if everything a Google search brought up shares that perspective (not surprised about Wikipedia, though).

The author might be trying to gain authority on the subject and grab the reader's attention early on. It's my understanding that the term "swing trading" is just as much about duration as it is method. If the author believes its not about duration, what term should be used to describe the holding period of several days to several weeks?

However, that's not the say the author doesnt have a point, the term is descriptive of the method and has probably evolved with changes to trading methods and frequency so its now applicable to both in isolation.

 

[Xela]

If the author believes its not about duration

All textbook authors seem to believe that, and to take pains the clarify it on page 1 or thereabouts ... I think they're kind of setting the context, and explaining that they're writing about swing trading as defined by a method/style, rather than by a duration. And the fact that they feel the need to do so is perhaps evidence of their awareness that it's a potentially confusing term which needs to be clarified?

what term should be used to describe the holding period of several days to several weeks?

Depending on the context, I suppose "slower-moving trades that aren't quite 'investments'," or maybe just "trades that last a few days/weeks"?

the term is descriptive of the method and has probably evolved with changes to trading methods and frequency so its now applicable to both in isolation.

Yes - it's evolved more than I'd realised, according to your Google findings. Maybe all those authors are considered "old-fashioned" nowadays (though I was referring to current editions, not to old ones)?