Swing Trading > Day-trading.

[trdes]

I agree. Trading is an art form. A canvas. A blank slate. Whatever works.

Personally, i day trade entries as above and swing trade exits. If a trader can get in with a fairly tight stop during the day why not let it run ?

Isn't that the essence of let winners run? Isn't that how all the professional hedge fund guys do it? Build a big position and hold it over time ?

Yes, a lot of them go for an average weighted price as due to size and other factors they can't just all buy in at once for more than one and for obvious reasons.

I am speaking more as an individual trader, one of the advantages you have is more precise entry as no one is really tracking or looking to take direct advantage of your likely relative small position, compared to over all markets.


I mean in theory I guess you're right, but in reality it's a lot more difficult "to just let it run". If you have a winning strategy looking for "X" amount of points with "Y" stop loss and it's been profitable over a long period of time, than a lot of people don't want the stress or additional risk of holding overnight, searching for extra points that they may or may not get.

 

[achilles28]

Would going leveraged long the S&P in 2009 been a smart trade? Was that evidence of a trend? And if so, do trends exist in other markets?

 

[trdes]

Would going leveraged long the S&P in 2009 been a smart trade? Was that evidence of a trend? And if so, do trends exist in other markets?

I honestly don't have the mental fortitude, capital or the patience to trade long term trends, but at least I know and understand that. So, not really qualified to answer your question.

For trends I'd argue and I am a believer that the patterns are the same from the smallest charts up to the largest. I'd also argue those patterns are similar on every single future and stock, particularly the ones most heavily traded.

I put literally zero emphasis on news personally. Outside of preparing for or expecting increased volatility for obvious things like FED and major economic announcements.

 

[Handle123]

Hmmm, don't agree with many of you, really have to have a small account to make 50% day trading. If you doing 10 trades a day on a small account you going to have to make 100-150% a year to pay commissions and slippage, and when it all done at end of year, if you are good, most are making less than 3 ticks a trade in ES, so more like trading noise. It actually easier to trade noise than trade for bigger profits, but always a trade off.

Risk on swing trade and long term is exactly the same for me, so makes no sense to get out in couple days. But Swing trading is better than day trading for most, less commissions and slippage and able to hedge. Swing you have more time to think, where as day trading have to be much faster and do instead of thinking. Day trading is like playing 12 hands of Blackjack in a minute, every minute, faster you know what to do, less mistakes.

 

[trdes]

Hmmm, don't agree with many of you, really have to have a small account to make 50% day trading. If you doing 10 trades a day on a small account you going to have to make 100-150% a year to pay commissions and slippage, and when it all done at end of year, if you are good, most are making less than 3 ticks a trade in ES, so more like trading noise. It actually easier to trade noise than trade for bigger profits, but always a trade off.

Risk on swing trade and long term is exactly the same for me, so makes no sense to get out in couple days. But Swing trading is better than day trading for most, less commissions and slippage and able to hedge. Swing you have more time to think, where as day trading have to be much faster and do instead of thinking. Day trading is like playing 12 hands of Blackjack in a minute, every minute, faster you know what to do, less mistakes.

Well its either a do or do not. Either you have a profitable strategy or you don't. If we're just speaking of the average trader, yes I agree swing trading will probably make more or lose less than trying to day trade, as they are likely just to get chopped up.

But if you know what you're doing and have proven strategy than $5,000.00 futures account averaging 4 points a day is 20% a week 80% a month, using 1 contract. I am not currently at that level yet but I've traded with someone before who consistently makes 6+ points per day using 1-3 point stops (mostly in the 2 range) per trade.

I totally get he's in the top range of traders, but doesn't change the point. Everyone I know that trades for a living and has done it for more than 2 years takes profits before end of the day over 99% of the time. So, that's just my reality.

 

[radex78]

The bigger edge you have in the markets, I'd argue the more day trading > swing trading. If little to no edge than I imagine swing trading is likely to produce better results than day trading. Obviously not a hard rule, but that's been my general experience.

Might day trading often occur more waves movement and if we can catch these chances will getting better result, but swing trading making more relax I think because they can leaving the chart until few day without monitoring

 

[d08]

It's funny. I view it as extremely risky NOT to hold overnight now....

Yes, we haven't seen crazy overnight moves that many times but Brexit was just months ago and that gap was radical. It's more about the things that we can't foresee.

 

[lawrence-lugar]

I personally like shorter timeframes...so day-trading for me. -- Swing trading and investing seems like dying a slow death, or getting nowhere.
Weekly options are explosive, or volatile

 

[Turveyd]

Very simple, you cannot exit if news come out during the night. Stops and whatnot won't be triggered, you have no control.

Anyway, it's much harder to estimate what will happen in 3 days, a week and further in the future. Politics, wars and other crisis can't be foreseen.

BUT news could come out, while I'm daytrading risking 2% say with a 8pt SL, Market can and has gapped say 200pts ( 50/50 shot of being on the right side ) and put many many account seriously negative, where as a 200pt news related swing might cause 2x's your max loss you'd expect, which compared to 50x's is nothing.

I just jump on current 1Min direction personally, I can't find any reliable predictive value in longer trades these days

 

[d08]

Well, you're talking about Forex which is unregulated and just not great for trading. I don't know of any 200pt gaps in futures. Equities can jump around but you would trade one company with a huge leverage anyway.