"let winners run" ......
patience is a virtue ?
patience is a virtue ?
Swing Trading > Day-trading.
- Thread starter achilles28
- Start date
L
lovethetrade
Run until when?
Define edge
Being able to identify a near exact and consistent entry point on a setup that allows for minimal risk, while still being able to capture a large part of the intra-day movement.
I guess you could turn that into a swing strategy as well. I just don't like holding positions overnight, so maybe my bias against swing trading is unfounded.
But if you do have a big edge and can apply that edger to smaller and smaller charts, the more money you'll make. I realize that's not an easy task, but that's where I am arguing day trading would be more profitable than swing trading.
Not really a profound point here, but just replying to the topic of swing trade > day trading.
Day Trading is harder, got to be righter than swing, 6pts accuracy on entry not 50pts, which is going to make most think Swing is better but.........
Get good at Day Trading and risk 1% chance some could run for 5% profit in a single trade, factor in say 10 trades per day ( not scalping ) you can easily on a small account make 10-15% per day ( been there done that, not often enough though )
Swing, risk 2% might get 4% on some trades, but week hold average say.
50% per week profit, or watch paint dry for a week for 4% but 40% of weeks even for a good swing trader will be -2%.
So in summary, Day Trading is harder, but it can turn average poor Joe into a Rich Joe in pretty short time when/IF you get good at it, Swing if your poor isn't going to rock your world any time soon, ofcourse very hard to get good at Day Trading.
And I'm getting there
1 trade today +4% to account in about 4mins
Get good at Day Trading and risk 1% chance some could run for 5% profit in a single trade, factor in say 10 trades per day ( not scalping ) you can easily on a small account make 10-15% per day ( been there done that, not often enough though )
Swing, risk 2% might get 4% on some trades, but week hold average say.
50% per week profit, or watch paint dry for a week for 4% but 40% of weeks even for a good swing trader will be -2%.
So in summary, Day Trading is harder, but it can turn average poor Joe into a Rich Joe in pretty short time when/IF you get good at it, Swing if your poor isn't going to rock your world any time soon, ofcourse very hard to get good at Day Trading.
And I'm getting there
1 trade today +4% to account in about 4mins Downside to Day Trading, profits are smaller so more of your profit is wasted on spread / comms, as your making 6pts so 20% being wasted, rather than 1-2% from a swing trade.
Spread costs and Comm's add up QUICKLY while day trading, just a series of BE exits the comms on there own still put you deep into the red
Spread costs and Comm's add up QUICKLY while day trading, just a series of BE exits the comms on there own still put you deep into the red
Downside to Day Trading, profits are smaller so more of your profit is wasted on spread / comms, as your making 6pts so 20% being wasted, rather than 1-2% from a swing trade.
Spread costs and Comm's add up QUICKLY while day trading, just a series of BE exits the comms on there own still put you deep into the red
Fee's can def dip into your profit factor, particularly depend on broker and how well you execute your trades (getting in and out with multiple trades when it likely could have /should have been one fluid trade).
But again comes down to your strategy and set ups again. If they are clean, with positive profit factor fee's aren't typically a huge factor in my experience, but again that can depend on trading style, broker and from person to person.
Do trends only exist in the intraday time frame ?
What benefit is it to close a profitable intraday position and reopen it the next day ?
Why even bother to close it at all ?
What benefit is it to close a profitable intraday position and reopen it the next day ?
Why even bother to close it at all ?
These are all valid points and I don't believe it has to be one or the other. It is nice to be able to incorporate both if you can have no issues with that.
Let's say just for an example (not an all inclusive one) but you've completed a nice intra-day trade and took some profits, but according to your read you see no reason to exit yet, I have no issues with keeping a runner on at break even (or whatever your strategy calls for) if that improves your profit factor, in fact that's just smart trading.
So may seem like I am contradicting myself now and maybe I am lol. But some people don't like holding overnight as that does add extra risk. I am a very active trader so for me personally leaving a trade on when I could be away from PC for 8-16 hours prior to checking it again isn't appealing and doesn't work for me, but obviously doesn't mean it can't work for others.
Ultimately I think diversifying through time would be the answer, as you could have both. If you can apply your strategy to let's say a longer term chart, while also applying the same or different strategy on a smaller time frame, than you now can both swing and catch quicker moves.
Not sure that's making sense, but just my thoughts.