swing trading versus day trading

Quote from bighog:

Brendan, you sound like you have a head on dem dar shoulders. Here is a little tip for someone like yourself that can tell the difference between .... is it.....shit or shinola.

Review yesterdays 5 minute ES chart and observe 4 KEY reversal bars. #1 shows a KEY bar at the start of the regular day session and shows a KEY REVERSAL at the top at 0930 est.

Next KEY bar is at 1015 and shows a up reversal that failed to provide profits. I will tell you why a little later.

Next KEY bar was at 1040, another up reversal which also failed to show some profits. Keep in mind a KEY bar must have something to reverse but in a game of odds we are aware not all ladies dress alike.

Next KEY reversal bar occured at 1245. that was the last one that mattered for the rest of the day.

What did you notice observing those 4 bars? Why did 2 show no profits and the other 2 CAUGHT the days entire range? What was the distinguishing factor that made the difference between 2 tradable signals and 2 untradable signals of the same breed?

I will check back later and see if you found the answer. Later, i give the answer. :) :cool: Enjoy!!! (i bet 2 out of 10 will give the right answer

PS: In case you youngins do not know what shinola is..

http://www.phrases.org.uk/meanings/114000.html

PS: anyone can chime in, but no kinder stuff needed.
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Unfortunately, I am home on my MAC. I do not have my trading system available. I usually have my office computer on to log in remotely. However, this long weekend I turn off my computers.

I do appreciate this thread and will certainly come back to you with an answer soon.
 
Hi bighog,

Good question!

I personally don't trade ES and I don't have an ES chart with me but I will give it a try and see if I could answer the question.

The difference between a real signal and a false signal is in where everyone is. Only when everyone got tricked one too many time into thinking there is a reversal, give up and just go with the trend, then there will be a real reversal.

PA
 
PA, good thought but not correct. Breakout trading (which also treats reversals as breakouts) requires us to take the signals. We only know if the signal will work out AFTER the fact so it is not wise to pick and choose.

Volume does not matter in my quest for reversals either, this whole deal is in the bar itself. KEY reversal bars are unknown until after the bar closes. To work them properly we all know we will only be filled after the bar closes............ Brendan, ok, understood.

Later, shopping time. Heat wave, it is 32 outside :D

PS: I am not saying a breakout trader is required to take every signal. Just saying if we pick and choose we have only ourself to blame if we miss a move by not taking our own signals. OUCH!!!
 
Quote from bighog:

PA, good thought but not correct. Breakout trading (which also treats reversals as breakouts) requires us to take the signals. We only know if the signal will work out AFTER the fact so it is not wise to pick and choose.

Volume does not matter in my quest for reversals either, this whole deal is in the bar itself. KEY reversal bars are unknown until after the bar closes. To work them properly we all know we will only be filled after the bar closes............ Brendan, ok, understood.

Later, shopping time. Heat wave, it is 32 outside :D

PS: I am not saying a breakout trader is required to take every signal. Just saying if we pick and choose we have only ourself to blame if we miss a move by not taking our own signals. OUCH!!!
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My second and last guess will be higher and lower time frame.

PA
 
Quote from failed_trad3r:

I lost alot of money daytrading, and I heard swing trading is more profitable, as you can do that while holding a full-time job that pays the bills more or less. ...
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... (no joke) try paper trading :)
 
Quote from RCG Trader:

Swing trading is no different than daytrading other than the timeframe. ...
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... I believe this to be (very) incorrect :) Firstly: different forces control the market (!)
 
Quote from dozu888:

this has been discussed many times before.

... instrument doesn't matter.

... to the OP - if you lose money intraday, you probably don't understand how the market work yet. you will probably lose money swing..... you should be able to at least break even intraday to have a chance in swing.
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... to OP: :) obviously be very careful in (not) following the advice you get on this (and other) boards (including mine :))
 
Quote from bighog:

PA, good thought but not correct. Breakout trading (which also treats reversals as breakouts) requires us to take the signals. We only know if the signal will work out AFTER the fact so it is not wise to pick and choose.

Volume does not matter in my quest for reversals either, this whole deal is in the bar itself. KEY reversal bars are unknown until after the bar closes. To work them properly we all know we will only be filled after the bar closes............ Brendan, ok, understood.

Later, shopping time. Heat wave, it is 32 outside :D

PS: I am not saying a breakout trader is required to take every signal. Just saying if we pick and choose we have only ourself to blame if we miss a move by not taking our own signals. OUCH!!!
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I still don't get what you say. So I take 4 signals???:confused: :mad:
 
In my opinion, the better answer is the run both day-trading and swing-trading systems. I run a family of systems diversifying over both markets and timeframes.

Generally, I would expect a swing system to have much better average trade size than a day-trader. Combined with less commission, slip etc. that is a very good thing.

Just one example: my core day-trader makes about 2c per share, while my core swing trader makes about 17c/share. The only thing to be aware of is that I'll be sitting on losing trades much longer in the swing trader; but as long as the stats work out, that OK.
 
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