Swing Trading

[John9999]

I decided to take a Swing trade on NQ on Monday.. @7313... closed it out at yesterday's close @7431... GEEZ, I had no idea what would happen today, I was just thrilled to capture a great profit.

BUT...... that is not the important part. What is important is the MAJOR difference in my attitude and anxiety level. Sure I watched it every day, but my decisions are now based off 5PM EST closing price. So, I am not watching every little wiggle. So much calmer.

so I think this is for me. I am sure that the crazy day trading is over for me. I realize that all those decisions on a daily basis was wearing me out mentally.

 

[MarkBrown]

think you just jinxed your future lol

 

[dozu888]

I decided to take a Swing trade on NQ on Monday.. @7313... closed it out at yesterday's close @7431... GEEZ, I had no idea what would happen today, I was just thrilled to capture a great profit.

BUT...... that is not the important part. What is important is the MAJOR difference in my attitude and anxiety level. Sure I watched it every day, but my decisions are now based off 5PM EST closing price. So, I am not watching every little wiggle. So much calmer.

so I think this is for me. I am sure that the crazy day trading is over for me. I realize that all those decisions on a daily basis was wearing me out mentally.

take a simple savings calculator - starting at $100, assuming you make medium income $50+k, monthly deposit $1000 into QQQ that returns 12.75% annually since the day it was born... you become millionaire in 20 years.. that's right, an average joe six pack can do that, in half of his working life...

how many in ET, are millionaires, after years/decades of churning.

and what if you remove the churning, and put all that time into a productive career, not only personally, but also making a positive impact to society at the same time... you can boost that $50k to 100~200k easy, in today's job market, with just a bachelors degree, in a desirable field... now you are talking multimillionaire in a lot less than 20 years.

 

[trader99]

take a simple savings calculator - starting at $100, assuming you make medium income $50+k, monthly deposit $1000 into QQQ that returns 12.75% annually since the day it was born... you become millionaire in 20 years.. that's right, an average joe six pack can do that, in half of his working life...

how many in ET, are millionaires, after years/decades of churning.

and what if you remove the churning, and put all that time into a productive career, not only personally, but also making a positive impact to society at the same time... you can boost that $50k to 100~200k easy, in today's job market, with just a bachelors degree, in a desirable field... now you are talking multimillionaire in a lot less than 20 years.

This is so true. Working in tech you can readily make low to mid six figures and just put in low cost index funds for the long run.

I think a lot of people who are attracted to active trading sees it as a challenge. A game of sorts to beat and master.

The best of both worlds is to keep your day job and contribute to your 401K and invest in IRA or Vanguard low cost index funds. Set aside a small portions of your assets to active trading.

Learn on sim account. Once you get good then trade your active account. If you lose it all then it's a small part of your total allocation to start with. if you start making money on it then it's like a nice bonus on top of your regular job.

Just a thought.

 

[deaddog]

take a simple savings calculator - starting at $100, assuming you make medium income $50+k, monthly deposit $1000 into QQQ that returns 12.75% annually since the day it was born... you become millionaire in 20 years.. that's right, an average joe six pack can do that, in half of his working life...

how many in ET, are millionaires, after years/decades of churning.

About as many as the number of medium income earners that put aside 24% of their income in an investment account and then stay with the program thru 2 major crashes.

 

[deaddog]

I am sure that the crazy day trading is over for me. I realize that all those decisions on a daily basis was wearing me out mentally.

I did the same a few years back. I now spend a few minutes each day looking at the market and making investment decisions. My returns are not significantly different.

 

[dozu888]

About as many as the number of medium income earners that put aside 24% of their income in an investment account and then stay with the program thru 2 major crashes.

valid points.

- 24% is just a matter of choice isn't it... instant gratification, or cut the cell phones the cables the lunch outs and the beer meets at the bar.... American consumers are wasteful thru the entire income spectrum.

- major crashes... yes discipline is key... can you write the deposit check every month, without watching tv to get the scary news... hey maybe cutting the cable and cell phones will help out here... as a matter of fact, doing that actually takes ADVANTAGE of the volatility and will reach the $1m mark even sooner because you'd buy many more shares at lows.

 

[deaddog]

valid points.

- 24% is just a matter of choice isn't it... instant gratification, or cut the cell phones the cables the lunch outs and the beer meets at the bar.... American consumers are wasteful thru the entire income spectrum.

- major crashes... yes discipline is key... can you write the deposit check every month, without watching tv to get the scary news... hey maybe cutting the cable and cell phones will help out here... as a matter of fact, doing that actually takes ADVANTAGE of the volatility and will reach the $1m mark even sooner because you'd buy many more shares at lows.

It is all about choice. Tough choice in a consumer society.

Nothing wrong with being frugal and saving for retirement or whatever. One thing I found is that once you develop that habit although you accumulate a lot of wealth you don't enjoy spending it. I've never seen a hearse pulling a U-Haul.

I was a buy and hold investor but found I didn't have the stomach for the sharp declines. I held thru the tech wreck but it was a wake-up call so I devised a strategy to keep me out of the market during declines. I was 100% in cash in the fall of 2008. Cash in a high interest savings account is better than sitting and hoping.

I look at it this way; I would rather be in cash watching the market go up than be in equities watching the market go down.

 

[dozu888]

It is all about choice. Tough choice in a consumer society.

Nothing wrong with being frugal and saving for retirement or whatever. One thing I found is that once you develop that habit although you accumulate a lot of wealth you don't enjoy spending it. I've never seen a hearse pulling a U-Haul.

I was a buy and hold investor but found I didn't have the stomach for the sharp declines. I held thru the tech wreck but it was a wake-up call so I devised a strategy to keep me out of the market during declines. I was 100% in cash in the fall of 2008. Cash in a high interest savings account is better than sitting and hoping.

I look at it this way; I would rather be in cash watching the market go up than be in equities watching the market go down.

I hear ya.

the original point was against churning, not frugality... as I suspect most churners go thru years of throwing money into the pit with nothing to show for at the end... it's like a gambling problem.

yeah everyone is different.. spending patterns can be relearn, with the rising net worth... as any rationale person should... and it's a true great feeling to have the freedom... and one may find the ultimate satisfaction no longer comes from consumption, but rather from giving and helping the needy.

risk tolerance is very individual... back test does prove that you can stay out of major down trends without eroding performance.. I mostly use sentiment and valuation as guide... whatever works works.

cheers.

 

[John9999]

We are getting way off topic here. This was a post about swing trading and the better mental state I believe it offers.

Trading vs working a regular job. That’s a whole other story.