Tough times ahead for daytraders

tons of traders left after the dot com bust...including myself...I dont remember how trading was between 2001-2007 but i assume there wasnt much difference?
I know when internet trading became popular in 1996 that the whole flow became erratic and much more volatile.Instead of taking days for a setup or stock to make a complete move in its trading channel it could take a single trading session.Your reaction time had to be much quicker.


Einhorn of greenlight capital? is losing money this year...He s the one who shorted lehman from 70 all the way to ZERO.So while some are making money now,dont beat yourself up if your not.MAin thing now is capital preservation-not lose money.
 
Quote from pikersayscar:

i was in a firm where all the people who took big swings loved a fast market. then there were the grinders, piking it out.

guess which one did better in a slow market. you get the same play, 10 times, with more clearly defined risk.

perfect example is aapl and the steve jobs fake heartattack. if u'd of tried to scalp that like someone i know, g'luck. (not saying you couldn't, but on just 1000 shares, g'luck trying to hit a specific number and actually getting out within 10 cents...no chance you're gonna print even 1000 shares all in 10 cents in a move like that. meanwhile a guy who isn't trying to read the book but is taking a bigger swing at it would probably love the vol and the opportunity that comes with it.
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Why would you even trade that situation. Scalping aapl for 10 cents is one of the most idiotic schemes I'v heard. Secondly, trading news events in this vol is also hair brained. I've been making a killing in the futures in this vol. But I would never try to scalp 1000 shares of aapl for a couple cents.
 
I think after the panic we could be well headed for a 2003-2004 senario of low volume little volatility and low priced stocks. this could last for a long time. It will posible to make a living if you grind as it was then.
 
Some of you are talking like there is only one type of strategy out there -- trend following. Personally my trend following strategy has done great (much better than expected) while mean reversion and event based stuff have done neutral and negative, respectively. The VIX won't stay this high forever.
 
Quote from mrmoose:

I think after the panic we could be well headed for a 2003-2004 senario of low volume little volatility and low priced stocks. this could last for a long time. It will posible to make a living if you grind as it was then.
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that is my ideal trading environment.

now is shit for me.

diff pple, diff strategies.
 
Any trader who needs a trend to make money is not a good trader. The movement over the past few months has been the best I've ever seen.

Quote from NY_HOOD:

listen,contrary to what most guys say ,the VERY few traders that make a CONSISTENT living are going to have a tough time. they already are. why,there is no trend and random whip saws that stop them out of trades. i know 3 guys that are very well known(not kidding) and even make some guest appearances on tv.they are getting crushed and every other big trader they know as well.does that mean everyone else in the world of trading is losing? no but i have to tell you,most of the elite are. i know that for a fact. oh yeah,how many times are traders going to blame LACK OF DISCIPLINE for their failre. comes a time when a guy has to face reality or he's going to wind up wasting valuable years of his life trying to find that successful ,consistent method of profitable trading. thats why there are so many books on trading and so many video's.
can't wait for all the responses abot being a disgruntled trader or i am a failed trader so i am assuming everyone else is as well. i am actually a good trader i can tell you lots of good ones are getting spanked and i mean hard!
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Quote from NY_HOOD:

listen,contrary to what most guys say ,the VERY few traders that make a CONSISTENT living are going to have a tough time. they already are. why,there is no trend and random whip saws that stop them out of trades. i know 3 guys that are very well known(not kidding) and even make some guest appearances on tv.they are getting crushed and every other big trader they know as well.does that mean everyone else in the world of trading is losing? no but i have to tell you,most of the elite are. i know that for a fact. oh yeah,how many times are traders going to blame LACK OF DISCIPLINE for their failre. comes a time when a guy has to face reality or he's going to wind up wasting valuable years of his life trying to find that successful ,consistent method of profitable trading. thats why there are so many books on trading and so many video's.
can't wait for all the responses abot being a disgruntled trader or i am a failed trader so i am assuming everyone else is as well. i am actually a good trader i can tell you lots of good ones are getting spanked and i mean hard!
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I couldn't disagree more. I know a lot of very good traders. Guys to whom making $50,000k+ in a day (on good days) isn't very exciting. At least 50% of them had career months in September. Some absolutely demolished their records.

If and when volatility dips they will simply make adjustments to prosper in that environment. There is aways a way to make money. You simply take what the market gives you and use it to your advantage.


The traders you know are either more suited to a lower volatility environment or they aren't very good. Just because a trader goes on TV doesn't mean he knows his stuff. CNBC even had Timmy Sykes on a few times, and Kudlow (while not a trader) has his own show !! :confused:
 
Quote from piggie2000:

I think this bear mkt is different with an extended gringing low vol
environment ahead. If millions leave the mkt its only natural that trading gets much tougher. Well capitalized traders should be ok but the 1000's of prop guys with 5k deposits and living month to month will have a tough time. Good luck to all
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This thread started with "This time it's different".

Bu-by piggie2K
Osorico
 
Quote from pikersayscar:

i was in a firm where all the people who took big swings loved a fast market. then there were the grinders, piking it out.

guess which one did better in a slow market. you get the same play, 10 times, with more clearly defined risk.

perfect example is aapl and the steve jobs fake heartattack. if u'd of tried to scalp that like someone i know, g'luck. (not saying you couldn't, but on just 1000 shares, g'luck trying to hit a specific number and actually getting out within 10 cents...no chance you're gonna print even 1000 shares all in 10 cents in a move like that. meanwhile a guy who isn't trying to read the book but is taking a bigger swing at it would probably love the vol and the opportunity that comes with it.
More...

Funny you mention the AAPL situation. I faded that very move and, at the time, had no idea what the AAPL/Jobs news was. I didn't really care. I knew 100 was a psychological level and that my indicators were telling me the move was too extreme, too quick and was sputtering.

I went long 200 at 98.00 and stopped out at 102.00. $800 in literally 4 1/2 minutes. It felt good!
 
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