Why day trade?

[jnbadger]

Quote from vincentvega:

After hanging around, I've noticed the majority seem to day trade (or maybe that's just the losers, who are the majority around here according to many).

To you day traders - have you never sat down with a pencil and paper and figured what the available leverage can do with good risk management? The answer is, pretty much anything. Get a couple hundred points on a couple of contracts and your few thousand dollar investment will be more than an annual income-all in one quarter, with a 100%+ max draw down. Rinse and repeat for the next big trend. It's not that difficult to do with everyone else around to follow - not to mention the relatively small stops on huge leveraged trades.

Someone back me up on this.....

Have you ever sat down with a pencil and paper and figured what a series 7 license and the leverage of a prop firm can do with good risk management?

Someone who is brand new to the business can get 30:1 intraday.

Right now I have 10 stocks on my screen, each of which having well over a 10% range on the day, and they were all trading unusual volume pre-market, so it's not you had no idea they were going to move. Look at VELT by itself.

If you're good at trading longer term, then great. But have tons of fun with the overnight risk while using all of that leverage you're talking about.

 

[jnbadger]

Quote from vincentvega:

That's the point. The market is almost a random walk intraday.

I love it when people believe this.

 

[vincentvega]

Quote from jnbadger:

Have you ever sat down with a pencil and paper and figured what a series 7 license and the leverage of a prop firm can do with good risk management?

Someone who is brand new to the business can get 30:1 intraday.

Right now I have 10 stocks on my screen, each of which having well over a 10% range on the day, and they were all trading unusual volume pre-market, so it's not you had no idea they were going to move. Look at VELT by itself.

If you're good at trading longer term, then great. But have tons of fun with the overnight risk while using all of that leverage you're talking about.

Thanks for sharing

 

[bellman]

Not sure what you mean by forward data either, but the statistical confidence argument would still hold I am sure no matter what data you are looking at.

 

[1a2b3cppp]

Quote from vincentvega:

That's the point. The market is almost a random walk intraday. You shouldn't be trading on past data, you should be trading on forward data.

Are there any data providers that offer "forward data"?

Sounds like it would be very useful.

 

[traderchi128]

Quote from jnbadger:

I love it when people believe this.

There is a pattern here...people who fail at day trading start threads "You can't make money daytrading" Then the ones who can't make money trading equities start "You can't make money trading equities" threads. These people seem to think just because they fail, others can't succeed. If they lose money in any market with any strategy it's because the moves are all random. Their act gets old.

Pretty simple....come up with a strategy that works....trade...if things change...adapt...or don't adapt and whine how hard trading is.

 

[Zr1Trader]

Reason to day trade is because....


If you measure the shoreline with a ruler it is longer than if you measure it with a meter.

There are more than enough points offered intraday everyday.

Preferably one should want to be in volatile liquid instruments if one wants to trade intraday successfully.


Just have to make sure you watch your costs and preferably trade something with "bang for buck" and a nice Intraday ATR ....Enough Range vs spread/comsih

My 2 cents

 

[ocean5]

Quote from Bob111:


not sure how you can trade on forward data.

HFT thats how

 

[Bob111]

Quote from ocean5:

HFT thats how

+1.
but still not sure how this can be applied to OP. english is not my native language and to be honest-i have no idea what he is actually trying to say in his original post.

To you day traders - have you never sat down with a pencil and paper and figured what the available leverage can do with good risk management? The answer is, pretty much anything. Get a couple hundred points on a couple of contracts and your few thousand dollar investment will be more than an annual income-all in one quarter, with a 100%+ max draw down. Rinse and repeat for the next big trend. It's not that difficult to do with everyone else around to follow - not to mention the relatively small stops on huge leveraged trades.

is he is for day trading or not? leverage just like a big dick- only good in right hands..it can harm or pleasure..not sure what this guy is trying to tell us.. maybe he know something magical about risk management..but so far- there is no proof of that..just some random words..

 

[Laissez Faire]

Provided a liquid and volatile market, why not day trade?