Why Daytrade????

[retire45]

Quote from austinp:

What if a good intraday trader can turn $5k to $40k in one month? Is that an acceptable exchange for time spent versus swing trading?

[/B]

If you can do that daytrading sure it's worth it depending on commissions..

 

[retire45]

Quote from hbiawos:

So what's the big picture? Break it down for those of us who aren't sure.

Hmmm... Big picture as in S&P likely to bounce at year lows (it did)..., The 2 next Dow levels 13,500 and 13,700.., September historically being weak into October.., Late October into year end good time to be long.., Next year being and election year and almost NEVER a down Year.., etc

The point in swing trading is markets tend to trend at least a few days... Yes there are very choppy that irritate but not often.

You could be fighting a 5 minute while the weekly/daily are against you though I doubt a good daytrader would.

 

[retire45]

Quote from patoo:

and mine shrinks whenever I look at 5 minute bars

Yes... watch a TSL 5 minute and you'll throw up.. I view nothing shorter than hourlies..

 

[retire45]

Quote from Szeven:

I daytrade because i know its a consistent way for me to make an above average wage. I know that given enough reps, I will make money. Because daytrading allows me plenty of oppourunities to trade each day, the chance of me making money everyday is very high. I have not attempted much swing trading, and what little i have has not gone well. I kinda think of swing trading as 'putting all my eggs in one basket'. If i succeed say 60% of the time, and i only take 5, 10, even 20 trades a week, that means i better hit one out of the park or im barely making anything. (unless my account is several million$$)

These are my assumptions on swing trading compared to the OP's assumptions on daytrading.

Its also easier to get large intraday margin, so that given the win % and number of trades per day, I can increase my profit take home faster than if i tried to build up a swing accounts a couple % at a time.

Ok.. one I missed.. Margin is skewed to encourage daytrading...

 

[retire45]

Quote from hbiawos:

Is it really? So we're in an uptrend, is that it?

Yes we are in a 3 day old daily uptrend.. until it stops being one.

 

[blumartian]

Quote from retire45:

There must be other reasons because the ones above not good enough to me. Did daytrading ever create real wealth for anyone? We all know longer time-frames have... Or is daytrading purely for income? I find it hard to do anything only for income rather than becoming truly financially set.

You might as well ask yourself why bother swing trading, when you can ride the longer-term trends, such as oil or gold the past 5 years or so? Even less decision-making, less aggravation, you can check your position once a month or so, etc.

When you've answered that question for yourself, then just shift the time frames and you'll see the point others are trying to make.

 

[hbiawos]

Quote from retire45:

Hmmm... Big picture as in S&P likely to bounce at year lows (it did)..., The 2 next Dow levels 13,500 and 13,700.., September historically being weak into October.., Late October into year end good time to be long.., Next year being and election year and almost NEVER a down Year.., etc

The point in swing trading is markets tend to trend at least a few days... Yes there are very choppy that irritate but not often.

You could be fighting a 5 minute while the weekly/daily are against you though I doubt a good daytrader would.

Retire, I was playing devil's advocate. I don't think you or anyone else knows where the market is going next, particularly given the situation with the financial sector and global exposure to subprime which, despite the Bernanke/Bush dog-and-pony show Friday, is still with us.

Assumptions and predictions are a fool's game unless you're really committed to your positions for the long haul, and are willing to take tremendous drawdowns in your account.

I'm a daytrader, I will always be a daytrader, that's what works for me, and better still, it's fun!

Good luck.

 

[jwecme]

The reason people day trade is simple, it offers the highest potential return out of all forms of trading for the smaller accoutn holder.

The market moves a greater distance than its low to high for the day therefore the lower your trasnactional time frame the greater potential for profit until liquidity issues negate this advantage.

Whether one can capture thsi extra movement consistently is where the real question lies.

 

[stock_trad3r]

Quote from jwecme:

The reason people day trade is simple, it offers the highest potential return out of all forms of trading for the smaller accoutn holder.

Thats not true. Ur an idiot.

 

[cashmoney69]

question. At what point does a day trading account become to large to be usefull?..