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Why Daytrade????
- Thread starter retire45
- Start date
I know about 10 daytraders making an average of $40,000-$80,000 a month or more, never having a losing month, for years on end. Most are working with a capital base of low to mid six figures, but that still works out to 100's of percentage points a year return. All started with small accounts and have built them up through day trading, while paying taxes and living a comfortable lifestyle.
Here are some common traits among these individuals.
They all trade using a statistically based system or work on escoteric niches of the market where they've found a small edge or inefficiency that they exploit.
None of them use charts to make trading desicions.
They never know what the market will do nor do they try to predict.
They don't get exuberant on a great day, they don't get depressed on a bad day. They're not in it for any kind of excitement. Most of the time they find the market boring.
Most have been at it several years and are in their 30's or 40's.
They execute A LOT of orders every day and move a lot of shares. Some are all manual, some are all automated and everywhere in between.
Most end each day in cash, or mostly in cash. Overnights are a small portion of their transactions.
Are they day traders? You betcha. Are they stereotypical daytraders? NO. Conclusion? If you think daytrading is a waste of time and a losing game, you're doing it wrong, or you're ignorant about the world of professional daytrading. Try to be a typical daytrader, expect a typical result.
Here are some common traits among these individuals.
They all trade using a statistically based system or work on escoteric niches of the market where they've found a small edge or inefficiency that they exploit.
None of them use charts to make trading desicions.
They never know what the market will do nor do they try to predict.
They don't get exuberant on a great day, they don't get depressed on a bad day. They're not in it for any kind of excitement. Most of the time they find the market boring.
Most have been at it several years and are in their 30's or 40's.
They execute A LOT of orders every day and move a lot of shares. Some are all manual, some are all automated and everywhere in between.
Most end each day in cash, or mostly in cash. Overnights are a small portion of their transactions.
Are they day traders? You betcha. Are they stereotypical daytraders? NO. Conclusion? If you think daytrading is a waste of time and a losing game, you're doing it wrong, or you're ignorant about the world of professional daytrading. Try to be a typical daytrader, expect a typical result.
vectors101
Guest
many traders don't have the 'discpline' to trade like that and too tempted to just gamble and double there money with one trade and make some EASY MONEY. which by the way is the reason for most accounts blowing up. it is boring if you trade what you described. making 40k on a 500k account working every day and trading lot and lots of trade and commissions must be in the hundreds of thousands.
vectors101
Guest
those daytraders are trading like a market maker.
making lots of trades per day. and is prop traders or retail traders..prop traders can have up 50X margin while retail acconts have only 4X margin. and you need 25k or more to daytrade ..
futures trading is way too risky as the slippage can easily eat up any gains.
making lots of trades per day. and is prop traders or retail traders..prop traders can have up 50X margin while retail acconts have only 4X margin. and you need 25k or more to daytrade ..
futures trading is way too risky as the slippage can easily eat up any gains.
Quote from lescor:
I know about 10 daytraders making an average of $40,000-$80,000 a month or more, never having a losing month, for years on end. Most are working with a capital base of low to mid six figures, but that still works out to 100's of percentage points a year return. All started with small accounts and have built them up through day trading, while paying taxes and living a comfortable lifestyle.
Here are some common traits among these individuals.
They all trade using a statistically based system or work on escoteric niches of the market where they've found a small edge or inefficiency that they exploit.
None of them use charts to make trading desicions.
They never know what the market will do nor do they try to predict.
They don't get exuberant on a great day, they don't get depressed on a bad day. They're not in it for any kind of excitement. Most of the time they find the market boring.
Most have been at it several years and are in their 30's or 40's.
They execute A LOT of orders every day and move a lot of shares. Some are all manual, some are all automated and everywhere in between.
Most end each day in cash, or mostly in cash. Overnights are a small portion of their transactions.
Are they day traders? You betcha. Are they stereotypical daytraders? NO. Conclusion? If you think daytrading is a waste of time and a losing game, you're doing it wrong, or you're ignorant about the world of professional daytrading. Try to be a typical daytrader, expect a typical result.
Quote from lescor:
I know about 10 daytraders making an average of $40,000-$80,000 a month or more, never having a losing month, for years on end. Most are working with a capital base of low to mid six figures, but that still works out to 100's of percentage points a year return. All started with small accounts and have built them up through day trading, while paying taxes and living a comfortable lifestyle.
Here are some common traits among these individuals.
They all trade using a statistically based system or work on escoteric niches of the market where they've found a small edge or inefficiency that they exploit.
None of them use charts to make trading desicions.
They never know what the market will do nor do they try to predict.
They don't get exuberant on a great day, they don't get depressed on a bad day. They're not in it for any kind of excitement. Most of the time they find the market boring.
Most have been at it several years and are in their 30's or 40's.
They execute A LOT of orders every day and move a lot of shares. Some are all manual, some are all automated and everywhere in between.
Most end each day in cash, or mostly in cash. Overnights are a small portion of their transactions.
Are they day traders? You betcha. Are they stereotypical daytraders? NO. Conclusion? If you think daytrading is a waste of time and a losing game, you're doing it wrong, or you're ignorant about the world of professional daytrading. Try to be a typical daytrader, expect a typical result.
I knew sooner or later somone who knows what they're talking about would show up.
Quote from lescor:
I know about 10 daytraders making an average of $40,000-$80,000 a month or more, never having a losing month, for years on end. Most are working with a capital base of low to mid six figures, but that still works out to 100's of percentage points a year return. All started with small accounts and have built them up through day trading, while paying taxes and living a comfortable lifestyle.
Here are some common traits among these individuals.
They all trade using a statistically based system or work on escoteric niches of the market where they've found a small edge or inefficiency that they exploit.
None of them use charts to make trading desicions.
They never know what the market will do nor do they try to predict.
They don't get exuberant on a great day, they don't get depressed on a bad day. They're not in it for any kind of excitement. Most of the time they find the market boring.
Most have been at it several years and are in their 30's or 40's.
They execute A LOT of orders every day and move a lot of shares. Some are all manual, some are all automated and everywhere in between.
Most end each day in cash, or mostly in cash. Overnights are a small portion of their transactions.
Are they day traders? You betcha. Are they stereotypical daytraders? NO. Conclusion? If you think daytrading is a waste of time and a losing game, you're doing it wrong, or you're ignorant about the world of professional daytrading. Try to be a typical daytrader, expect a typical result.
Who are these traders? I would like to meet them.
Quote from whitster:
i don't limit myself
i daytrade futures.
i swingtrade stocks (mostly) and to a lesser extent futures and options (usually spread trades)
i also longterm invest in stocks, and to a lesser extent commodities.
i daytrade for INCOME
i invest for WEALTH
100% agreement, why limit yourself. I started out as a swing trader, then started OPM (option premium writer - which I do most), and am now working on becoming a daytrader (when I discovered ET). Why limit yourself on just one thing if you can do them all successfully? And of course have long term investments.
Retire45, are you going to discuss some of your details like profitability this year, how long you've been successful?
Here is a screenshot if I do this right
Unrealized box is from OPW (although much larger balance then daytrade since I'm still testing)
Futures statement - First trade ES listed corresponds to 10:12am EST from daytrading. Net for day $940 (17 RT x $5 all in = 85)
Attachments
Well... I started in the markets while in College trading penny stock IPO's.. quite risky but had a broker that did ok and did well.. Got back in markets early 90's... buying and holding.. didn't work well at all.. 95 or so got back into the pennies with $600 and worked up to 8k or so in about a year and a half.. then the dotcoms showed up... Got close to 200k by 2000 (everybody had returns like this), gave back 60k or so from 2001 to 2005... corrected by problems and have tripled the account last 18 months..
2001 to 2005 a strange time as mentally I wasn't there and was not doing well due to:
Over concentration, Trading too many (the wrong) different stocks, impatience.
The keys that have reversed things are
1. Focusing on a selection of very volatile but orderly basket of stocks usually over $30 (pricier stocks simply tend to move better without news events). This is done via a TC2000 Scan that yields about 500 stocks which I then manually review one by one. NYSE syocks tend to be better behaved that the four letter ones..<g> The idea is to avoid stocks that are "gappy" therefore news driven, tend to routinely violate prior day high/lows while in trend... etc.. SMSI and MBT no good.. MRO, CF good.. i.e. stocks that move in small but persistent orderly days.. that would bore a daytrader..
2. Usually not more than 10% in a stock (20% if a great setup).
3. Daily MACD must be in favor (preferably rising from a bottom) and Weekly not topping..
4. Patience waiting for the right conditions.. A great setup can make your month in a week if you wait for it as it WILL come.. ALWAYS does...
5. Avoid earnings reports.. unless the given sector has been blowing out earnings.
6. 3% stops on every trade... if a loss gets that far it tends to get worse... this is a work in progress though.. as different stocks need different amount or room... all comes down to how close to "protection" the entry is..
I do more work outside market hours for sure..
2001 to 2005 a strange time as mentally I wasn't there and was not doing well due to:
Over concentration, Trading too many (the wrong) different stocks, impatience.
The keys that have reversed things are
1. Focusing on a selection of very volatile but orderly basket of stocks usually over $30 (pricier stocks simply tend to move better without news events). This is done via a TC2000 Scan that yields about 500 stocks which I then manually review one by one. NYSE syocks tend to be better behaved that the four letter ones..<g> The idea is to avoid stocks that are "gappy" therefore news driven, tend to routinely violate prior day high/lows while in trend... etc.. SMSI and MBT no good.. MRO, CF good.. i.e. stocks that move in small but persistent orderly days.. that would bore a daytrader..
2. Usually not more than 10% in a stock (20% if a great setup).
3. Daily MACD must be in favor (preferably rising from a bottom) and Weekly not topping..
4. Patience waiting for the right conditions.. A great setup can make your month in a week if you wait for it as it WILL come.. ALWAYS does...
5. Avoid earnings reports.. unless the given sector has been blowing out earnings.
6. 3% stops on every trade... if a loss gets that far it tends to get worse... this is a work in progress though.. as different stocks need different amount or room... all comes down to how close to "protection" the entry is..
I do more work outside market hours for sure..
penny stocks dont have IPOs