Oh, crap. I walked into something that goes way back. I'm outta here.ops:
He does have a way of emptying a room
Why is day trading considered dangerous?
- Thread starter kfir
- Start date
He does have a way of emptying a room
rmorse
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As a general rule, I would consider short term trading less dangerous. However I'm not sure if you are using the word dangerous when you mean less profitable. I can tell you that managing risk is easier with no overnight positions and shorter time spans. However, day trading is a difficult skill to learn and be consistent. Unless you are at a prop firm using extreme leverage, you would be more apt to loss money slowly if you are wrong. So for that, I'd say vs other trading, not as dangerous.
Day trading is considered dangerous by people who think that there's a fundamental reason for every tick in the market. For one who can read price, day trading is no different than swing trading or even long-term trading. You're trading the same price formations except on a smaller time frame.
The articles refer to the statistics, the statistics are based on those that start in bullet proof mode and come out shell shocked. When you understand human nature you understand much more about trading. Everyone one of those day traders or I should say day losers were focusing on the money and did not pay the 10 year tuition. Day trading requires a thought process that is based on fast processing times and years of making mistakes, for those that fit this profile Money Trust is 100 % correct. I ask you "kfir" do you want to make mistakes for the next 5 years and stick with it to come out the other side in 10 as a profitable day trader ?
Day traders are trading noise ( as defined academically) -- edges do exist intraday but they never last and are fleeting-- your competition are firms with level 3 access who can see your orders etc, not to mention HFT -- in other words, retail chart price readers simply can not compete and the playing field is far from even on short time frames--- folks who tell you differently likely work for the wall street machine or have other nefarious interests, SO, please be very CAUTIOUS listening to anonymous posters with "hard to believe" tales and talk of fractals, auction markets, and psychobabble.
I spent a week at Knight back in early 2000's observing and witnessed the way things really work-- talk about a wake up call! day traders were sitting ducks for these guys. surf
I spent a week at Knight back in early 2000's observing and witnessed the way things really work-- talk about a wake up call! day traders were sitting ducks for these guys. surf
Nice platitude, but Serious question, what does human nature have to do with HFT? Over 80% of all stock trades are done by HFT computers --- so how does understanding human nature help you win against super computer power? I would think understanding code makes much more sense for those looking for real edges rather than 1970 style platitudes--- peace, surf
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Like those who tried to short SHAK
I make plenty of mistakes trading. Every real trader does.
surf