Day Trading is Dumb

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Old Oct 13, 2004, 1:12am   #1
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Day Trading is Dumb

who copys

Last edited by cj12; Aug 20, 2005 at 1:02am.
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Old Oct 13, 2004, 1:53am   #2
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Sounds to me that you have 2 problems with your trading method.

How did you define where your stops SHOULD be placed?
The shorter the stop generally the more times you will be stopped out, some of which are probably unnecessary.

You say that you let profits run and then they turn against you, what is your exit strategy?

Find a method that works, plan your trade and trade your plan.
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Old Oct 13, 2004, 2:21am   #3
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I agree with Juanbyte and in addition I will say that in reality, anyone day trading should have clear objectives with regards the profit potential before they open the position(s). If you are trading UK/US shares what percentage do the shares have to move before you close a profitable trade? How many points are you looking for when you trade the indices? What is a worthwhile turn in a currency cross?

These are very important questions when you are day trading and I can assure you that those that say otherwise are pushing you ever closer to the Poor House.
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Old Oct 13, 2004, 7:34am   #4
 
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Day trading is just another time frame. If it doesn't suit you, find which one does. Remember the market is never wrong, only you.
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Old Oct 13, 2004, 10:47am   #5
 
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Sun123, I hope your maths is better than your English, else you really don't stand a chance.
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Old Oct 13, 2004, 11:12am   #6
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Hi Sun123

You said that you day trade. Is this on an intraday basis?

What timeframe of real-time charts do you use?

Cheers

jtrader.
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Old Oct 13, 2004, 11:57am   #7
 
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Exactly what Oatman and juanbyte say . Something fundamentally wrong with what you're doing , 'specially if its consistently wrong .

I've read the books , gone to the seminars , done the graft and 5 years on Day Trading is still paying the bills and some

Hope you get it right soon

:-)
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Old Oct 13, 2004, 12:37pm   #8
 
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I'm only 2 years in and still have a long way to go so take this how you like. I think everyone's learning curve is different. I personally believe , as you say trading whilst working is very differenet than when you are trying to do it full time. First of all, If the aim is to trade intraday you wont learn your market if you are only having a look at the screen at your lunch break. Saying that trading full time you open yourself up to the other extreme. KNOWING TOO MUCH!. This is what I have been going through for the last 6 months and finally getting to the otherside. It is imo that intraday trading is more difficult psychologically as for example the FTSE can swing between a 40 point range intraday but over a week it only trades between 80 points. Thus if you are trading bigger swings over a few days you might feel safer. It is up to you to find out what you want to trade.And I think this is a key point. . One you know what you want to trade you can go about making some sort of method to trade it. If you want to trade intraday then dont hold over night or enter trades during closed markets hours just because the Spx has moved up 5 points. Otherwise you will find yourself thinking you are trading intraday but you are actually trading 3 days swings (as an example) Thus, your whole entry and exit and potential profit are all acting against each other. So in short,

Decide want type of moves you want to trade and stick to it.

Try and keep it simple but more importantly try to trading using methods that interest you personally.
Dont listen to the guy who can trade using price only, dont listen to the guy who can trade using moon cycles. Ultimately it doesn't matter what gets you in and out it's making money that counts. You just have to find which is the best way for you.

Have targets. If you want to make a living from trading. Decide how much you need to make a living. Dont just think "I want to make a living trading" . Your mind can not process general tasks like that. Decide I want to start make £250 pw by the end of the year trading intarday swing. Or whatever. You get the idea.
If you need to have piece of paper in front of you to say....do not trade out of hours, do not try to pick bottoms or whatever is making it difficult for you so be it. So what ever it takes to break those bad habits.

Long term habits start to set in after 6 months. That gives you an idea how long it takes to change habits!

It's going to take time. However quickly you expected yourself to learn this "game" double it. For me I gave myself 2-3 years...3-6 is now my target.

Find support from other traders. Ignore the one who just post exits points. You know the ones
"just closed Dow long for 73 points". They will not help you develop and get better.

If you can't afford to trade and not work don't.

If you dont like the isolation of trading from home...don't.

Think positively about yourself and your ability to learn and change.

Within financial reason, never quit!. YOu never know how close you are to making that next break through.

and so on and so on ...............there are too many I have learnt over the last two years...and probably alot more to learn still

Last edited by Hooya; Oct 13, 2004 at 12:43pm.
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