day trade 2 swing trade?

This is a discussion on day trade 2 swing trade? within the Swing & Position Trading forums, part of the Methods category; thanks everyone, Ok, lets say i am talking about trading only well known relatively stable stocks. Dell or Microsoft for ...

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Old Dec 17, 2004, 1:41pm   #9
 
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spookygr started this thread thanks everyone,

Ok, lets say i am talking about trading only well known relatively stable stocks. Dell or Microsoft for example. i know that bad things happen, but these types of companies are fairly safe. I am not talking about a long term investment, i am saying just buying it and then holding it but still watching it as if it were a day trade. Selling when the opportunity arises.
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Old Dec 17, 2004, 1:42pm   #10
 
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I think this comes under the same category as pyramiding down and letting your losses run. It has to be a bad idea.

Now letting a winning intraday trade turn into a swing trade I'd say is a different kettle all together as it may show a definite level of objectiveness in your trading lacking in mine as long as it is in your plan. if you made it up on the spot well... then not so good ,so I'd review it and modify your plan acordingly

just an option,
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Old Dec 17, 2004, 1:47pm   #11
 
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spookygr started this thread Basically, i think, i am talking about using day trading techniques over whatever time period it takes, within reason. It is quite rare that you buy a stock at a price that it never reaches again.
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Old Dec 17, 2004, 2:05pm   #12
 
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Quote:
Originally Posted by spookygr
thanks everyone,

Ok, lets say i am talking about trading only well known relatively stable stocks. Dell or Microsoft for example. i know that bad things happen, but these types of companies are fairly safe. I am not talking about a long term investment, i am saying just buying it and then holding it but still watching it as if it were a day trade. Selling when the opportunity arises.
I would start by pulling up some longterm charts of your "stable" stocks. Enron was stable, er until it wasn't. Kmart was stable until it wasn't. To make daytrade money out of very stable stocks like MSFT your likely talking about hitting it with a lot of volume. If it goes against you you are now in too big a position for swing. Alternatively choose a swing position size, then you are not going to make enough money, on the daytrade so you should have looked for a swing trade in the first place.
Let's say I am looking for a daytrade today, I am looking for a stock that is going to move in my favour in the next few minutes hours, my analysis is based on the price action today, right now, I don't care what it is going to do tomorrow or the day after or next week. So I don't know. Your theory would have a chance of working if you could predict market tops and bottoms, so you could buy near a major market bottom, and hold indefinitely. But that would mean waiting for what you believe to be the next market bottom. Buy now and you are assuming a huge amount of risk
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Old Dec 17, 2004, 2:06pm   #13
 
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Originally Posted by spookygr
Basically, i think, i am talking about using day trading techniques over whatever time period it takes, within reason. It is quite rare that you buy a stock at a price that it never reaches again.
Daytrading techniques work for daytrades, not for other time frames.
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Old Dec 17, 2004, 2:28pm   #14
 
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spookygr started this thread Ok, like i said bad things happen, but 99% of the time disasters like enron and kmart are exceptions.
Why is a high volume swing a bad idea, surely its the same as a low volume one with more risk. But, if you agree with my previous comment that "it is very rare that you buy a stock at a price that it never reaches again" then surely the risk isn't as great. Now dont get me wrong i understand that there is of course a risk that any and every stock can crash.

Now assuming that you are watching this stocks actions as closely as f it were a day trade then you could catch it
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Old Dec 17, 2004, 2:43pm   #15
 
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Originally Posted by spookygr
Why is a high volume swing a bad idea, surely its the same as a low volume one with more risk.
That is an impossible question for me to answer to you. Because it relates to risk, and by your proposed style you do not acknowledge risk as you believe that barring 1% of disasters your stock will always come back for you. The lot size is used to calculate risk against your stop. Since you have no stop this is irrelevant to you.
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Old Dec 17, 2004, 2:44pm   #16
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Sorry to be negative but I must join the chorus of nay-sayers here. At some point you'll have an accident and it will be a disastrous one. If you're planning to make a living from this, there's no point in adopting a policy of something that will be "safe" 99% of the time. The one thing you can be sure of that way is that at some point you'll go under. You can have a policy that's "profitable" for whatever proportion of the time you want, as long as you've got enough capital to realise and withdraw the profits regularly. But you can't run with a policy that's only "safe" 99% of the time. Your primary responsibility as a trader is to be able to continue trading, and you can do that only if your policy is "safe" 100% of the time, not 99% of the time. The above point about Nick Leeson is an excellent one: his policy (though you may not quite think of it this way) is _exactly_ what you're proposing.
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