Opposite Trade Of Day Trader

[bonusmf]

Can One Win by trading opposite of Day Traders ?

 

[Vaco]

Can One Win by trading opposite of Day Traders ?

and just how would you do that?

 

[shadowninja]

I suppose you could, as a new trader, guess what a trader would trade and take the opposite. This might actually work by "reverse" logic as a beginner trader guessing correct entries is likely to lose money.

 

[arabianights]

Can One Win by trading opposite of Day Traders ?

Sure. If you have a big position to fill you pretty much have to be taking the other side of day traders' trades.

 

[arabianights]

Entirely depends on what instrument we're talking about here. In FX that's false.

:whistling

 

[bonusmf]

and just how would you do that?

Day traders are always around you. You don't have to be crazy to have them around.

 

[Jaydee]

Day traders are always around you.

Are you talking about pit trading?

 

[bonusmf]

Are you talking about pit trading?

The subject is that most of day traders (Equity Share) loose money, can any one who trades opposite of them wins ?

 

[Vaco]

yes, most traders in general lose money (not just daytraders) this is just as much to do with poor exits and money management as it is to do with entries. None of them lose money on every trade and usually wipe the bulk of their account out with a few trades that are either overlevereged or allowed to run into a larger loss.

My point rermains, how would you go about identifying a daytrader(who is lossing mony) and then mirroring their trades?

 

[westernforce]

Well said Elefteros.
There is more to a trade than just getting the initial direction correct.

 

[new_trader]

The subject is that most of day traders (Equity Share) loose money, can any one who trades opposite of them wins ?

I suppose what you are really saying is:- If you do/act exactly the opposite of someone who is always losing money then you should always win.

Yes, you are right.

The 2 main reasons people lose money through trading are:

1) Incompetence.
2) Over Trading.

Do/act exactly the opposite of those 2 things and you will always make money trading.

 

[Vaco]

for the purposes of this thread and my amusement define trading incompetantly and its opposite.

same applies to overtrading, this imo is nonsence and a term thrown about as an excuse when money is lost.

There are only 2 types of trades imho

1.trades placed as per your system rules.

2.dumb trades

Sometimes with dumb trades you make a profit and feel smug about your trading 6th sence other times you lose money and say 'i'm overtrading'.

With system trades the result on the trade is nothing more then a statisctic win or lose you are not attached to the result it is 1 of many.

 

[Vaco]

Gammer,

Everthing you said makes sence however as i lack the first of three things (relevent information) I can not trade this way and as the target audience here is mostly made up of new retail traders i feel that my advice to them stands as it is a way of improving their discipline.

The rules can be as simple as only buy/sell at support lines you have drawn before the market opens, stoploss decided before entering trade.

The reason i call it a dumb trade is because if you have discovered or been taught a way of trading that is profitable trading outside of this plan with may erode into your profits but the tendancy is to do just tht.

'If it aint broke dont fix it'

 

[Joey25]

Can One Win by trading opposite of Day Traders ?

CBOT produces a Liquidity Data Bank Report which splits volume into that done by Floor, Commercial, Off-Floor members and the Public (CTi1, CTi2, CTi3 and CTi4)

One potential use is to identify "capping" or "flooring" behaviour by the commercials.

However, this approach is more about "going with" the institutions rather than taking the opposite side of daytraders, and there is limited product coverage.

Joey

 

[bonusmf]

yes, most traders in general lose money (not just daytraders) this is just as much to do with poor exits and money management as it is to do with entries. None of them lose money on every trade and usually wipe the bulk of their account out with a few trades that are either overlevereged or allowed to run into a larger loss.

My point rermains, how would you go about identifying a daytrader(who is lossing mony) and then mirroring their trades?

Let's assume that some one always has clue that Mr. X has a certain exposure in the market and in any circumstance he is going to offset his position at the end of day. What do you think, can one make a win ? (Question is not how one would identify the loosing daytraders, instead it is, can money be made going opposite trades of daytraders ?)

 

[arabianights]

So basically you're suggesting squeezing Mr. X?

Problem is if Mr. X can't take a postion overnight he is presumably not worth squeezing

 

[andanotherthing]

theoretically: assuming you know mr.x's position yes! but only if you have bigger pockets than him. you will need to drive the market away from him to force him out at your price. then mr.x will start screaming market manipulation and it will all end in tears......

 

[Jaydee]

theoretically: assuming you know mr.x's position yes! but only if you have bigger pockets than him. you will need to drive the market away from him to force him out at your price. then mr.x will start screaming market manipulation and it will all end in tears......

The flipper was (and still is) good at this. I wouldn't fancy going up against him though.

Anyway bonus, it sounds like you are suggesting going short at the end of the day when the market has been going up and long at the end of the day when the market has been going down because all the day traders who have been on this move will liquidate their postions before the close. Right?

 

[arabianights]

Someone's recently been flipping euribor, very good fun to watch (and participate in on his side if you can work out what he's up to - he takes the risk and you can share the rewards ). Occasionally someone squeezes him and he's immensely disciplined in getting out straight away.

If I were goldman I'd **** him over completely, be very easy to do and teach him a lesson...

 

[new_trader]

for the purposes of this thread and my amusement define trading incompetantly and its opposite.

same applies to overtrading, this imo is nonsence and a term thrown about as an excuse when money is lost.

errrr....ummmmm......Didn't you say this?

None of them lose money on every trade and usually wipe the bulk of their account out with a few trades that are either overlevereged or allowed to run into a larger loss.

incompetence...overtrading...or not?

Make up your mind