Article You Don’t Have to be a Day Trader to be a Success – Part 2

T2W Bot

Staff member
1,467 68
Continuing on from last week, I am hoping to give even more compelling reasons to consider other trading approches to that of only day trading.
Profit per hour of trading is hugely inefficient for day tradersWhen day trading currencies it is not unusual to be at your pc for up to 10 hours a day. If you are fortunate enough to be able to make a net profit of $200 per day (which most people are not able to achieve) then that is the equivalent of earning $20 per hour which is not unreasonable earnings. Most people who day trade don’t make anywhere near this amount and many spend 10 hours a day in front of their pc and end up with a net loss on the day. It is also very difficult to be able to do anything else when in a trade and requires a great deal of your attention. By comparison, placing trades that are swing positions or longer term do not require more than around 30 minutes of your time a day and the profits are usually much greater. So in the event that I am able to make...
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tiger007

Newbie
2 0
Hello Daniel you have a lot knowledge about trading. Can you tell me if there are any website which give daily forecast, predictions about the market movement. it would be very kind of you if you let me know. thanks
 

rajug

Newbie
4 0
You Don't Have to be a Day Trader to be a Success

Very good information for traders to compare and to consider when deciding to choose the time frames to trade .
 

x4x

Well-known member
465 61
A very biased view which doesn't take many factors into consideration.
 

Trader333

Moderator
8,568 916
A very biased view which doesn't take many factors into consideration.
In what way is it very biased and which factors does it not consider ? It is supposed to offer an alternative to day-trading not substitute it and the general view is that day-trading is the only way to trade when clearly it isn't.


Paul
 

ZEN archer

Experienced member
1,528 240
The way I see price candles is they are fractal. If I remove the labels, I usually can't see difference between different time frames.

That's why I was puzzled by 'TA generally works much better on a longer time frame than a shorter one'. Is this based on the author's personal experience as a day trader?
 

Trader333

Moderator
8,568 916
That's why I was puzzled by 'TA generally works much better on a longer time frame than a shorter one'. Is this based on the author's personal experience as a day trader?
It is based on his own experience and I can see the view that TA works better on longer timeframes because there is more information in a longer timeframe candle than a shorter one and if not then everyone would be trading off 1 minute candles and they don't because it is considered too random.

Also one of the key elements is that manipulation is much harder on a longer timeframe than a short one mainly because all day-traders close positions by the end of business.


Paul
 

Eric Geddes

Member
81 10
This article makes a lot of sense to me and confirms my own experiences. I'm convinced that a lot of the "Holy Grail" searchers might do better in this style.

What really puzzles me though is why Day trading seems to be so much more popular over swing or longer term trades? (if inded it is?). And why is fx so popular? IMHO It doesn't take a genius to come to the same conclusions as the article. Or am I missing something?
 

the hare

Senior member
2,949 1,283
That's why I was puzzled by 'TA generally works much better on a longer time frame than a shorter one'.
Its just the usual forum / broker/IB bollox / misinformation.

In the same way, duff, duff light, and duff dry all comes out of the same bleedin pipe, the data in the bars on whatever timeframe you want to apply an indicator to, all comes from the same tick feed.
 

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pboyles

Legendary member
8,072 1,302
Its just the usual forum / broker/IB bollox / misinformation.

In the same way, duff, duff light, and duff dry all comes out of the same bleedin pipe, the data in the bars on whatever timeframe you want to apply an indicator to, all comes from the same tick feed.
Actually I never found that any indicator or system was any more reliable on a higher time frame. Of course I havnt tested them all but certainly for things like PIN bars I saw no advantage. I'm not talking about trading 25 tick charts or stuff like that but lets say I saw no real difference between 15 minute charts and daily charts. Is there any data that proves otherwise?
 

Trader333

Moderator
8,568 916
Its just the usual forum / broker/IB bollox / misinformation.

In the same way, duff, duff light, and duff dry all comes out of the same bleedin pipe, the data in the bars on whatever timeframe you want to apply an indicator to, all comes from the same tick feed.
Well the guy who wrote the article has nothing to sell at all and brokers prefer day-traders as is well known because they make a lot more money out of them. I am curious though how you can make such a generic statement because what happens intra-day is not comparable to EOD because all trades are settled. Myself and many others have experienced first hand intra-day manipulation that you just don't see on EOD timeframes. So please elaborate more


Paul
 

x4x

Well-known member
465 61
In what way is it very biased and which factors does it not consider ? It is supposed to offer an alternative to day-trading not substitute it and the general view is that day-trading is the only way to trade when clearly it isn't.


Paul
"If you are fortunate enough to be able to make a net profit of $200 per day (which most people are not able to achieve)"

He uses the word MOST - how exactly does he know what 'most' people can or can't achieve...?

"Most people who day trade don’t make anywhere near this amount and many spend 10 hours a day in front of their pc and end up with a net loss on the day."

Again, how does he know how long MOST people spend at their screens, how much MOST make and that MOST lose.

"So in the event that I am able to make a $600 profit over 3 days and that it has taken 1.5 hours of my time to achieve this then my profit per hour of activity is 600 / 1.5 = $400 per hour. This is 20 times more effective than if I am able to make a $600 profit over a 3 day period by day trading."

This is all assumption,and based on what - he isn't taking into account the higher leverage that day trading offers - which I know can be a bad thing, but great if used properly.

"If you live in the UK then spread betting offers major tax benefits but only for longer term trading and not for day traders."

I live in the UK, I spread bet and I day trade - so again this is just plain wrong.

The writer has an agenda and is not showing both sides of the debate and allowing the reader to sum up what is best for him/herself. That is what makes it biased....
 
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