Is full time Day Trading really sustainable?

[new_trader]

I don't understand why people think timeframe matters. You must understand what you are doing at all times...once you understand, you will understand that time is irrelevant and relevant at the same time!

 

[fifty2aces]

I don't understand why people think timeframe matters. You must understand what you are doing at all times...once you understand, you will understand that time is irrelevant and relevant at the same time!

Pretty much, but timeframe does make some difference - if you trade on a very short timeframe, spreads and commissions will eat up a larger percentage of your profits. Overall though, I've found that the same techniques work in similar ways over a variety of timeframes.

 

[Splitlink]

Pretty much, but timeframe does make some difference - if you trade on a very short timeframe, spreads and commissions will eat up a larger percentage of your profits. Overall though, I've found that the same techniques work in similar ways over a variety of timeframes.

But the larger the TF the farther the stop should be, if you follow the logic of TA. That is why shorter TFs are used by day traders.

 

[Windowsill]

I'm relatively new to this full time trading way of life and while I've been trading different ways and techniques I have almost come to the conclusion that Day trading is the least profitable way of trading!
I'm sure that there are a number of people here that Day Trade profitably but I can't get to grips with any structure in Day trading beyond intuition and basic short term, intraday fundamentals. Certainly I can't see intraday charting using moving averages anything else but Punting on lines that cross. In fact, I think the whole intraday, everyday trading will eventually yield a loss over a few weeks/months. Which explains why 70-80% of new Traders go under, particualry on Spread Betting.

Maybe I am wrong here but I would be interested to know of any Day Traders that have traded everyday for the medium to long term as a Full time job and turned it into a very profitable career.
Outside of that I would guess that most people are holding positions over longer periods of time and waiting for the right conditions to happen before placing positions.

Just my thoughts as a full time newbie to all this.

If you were looking at a bar chart with no time scale, and it had tradeable set ups.....whats the difference...... if its a weekly chart or a minute chart??

 

[nine]

Their are probably two differences:

- as suggested above, spreads and commissions are a higher proportion of the day trade (if eur.jpy has a 2 point spread and you day trade for 20 points then thats 10%+ another 5% for commssions vs if you position trade for 200 points then its 1% on spread and 0.5% on commissions).

- the players creating the pressure waves you are surfing are different and may behave differently from timeframe to timeframe and from market to market (hence the wide variation in market characters on a 1 min timeframe (hsi vs nk, dax vs estx50)).

 

[dbphoenix]

No offense intended, but since you seem not to have any sort of trading plan, how do you expect to succeed?

Learning to trade is a process. If you have not yet begun the process beyond getting a computer and an internet connection, finding out whether others are successful or not is not likely to propel you one way or the other.

 

[Windowsill]

[

- the players creating the pressure waves you are surfing are different and may behave differently from timeframe to timeframe and from market to market (hence the wide variation in market characters on a 1 min timeframe (hsi vs nk, dax vs estx50)).[/QUOTE]

I agree, this is the fun bit in my opinion. Pinning down the behaviour. Thats why I can't understand people going from one time frame to another for confirmation etc, etc...by the time you have confluence, the trade opportunity has gone.

 

[RichieE]

I don't understand why people think timeframe matters.

Yes - I should qualify my previous post. When I say that timeframe doesn't matter I mean that the buy/sell signals will be the same regardless of timeframe. For example, if you're reading a book on candlesticks patterns you don't normally see much discussion on whether you are looking at 1 minute bars or a 1 month bars.

However, the amount earnt per trade and the trading costs 'should' become smaller when trading larger timeframes. If you are 'scalping' (time frame of seconds to minutes) you only expect to make a few ticks per trade. If you are 'investing' (time frame of months to years) you expect to make a lot more ticks per trade. Therefore the amount you are paying in transaction costs will be a lot lower for larger timeframes.

P.S. The above is a bit of a generalisation... I'm sure that some here will disagree.

 

[grimweasel]

Hi there. I'm new to all this and I wish to trade over the medium term. I don't have the time for day trading as such. I wish to develop a system that allows me to scan, say 10 popular markets a night and spot trends/signals for entry etc. I have studied the 'pinbar' thread. It would seems they are rather elusive?
What would the best approach be? Would I look for trends and trade SR/Fib levels combined with crossing of say the 10/21 day ema?
Can it really be that simple? We have a neumonic where I work; KISS (keep it simple stupid!) which is often the best approach. With so much advise and so many different indicators one could easily succumb to info-overload paralaysis.
I would be keen on any basic ideas to at least get me started. I have been SBing for about 3 years now and I end up down more than up. I know why; I have no plan. I have now know how to plot the SR levels etc and Fibs to help in a decision. Would it be feasible to trade say, price on lower rest line in an upward channel, with Fib confluence and good volume (ie it's a down day but there is little volume maybe indicating a lack of big money behind a move?)
Thanks very much in advance!
Grim

 

[trader_dante]

I have studied the 'pinbar' thread. It would seems they are rather elusive?

Elusive?

 

[grimweasel]

Sorry T-D
I mean that they don't appear too often, which of course can be a good thing! Stops overtrading.
I just find them hard to spot over many markets. Is it best to specialise in 10 markets for example?
Hope the new job is treating you well? It's odd, but after reading your pin thread I feel I have a slight connection now! It's like a book where you live and imagine the character. How is Pelzar? How on earth does he make all them pips in the small TFs on 'feel'??

As an aside, how do I load indicators into MT4? I have downloaded a few but I can't get them to load?
Thx again,
Grim

 

[mr_cassandra]

re daytrading

day trading is one of several successful and totally different ways to make money in the markets. If I were you I'd focus on the replies from others doing it successfully and see what can be learned from them. Ignore the usual 'pithy' comments or remarks that are of no help at all..

The only wrong practitioner of any method is the one who pronounces confidently: my way is the ONLY way.

I'm relatively new to this full time trading way of life and while I've been trading different ways and techniques I have almost come to the conclusion that Day trading is the least profitable way of trading!
I'm sure that there are a number of people here that Day Trade profitably but I can't get to grips with any structure in Day trading beyond intuition and basic short term, intraday fundamentals. Certainly I can't see intraday charting using moving averages anything else but Punting on lines that cross. In fact, I think the whole intraday, everyday trading will eventually yield a loss over a few weeks/months. Which explains why 70-80% of new Traders go under, particualry on Spread Betting.

Maybe I am wrong here but I would be interested to know of any Day Traders that have traded everyday for the medium to long term as a Full time job and turned it into a very profitable career.
Outside of that I would guess that most people are holding positions over longer periods of time and waiting for the right conditions to happen before placing positions.

Just my thoughts as a full time newbie to all this.