Why is daytrading "not for beginners" ?

Day Trading I think is complicated with all the indicators and knowing went to sell or buy. Its quiet had.
 
avtardhillon said:
Day Trading I think is complicated with all the indicators and knowing went to sell or buy. Its quiet had.
Click to expand...

Remove the indicators, learn how the price moves, use trend lines.

Indicators are derived from price action... they are a distraction on all time frames.
 
Doomberg said:
It seems that all the advice i've seen on here and other forums is that you should learn to trade on larger time frames, and if you want to day trade then you should slowly reduce time frames. Why does this seem to be the usual talk, in fact i've even seen people on here say that it's impossible to make money from day trading without some inside bank hints etc. Why would many have this opinion?
Click to expand...

Hey D

best to make your own decisions about how/when/what you trade in the markets...........based on your own research

this business is full of contradictory advice and information...a bit like the markets we in fact try to make money from :p

so dont believe anything and everything you read ;)

i'm sure you will get plenty of advice and links so the research is all out there for you to consider and judge

good luck
N
 
Intra-day price movement is more akin to the rate of change of a child's growth and characteristics, compared to a maturing adult, which would be the inter-day price movements, eg daily, weekly, and monthly time frames.

In other words, it has greater randomicity in all directions. It is more abstract and relatively chaotic.

First it's a good idea to do the basic maths, and then you can gauge as to how experienced you should be before starting to trade very small timeframes. Let's take it to an extreme, trading the 1 minute charts of say GBP/USD forex on a retail spreadbetting platform.

Attached are some charts which show the falsetime and safetime results when filtered through a number of basic trading systems. I've done a series of posts on another thread titled 'Calculating High Probability Trades' which describes this method of analysis in more detail.


GROUP Ft Chart.jpg

GROUP St Chart.jpg


And then the realtime figures allowing for a typical retail spread, reconstructed by the INDE trading system.


GROUP FtRt Chart.jpg

GROUP StRt Chart.jpg


Now that the realtime figures are available, the falsetime and safetime methods are superseded but kept on the charts to show their positions relative to realtime.

As you can see, based on a purely mathematical model, without the spread there is a glimmer of profit potential, but once the spread is applied, it is eternally loss making.

This is of course an extreme example, but one which nonetheless helps to shed light on a few questions.
 
neil said:
Polly talks utter bollox and has a breast fetish(uses this phrase on more than one thread) ?:whistling
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I think your words are more a reflection of your mind than mine.

Most new traders enter trading at the retail end, whilst starting 'trading school' at kindergarten stage. There is nothing wrong with that, it is a natural cycle.

When beginning anything new we have a child's mind, and I mean that positively in that we are open minded and very willing to learn.

You may want to question whether your mind helps or hinders new traders.

Try to understand the true import of these words.
 
PollyM said:
I think your words are more a reflection of your mind than mine.

Most new traders enter trading at the retail end, whilst starting 'trading school' at kindergarten stage. There is nothing wrong with that, it is a natural cycle.

When beginning anything new we have a child's mind, and I mean that positively in that we are open minded and very willing to learn.

You may want to question whether your mind helps or hinders new traders.

Try to understand the true import of these words.
Click to expand...

A precis of your output still equates to "Bollox.":cheesy:
 
Shakone said:
Look, if you go to a casino, and you have the opportunity of betting every 1 minute, or betting just once a day, which do you think you'll end up doing better with at the end of the week? This is the answer to why daytrading is not for beginners. Beginners lose, beginners have no edge, beginners rarely even have money management.
Click to expand...

Mmmm I disagree, you could bet 100% of your account on a swing trade and lose, and bet 0.1% per trade 10 times a day on a day trade. In other words if you're a **** anyway it won't matter
 
edg3 said:
Mmmm I disagree, you could bet 100% of your account on a swing trade and lose, and bet 0.1% per trade 10 times a day on a day trade. In other words if you're a **** anyway it won't matter
Click to expand...

Sounds like you agree then.
 
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