Would this Day Trading Strategy work?

[dskerritt]

Hi all: I'm a new trader and I had an idea. Let me know if this is legal. This is just an example.

If stock futures are down before market opens and stock falls at opening bell I will sell (short) 100 shares. At first upturn I will buy 200 shares so I am long 100 total. At next downturn I will sell 200 shares so I am short 100 total. I will continue to repeat the process until I want to stop or until stock starts trading in a small range. I don't care when or if the next swing starts as I am alway "in the money". It seems this would work with any stock as long as there is good intraday volatility.

Comments?

Dave in Clearwater

 

[Shakone]

What makes you assume you can tell when it's going down, and when it's going to turn? If you can accurately predict the swings, then of course you can make money. But it's not so easy.

 

[hangus]

imagine this , you short the market 100 shares , the market goes up the minute u shorted, u buy 200 shares (covering your 100 shorts with small loss) , immediately the market goes down , you sell 200 shares (selling your 100 shares with small loss) , and it goes on and on and on.......

if you can correctly predict the direction of the market , then yeah , it works......but if u can correctly predict the market , why bother with so much strategy when you can be outright long /short ??

 

[alphadude]

Hi all: I'm a new trader and I had an idea. Let me know if this is legal. This is just an example.

If stock futures are down before market opens and stock falls at opening bell I will sell (short) 100 shares. At first upturn I will buy 200 shares so I am long 100 total. At next downturn I will sell 200 shares so I am short 100 total. I will continue to repeat the process until I want to stop or until stock starts trading in a small range. I don't care when or if the next swing starts as I am alway "in the money". It seems this would work with any stock as long as there is good intraday volatility.

Comments?

Dave in Clearwater

do a backtest and tell us the results; so we can make money with you.

roll your sleeves

 

[tomorton]

Strategies that seem to eliminate risk are a pot of gold at the end of the rainbow, not a business plan. You have to be mentally prepared to either take some losses or be out of the market. Much better to spend time planing where to get out of a trade and why, and how small you can make the cost of doing so.

I could also add that if you're a newbie (no disrespect intended) to the markets, to succeed at daytrading you can't just be good, you have to be brilliant. Because daytrading looks easy, seems rational and sounds low risk, and you find out how you're doing very quickly, newbies jump into daytrading as opposed to longer-term trading styles, and the majority go under very quickly.

 

[Pat494]

Here is an equally bizare method of forecasting the markets and you might just solve an age old question too. Namely is there a God or not.

OK come Monday pick your favourite God. One from history perhaps ? Say King of the ancient Greek Gods like Zeus. Put photos of him or her up on the wall. Lots of prayers and incense should do the trick + loud calling or wailing too maybe !!

If Monday's trades seem not to have been profitable then dump Zeus and move onto your next God. By the end of the week you may well have come to some conclusions. Well it's worth a try surely ?

 

[Mike Kshemaraja]

here is an equally bizare method of forecasting the markets and you might just solve an age old question too. Namely is there a god or not.

Ok come monday pick your favourite god. One from history perhaps ? Say king of the ancient greek gods like zeus. Put photos of him or her up on the wall. Lots of prayers and incense should do the trick + loud calling or wailing too maybe !!

If monday's trades seem not to have been profitable then dump zeus and move onto your next god. By the end of the week you may well have come to some conclusions. Well it's worth a try surely ?

lol.

 

[ronblack]

Hi all: I'm a new trader and I had an idea. Let me know if this is legal. This is just an example.

If stock futures are down before market opens and stock falls at opening bell I will sell (short) 100 shares. At first upturn I will buy 200 shares so I am long 100 total. At next downturn I will sell 200 shares so I am short 100 total. I will continue to repeat the process until I want to stop or until stock starts trading in a small range. I don't care when or if the next swing starts as I am alway "in the money". It seems this would work with any stock as long as there is good intraday volatility.

Comments?

Dave in Clearwater

Your broker will like you.

 

[rsh01]

Hi all: I'm a new trader.

No ****.

Let me know if this is legal

Yep great question, its perfectly legal to lose money this way.