What???
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Iām a new trader and Iām guilty of this. Although I know better now, I think why I was day trading was the excitement of starting a new thing. You know, youāre so anxious youāre checking all the timeframes every other second and just watching. I think its just human nature, anytime we start something weāre so damn conscious like when you newly start driving, in time you usually get a hang of it. My 2cents
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Yes. you are right. after three years day trading without gain, realized Position or swing trading is the best one. does not effect on daily life. i.e. 5 x 20 or 20 x 50 ema.
The comparison with driving a car is more apt than you think.
Most of us can drive a car - but we have to admit driving can be risky if you just decide one day to take a spin, after no instruction or passing a test.
Now take trading, again it is risky - but we dont have anyone showing us the ropes.
We learn through trial and error but because money is on the line those errors come to way us down.
When I started out I used to day trade like a crazie but 2 yrs inIāve learnt to settle down lol,
Hey there, Iām a fairly new trader to the game and I definitely struggle with over trading/day trading.
For me, I know it comes from my own impatience. Iām aware that my best trades are those that have played out over days or weeks but I have an itch or impulse to trade more often and on lower time frames. As someone mentioned earlier, there is a tendency when you start something new to come out of the gates firing at a 100mph. And when you have all these experienced traders telling you to āplan your tradesā āunderstand your risk to rewardā and everything else that goes into becoming a successful trader you kind of want to rally against that.
Itās no too much of a generalisation to say that a large portion of new traders are males who are wanting to make megabucks mega quick. And for those guys, someone telling them to slow down and trade less goes against the reason for beginning to trade in the first place (not in reality, nut in the novice traders mind).
If you want to take it to a more spiritual level, you could also take into account the famous line from Ed Seykota, āEverybody getās what they want out of the marketā. There is a pysocological theory that the consious and subconsiouse mind can sometimes act in opposing directions to each other. If someone is outwardly angry at people all the time they may subconsiously be angry at themselves. In the same way, some people who think they have a hunger for wealth and the fruits that come with it, which is a material desire, may deep down want a more spiritual connection with those around them. So in short they donāt really have a subconciouse desire to trade successfully, so naturally the self sabotarge by day trading or high frequancy trading when they donāt have the expertise to.
In saying all of this though, Iām still day trading and despite the step learning curve I maintain a posotive expectancy. Although the amoutnt I risk and the amount I expect to gain is marginal to my longer trades. I think eventually I will stop completely but for now, it keeps me engaged while looking at the charts and finding out how I will manage this carrer for the rest of my life (hopefully).
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Ed Seykota also said āHaving a live feed is like having a slot machine at your desk, you end up feeding it all dayā
You may some very interesting points, the bit about wanting to do opposite of what your advised - maybe true - but i also think its a case of every beginner thinks he or she is more capable than others - this might be rooted in our survival instincts.
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New traders day trade because they are new. However, day trading is not in itself a bad trading styleā¦but ultimately it requires knowledge and plenty experience to day trade the market and come out successful. In other words, day trading is meant for experienced traders. But like you said new traders believed they have that unique ability to outsmart the market and earn everyday. They donāt like the fact that they have to spend years learn the art in other to day trade successfully. Even if they have been taught to trade long term, they usually feel compelled to act based on daily market fluctuations because they are new to market behaviour.
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correct
Market can move 100 pips or more
if you do not have enough money in the account
you hit margin call or stop loss
look at this 30 minute chart and see how much price changes up and down from one day to the other
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I lean more towards day trading, which fits me, but, I also absolutely love a big old swing trade. I donāt have to be in front of the computer all day. I have notifications which alert me specifically and then I can act accordingly wherever I am. I execute from my laptop so that means I must carry it around if thereās a reason I might suddenly hop on a specific position. You need to recognize a setup and then wait for a catalyst for it to move where you analysed it to move to. Catch it in the moment. Risk management entails alot. Better execution over time. Im in the moment, so is the market, often.
Iām not sure if what Iāve been doing can be called day tradingā¦ Sometimes I would hold my position for few days, but I do check my trade once every few hours, mainly because Iām working behind desk
No i wouldnt say its day trading, but checking your trades intra day can lead to overruling your trading rules and compulsive trading most of which are carried out intra day!!!
Thanks for the recommendation. Just finished my recent book, so in need of another or two!
Iāve heard this a lot from traders who sound like they know what theyāre doing.
This is a book that needs to be digested properly, you wont find any systems - just a way to manage your own development.
Brett really is the leader in the field at this.
As a side note, some of the things he writes about can be applied to things outside of trading and id say this book has been positive for me generally as a person.
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Cool, plenty of system stuffs around on the web.
In fact, a trader will love to enter many orders because of quick interest, as well as fast rich. Sometimes, traders will not want to check the trading system they have just thought of
Great topic, and something i am still struggling with.
I have all the tools necessary to get started with day trading, but i feel it would be pointless.
A few years ago, trading longer time frames seemed ridiculous to me. Why would i wait for 3 weeks making the same amount of profits i can make in one day potentially?
Well, thatās the trick, in theory you can, but in reality you probably canāt. Cause the signals you get from a day trade are lower quality compared to a trade signal you will get on the D/W/M TF
Currently i am risking 3% on every trade i take, since i am trading only longer time frames, and i know that the signals i am receiving are high quality ones. But if i were to trade intraday setups, or the LOB, i would be scared to risk even 1%, maybe i would go for 0.50% from my account.
The stress level of day trading is enormous, and itās virtually impossible to maintain a winning rate of above 50%.
Maybe in the future, i will open a separate account just for day trading, and try to perfect the different strategies i have, but for now, it just does not make any sense.
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Thats sounds you have learned a lot.
Well done.
I think if day trading was renamed āvery occasionally taking an intra day set up with a high probability of working tradingā then people wouldnt struggle so.
Jesse Livermore talks alot about the Wall Street sucker who tries to take money out of the market everyday.
Day trading has been around a long time!
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lol @ males wanting to make mega bucks quicklyā¦so true
Sorry, I am late to this thread and rushing slightly, but I think that a lot of new traders day trade because EOD trading via orders requires a bigger Stop, and they simply canāt cover it. A trade placed of the 5m chart might have a 20 pip Stop, an EOD entered off the Daily can have a 150 pip Stop. If youāre new and small and placing 50p a pip that EOD trade is still Ā£75 to cover. The day trade is Ā£10. Between that and wanting to get into the action, they get drawn into the more accessible aspect of trading. Yet one successful (net) net trade a week at 1:1 R:R at 1% account risk could be 4% a month. Wildly day trading with no real contextualised plan will look much worse than that.
ST
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