@musicguy1967
I was paraphrasing a quote from the classic ‘Reminisciences of a stock operator’ when I say the words there are not enough reasons to trade everyday
The original quote was in reference to the Wall Street sucker class who thinks he or she can make money everyday as if it’s a normal job.
There are traders who make money each day, but they are few and far between - and most likely use other trading tools besides the usual lines and indicators.
It’s a belief of mine that these traders also use level 2, market depth or some other auction process
And unless your at a large bank this data is not readily available in forex.
I’ve said before that while forex is not rigged, retail brokers most likely make their best money taking the other side of beginners trades - who happen to lean towards day trading.
With beginners using all the standard tools taught by the very same brokers (and introducing brokers) who get paid when their clients lose money.
The original scalpers were market makers trading on the floor of the commodity exchanges. They knew who was buying and who was selling and these market makers took a piece of the action as they matched up orders.
They would trade their own book and front running orders - all this at a time when market inefficiencies were high.
If you were one of these open outcry traders you could hit pay dirt.
Linda Raschke, Paul Tudor Jones and Monroe Trout all learned their craft on the trading floors.
But many open outcry traders could not making a living day trading markets away from the floor.
Scalping and day trading now are totally different now - and I’d say it’s main purpose is to add to the bottom line of the investment banks and exchanges who provide finance to the retail brokerages.
It’s a harsh assessment I know, and Im always careful to say, some do in fact succeed, but the reason why retail trader success rates are so low is in big part because of intra day trading.
The vast majority here on Babypips want to day trade or scalp, I understand I was also like that, but it’s a hard slog for most, and in my not so humble opinion should be avoided when possible
My own trading isn’t exactly buy and hold, my short term trades last a few days only - in the old days this would be considered quick.
But it’s interesting that in such an instant gratification world the needs of so many are wrapped up in 5 minute bar charts these days
Kind of a limiting belief I didn’t realise I had…