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>Is anybody making their *primary* living daytrading?
>
I have spent years researching markets and the best way to take out money
from them. And IMHO there are a number of inherent problems with so-called
daytrading.
1. The SP makes trends lasting anywhere from several weeks to several
months or more. As you might expect, the best results can be had by trading
the market according to how it really moves, instead of forcing an
arbitrarily short time frame on it.
2. Trading for peanuts, the effects of commissions and slippage will become
MUCH more significant. In this game you need to get everything possible in
your favor. Why start out with this built-in disadvantage?
3. As the time frame becomes shorter and shorter the random component of
the motion becomes much more significant. So your ability to read the
action will be impaired. You will have a greater percentage of losing
trades. Another inherent disadvantage.
4. Trading for peanuts, using maximum leverage, you could be WIPED OUT by a
price shock like the one we had the other day.
4. Everybody would love to daytrade, make BIG MONEY FAST etc, day in and
day out, so that's another reason why it's virtually impossible. For the
most part it's a MYTH perpetuated an industry dedicated to maximum order flow.
Position trading on the other hand entails sitting through some drawdowns,
and seems to take forever. You will see substantial paper profits come and
go. It's a difficult way to trade, most so-called traders won't be
interested in it, and that's why it's bound to be more successful and
reliable in the long run.
Once I came to understand these considerations, and after pissing away a
considerable amount of cash in the interim, I started to make some good
money position trading. I use a set of 5 TS systems run on daily charts.
What more could you ask for? No more agonizing over every tick. Every time
I get tempted to pick up some easy money "daytrading" I seem to lose.
Good luck in your quest....
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