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Phil,
Have to agree with you about position trading making money, since admit am a
born loser with daytrading (despite all my available tools on hand) Everyweek, the
market
convince me so. For me the only way to make some money daytrading is a once in a
while
opportunity (window) during my live monitoring. And everything , ME (internally
state of mind) and my method should line up perfectly, and I found out can't do
this consistently
And also accept daytrading opprotunities is not an everyday happening, so I
can't make a living out of it. Up to now, I accept there are some small number of
people who do make daytrading , but they are floor people , not off floor. Must
have been my luck, all these years in the industry never met anyone who make money
daytrading of floor.
Even I do make profits daytrading 3 or 4 sessions in a row, but its never enough
to make
up all my losers. I hope and pray newbies don't fantasize too much about making
fortunes
in dayrading as encoureaged by the industry advertising whether by
brokers,intraday data
vendors,systems sellers or book/course sellers. Yes, One can make money from time
to
time, but to make a living or become rich? No way, jose ........
The only way I know how I make money from daytrading, is the fooling around with
the existing profitable positions I have and being naughty about it during crazy
high volatility days.
I don't wish good luck for newbies in their quest to be successful daytraders, but
to
wake up to reality!!
Phil Lane wrote:
> >
> >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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