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the BIG difference is that i can trade on a shoestring (and have for
years :)) whereas you have must have a large investment of capital.
another thing is that if i'm wrong early in the day (only time when i
can be wrong), i've got 6 hours to dig myself out of a hole and end
the day profitable. if you are wrong, then it might take months to dig
yourself out.
let me make this clear: day trading is no different than position
trading except for the time frame. as a position day trader, i exploit
the large intraday swings whereas you can't as a daily position
trader. if the open = close, then you make ZERO$'s; for me as a day
trader, i can bang out 50 handles it with lower risk than you might
assume 'cause i'm flat eod and you're not. plus i sleep well at night
too <g>
also, slippage, commission, and risk that are negatively attributed to
day trading are largely exaggerated. if you structure your trades to
get positive slippage, don't overtrade to lower your costs (and
commish), and assume a proportionate risk so as to generate a large
$win/$loss as possible, then day trading is as cost effective as
position trading.
TJ
position trading -- been there, done that, hate(d) it with a passion,
life full of stress, never slept well.
day trading -- still doing it after 15 years, love it immensely, sleep
like a rock, lowest personal stress and monetary risk method of making
money that i've found 'cause it's "simple, simple, simple" to
paraphrase a position trader <g>
different strokes, etc, i guess
---dcweber@xxxxxxxxx wrote:
> Seems to me some day traders justify their efforts because it gives
them
> something to do during the day. Otherwise they'd have to find some
> other endeavor. As an intermediate market timer using mutual funds, I
> can spend a few minutes at the end of the day (or even the next day)
to
> assess my timing model and go long or short appropriately. I only
have
> to be "right" once and I don't have to pick the exact optimum day
> either. Mutual fund exchanges take place at the market close so
> execution speed isn't an issue. Last long signal was Oct. 19, 1998
and
> latest sell signal was yesterday. Plenty of ways to go short with
> mutual funds from families like Prudent Bear, Potomac and ProFunds.
>
> Day traders rely heavily on data feeds and execution speed and have
to literally be "right" many times per day. While I enjoy observing
this newsgroup and the growing phenomenon of day trading, I don't know
why
> people choose to subject themselves to this kind of pressure.
Intra-day movement is a function of so many factors and participants.
Position trading gets you in the trend direction which is more stable.
>
> Simplify, simplify, simplify. Do something constructive during the
day. Get better results with a fraction of the effort and endeavor to
become an intermediate trend trader.
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