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>Date: Thu, 18 Feb 1999 22:03:24 -0800
>From: Gregory Wood <swissfranc@xxxxxxxx>
>To: "omega-list@xxxxxxxxxx" <omega-list@xxxxxxxxxx>
>Subject: S&P Daytrading - 1000 Trade Review
<snip>
>SUMMARY. As of today, I've made 1000 daytrades since moving to Florida
>and starting to trade fulltime. I started with $42,325 of risk capital
>on September 24, 1997. Today (February 18, 1999) I ended with $117,217.
<snip>
This is a great bottom line! However, I imagine you've spent thousands of
man-hours staring at the screen during this time. Also I suppose you've
paid your broker about $20,000 or more in commissions. How annoying!
I'd like to point out that there may be an easier way.. Let's say you're
trading just 2 pathetic emini contracts, using daily/weekly charts.. Let's
say you wait patiently for the major turning points (volume-climax lows)
and/or positive follow-through action (as described by William O'Neil), and
then catch runs of 20 - 100 FULL points. That's $2000 - $10,000 on each
trade.
Using this method I've done just about as well as you have, but possibly
with a LOT less work. And there's only been about 15 trades over the
indicated time period, not a thousand. I'd further like to point out that
it's a mechanical system (of my own design) that has done this for me.
In all fairness - on the other hand - I should also admit that I've spent
probably hundreds of man-hours developing my systems! But it was a
stress-free way to spend the time. And the bulk of the effort is now
finished. I have a friend who has spent the past year trying to daytrade. I
see him slowly losing his mind. On a daily basis he's either hitting a peak
of euphoria or depression. All this work for peanuts. I think it's aging
him prematurely. He says he really admires what I've been doing but he just
can't seem to do it himself. He just can't seem break the evil spell of
"daytrading".
Bottom line: Daytrading can succeed, but it's extremely difficult compared
to longer-term swing trading. At best the results are not necessarily any
better. Personally I like to do it the easy way!
IMHO,
Phil
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