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Well, I deleted all the messages about whether or not one could make money
daytrading; as I recall, there was a challenge from someone who sold me and
others his system (would that his epiphany came before his advertisements),
and someone wrote a good note about what you need to have (money, stops,
patience, methods). I would add two things that you need to have:
motivation, and an approach that works for you. Sounds obvious, doesn't it?
Let me explain.
I make money day-trading. Didn't always. (Bought a lot of crap, subscribed
to everything, traded all over the lot, no stops, made every f*****g mistake
EVEN IN THE FACE OF READING WARNINGS ABOUT THOSE MISTAKES.) So what
happened? Lost too much. Woke up. Figured out my aunt wasn't going to die,
the markets were not going to come to me, I wasn't going to win the lottery,
and the bank would indeed sell my house for me if necessary. So I got
motivated. Really motivated. The way I haven't been since I had to jump out
of an airplane with a parachute on. That I didn't pack.
And what about the approach? As this group knows, I like Bressert's
CycleTrader, and I like Corn and Soybeans. So that's what I do. I day-trade
the S&P, using Walter's cycles, and I've already revealed my win-loss ratio
and approximate earnings. If and when I get more money in the account, I'll
move to two contracts and try to make more. I day-trade options and futures
on Corn and Soybeans. A good option day-trade is a double, and it happens.
Often. Okay, so some are not day-trades, they are overnight or over-weekend
trades, but I view them as daytrades because you absolutely have to watch the
market tick by tick and cannot put in open or close orders (unless you want
to die).
The Bressert "success" has come, I believe, because I like the method. I
have a feel for it. It talks to me. I like the way it rolls. So I trade
it. I have no doubt that many methods are better.
The options trading has appeal because I have worked my tail off to
understand the grain markets I trade. I have traveled to the midwest many
times, talked to scores of farmers, gone to countless seminars for farmers,
and have pored over all the data. I love it. I love getting a feel for
something from a unique perspective. That is, unlike Cargill or ConAgra or
ADM, I don't have to use the product. And unlike the farmer, I don't have to
sweat the price to buy clothes for my family. I really enjoy the trading.
So, my method - forecasting future prices based on fundamentals, and then
trading quickly on contra-trend moves intraday - works for me.
I tried (and was smart enough just in time to stop) several other ways of
making money, including stock options trading, index options trading, bonds,
currencies, and so forth. Just couldn't get excited. And had no method
other than "several advisory services say to do such-and-such."
Yeah, I make money day-trading. Not a lot, yet. But this is my livelihood.
Good luck.
Larry
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