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Hi All
I have kept out of this one so far as for me
day trading or position, tape reading or
indicators, etc all come down to what
works for a trader. That point had been made so
I had little to add.
But on this issue of attitude, I can make a contribution.
I don't know what Brent meant by "gunslinger attitude".
He may have meant cavalier - certainly it appears
Bill took it that way.
Or he may meant that day trading requires quick decisive
action and if the latter, I agree with him.
For me, trading, position or day, has 2 phases. What Van Tharp
calls the stalking phase where the predominant frame of mind
is patience - letting the market come to you, letting it setup
in the patterns that tells us we have a low risk trade. In this
phase we do all the risk reward analysis, "what ifs" etc.
The other phase is the action phase. We see the signal that tells
us to take the trade. At this phase, the frame of mind is quick
action. There is no room for second guessing as this sets up a
mental loop which more likely than not leads to inaction.
"I should take this trade but wait the last time I took this
signal I lost money; may be I should wait a bit before acting etc"
The main difference between day trading and position trading is
often with day trading the two phases follow so closely to one
another that they appear to be one. The successful day traders
I know all have the ability to separate the two - they are aware
when they are stalking and when they are acting. This is more
difficult than it sounds especially in a volatile market.
This difference is what the newbie has to grasp.
If he has the ability to keep the two separate as well as the
necessary temperament and inclination then day trading is the way
for him; if not, he is better off with position trading. Unfortunately
most newbies I know day trade because they either have insufficient
funds to position trade or perceive they get more "bang" for their $
day trading. My experience tells me that those are the wrong benchmarks.
My unasked for advice is if you decide you want to day trade do so
for reasons that give the chance to be among the 10% winners.
These reasons have to do with your personality and mental aptitudes
rather than on lack capital considerations.
regards
ray
R Barros
101/25 Market Street
Sydney NSW 2000
Australia
Voice: 61 2 92673470
Fax: 61 2 92673478
E-Mail: rbarros@xxxxxxxxxxxxxxxxxx
---------
> From: T-BONDTRADER <T-BONDTRADER@xxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: Re: Major Question? Day trading
> Date: Friday, July 31, 1998 2:49 AM
>
> . -----Original Message-----
> From: BrentinUtahsDixie <brente@xxxxxxxxxxxx>
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Date: Thursday, July 30, 1998 4:57 pm
>
> Day trading generally requires a gun slingers
> >mentality and skill.
>
>
> The rest of your final 2 cents is fine, but I have to take issue with you
on
> the above extract - at least so far as the Bonds is concerned. When I
say
> day trading, I mean just that - not scalping. If you were trying to
scalp
> the Bonds, yes - even if you were trying to day trade the S&P, you might
> need to have that 'gun slingers' mentality. But not day trading the
Bonds.
> At least, certainly not the way I do it.
> And, nor of course, would I propound it - especially to newbies.
>
> All I am suggesting is that you can learn to read the tape (I am talking
> Bonds here) and do not need conventional indicators by the ton to do it.
> The fact I don't recommend any, is only because I have not found a need
for
> them. Dear O dear, if I thought an RSI or triple crossover MA would do
the
> trick, I'd be the first to say so.
> Why not? If someone has an indicator that works, use it. All I am
> suggesting is don't waste a mass of time, energy and maybe money looking
for
> some wonderful indicator to tell you what to do. Most newbie's search
for
> them and systems to be able to trade with buy and sell signals. I've
been
> there, done that and didn't bother with the T-shirt. Now I'm on the
> T-Bonds and you don't need an indicator.
>
> I'll say no more because I am not trying to convince anyone to do
anything.
> I don't have to - I am not selling indicators!! But for some people I
> might, through the manual, just save them a lot of heartache or banging
> their heads on a brick wall trying to find a leading indicator that will
> give them their fortune...
>
>
> Let's move on...
>
> Happy Trading
>
> Bill Eykyn
>
>
>
> >> T-Bonds. For clarity, let me say it again, DAY TRADING THE T-BONDS.
> >
> >My last 2 cents regarding this. This is directed at newbies; it is my
> >understanding that there are more losing day traders than any other
> >approach to trading. In other words you had better be able to spit out
> >three correct orders while most are trying to think of one. You should
know
> >yourself well enough to know whether or not this is your forte.
> >
> >Price patterns can be found in all time frames. By the way trading price
> >patterns is an interpretation of the past and therefore a lagging
> >indicator. You can use indicators like Linear Regression and trade based
on
> >the relationship of the indicator to price as well I suspect as someone
can
> >trade a pattern.
> >
> >What you choose to do with your money in regards to buying anything from
> >vendor's is your business but 'buyer be where'. My recommendation is to
> >find the methods and approach to trading that works for you. In other
words
> >I'm not saying that you should use or not use indicators or what have
you.
> >You decide.
> >
> >Best Regards,
> >
> >Brent
> >
> >
> >
>
>
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