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Ira Tunik wrote:
> A lot of what you say is true. The person who day trades must understand the
> markets, have excellent money management skills and a system that produces
> specific entry and exit points with specific stops. It must be flexible enough
> to be able to move up and down time frames to adjust for volatility risk and yet
> provide enough trades to justify trading. The assets traded, whether stock,
> futures, options or the cash markets, must be liquid enough to allow entry and
> exit close to the bid and ask prices. A great deal of liquidity also helps
> prevent the running of stops which often occur in thin markets. The pressure can
> be alleviated through timing and planning. Every asset has its natural
> frequency or time cycle. If you are using a 15 min chart and you have a 10 bar
> cycle that you are trading, you should be able to average one trend trade and
> one contra trend trade every 2 1/2 hours. Depending upon volatility and the
> number of hours that trading is open, you can calculate what your profit
> potential is and at what points you have to make decisions. The majority of the
> work is done the night before and then just updated during the day. The system
> can not be one of buying bottoms and selling tops. That often leads to
> disaster. The majority of break out systems have a low probability of success
> in day trading.
>
> Day trading is for those who are very disciplined, have a complete understanding
> of the system they are using and its components and can act upon the signals
> given. The majority of stress comes from dealing with the unknown. Proper
> planning helps overcome most of the stress. Any trade, like any business or any
> job has its own degree of stress. As long as you treat trading, day or
> position, as a business, have a viable business plan, you should be able to be
> successful. Ira.
>
> Prosper wrote:
>
> > There has been a little talk about day trading of late. I had a few thoughts
> > about it.
> >
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