Sorry, my net went down last night and couldn't get back in.
I'm trying to understand the advantage and disadvantage of 2 different approach of day trading over long term. Let me explain with examples :
Trader 1 - I take 50 trades in a month (everyday max 2,3) but I follow 1 single solid method. Why I say solid ? because it has been tested over last 3-4 years and it has proved to be good. Now, with this method my rules are defined almost no discretion is required. So the trades are relaxed trades. But result wise, 35 out of 50 turns into small loss or BE (lets say 15-20 points loss/trade or BE). The other 15 trades make me 60 points each. So basically, I would lose 700 points and make 900 points. Overall 200 points profit per month. But as I mentioned trades are relaxed and not much descretion required so no pressure.
Trader 2 - I do not follow pre-defined method. I instead trade price action based on my discretion as the scenario appears everyday. I might take trade based on candle if I see or MA cross over if I see. But basically my aim is to just make 10 points everyday irrespective of how I made those 10 points. Here I can't define # of losses vs # of winners everyday. I someday take too many trades especially on volatile days because I cut quick if trade runs into loss. I book quick if trade runs into profit (because sole aim is to just make 10 points). Therefore overtrading. Here I miss big profits though. Now here again I'm able to make 200 points. so the end result is same as the scenario 1 but not at all relaxed trades. May be taking about 100 trades in a month but here the thought is to be profitable everyday vs monthly aim.
Now, what I wanted to ask is which of the 2 above mentioned trader would last long in the trading world ? Lets say the a/c goes bigger then which of the trader will face difficulty in executing one being totally discretionary vs the other who follows just one method ? Here both having same result and are profitable but the approaches are different. Trader 1 thinking of month being profitable while Trader 2 thinking of days being profitable.
Apologies if the post is big, I just wanted to explain.
I'm trying to understand the advantage and disadvantage of 2 different approach of day trading over long term. Let me explain with examples :
Trader 1 - I take 50 trades in a month (everyday max 2,3) but I follow 1 single solid method. Why I say solid ? because it has been tested over last 3-4 years and it has proved to be good. Now, with this method my rules are defined almost no discretion is required. So the trades are relaxed trades. But result wise, 35 out of 50 turns into small loss or BE (lets say 15-20 points loss/trade or BE). The other 15 trades make me 60 points each. So basically, I would lose 700 points and make 900 points. Overall 200 points profit per month. But as I mentioned trades are relaxed and not much descretion required so no pressure.
Trader 2 - I do not follow pre-defined method. I instead trade price action based on my discretion as the scenario appears everyday. I might take trade based on candle if I see or MA cross over if I see. But basically my aim is to just make 10 points everyday irrespective of how I made those 10 points. Here I can't define # of losses vs # of winners everyday. I someday take too many trades especially on volatile days because I cut quick if trade runs into loss. I book quick if trade runs into profit (because sole aim is to just make 10 points). Therefore overtrading. Here I miss big profits though. Now here again I'm able to make 200 points. so the end result is same as the scenario 1 but not at all relaxed trades. May be taking about 100 trades in a month but here the thought is to be profitable everyday vs monthly aim.
Now, what I wanted to ask is which of the 2 above mentioned trader would last long in the trading world ? Lets say the a/c goes bigger then which of the trader will face difficulty in executing one being totally discretionary vs the other who follows just one method ? Here both having same result and are profitable but the approaches are different. Trader 1 thinking of month being profitable while Trader 2 thinking of days being profitable.
Apologies if the post is big, I just wanted to explain.
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