Thoughts on Day/Swing Trading
- Thread starter Smart_trade
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Is there a perfect system/method known to some one or hidden somewhere ??
In last few days I am getting many pms and I thought I will discuss the common information asked in these pms so that everyone benefits.
1) Day trading is not easy....as you come to lower timeframes your margin of error goes down. I need to be more accurate in daytrading than swing and position trading. One has to be very fast in reversing the position if the market action warrants that. Day trading has an advantage that my stops are small and well defined. I donot have to bother about overnight gaps, price shocks etc.Daytrading is definately profitable....
2) Contrary to many people's belief,there is no perfect system. There has never been one in the past and there will never be one in future. There is no magic formula, no secret indicator,no AFL which will make money for you without any efforts from your side. There are competent methods but each will have its share of choppy trades,losses, frustrating periods,big profits etc.My experience tells me that you need to have a good method but it is not that it will make money for you if run on autopilot. A good trader is equally necessary behind a good method in daytrading and that is a winning combination along with good MM.
3) A method though is important, is not everything. A good method given to 10 traders and all 10 will have different results.
4) Day trading requires good feel and understanding of bar by bar market action . It helps us in getting out of bad trades and booking profits before the market hits our stops. This comes by reading thousands of charts, candlestick patterns, and observing each bar and trying to read the supply/demand equilibrium from each of these bars and reading when the advantage is tilting to bears or bulls.
5) Do not fall prey to the people who claim that they have some great system/method which is easy to trade . You can make money on simple methods such as trade on 5 min charts...and take all trades in direction of 30 min trends. So if 30 min is in uptrend, take all long trades and do not take any short trades. This method is simple but it requires a good screen experience to trade it like a professional....learn those skills and you will succeed with any simple method.
These are my views which I wanted to convey to all the friends who wrote to me about their specific trading problems. I am sure each will find some answer to his problems in the paragraphs mentioned above....
Smart_trade
In last few days I am getting many pms and I thought I will discuss the common information asked in these pms so that everyone benefits.
1) Day trading is not easy....as you come to lower timeframes your margin of error goes down. I need to be more accurate in daytrading than swing and position trading. One has to be very fast in reversing the position if the market action warrants that. Day trading has an advantage that my stops are small and well defined. I donot have to bother about overnight gaps, price shocks etc.Daytrading is definately profitable....
2) Contrary to many people's belief,there is no perfect system. There has never been one in the past and there will never be one in future. There is no magic formula, no secret indicator,no AFL which will make money for you without any efforts from your side. There are competent methods but each will have its share of choppy trades,losses, frustrating periods,big profits etc.My experience tells me that you need to have a good method but it is not that it will make money for you if run on autopilot. A good trader is equally necessary behind a good method in daytrading and that is a winning combination along with good MM.
3) A method though is important, is not everything. A good method given to 10 traders and all 10 will have different results.
4) Day trading requires good feel and understanding of bar by bar market action . It helps us in getting out of bad trades and booking profits before the market hits our stops. This comes by reading thousands of charts, candlestick patterns, and observing each bar and trying to read the supply/demand equilibrium from each of these bars and reading when the advantage is tilting to bears or bulls.
5) Do not fall prey to the people who claim that they have some great system/method which is easy to trade . You can make money on simple methods such as trade on 5 min charts...and take all trades in direction of 30 min trends. So if 30 min is in uptrend, take all long trades and do not take any short trades. This method is simple but it requires a good screen experience to trade it like a professional....learn those skills and you will succeed with any simple method.
These are my views which I wanted to convey to all the friends who wrote to me about their specific trading problems. I am sure each will find some answer to his problems in the paragraphs mentioned above....
Smart_trade
Last edited:
At last it has come from your mouth ST...I waited for it since one year.
Just because when I tell it again and again, friends don't beleive me
When master's like you say-Its like nailing..
In My native there is famous saying " It is a Teertha, only when it comes out of Shankha":lol:
Just because when I tell it again and again, friends don't beleive me
When master's like you say-Its like nailing.
.In My native there is famous saying " It is a Teertha, only when it comes out of Shankha":lol:
Smart_trade
Posting a chart which works on a simple method which trades in the direction of a moving average slope and colour.....all trades taken have valid reasons ....so are profits taken at various points......every trade is not a big winner but the last trade is a big winner....
Posting this just to illustrate that simple method with proper position sizing, adds, profit taking.....stops ...can make money in daytrading....you cannot eliminate loosing trades....loosing trades are unavoidable evils and you have to accept them as a part of your job.....but let the winning trades be your friends and let them overpower the loosing trades....
Smart_trade
can u tell me what is swift ma..m new in traderji..may b i miss the discussion about swift ma which u plot in the above chart..
Thank u..
Dibyendu
ST
Can't resist posting. This R1989 is a real son-of-a-gun! Look at the way he is so happy, so honest, 'I LIKE IT VERY MUCH!'
I miss his thread, his simple words, his enthusiasm.
He reminds of what DeMark wrote: Trading is fun. I would do it for free!
I wish more traders were like R1989. Learning would become easier and exciting.
Can't resist posting. This R1989 is a real son-of-a-gun! Look at the way he is so happy, so honest, 'I LIKE IT VERY MUCH!'
I miss his thread, his simple words, his enthusiasm.
He reminds of what DeMark wrote: Trading is fun. I would do it for free!
I wish more traders were like R1989. Learning would become easier and exciting.
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