Daytraders: Are we a dying breed? | Forex Factory

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Daytraders: Are we a dying breed?

  • #1
  • First Post: Mar 20, 2006 5:18am Mar 20, 2006 5:18am
So I was wondering..........
There's been alot of talk about longer term trading using the 4hr and 1hr charts and its left me wondering;
Apart from myself, are there any others who still enjoy the 5 min (or there abouts) time frame? Personally I find it quite entertaining to "scalp" using this chart while my longer term trades set themselves up.

Steve
I was here, here I was. Was I here? Yes I was!
  • #2
  • Mar 20, 2006 7:30am Mar 20, 2006 7:30am
Quoting SterlingTDR
So I was wondering..........
There's been alot of talk about longer term trading using the 4hr and 1hr charts and its left me wondering;
Apart from myself, are there any others who still enjoy the 5 min (or there abouts) time frame? Personally I find it quite entertaining to "scalp" using this chart while my longer term trades set themselves up.

Steve
me too...........................
  • #3
  • Mar 20, 2006 8:01am Mar 20, 2006 8:01am
I know that Vegas said that if we have a need to scalp we should just go to Vegas and by him dinner and then go gambling with him. Having said that, I do find there is some entertainment and pips to be made scalping.
I trade the GBPUSD for the volitility.

What I do is set up a situation like the tunnel trade, on a smaller scale.
1. I plot a 21 period EMA off the close price in the 5 minute frame.
2. I then set up two sets of fib numbers, 21 and 34 pips above
and below EMA.
3. In a non trending area of the market, when price hits the lower 21 fib,
I buy, with a stop below the 34 fib, an even number of lots. I then sell
1/2 my position when price hits the EMA21 and the other 1/2 when price
touches the upper 21 Fib., or when price drops back down to either my
stop which has been moved to BE or at the EMA21, depending on what
the price action looks like. Of course a short is just the opposite.
4. When price punches through the 34 fib on either side, that is the signal
that there is a trend starting and I then stop scalping. I find
trends are harder to scalp.

Thanks SMJones
  • #4
  • Edited 9:41am Mar 20, 2006 8:07am | Edited 9:41am
Actually there is a nice little e-book on this very topic that I featured on my website recently ... have a look .. might give you heart


You can quit and they won't care, but you will always know.
  • #5
  • Mar 20, 2006 8:13am Mar 20, 2006 8:13am
ditto. Unfortunately my success rate hasn't been all to spectacular as of late and I've found myself spending more time with daily charts. That seems to be a progression that many traders (if not all) seem to go through.

I wish there were a good way to streamline communications through daytraders (scalpers.) I would sure like to be able so see at a glance what several hundred (or thousand) other scalpers are doing at any given time. Do you know of anything like this? Cause if not, I'm gonna write it...

-g
  • #6
  • Mar 20, 2006 10:29am Mar 20, 2006 10:29am
I think the deceptive allure of quick and easy money attracts many to this style of trading. Little do they realize that it is probably the most demanding of all styles and the fastest way to go broke. I say demanding instead of difficult because "scalping" leaves zero margin for error on the traders part. The effects of greed, fear and stress are magnified but the general principles remain pretty much the same. You have to decisive about your entries, ruthless about your loss cutting and very good at trade management. I'm a big fan of "scalping" but I wouldn't let my Mom try it......or yours, for that matter.

Steve
I was here, here I was. Was I here? Yes I was!
  • #7
  • Mar 20, 2006 10:44am Mar 20, 2006 10:44am
Quoting SterlingTDR
I think the deceptive allure of quick and easy money attracts many to this style of trading. Little do they realize that it is probably the most demanding of all styles and the fastest way to go broke. I say demanding instead of difficult because "scalping" leaves zero margin for error on the traders part. The effects of greed, fear and stress are magnified but the general principles remain pretty much the same. You have to decisive about your entries, ruthless about your loss cutting and very good at trade management. I'm a big fan of "scalping" but I wouldn't let my Mom try it......or yours, for that matter.

Steve
I think there are opportunities for all types of trading at different times and in different conditions. "Scalping" definitely doesn't have to be as risky as you make it sound. Using my framework, I find that because I can better see where the barriers are, (long and short-term) I can enter quick trades with much more confidence - as I did the other day when I got up too late to catch the most recent big move on the EUR, but there was a clear barrier at 1.2180, so I just put in a quick trade to that line.
The framework is there; we just have to work on our frame of mind.
  • #8
  • Mar 20, 2006 10:52am Mar 20, 2006 10:52am
What is your system to trade??

Fish
  • #9
  • Mar 20, 2006 11:19am Mar 20, 2006 11:19am
Quoting kcfish
What is your system to trade??

Fish
Well, I've developed this thing called the Absolute Fibonacci, which basically shows the framework by which all the currencies move - always have done and most likely always will, because it is based on very fundamental knowledge.

It's relatively simple to understand, and if you like, you can apply any favourite system or trading style on top of it. The more I use it though, the less I feel the need for the added complications of other systems. When you set it up, you can see where Elliott Waves sit on the framework, where trend lines hit it, where Vegas Wealth Builder lines correspond and just about everything else.

The other part is deep work on your own mindset - which you have to go through yourself. No-one can teach you that one, but there are ways of going about it.

Check out my website in my CP.
The framework is there; we just have to work on our frame of mind.
  • #10
  • Mar 20, 2006 11:47am Mar 20, 2006 11:47am
Quoting niceguy777
I think there are opportunities for all types of trading at different times and in different conditions. "Scalping" definitely doesn't have to be as risky as you make it sound. Using my framework, I find that because I can better see where the barriers are, (long and short-term) I can enter quick trades with much more confidence - as I did the other day when I got up too late to catch the most recent big move on the EUR, but there was a clear barrier at 1.2180, so I just put in a quick trade to that line.
Sorry I didn't mean to give the impression that it was more risky than other types of trading. What I was trying to say is that its more demanding. With scalping everything is quicker, shorter and and the costs are more significant therefore it one really has to be on the ball and have an exacting trading style with superb trade management skills.

BTW I'm not claiming to be an expert or anything. I make a little doing this, but if I were better (hopefully I continue heading that way) I could make alot more. I've found that its been beneficial to my longer term trading in that it improves the skills I have.
I was here, here I was. Was I here? Yes I was!
  • #11
  • Mar 20, 2006 1:43pm Mar 20, 2006 1:43pm
Quoting SterlingTDR
Sorry I didn't mean to give the impression that it was more risky than other types of trading. What I was trying to say is that its more demanding. With scalping everything is quicker, shorter and and the costs are more significant therefore it one really has to be on the ball and have an exacting trading style with superb trade management skills.

BTW I'm not claiming to be an expert or anything. I make a little doing this, but if I were better (hopefully I continue heading that way) I could make alot more. I've found that its been beneficial to my longer term trading in that it improves the skills I have.
Hi SterlingTDR, and thanks for your considerate comments. I'm certainly not an expert either. Nor do I have an exacting trading style and superb trade managemetn skills. I just trade between 'sticky' lines on my framework and the currencies do the rest for me. It's kind of weird to see how neatly they move to my lines.
The framework is there; we just have to work on our frame of mind.
  • #12
  • Mar 20, 2006 4:35pm Mar 20, 2006 4:35pm
Quoting niceguy777
Well, I've developed this thing called the Absolute Fibonacci...It's relatively simple to understand, and if you like, you can apply any favourite system or trading style on top of it. ..Check out my website in my CP.
Hi niceguy777, was wondering if the book (or after purchase, whatever) you have or are developing an indicator for MT4 that will plot the info? Or is this something that is done in real time by horizontal lines and say calculations off an excel spreadsheet? Your book perked my curiosity since i really like the FIBOs...i might order.

THX in advance for any reply. (or you can PM me if more appropriate).
Thom
  • #13
  • Mar 20, 2006 5:28pm Mar 20, 2006 5:28pm
Quoting accrete
Hi niceguy777, was wondering if the book (or after purchase, whatever) you have or are developing an indicator for MT4 that will plot the info? Or is this something that is done in real time by horizontal lines and say calculations off an excel spreadsheet? Your book perked my curiosity since i really like the FIBOs...i might order.

THX in advance for any reply. (or you can PM me if more appropriate).
Thom
Hi there accrete. No problem. Some other guys have developed indicators for MT4 and they are in the files section of our group. You get into the group when you buy the book. It's a free add-on to help people get set up and find new idease. I also do the occasional webcast once people get set up so I can help them through any difficulties. For those who can't set up the lines on the particular charts they happen to have, there's also Excel spreadsheets there as well. It all makes sense when you buy the book....
The framework is there; we just have to work on our frame of mind.
  • #14
  • Mar 20, 2006 8:34pm Mar 20, 2006 8:34pm
NG,

Excellent site! I ordered the book today. Can't wait to receive it and dive in. From the description of the concepts that the book is based on, it sounds like your work parallels some of the work by the group at Volition Thought House, (also located in Canada, hmmmm?). Check out this link if interested: http://www.volitionth.com/

Thanks for the posts, very useful stuff.

-M-
"You can make money or you can make excuses, you can't do both". unknown
  • #15
  • Mar 20, 2006 10:32pm Mar 20, 2006 10:32pm
Quoting mpotis
NG,

Excellent site! I ordered the book today. Can't wait to receive it and dive in. From the description of the concepts that the book is based on, it sounds like your work parallels some of the work by the group at Volition Thought House, (also located in Canada, hmmmm?). Check out this link if interested: http://www.volitionth.com/

Thanks for the posts, very useful stuff.

-M-
Many, many thanks for your kind comments. I really hope the book meets your expectations! I hadn't heard of Volition Thought House, but that's nio surprise. I've only lived here for a year and I'm still getting my feet under the table. I really love it here, though.
The framework is there; we just have to work on our frame of mind.
  • #16
  • Mar 21, 2006 12:23pm Mar 21, 2006 12:23pm
---snip from my just received email:

From: Left Brain Trading...
Date: 03/21/06 08:33:15
To:.......
Subject: Your LEFT Brain Trading book is on it's way to you

----end snip.

Yippie, looks like a fun read. There seem to be some tie-ins to NLP (Nural Liguistic Programing) and other great food for the mind : - )

Thom
  • #17
  • Mar 21, 2006 12:45pm Mar 21, 2006 12:45pm
Thom,

I seem to remember you saying you liked Fibo's somewhere else here at FF. You will love this book - I've had it for about 2 weeks... blows my mind everyday - now I just need to gain the confidence to harness its power.

lonespruce.


Quoting accrete

Yippie, looks like a fun read. There seem to be some tie-ins to NLP (Nural Liguistic Programing) and other great food for the mind : - )

Thom
  • #18
  • Edited Apr 22, 2006 12:01am Mar 21, 2006 5:07pm | Edited Apr 22, 2006 12:01am
Thanks for the heads up LoneSpruce! Sounds great.

Quoting lonespruce
Thom,

I seem to remember you saying you liked Fibo's somewhere else here at FF. You will love this book - ...lonespruce.
http://accrete.com/fx_posts/miscpix/thornycrown.jpg

------- on a totaly random ramblin' note: I read your login name: LoneSpurce, then looked at your avatar, and was reminded of a friend's place of work that his dad built... This building is a fun see ( here is a quick link to the photo gallery: http://www.thorncrown.com/Photogallery1/gallery1.htm ). It is a chapel built in the trees in the Ozark Mtns of Arakasas out 450+ glass windows and timber beams. It is listed in the Archetecural Wonders site. It really is an amazing building.

I met this guy (who is a pastor) after he discovered that i build online live 3d chat worlds...and wondered if i could build an online Live-Chat-CyberChurch in 3d... I did... you'll find the link at my domain here on my Virtual Reality Modeling index:
http://www.accrete.com/vrml/index.htm


Cheers,
Thom
  • #19
  • Edited Apr 22, 2006 12:02am Mar 24, 2006 11:39am | Edited Apr 22, 2006 12:02am
Hi all, and NiceGuy777...

I enjoy trading the short term charts also (15m mostly) looking at the longer charts for a general trend. I too am learning to trade off the longer charts thanks to the PFgroup though i find these ST charts give me an opportunity to test new systems quickly and have many dozens of trades in a system in reletively short time, which can be good for system development(?).

I'm in the LBT group, reading every post and having fun. This a.m. (Friday) there was a set up developing on my 15m charts with one of James16's systems i've been demoing. Having the LBT-MT4 indicator on a duplicate chart added to my confidence level on entry.

On the below chart you can see how things developed for a nice stress free 40 pip trade from the solid blue line up to the green DashDot line (i've changed some colors and style types so it makes visible sense to me without having to have the labels on each line, Mark did a great job on the idicator!). The light blue lines are off a central ema tunnel for a general heads up. After said and done with +pips in the demo, it was fun to see how things lined up, and not having the book yet i have no idea if my entry was "by the book" but hey, what's a demo account for anyway, but a bit of experimenting!?

http://accrete.com/fx_posts/misctrad...30m_1stlbt.png

I'm looking forward to the book NG and learning from the gang : - )
Thom
  • #20
  • Last Post: Mar 24, 2006 1:05pm Mar 24, 2006 1:05pm
Quoting accrete
Hi all, and NiceGuy777...

I'm in the LBT group, reading every post and having fun. This a.m. (Friday) there was a set up developing on my 15m charts with one of James16's systems i've been demoing. Having the LBT-MT4 indicator on a duplicate chart added to my confidence level on entry.

On the below chart you can see how things developed for a nice stress free 40 pip trade from the solid blue line up to the green DashDot line (i've changed some colors and style types so it makes visible sense to me without having to have the labels on each line, Mark did a great job on the idicator!). The light blue lines are off a central ema tunnel for a general heads up. After said and done with +pips in the demo, it was fun to see how things lined up, and not having the book yet i have no idea if my entry was "by the book" but hey, what's a demo account for anyway, but a bit of experimenting!?

http://www.accrete.com/fx_posts/misc...30m_1stlbt.png

I'm looking forward to the book NG and learning from the gang : - )
Thom
Looks pretty damned good to me. Congratulations! Trading my system even before you've read the book! That, for your info, is a '146' chart. Nice move.
The framework is there; we just have to work on our frame of mind.
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