The brutal truth of day trading

An inefficient spike within an efficient market is my cream on top of my cake when trading the markets near the boundary of available liquidity.
Price can’t move beyond a area barren of bids or asks as high order density sitting behind price demands expansion at any cost.

Its therefore dam profitable to trade against inefficiency when the market suffers from extreme lack of available liquidity not behind price but in front of price.

How's your averaging going on?

I remember years ago when I first came across Mark Douglas at a meeting for Commodities managers. And he and another gentleman said the darnedest thing to me -

And please appreciate I am paraphrasing here ...

"For any market to be seen to move, it must complete one very simple process of steps. It must have an agreed price by both a desirable buyer and a desirable seller." The guy standing next to Mark then stated that every market, efficient or not, must complete this process for a "trade" to have come to terms and then the market it's connected to, be allowed and able to record the completed process. And so as much as people love expounding about leverage and liquidity etc, thick or thin liquidity CAN be filled and used. So I suppose what I find funny from all the "I know-a-lots" in the world of financial markets, is this -----

People who haven't yet worked out that liquidity is 'considered, decided upon, created and then set in place' ... should really dunk their head in a bucket of cold water and wake up to themselves. Of course what I find to be icing on the cake is this = order books are for predators or lazy people. Why do you think brokers have been doing it for a very long time (IF they can get away with it)? And now all the fools who use them are making the whole practice more acceptable. Dumbasses.

Liquidity is an "all in" construct and process. Anyone who has watched markets long enough can see it. And anyone who understands the money system will see it.

Anyone who has ANY idea of Debt Leverage (And now its caps) for each category of trading would be aware of this. Anyone who gets off silly sites and asks why the continental leverage ceiling for trading is a big concern in 2021.

So liquidity is NOT an "Us vs them" scenario. Never has been. That's just a story little children believe and foster and then tell other people who are just as impressionable and suggestible as they are.

Simple -

You have to have a (1) buyer for a (1) seller. SOMEWHERE. If this is not happening then "No deal". Am I talking too fast here? Maybe people need to go and re-read all this again and again.

If you find this unrealistic or unfathomable, then open a standard live account with a nominal amount in it and pick your "high liquidity area" and pick your "low liquidity area" and place both a market order and a limit order going in different directions in there. And then just sit back relax and watch the show. That thing that shows whether your broker possibly just internalized that order fill or not. That thing that displays the 'buy + sell = completed transaction' process.

You cannot do this by "watching another market". Has everyone gone batty?

I don't think that people realize the simple fact that liquidity is everywhere. It's at the last high, the previous congestion, at the NEXT LOW, the next congestion.

The disconnect I see here and around, is something SO basic - how does a market self perpetuate without repeat participation from uuuum, repeat participants???

Otherwise, you have 'one hit wonders' jumping into the market, doing their thing and then getting out and then ....... disappearing forever. Until ANOTHER 'one hit wonder' steps up and gets involved. It boggles the mind HOW so many people managed to EVEN survive in life without the basic capability of thinking.

If people just stopped arguing over who's providing the liquidity or IF there IS liquidity or not, and realize that everyone is. I have seen traders deliberately "create" liquidity FOR THEMSELVES by understanding that 'big brother' doesn't control everything. If you "the trader" don't understand the basics of how a trade works, be it in 2021 or 1091 AD, then you might need to reconsider what you think you know.

And to add, many people I see, are too cheap, to consider the possibility of using their own liquidity to generate their own trades. Too cheap to think and clearly too conceited and lazy to complete the market schematic properly.

Many I see love talking but do very little thinking.


Peter

I checked my winrate and here are the results:

02.08 - 99.8%
03.08 - 99.24%
04.08 - 97.22%
05.08 - 100%
06.08 - 100%

Average weekly winrate 99.26%

But I don't know why winrate is so important to you. If we make >0.25% daily with minimum DD that is great. About turning candle. You spent lst 6 month asking questions on forum. Instead, if you spent half an hour testing the volume delta approach, you would see everything with your own eyes. For example when RickM told me about it I bought futures data immediately within 5 minutes and start to test the things.

After reading this i really feel this forum is way to far beneath you, perhaps you should be hob nobbing with people who can create their own liquidity like yourself obviously

Why waste your time with the likes of us

For you is more like 0.25% daily with huge DD, you just said it a few days back.

"For example today my winrate was 100%. There were no loss trades, but I has huge DD, >10 times more than fixed profit."

Do you know what i would love to do here

We have many amazing traders here and a lot of BS as well, but what if all of FF came together and put $100 into a pot and then the pot was placed into an account and then voted on they're favourite trader to trade the account

50% goes to the trader 50% goes to the pot for a share out

Would be fun

Because who ever he is, he has never been a trader.
If you read his responses in the past, he uses the wrong terminology that a live trader would use.
Also he is here just to sell PDF’s to unsuspecting buyers.
Don’t be fooled.

Rick i can smell a rat from a mile away even if i had covid

honest
Sell PDF,s

I said that average trade gains 0.01%, DD was 0.1% (10 times bigger), daily profit usually >0.25%. If you are so smart you can calculate that DD is 2 times smaller than daily profit but it is 10 times bigger than average profit from 1 turn. Anyway why you thinking about my trades? Did I say somewhere that my approach is the most correct and you should definitely trade like me? You better think about your trades not mine.

The topic was that it is impossible to earn with day trading. But it is possible.

What if players really started buying for this week ,,, last week?

In the right places obviously

this is good
EN

What do you do when your swing trades go into negative...sometimes holding a pair for 3 months can go -1000 pips into negative. Just wondering.

I was never in a position where my trade went into -1000 pips. Maximum was -350. But that was calculated with risk management. So even with that loss it was what I was able to afford to lose. But that was long time ago. Holding a pair for up to three months is picking a very strong currency with backed up strong fundamentals vs weak currency with negative fundamentals, that is a win.

Yes he is a day trader. Turned $583 to $1,000,000 https://www.youtube.com/playlist?lis...lG9l2a74JmkD0p

Both Day Trading and Swing Trading style can make money long term.

Thanks for the info.. it's good to have risk management discipline.