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How difficult is it to find an effective daytrading method?

  • #141
  • May 31, 2013 1:46am May 31, 2013 1:46am
Quoting kk007
{quote} Dealers help to manage fund as well Not sure if you have been success or not, but good luck with your trading! http://www.forexfactory.com/showthre...40#post6225540
KK007 so you know that you can not manage dealers, market makers, banks (even 10-20 majors), governments (200), oil companies (even 20 majors)...
all kind of things are not under our power.
Even I do not want to say If i'm profitable.

it's Only size of your position
and there are 2 mobile phones, 2 internet lines, 2 notebooks (actually i have 3 notebooks)
other wise you can loose your connection with your position ;-)
I'm sorry for stealing your time. I'll keep silence further
it's o'k to win ...
  • #142
  • May 31, 2013 1:57am May 31, 2013 1:57am
Not sure what you want to suggest, but...
Bye! Have a nice day.
Quoting zenseven
{quote} KK007 so you know that you can not manage dealers, market makers, banks (even 10-20 majors), governments (200), oil companies (even 20 majors)... all kind of things are not under our power. Even I do not want to say If i'm profitable. it's Only size of your position and there are 2 mobile phones, 2 internet lines, 2 notebooks (actually i have 3 notebooks) other wise you can loose your connection with your position ;-) I'm sorry for stealing your time. I'll keep silence further
  • #143
  • Jun 1, 2013 10:19am Jun 1, 2013 10:19am
Quoting emailpat
Check out Price Action Trading Equation by Julie Hatch and Dadas Thread on FF combine the two and you have a method
Yeah interesting. Not sure what either of their motives are by taking very basic plausable ideas, then writing absolute bollox to make it sound more complicated than it really is, then offering tuition for a price to people who who hadn't managed to grasp their mumbo-jumbo. Laughable really but I suppoose they have to pay the bills!
  • #144
  • Jun 1, 2013 1:04pm Jun 1, 2013 1:04pm
Quoting kk007
I am opening this thread to discuss the degree of difficulty in finding or developing a daytrading method with an edge strong enough to use...
My belief is its easy and the market wont change or get rid of the edge because the market is impersonal. but I'm still working on mastering my method, so lol!
  • #145
  • Aug 15, 2013 11:51am Aug 15, 2013 11:51am
I hope this will not be considered grave digging of old threads.

Here is some interesting bit about daytrading which makes me go to 1hr or bigger timeframes where bigger potential is. Just see below that one transaction a day and you need to make more than 4% of average range of the pair...

Therefore, some realism needs to be added to our calculation, accounting for the fact that picking the exact high and low is extremely unlikely. Assuming that a trader is unlikely to exit/enter in the top 10% of the average daily range, and is unlikely to exit /enter in the bottom 10% of the average daily range, this means that trader has 80% of the available range available to them. Entering and exiting within this area is more realistic than being able to enter right in the area of a daily high or low.

Using 80% of the average daily range in the calculation provides the following values for the currency pairs. These numbers paint a portrait that the spread is very significant.



EUR/USD
Spread as a percentage of possible (80%) pip potential: 3/81.6= 3.68%

USD/JPY
Spread as a percentage of maximum pip potential: 3/61.6= 4.87%

GBP/USD
Spread as a percentage of possible (80%) pip potential: 4/99.2= 4.03%

EUR/JPY
Spread as a percentage of possible (80%) pip potential: 4/93.6= 4.27%

USD/CAD
Spread as a percentage of possible (80%) pip potential: 4/49.6= 8.06%

USD/CHF
Spread as a percentage of possible (80%) pip potential: 4/75.2= 5.32%

GBP/JPY
Spread as a percentage of possible (80%) pip potential: 6/116= 5.17%

With the exception of the EUR/USD, which is just under, 4%+ of the daily range is eaten up by the spread. In some pairs the spread is a significant portion of the daily range when factoring for the likely possibly that the trader will not be able to accurately pick entries/exits within 10% of the high and low which establish the daily range. (To learn more, see Forex Currencies: The EUR/USD.)


More: http://www.investopedia.com/articles...ay-trading.asp
Cut short your losses. Let your profits run on. David Ricardo (1772-1823)
  • #146
  • Aug 25, 2013 3:38pm Aug 25, 2013 3:38pm
Quoting Ramadas
With the exception of the EUR/USD, which is just under, 4%+ of the daily range is eaten up by the spread. In some pairs the spread is a significant portion of the daily range when factoring for the likely possibly that the trader will not be able to accurately pick entries/exits within 10% of the high and low which establish the daily range.
I concur

Quoting M.A.C.Doug
Day trading is the most difficult way to achieve profitability because of the spread.
BTC Return This Year: na
  • #147
  • Aug 25, 2013 4:49pm Aug 25, 2013 4:49pm
Some people trade for 5 years yet still not profitable and are almost always at breakeven, yes it is very hard to get an edge in the market. You are trading against trained professionals if you don't find an edge you can't win.
  • #148
  • Aug 25, 2013 6:29pm Aug 25, 2013 6:29pm
The dream/fantasy of day trading for quick riches starting with little capital is the reason the "95%" can't get ahead. Their expectations are too high. Patterns aren't reliable, there are too many false signals, spreads are too large, news releases are too hazardous. The market is too random.

With WIDE stop losses (very low risk) and following LONG term trends, you can make money -- generally something along the lines of normal market returns in bonds, stocks, etc. (5%, 10%, 20% in a good year).

No matter how or what you trade, home runs are rare. 100% a year is rare. 100% a year, year after year, is nearly impossible. But that is the expectation. People with little starting capital and a big dream don't have the patience for normal market returns.
"A is A"
  • #149
  • Aug 25, 2013 6:57pm Aug 25, 2013 6:57pm
Quoting kevinleijh
You are trading against trained professionals ...
Absolutely not. You are trading against yourself.
MT4/MT5 EAs/Indicators/Alerts coder
  • #150
  • Aug 25, 2013 7:24pm Aug 25, 2013 7:24pm
Quoting catiron
The dream/fantasy of day trading for quick riches starting with little capital is the reason the "95%" can't get ahead. Their expectations are too high. Patterns aren't reliable, there are too many false signals, spreads are too large, news releases are too hazardous. The market is too random. With WIDE stop losses (very low risk) and following LONG term trends, you can make money -- generally something along the lines of normal market returns in bonds, stocks, etc. (5%, 10%, 20% in a good year). No matter how or what you trade, home runs are...
Same dream here. Did anyone ever heard of successful astrological trading? Can it be applied to market?
Don't blame the tools. Blame the carpenter.
  • #151
  • Aug 25, 2013 7:29pm Aug 25, 2013 7:29pm
Quoting catiron
The dream/fantasy of day trading for quick riches starting with little capital is the reason the "95%" can't get ahead.
It doesn't really matter what the starting capital is, FX trading is not a "get rich quick" scheme, and those who think it is, WILL fail. End of.....
Doing what you like is Freedom. Liking what you do is Happiness.
  • #152
  • Aug 25, 2013 7:30pm Aug 25, 2013 7:30pm
Quoting FerruFx
{quote} Absolutely not. You are trading against yourself.
Who takes money from uninformed? The professionals! The 5% group who found their edge. Off course you trade against yourself if you rely on hope that your trade will go according to your plan.
  • #153
  • Aug 25, 2013 7:31pm Aug 25, 2013 7:31pm
Quoting KecoaKecil
{quote} Same dream here. Did anyone ever heard of successful astrological trading? Can it be applied to market?
I would highly suggest to concentrate on the market itself instead of external factors that obviously have nothing to do with trading.
MT4/MT5 EAs/Indicators/Alerts coder
  • #154
  • Aug 25, 2013 10:30pm Aug 25, 2013 10:30pm
Quoting kevinleijh
{quote} Who takes money from uninformed? The professionals! The 5% group who found their edge. Off course you trade against yourself if you rely on hope that your trade will go according to your plan.
In other words, if you are losing, you blame the professionals ... Right ?
MT4/MT5 EAs/Indicators/Alerts coder
  • #155
  • Aug 25, 2013 10:43pm Aug 25, 2013 10:43pm
Quoting kevinleijh
Some people trade for 5 years yet still not profitable and are almost always at breakeven, yes it is very hard to get an edge in the market. You are trading against trained professionals if you don't find an edge you can't win.
this is my answer, I don't blame the professionals, the main point is it is hard to find an edge(effective day trading method w/c is this thread is all about, and when somebody find it, he won't share it unless your important. That's the hard part.
  • #156
  • Aug 26, 2013 12:51am Aug 26, 2013 12:51am
Quoting kevinleijh
{quote} this is my answer, I don't blame the professionals, the main point is it is hard to find an edge(effective day trading method w/c is this thread is all about, and when somebody find it, he won't share it unless your important. That's the hard part.
I agree on this ... But your comment that we are trading against the professionals is still not right. Or I misundertood what you meant.
MT4/MT5 EAs/Indicators/Alerts coder
  • #157
  • Last Post: Aug 26, 2013 8:36am Aug 26, 2013 8:36am
One thing what helps me is that I draw my support and resistance lines from higher timeframes (4hr and daily)
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