I know that most have heard this saying before. "90% of traders fail." It is given that most traders lose money. Anyone that has ever traded can see why. However, I think it is important to distinguish between traders and day traders. I would challenge that the statistics are different. If 90% of traders lose money, then I would venture to say 99.9% of day traders lose money. In other words, your chances of success are far lower as a day trader than as a swing trader or long term trader. All the scalpers and day traders lose far more money than people that hold positions overnight. Personally, I have found some success being profitable trading the daily chart. I would almost say it is easy. Of course it is not actually easy, but compared to my intraday track record, it definitely is. I find that with intra day trading, most of the traditional rules about trends etc. go out the window. Strong intraday trends are rare and when they do occur, they usually do in short bursts and turn around quickly. They don't trend the whole day in one direction typically, considering if they even trend at all that day. Ranging is far more common on an intra day level than on an overnight level. Signals and patterns are less reliable and profits evaporate as rapidly as they come. I think trend trading on an intra day level is a losing proposition. I believe it is possible to profit day trading, but not using the same rules as overnight trading or long term trading. What do you guys think?
- #5
- Jul 28, 2015 3:46am Jul 28, 2015 3:46am
- Joined Oct 2014 | Status: the mighty duck | 1,035 Posts
I know that most have heard this saying before. "90% of traders fail." It is given that most traders lose money. Anyone that has ever traded can see why. However, I think it is important to distinguish between traders and day traders. I would challenge that the statistics are different. If 90% of traders lose money, then I would venture to say 99.9% of day traders lose money. In other words, your chances of success are far lower as a day trader than as a swing trader or long term trader. All the scalpers and day traders lose far more money than...
I am a day traders, and I called myself as a thief or pickpocket.
as a thief I must know when is the best time and the best circumstance to steal. also as a thief I must know when I stop and run away.that I thought is the core philosophy of the thief daytraders
we don't predict, we only ride
{quote} if we know ourself and know what we dealing, than profit its about a consequencies. profit or loss is a matter a result of from our action. yes of course daytraders surely different from swing or longtrend traders. I am a day traders, and I called myself as a thief or pickpocket.
- #12
- Jul 29, 2015 9:04am Jul 29, 2015 9:04am
- Joined Oct 2014 | Status: the mighty duck | 1,035 Posts
1000 pips profit. how to achieve 1000 pips profit? it can be done in generally in 2 way. first, single blow 1000 pips. second, 1000 times strike 1 pip.
learn and conquer one style, that I thought is the key to success.
learn and conquer one style, that I thought is the key to success.
we don't predict, we only ride
I mostly agree with the opening argument. It's the same story with me. Previously I would day trade on the 5 min, 15 min or 1 hour charts. Sometimes good, many times not!
Now I concentrate on monthly/weekly charts for market structure and major support & resistance levels, then use the daily candles to look for entries.
Along with that, my previous trades used to remain open for minutes to perhaps a day. Now it's more like several days to several weeks.
As a consequence I've learned how to scale in, adding more positions as price action shows good opportunities. If done properly (with good risk/money mgt & moving stops to cover any losses), a good 500 to 800 pip move can get you thousands of pips due to the multiple entries.
Plus it's way less stress and much less screen time required.
Look at the thousands of pips attainable from GBP/JPY below - including from the pin bar at the bottom support area. Once you take a bigger time frame and see the bigger picture, trading becomes less stressful and you can get some huge pips. For those relatively newer traders who think that a massive stop is required, think again. Although larger than on a 15m chart, a huge stop isn't required. If I'm trading off a weekly chart, I might base my stop off action from a daily or 4hr chart. And look at the risk/reward you're getting. Also, with multiple entries to your target area, you're gaining thousands of pips. Thousands. Just learn how to do it and it will completely change your trading results for the better.
Cheers
Pharley
Now I concentrate on monthly/weekly charts for market structure and major support & resistance levels, then use the daily candles to look for entries.
Along with that, my previous trades used to remain open for minutes to perhaps a day. Now it's more like several days to several weeks.
As a consequence I've learned how to scale in, adding more positions as price action shows good opportunities. If done properly (with good risk/money mgt & moving stops to cover any losses), a good 500 to 800 pip move can get you thousands of pips due to the multiple entries.
Plus it's way less stress and much less screen time required.
Look at the thousands of pips attainable from GBP/JPY below - including from the pin bar at the bottom support area. Once you take a bigger time frame and see the bigger picture, trading becomes less stressful and you can get some huge pips. For those relatively newer traders who think that a massive stop is required, think again. Although larger than on a 15m chart, a huge stop isn't required. If I'm trading off a weekly chart, I might base my stop off action from a daily or 4hr chart. And look at the risk/reward you're getting. Also, with multiple entries to your target area, you're gaining thousands of pips. Thousands. Just learn how to do it and it will completely change your trading results for the better.
Cheers
Pharley
I mostly agree with the opening argument. It's the same story with me. Previously I would day trade on the 5 min, 15 min or 1 hour charts. Sometimes good, many times not! Now I concentrate on monthly/weekly charts for market structure and major support & resistance levels, then use the daily candles to look for entries. Along with that, my previous trades used to remain open for minutes to perhaps a day. Now it's more like several days to several weeks. As a consequence I've learned how to scale in, adding more positions as price action shows good...
By the way, the 5 minute charts are especially difficult. Unfortunately, I would never be in and out of a trade in the same day on any other time frame using my trading style. I trade chart patterns rather than individual candlestick patterns, so my trading view is too macro level to fit in a single day on any other time frame.
Notice where the trend ends in that screenshot. I underlined it. It develops into a trading range and then continues later. This is what I mean by short trends on small time frames. In this case it is fortunate that the trend continued, but most of the time there would be a sharp reversal instead of the trading range.
