Registered: Dec 2009
04-06-12 02:52 PM
Quote from oilfxpro:
There are fundamental reasons why trend trading is more profitable.
The spread eats into your profits , trend traders trade with the support of the market and run their profits whilst cutting their losses , day traders and scalpers cut their profits short and are seeing their profits eaten by the spreads.A day trader might make 10 to 30 trades a day and pay loads of spread , a trend trader might trade only several times a week.
The day traders find themselves trading from 1 and 5 min charts ,charts which are deceiving , noise and random.Just a few reasons why day trading is difficult to make money from.
The problem is no one knows when a trend starts, or when it ends.
If you have enuf screen time you will almost always see some trend trade that is clear as day in the debriefing but you did not take when it was forming on the hard right edge. Chart analysis has it merits, but really, it is like a cornerback who watches tape of how a receiver beat him.