Can Short Term Trading Be More Profitable Than Long Term

Discussion in 'Trading' started by Fundlord, Apr 7, 2015.

  1. Still not giving up your day trading ? Keep losing money and don't know why ?
     
    #121     Apr 12, 2015
  2. Look up QUIBBLING

    And don't project your(in)abilities on others.

    Still waiting for your trades that show that making money is impossible.

    On second thought: I put you on ignore. You should find somebody else to play your childish game.
     
    Last edited: Apr 12, 2015
    #122     Apr 12, 2015

  3. Keep on your arrogant behavior, we all know where this type of amateur trader end up with.

    I been trade for living for many years (not day trade) and I have a comfort life from trading.
     
    #123     Apr 12, 2015
  4. kut2k2

    kut2k2

    The expectation is 1 unit per trade: 0.5*(+3) + 0.5*(-1) = +1.
     
    #124     Apr 12, 2015
  5. Redneck

    Redneck


    First let’s ensure we’re speaking the same language


    Short term trading = intraday…, no holding over night

    Long term trading = a trade spanning days…, even one..., to a couple of weeks

    =======================

    Yes…, short term trading is more lucrative

    Intraday – one has the opportunity to catch the intraday bidirectional moves

    Longer term trading – one is in from A to B (where ever A & B happen to be / end up)


    Fact however; we are at risk every time we enter - so by default..., short term trading is inherently more risky

    ===========

    The true (and only real) test - would be;

    The same trader…, trading the same instrument…, utilizing the same size…, over the same time span..., trading both approaches simultaneously

    Discussing/ doing anything else - is simply an academic exercise in mental masturbation – at best

    RN
     
    #125     Apr 13, 2015
    Vindago likes this.
  6. $15-25 is massive in terms of frictional cost if you are talking about the ES, the typical day trader makes several trades a day so costs add up quickly.

    It doesn't take much to destroy a day trader, afterall casinos only have a very slight house edge in games like blackjack (0.28%), yet they always win over the long run because the same house edge multiplied over thousands of bets is devastating.

    Day traders need very large positive expectancies to overcome the very high costs involved in day trading, its extremely difficult and the vast majority won't make it.
     
    #126     Apr 14, 2015
  7. Autodidact

    Autodidact

    A combination of statistical studies, self fulfilling prophecies, money management and some decent price action knowledge and you stand a chance.

    It takes work, balls, discipline and dedication, most lack one or more.

    You might ask yourself why balls?

    Because a 1 lot future trader or someone trading 100 shares of FB is not going to get very far, because once you make it the net per week, notice i said week, not day, is quite small.
     
    #127     Apr 14, 2015
  8. MMtradex

    MMtradex

    I don't think that intraday trading is the most recommendable trading for newbies and for those who trade with low capital. However, intraday offers great opportunities for good profits if you know how to trade with consistency.
     
    #128     Apr 14, 2015
  9. You should only know the answer to 3 questions:
    1. what is my average profit per winning trade.
    2. what is my average loss per losing trade.
    3. What is my win rate.
    If you make 4 points in a trade, 25$ represents only 12.5% of your profit. So net profit is 87.5% of brut profit. Not massive too me, nor the very high costs involved in day trading.
    And if you do more trades a day, with each trade you make again 87.5% profit. More trading should mean more profits, if this is not the case it proves that you cannot trade.

    If you make less than 1.5 point per trade you should improve your trading or stop trading.

    All depends of the answers to the three questions above. You can calculate in advance what your chances are.

    Can you show me trades like those you are speaking of? Then we can see what the problem is. Costs or the "trader".
     
    #129     Apr 14, 2015
    dbphoenix likes this.
  10. dbphoenix

    dbphoenix

    There is a tendency to equate daytrading with scalping, or trading the ladder. But even if one ignores the fact that the futures market is 24hrs, not 6.5, there are plenty of "big moves" available if one (a) knows what to look for and (b) is willing to wait for it.

    Yesterday, for example:

    [​IMG]

    3 trades.

    One of the best rules anybody can learn about investing is to do nothing, absolutely nothing, unless there is something to do. Most people always have to be playing; they always have to be doing something. They can't just sit there and wait for something new to develop. I wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, 'I just lost my money, now I have to do something to make it back.' No, you don't. You should sit there until you find something.

    -- Jim Rogers
     
    #130     Apr 14, 2015