Agreed !! Thats the goal of this blog is to prove at least theoretically (if not Practically) that there is No difference in Day/SWING/Position trading(strategies). Its only "experience that makes the difference. Stress/ Pressure are by- products of lack of experience when your brain is working exponentially hard to predict future without enuf Data of its OWN. Juast like driving a car. A new learner always twist their neck around looking into mirrors, klooking at the stick while making a shift, jerks the cluch and slowly these movements smooth out and become subconcious functions. Complications arise from extra data that we start feeding our mind at the very beginning, NEws/scans/price alerts/ patterns/Pit noise?/TICK/TRIN/averages/Bolinger/RSI/STOCh/MACD/3-timeframes/WATCH LIST/Indexex/currencys/ETF!!!!!! these are so many variables - imagine a computer trying to solve an equation with these many variables. Its only a untrained - inexperienced brain of a beginner. On top of the processing capacity, we have to manage the trade after the entry and deal with a whole slew of emotional issues. Its just a mix for disaster. Understanding this is important. and then coming in terms with these facts will ease our subconcious mind. One chart, one average, one larger timeframe and simple entry-exit is the way to start this. Build stemina- upgrade your computing power, your own brain will create these algo's inside and you will get better. Anyone can do day trading - anyone!!!! Are you listning to me WallStreet !!!
Keeping the thinking growing. Current Market SPY as an example. I know alot of threads going around with People wanting to SHORT. Attached is a chart of SPY Daily but with no price or time axis. IF this was a 5 minute chart ...the question is WOULD YOU SHORT IT ??? I would not!! There is no Price action supporting it. Momentum is strong. and UP. Comments please.
Your disagreement is right. Your agreement is wrong. I am sure handle will come back in 2 years and give a different opinion on swing-trading.
2-24-2011 Considering the DAILY SPY as a 5min chart. I would not enter yet. Chart below without the price or time info. If some one would pay me to get in LONG now I would not !!! Comments please.
Thank you for your comment. The purpose of this thread is to experiment with some of the "illusions" that differentiate various TYPE of trading as listed in the Title of the thread. So, I usually remove the axis information, leaving the chart open to Objective assesment. I choose SPY not to PREDICT the market at all. In case of the chart in the last post. if you were DAYtrading and that was a 5 min chart of SOME security. WOULD you have OPENED a LONG at the close of that candle ??
There are several strategies there - 1. Long on the sell off 2nd day lows with a wide stop but bigger profit pontential 2. Long at the close of the candle of 3rd day sell off with a tighter stop 3. Long on the highs of the candle of 3rd day sell off with a tighter stop but smaller profit pontential 4. Long on the lows of the 3rd day sell off on trend-interpolation of the 2 prevoius major lows - projected from start of trend on left side of chart - wide stop Its S&P daily chart and yes one can see similar price behavior on 5 min charts heck even 2min. Its a matter of trader preference but on smaller time frames over time and a higher series of trades you will get whipsawed more often and lose more but if you can handle the whipsaws then good for you. Well I can't so I don't try.