Getting back to the real world the question should be - If that chart is a daily chart - comparing 2 good traders - if at the beginning of the trend a position trader took a position, added positions and is still long and a day trader started same time but trading every day in and out trying to capture similar intraday trends - who makes more money, takes on less risk, low drawdowns, etc, etc ?
I wouldn't short or long anything for a day trade or swing trade based on a chart alone. In fact, charts are the last thing I look at. Perhaps knowing what your trading and understanding the news surrounding the stocks in play would go along ways towards removing the mystrey some of you seem to have about trading. I wonder how many of you even read earnings reports and press releases or know anything about the companies your trading? From what I gather most on this site really have no clue why a stock is acting a certain way or even an opinion of how it should be trading based upon the current information. It's no wonder most struggle.
Have you tried adding more positions?I have gone further and added upto 75 positions , yet my drawdown never exceeds 5 % of my equity , and I can recover all the losses from all losing trades in the past.I can't discuss this method here. Take a look at the following back tests for euro /usd from 2001 to 2010, using 20 stop and 22 target , the losses are due to the spread.
Take a look at the following back tests for euro /usd from 2001 to 2010, using 20 stop and 22 target , the losses are due to the spread. Even a computer programme gets 48% hit rate.
Some important 'concepts' (such as S/R levels) seem to be universal across different timeframes, but the way to actually make money from them can vary hugely depending on the timeframe. What I mean by this is if you are an S/R trader on the 1 hour charts you will probably need a different stop/target strategy to a 'similar' S/R trader using the weekly charts. So even though you might both be buying a chart pattern that 'looks the same' on both timeframes there will be differences in how cleanly the levels are obeyed, how far the bounce may be etc and a trading strategy will have to be adapted to fit as you get experience of your particular timeframe.
. I prefer not to deal with the S/R levels in Anytime frames. As they can limit my trades POTENTIAL. I stay with the momentum untill it does not work. In theory the all strategies should be time frame independent and only depend on "Traders" experience with the markets. All that is required in short time frame is higher response time.
contrary to what "most" think and the way most act, it is possible to trade any market for profit with just one simple tool! for those who know it is of course easy to understand, but for those who do not know they may never understand if they fail to reflect on the reality of what happens on a daily basis. to make money trading all you have to do is buy at one price and exit at another when you are showing a profit. how much money you make will be determined by several factors, again, if you do not know these factors then the odds are you should not be trading! for clarity, one of the several factors is knowing how much it will cost you to see if the trade will allow you exit for a profit. just in case some readers are unaware that losing trades are part of the business of trading, and in order to become a successful winner you must already be a successful loser. funny is it not, that most start out to win and very few start out to lose, but the losers become the winners and the winners become the losers. now where is the logic in that!
============= JP From a math only figuring of profits; it would seem like daytrading would be best, & some market makers do quite well[daytrading] Putting in 7 years+/ helps. But because of slippage[more trading=more slippage], because of trends/friends,[still quite helpful] because of less comissions; many do well banking on trend persistancy.Not a prediction. Also 3 trades in a row profitable would not be any kind of a great record; but when each lasts a year more or less, see any patterns???LOL Also should mention Rich ''turtle''Dennis proved there is an insurance premium paid on overnight position.
This is the very reason, Day trades are less risky and OBviously low return trades. The difference comes in the Probability of successfull trade and that totally dpends on a traders ability to spot a trend, then execute while maintaining risk levels comfortable. The fact of the matter is that One needs to SIMULATe a long term trade in Intraday chart. How can this be done ??? Very simple - Be selective in choosing the charts. With experience one can just spot trendy ones in a glimpse. There are tons od stocks that do that every day. They are just not the same ones every-day. On this basis...day trading Futures is tuff (folks obviously stick with one -favourite future)...as they ususally do not trend nicely all the time - one has to be very selective intraday or trade a higher time frame if possible