Day trading difficulties

Discussion in 'Psychology' started by oilfxpro, Apr 17, 2011.

  1. Forex is a zero-sum game.
     
    #151     Apr 30, 2011
  2. daytrading is zero-sum. no wonder.
     
    #152     Apr 30, 2011
  3. One of the ways to beat the market day trading is through martingale type (not martingale itself)position sizing , using 50 /50 success rate set ups, and recovering previous losses through a sophisticated betting method , a method which can survive 75 consecutive losses

    This in theory works and by using it , day trading can be very profitable.
     
    #153     May 1, 2011
  4. Market conditions change over time , making existing methods systems redundant , as a result old methods systems need fine tuning.
     
    #154     May 1, 2011
  5. Gann“The big money is made in the big trends.”New traders should consider this truth carefully.
    Day trading provides the least return for your time and investment.One of the big drawbacks to day-trading is the profit potential is limited. There is only so much movement in one day which means there is only so much profit potential. also take into account , the fact that during intra day trading, the vast majority of the profits are made in a disproportionately small amount of time.To make enough money to cover your trading expenses (software, data, education, etc.) by day-trading, you have to trade size. It is hardly worth your time and expense day-trading just two or three futures contracts, even if you have a very high win rate.

    Day trading forex is difficult because there are real supply demand transactions , news flow , economic transactions of governments, speculators and manipulation with intent to rewind money at a later period. The inconvenient truth here is that prices within a day move mostly randomly.We identify patterns where none exist in a pool of random.

    Livermore. . . the big money was not in the individual fluctuations but in the main movements—that is, not in reading the tape but in sizing up the entire market and its trend.He also states:
    It was never my thinking that made money for me. It was always
    my sitting. Got that? My sitting tight! . . . Men who can be both
    right and sit tight are uncommon.Livermore’s trading dramatically improved when he effectively abandoned his focus on intraday noise and began to concentrate on aligning his individual stock positions with the broader market’s trend.
     
    #155     May 1, 2011
  6. Really sorry for your personal experience.
    But I guess there is no other need in trying to make said personal experience into
    a universal truth, than trying to justify for yourself what you express through your own forum name.
    Understandable, but not really a reliable opinion.
     
    #156     May 1, 2011
  7. it is not opinion, it is fact.
     
    #157     May 1, 2011
  8. :D
     
    #158     May 1, 2011
  9. 222bc

    222bc

    The fist sentence is true for all markets, those factors contribute to an active market :).

    Prices may very well tend to move randomly but traders entering and exiting the market with urgency (be it technical or simply for business reasons) distort the more or less smooth flow. The prices then deviate from the imaginary mean and create opportunities for other traders whose work recognizes these points as the end of a move or just the beginning of a larger scale move:).

    In general it is not a good idea to tackle any challenging activity with an attitude that it can not be done.

    Modern markets are a miracle.
    We are given unlimited quantities of information and price information, education, free or cheaply, delivered quickly, trade with minimal(in historic terms) commissions to compete with other humans (including inexperienced ones).

    Because of the depth of participation in many many instruments the emotional human footprint is present and very repetitious. It just depends on the skill and personal set of traits of the individual trader to take advantage of the patterns that present themselves as a result of the activity of emotional other humans:)

    cheers,

    bc
     
    #159     May 1, 2011
  10. cornix

    cornix

    It looks to me, that OP's problem is more methodology related, than psychological. System is not clear enough to be just followed and yield money over time, hence the stress....

    It often seems that problem is your emotions, but sometimes, emotions are just trying to tell you something, like that you do not understand your own trading method well enough or it has some flaws...
     
    #160     May 1, 2011