I have never seen any evidence either way to suggest that day trading is more profitable than end of day trading (partly because I havent really looked!!). Personally I think E.O.D. is more profitable but that is only my experience. Which of the two above types of trading do you think are more profitable and why?
All trading, investing ect...comes with risk vs reward ratio... it all depends on your tolerance level and your financial situation. EOD can wait a day or two to make a profit or possibly longer However you take more risk then the daytraders with o/n positions.
Yes! o/n gaps are really horrible and destructive! I saw many guys wiped out by them! I also saw a lot of people get RICH off them from 1995 to 2000 so it all depends on the market conditions
But how many of them are still in the market? It is common that one can win for years but wiped out by just one trade. Not only in stocks/futures, I know many people invest in the real estate market in the Far East(Taiwan, Hong Kong, Japan and Thailand). They made huge amount of money for more than 20 years before they wiped out by the financial crisis in 1997. Some of them are living in the government shelters and some killed themselves!
Thanks to the interesting responses above. Yes its true that gapping can destroy an end of day futures trader. I think that a leveraged currency trader may be less susceptible to this kind of behaviour because they trade around the clock. Could be wrong though so dont take my word for it!
I think if you can keep the same statistic in place it is always better to play more often. it simply stabilises the equity curve and thus allows more risk. peace
Love EOD trading. Prefer it. Daytrade to relieve boredom. To some of the other responses, what kind of risk management allows for gaps and such to wipe an account out? A poor one I'd say. And the real estate example is nothing different than trillions lost in the Nasdaq market.... there are always buyers. Throw a simple 50 period moving average on the weekly SP500 index and the Nasdaq! Duh!