"The hourly return is lower than someone working in MacDonald's." Not so ... If I consistently trade using the edge and with discipline I can buy a MacDonald's franchise. Also 100,000 pounds should be used to decrease overall risk per trade, rather than excess leveraging
I bet you for every french fry in your happy meal, I'll make more profitable scalps this week than nonprofitable ones. It's a numbers game when you have a strategy ... see.
Getting back to the subject ... daytrading has many forms. There are those who daytrade just for the action, experimenting with several different strategies. Such an one was I. After many months of losing I found something that worked. Herein lies a major drawback ... finding the right combination of markets, strategies, risk parameters, trade frequency, trading equiptment, etc that works for you. Most of the time finding that combo is quite expensive.
Good point. Part of the problem always was (and always will be) position sizing. Keep it small suckers, until u know what u r doing....
Which brings up another fallacy in the world of daytrading. Many discount brokers give their clients a "daytrading margin". This give the impression that it takes less money to daytrade than it does to position trade. Many a novice trader will take the bait and overtrade, thus blowing themselves out of the market. My point is that because daytrading ( as promoted by brokers ) lends itself to overtrading then we have a trader who can't win. If said trader will use the same position sizing philosophy as the pros use, he(she) gives themself a chance at success.
yeah dude, i could still be playing golf right now if i had just bought in 91, held, sold beginning of 2000, then putting a short on and leaving it, maybe covering last october and back in the chair now after 12 years. sweeet!