Easy Money Trading Stocks..must be!

Discussion in 'Trading' started by Digs, Jul 7, 2003.

  1. Digs


    Ok, I have your attention....

    I am not a millionare stock trader so my comments my be a little fresh...

    As I see it there is easy money in the stock market intraday trading...EVERY DAY....

    Nice price patterns LIKE "BA" today (7/7/03 5 min Chart), that was set up to drop if it broke south. And this is was obvious before it was going to happen.

    BUT I see the problem, and its is difficult, of FINDING the easy setups like BA above in a portfolio of 50 or more charts, during realtime conditions...

    Are sophisticated scanners the answer !

    Do my comments sit well with you???
  2. Scanners are a dime a dozen.
  3. What the ratio of "actual" easy money that makes money and "seemingly" easy money that loses money...???

  4. In your case hindsight is the answer.
  5. Diggs, this pattern you say is so easy, did you see it in real time, or EOD?

    You see, in real time, the pattern is not there. It is a very common kind of illusion on charts.
  6. fabrizio


  7. Heck man, that chart's an ATM machine...YeHaa !!!
  8. For every textbook set-up that you identified with hindsight on the historical intraday charts, there were probably other identical failed set-ups that you would have taken on a real-time basis, but that you did not identify in your hindsight analysis, as a result of a quick reversal from the closing price effectively removing from historical view the real-time trading decision that would have been made... this statement holds true unless you are restricting your trading decisions to the window of a few seconds beyond the close of a given 5 minute candle (in which case there are, for practical purposes, only 78 potential entry/exit windows on any given day)... this is one of the many reasons why most neophytes are multi-billionaires on paper when they crudely backtest, but do not attain such lofty heights when they actually trade their system in real-time... hence the necessity to focus more on other things (such as the disciplined taking of stops) rather than the pursuit of the technical Holy Grail... in my view, the latter obsession is an attractive welcome gate that hides behind it the daytraders' graveyard...
  9. Digs


    I saw this pattern in realtime....

    You guys come on.. whats the best trading base in the world..



    Keep it simple stupid....

  10. If it were that easy, then everyone would be flipping off their boss and go daytrade like that Ameritrade carrot top copy boy.

    You do not respect the market, yet. But as Yoda said, "You will be afraid. You WIIILLLLL be."
    #10     Jul 8, 2003