You don't seem to understand swing trading. If you let the winners run and cut the losers short, why would you have huge drawdowns?
Good Morning deaddog, Money is money when it comes to trading. There is no right or wrong way to do it. Swing trading or scalping or whatever else kind of trading, is cool with me. Just make money.
Now you are getting it. It's all about making money. Nice to see the change in attitude from swing trading is stupid to swing trading is cool with you. Now go make some money!!
It is harder to anticipate price 5 m out as opposed to 1m out It is harder to anticipate price 15 min out as opposed to 5m out. Harder to anticipate price 60min out as opposed to 15m out. Harder to anticipate price 1 month out As opposed to 1 day out. Harder to anticipate price 5 years out as opposed to 6 months out. At least it is harder for me. Livermore of yesteryear always made money in bucket shops scalping unless he lost a little on purpose to trick the bucket shops. In later years he went for the bigger moves and made and lost 4 fortunes and he ended it in a hotel With a bullet in the head. Bigger losses pyschologically are harder to recover from. My younger brother invests. His mutual got down around 30% or more and he was in a sort of depressed way. So what did he do? I think he went to real conservative instruments VS growth. He is getting close to retirement and he is let down. I used to but no longer concern myself with anticipating big moves or investing in stocks. I now scalp and in minutes sometimes seconds I know if I have made money or lost money. And before the session ends I am ahead or behind but I awake to new opportunities and challenges. It just suits me better. I used to hang onto stocks as well as scalp. My dad will be 92 this year. Two or three years or so ago he was looking DG saw all those new stores opening in little communities. He saw growth and he approached me about investing. I told him "Dad the stock can go down just like it can go up." He didn't invest but instead socked his money into CD's. DG went down. He would have lost a considerable amount.
I can't make that scenario work in intraday trading. Too many paper cuts bleed the account. I can halfway make it work reversing and doubling up size after a loss from a tight SL. But if I get 2, 3, or 4 doubled losses in a row because of using tight SLs then the hole I have dug is too hard to escape out of before the session closes.
I can do much better using PA SLs which are usually much wider SLs ...giving the trade room to work...averaging down and occasionaly whittling down a paper loss...and then jumping out with a scalp when the actual adverse movement is small as opposed to the exit so I scalp out with a 2:1...3:1. 6:1. 10:1 reward to risk based on the "actual SL" which is the adverse move plus 1 tick before the scalp goes in my favor.
That is right they usually or can make for a smaller thinner billfold and a pissed off wife who has to revert to going to Walmarts as opposed to Dillard's or Macys. LOL
Hello deaddog, Yes, please forgive my negative tone regarding swing trading. Swing trading is ok with me, I may start doing swing trading again one day. I simply do not like that drawdown stuff, causes toooooo much mental issues. But for now, I am scalping my damn ass off to get some money. When I see the profits, I am taking, I am NOT holding a runner. too much work. Yes, got to go make some money. lol
Hello volpri, I agree. If you swing trade, you have to deal with drawdown and account recovery many many times during the year. Easier to take little money, then no money.