So if someone is daytrading, they are unlikely to be using fundamental analysis. They dont use TA/chart patterns etc. They dont use L2/DOM/time and sale info to make trading decisions. Im just not sure what else there is? *confused newbie*
Actually, the moment you open a chart and if your looking at a chart has any impact, even a tiny impact, on trade decision of any kind... That person is using TA. However, I understand what you're saying because I've gone into the offices of several institutional pals and prior to such they make it very clear they don't use TA nor believe in it. Yet, when I look around the office...everyone has charts on their monitors. A few years ago on CNBC they had a chartist talking about key market levels and the guy made it clear when someone used the "TA" word that it's not TA. Yep, it's confusing. Mark
You are correct. I meant trading it repeatedly throughout the day, more typical daytrading type stuff. I think I could be consistently profitable trading the emini if I used a multi-day time interval. I trade it infrequently, but when I do it's usually a swing trade, and yes I'm moderately profitable when I do that. So, yes, in that context I do know people who make money trading the indexes. They are all stock traders and ES trades wouldn't even make up 1% of what they do. Like me, I think it's just a case of getting some exposure at market extremes, mainly on gut feel.
For the most part, yes I've always scaled out. I think it helps with consistency and I can trade more size knowing I'll be out part of the trade quickly. With large orders to work, it's almost essential. I scale out whether the trade is red or green. It might not always be the most profitable way to do things, but partly it's a comfort thing for me I guess.
Some might. I don't really trade anything that relies on a particular market structure to work. And most of what I do is on a long enough time frame that faster, smarter algorithms aren't going to knock me out. As long as humans are making the decisions, there will always be something to trade. But unexpected things can happen and that's why I'd never be comfortable relying on one specific method to make my living. I am very big on diversifying strategies.
I am 100% completely non-superstitious, but I just had to share the irony of the above statement, made just yesterday. I just booked my worst loss ever for my intra-day rtm strategy, after being down, you guessed it, $18,000. SWM pinned me down by the throat and beat me senseless with a sock full of pennies. The sad part is I recovered most of it but hadn't exited before it before it died again. Final tally -$15,500
Sorry to hear that. SWM? I thought you stayed away from stocks in the news? I am the one that normally go looking for them.
Lescor, As a successful and a long term trader, could you provide details as to what kind of set up do you use to generate profits? Are you a minimalist, that is a person who only needs 1, maximum 2 monitors or are you one of those fellas whose configuration could replace NORAD center if need be?