How much one can earn daily in intraday trading?

Discussion in 'Trading' started by anniecalvert, Jan 30, 2018.

  1. Xela

    Xela


    I agree with the above.

    Intraday trading isn't "dangerous"; it's the majority of the aspiring traders attracted to it and trying to do it who are "dangerous".

    This is one of the very few issues around trading over which I've ever significantly disagreed with Tomorton (and I've been discussing trading with him for a long time!).

    In my opinion, asking why intraday trading is higher-risk than longer-term trading is very like asking why spot-forex trading is higher-risk than trading other asset classes. It just isn't: it's simply that the majority of the people drawn to it have attitudes and behaviours that are "higher-risk", and that collectively makes the activity itself appear that way.

    The reality is very different.

    The key point (almost never discussed!) is that because of the square-root-based overall mathematical relationship between time-frames and volatility, in practice the increased trading opportunities afforded by faster trading more than compensate for what people mistakenly/lazily think of as "increased noise" and make intraday trading more potentially profitable for the very small minority of successful traders with the appropriate risk management and trade management skills, understanding and experience.

    "Just my perspective". [​IMG]
     
    Last edited: Jan 30, 2018
    #21     Jan 30, 2018
  2. d08

    d08

    If the losses are much bigger than wins, high probability won't help you. I've had 90% likelihood systems that blow up with a few losses. There's also black swan events, typically a trading plan is based on what has happened in the past, the future however likes to surprise us. If you start talking hypothetical scenarios then your sizing will be much more conservative to the point that trading it won't be worthwhile.
     
    #22     Jan 30, 2018
  3. Canoe007

    Canoe007

    I wouldn't say it is the only thing, but I agree very strongly that it is the most important thing for profitability.
     
    #23     Jan 30, 2018
  4. Xela

    Xela


    Sorry to sound so critical, but I really think (for all the reasons discussed and explained in detail in some of rin4et's threads here over recent weeks/months) this is just awful advice, and a dreadfully misguided approach. [​IMG]
     
    Last edited: Jan 30, 2018
    #24     Jan 30, 2018
    Jzwu2017 and d08 like this.
  5. henry76

    henry76

    In reply to do8 I realise that you can interpret probability as a win loss loss ratio , but short of a very long winded explanation of what I mean by probability I went with the short handed version , perhaps I should have said overall probability but I think the sentiment is clear.
     
    #25     Jan 30, 2018
  6. tomorton

    tomorton


    Yes, I agree its not objectively riskier, I said so too. But the people who do it and they way they do it make it so. If we accept that 90% of new traders fail very quickly, these two factors - the profile of the new traders plus their behaviour - must account for 90% of these failures. That's 90% of the 90%.

    Its like the young guys (and it is usually young guys we're talking about both here and in trading) who drive Audis and BMWs. Objectively, these are not the only fast cars on the road and they're not any riskier to drive than any other. And there's no objective reason why buyers of these makes of car would drive like they do. But they do.
     
    #26     Jan 30, 2018
    anniecalvert, d08 and Xela like this.
  7. Metamega

    Metamega


    Well said.

    Can’t remember ever seeing a thread here where someone had reasonable expectations.


    “ Looking to become a trader guys. I have two years living expenses aside and 50k to start trading with. I plan on risking .5% of my account while beginning live trading just to get my feet wet while I hone my strategy and system.”

    Never seen that thread.

    The common thread is
    “ I have 5k and need to pay my rent and bills and grow my account, how do I find the biggest stocks on the move”.

    That’s the common thread.
     
    #27     Jan 30, 2018
    Sprout, anniecalvert, d08 and 2 others like this.
  8. d08

    d08

    Perhaps you meant risk vs reward or return vs drawdown, that makes much more sense to me.
     
    #28     Jan 30, 2018
  9. I regret but I can only quote once without spamming.

    Everything is high risk if you don't plan adequately, trading cannot be any different in that regard.
     
    #29     Jan 30, 2018
    Xela likes this.
  10. Hey, I said almost this!
     
    #30     Jan 30, 2018