I thought this would be an interesting discussion. I have been day trading ES, NQ, and YM being flat at 4:00 PM EST leaving no open positions. There are a whole list of reasons why traders do it this way. Way lower margin requirements, no overnight crazy news to effect your positions, etc.... I am starting to wonder if holding for longer periods makes sense. This would be more of a short term trend following approach, holding contracts for anywhere from 1 - 6 days, and the occasional hold for 18 days. Who has experience with this? What are your thoughts?
From my personal experience, trading the day is easier...all the collective variables are somewhat predictable and manageable. The added element of time makes that scenario extremely, highly ambiguous -- and essentially becomes just gambling now, for me.
Swing trading definitely requires patience and is probably the best option for someone works a job. I've found that day trading requires a level of quick decision making that I just don't have. But, I've found that as a technical trader, they're both the same...The only difference being one of time. It's the same strategy, the same trade setups, etc.
I am a flat-EOD futures trader. You already mentioned some of the potential benefits that may be available for that style of trade, some being dependent on your choice of broker/FCM. Further, there is a time-risk factor that exists, even intra-day. Just look at the this past week with newly heightened volatility as an obvious example... the less time spent in a trade, less event risk is taken on by the trader. Additionally, for some, me included, there is no confusion and minimal to no bias when starting each day fresh... Similar to the freedom (mentally and funds availability) that accompanies exiting trades (both gainers and losers) and moving on to the next opportunity. I think it's "easier" to make money daily, versus holding for extended periods. And the nonsensical argument about trading cost... if you were a cars salesman, you buy your customer/shopper a coffee. Not just a coffee, but thier choice of a Kuerig pod, even though there is no guarantee that he/she will buy a vehicle. You can work at a dealership that advertises aggressively, bringing you many shoppers each day, or you can choose to work at a dealership with a dozen cars on the lot and promotes itself through bankruptcy attorneys. Buying your shoppers a premium drink, vehicle purchase unknown, is your signature. If the cost of a premium drink is the difference between a sale being profitable for you or not, it won't matter how many shoppers you meet with. The reason I think it is easier intraday is about math... on any given day there is linear high-low "range" of the instrument being traded. But during the course of the day there are peaks and troughs created WITHIN that linear range. Swing and long-term traders are satisfied with capturing the linear range, IF they are on the right side of the market. Intraday, has possibility to capture MORE than the linear range, everyday.
I do swing trading, I have tried day trading before hoping to increase my returns but the return is lower than the swing trading because of lower profitability rate as a result of using lower timeframes and using too tight stop loss. and day trading is damn stressful. I have to move back to swing trading and it works well for me. and also, i use stop loss in all my trades.
I am a very fast trader. I can't wait for the next day. It's too hard for me. You need to choose a strategy for your temperament. I'm day-trader in the US stock market. I'm using this strategy: https://tradinglab.tech/en/trader/day-trading-course-review-by-smb-capital.html This is a detailed review of the strategy SMB Capital for the US stock market ....
John9999, I like day trading because: 1. After market close, I am done for the day and I can focus on kids and other life fun and chores. 2. I no longer have to think about trades over night or over the weekend. Day trading is sort of like a job 3. I believe day trading offers me more opportunities to make money and less loss per trade.