Serious question - damn serious and I hope a few will share their experiences. And by "Daytrading" I mean - trading stocks - NYSE & NASDAQ, flat every night, starting out with about $25k of buying power. Is Daytrading, either for yourself or a Prop firm a viable business any more? It seems that since the heady days of the bubble, daily explosive IPO's and all that money flowing through the NASDAQ and other markets has dried up - so has the opportunity to Daytrade profitably. To be precise - is it possible to enter the field, commit yourself and your capital and have a reasonable chance of success? Now before all the chant's of. "90% fail" and "it ain't for you if you can't take the risk" etc.... what I'm hoping for is some perspective based on first hand EXPERIENCE - of those who have tried, succeeded, and/or failed to daytrade for a living over the past 2 years. FWIW - My own sense of the picture is that there is no worthwhile opportunity to daytrade on a consistently profitable basis - that the opportunity for Daytrading was created by the anomaly of a Stock Market exploding out of all proportion to reality. Sure a few guys hang on, a rare bird even makes a good chunk now and then, but over a year or two the opportunity to maintain profitably is so slim as to be virtually nonexistent. It seems to me that the people who make a living trading are making their money swing trading over a much longer horizon, or they are trading a wider variety of instruments from e-mini's to currencies, etc.... What do you guys think?
Hmmm... Do you really think Daytrading Stocks profitably is virtually nonexistent? Someone once told me... doubtful traders...usually don't succeed or will fail soon. another once said to me... doubtful traders...usually have already failed in this business or will fail soon. Note: Both traders above are very successful at trading stocks and futures. NihabaAshi
I still thinking daytrading is viable because I still make money and I know too many other people that make money consistently. Having said that I think it has changed and continues to change rapidly so you always have to be evaluating what you are doing compared to your results. This last year I had to entirely change the way I trade 3 or 4 times and now what I was doing over the last few months is slowing up so I am on the hunt again. I think it also takes a person with the right personality to trade this market because if you are unwilling to change, unwilling to break bad habits with money management, and have a negative attitude about trading before you even hit a key then you are doomed. The market is not very forgiving right now and a few mistakes can ruin your day without giving you an opportunity to make it back like it used too. The trading patterns are also not as consistent meaning that you will have stetches of a few days where you have to hit it hard and then sit on your hands when you feel things drying up again so you don't give back or churn off everything you made. Then if last years pattern holds up we will hopefully get a few months with the volatility like July had so that you can give yourself a cushion to survive the bad months. Having said that about stocks I also think that there are other markets to trade that are way more liquid with more opportunity but you will need a decent plan before jumping in them.
Quote from NihabaAshi: Hmmm... if you think Daytrading Stocks profitably is virtually nonexistent... I truly doubt someone will post something to change your mind. Someone once told me... doubtful traders...usually don't succeed or will fail soon. To an extent I concur with above statement, but for many people, it's time to stop dreaming, wake up and get a job, otherwise people on this forum will just be exchanging money with each other (minus slip+commish). If no new money comes into market, it's not an environment for daytraders or dreamers.
i am very confident that i can grind out enough to live off of and pay my bills. i am less confident that i will be able to get rich off of trading. i'm constantly evaluating and re-evaluating my methods. it's tough right now, but i would much rather trade for a living then just about anything else i could think of.
your wrong about daytrading becoming popular or starting up because of the bubble or some other market events. daytrading came about because of electronic marketplaces. so daytrading will always exist so long as their are electronic markets. also, this is just speaking of electronic daytrading. daytrading is and was possible if u are physically present in the market place.
There is always opportunity. Thing is most don't have the tools to exploit the opportunity, and tools means more than an internet connection and a discount brokerage account. All the bubble did was allow a great influx of persons who could do the obvious. It may or may not happen again but right now it is survival of the fittest. And being fit means being able to adapt. The low hanging fruit has all been picked my friends... and it may be a good while before it returns. MACD
Thanks for the replies so far...as i had expected there seems to be a little confusion over my question. Some seem to think I'm asking if "I" can Daytrade stocks profitably - and taking my "attitude" as an indication of my chance for success. Well the point is well taken that beginning with a defeatist attitude is a recipe for disaster, but that's not the root of what I'm asking - in fact its beside the point to some extent. I am looking to hear YOUR perspective on the viability of Daytrading Stocks (NAS & NYSE)....not comments on My perspective....but thanks for any and all replies...any furtherance of the discussion is welcome.
Quote from lundy: "daytrading is and was possible if u are physically present in the market place. " Yeah, the specialists at the Amex have their wallets open for you to pick. And most people are just great at doing that.
if you're a novice, my advice would be to run away... fast. unless, you have significant $$$ reserves to get you through tough times that may last up to a few years. right now, we're all fighting for crumbs, but it'll get better... just going to take a while.