I am reverting back to my old format where I update positions and P&L each day. I am refocusing my trading towards a couple strategies instead of too many. I was day and swing trading futures, stock, options and even started playing with currencies. Too much to manage. I finished October up just a bit and I'm flat for November. The fact my P&L was so minimal during the last month and a half was red flag that I was trying to do to many things and got away from the plan that has been consistent for so long now. I plan on trading futures on days when the stocks I know and watch are dead. Other than that I will focus on swing trades then a bit on daytrades.
Seanote Do you feel that the profit potential of swing trading outweighs the risk of holding overnites? I am currently doing pairs trading exclusively and my experience has been that my biggest losses have been holding overnights, although I also realize that the profit potential of explosive moves can mostly be achieved by swing and not day trading. Any input will be of much help. Thanks.
Absolutely, swing trading profit potential far out weighs the risk of holding overnight AS LONG AS YOU PICK GOOD STOCKS. I think there's much more profit potential in swing trading OVER TIME. Certain markets are more profittable to daytrade vs. swing trade, but you have to no when to realize these. I have long time friends who work for DT firms, brokerage houses, ect and everyone of us have come to the same conclusion. No matter what your education level is, experience in the market, age, capital available, technology, ect; none of us have seen a Daytrader consistently make money over the past 5-7 years. Keep in mind there is the anomoly trader(s) that we haven't seen but this strictly regarding DAYTRADERS who go flat everyday. I consider myself a trader but have always applied swing trading to at least 70% of my overall strategy which has made up about 85% of my profits each year. I enjoy daytrading when the opportunities are there but I would never make it a habit.