I think you are just explaining that Volatilty increases with the square root of time,and it is NOT an linear relationship..Very good point.. I get the strong impression that very few of the posters have compared sytem returns on dailys versus intraday data.I would suggest it is worth ones time to do so,and not look at net return as the sole determing factor.Take a good look at the perspective recovery factors,and yo may gain some interesting insight.. good luck and good trading to all
By keeping a position trade going, one can stay with the predominant trend and it is much easier to keep the overall picture at the top of the mind. Then and only then , is it acceptable to day trade, but only taking the obvious signals --generally a chart no less than 60 minutes. One would be patient while waiting for the obvious signal. In the meantime, the positional trade keeps you in the game and less likely to overdaytrade.
Brokerage firm keeps calling every several days asking if they can make trade reco's. I have no individual broker , so it's a different guy every time. It is painful for them to have so few trades I guess from each trader. I like that quite a lot.
Thats why if you were to compare two equally great traders with the same $ amount, one a day trader, and one a position trader, the day trader would probably make more on average.
perhaps,but dont forget that the day trader will have higher blood pressure,worse vision and a much shorter trading span,not to mention lifespan
Let's give the day trader & position trader $1,000,000. How much would the day trader make? Using the P&L thread as a guide, let's say he makes $3k/day, or $750k/year. This is very good coin, I think, but it looks like many people have a hard time busting out of this plateau. Liquidity serves as a natural limit to many strategies. If we look at the position trader, he only has to make 75% returns to match the day trader, which should be a reasonable estimate for a position trader at the same calibre as our day trader. But what happens next year? The liquidity limitation that the day trader feels is much farther away for a position trader. He can keep compounding for a long time to come. Feel free to dispute the numbers. My point is that different people with different skills and bankrolls may find different trading styles are more profitable.
Excellent point..And clearly the day trader needs to employ massive leverage,but should have a better Sharpe/recovery factor.. i for one think that the "cerebral" challenge of position trading is a far more holistic way of approaching a profession,not to mention the best position traders in the world make far more than daytraders....
I don't think that making $3k/day scalping or daytrading is easy, nor do I think making 75% on a $1mil portfolio is easy, but I think these are reasonable figures to use for skilled pros. Arguing over the numbers just changes the break points but does not affect the overall argument.
You can also be a position trader using a pairs trading strategy and not be overly concerned about the direction of the overall market. Makes for a much easier lifestyle and can be very profitable if done correctly.