swing trading versus day trading

Unfortunately, I am home on my MAC. I do not have my trading system available. I usually have my office computer on to log in remotely. However, this long weekend I turn off my computers.

I do appreciate this thread and will certainly come back to you with an answer soon.

 

Hi bighog,

Good question!

I personally don't trade ES and I don't have an ES chart with me but I will give it a try and see if I could answer the question.

The difference between a real signal and a false signal is in where everyone is. Only when everyone got tricked one too many time into thinking there is a reversal, give up and just go with the trend, then there will be a real reversal.

PA

 

PA, good thought but not correct. Breakout trading (which also treats reversals as breakouts) requires us to take the signals. We only know if the signal will work out AFTER the fact so it is not wise to pick and choose.

Volume does not matter in my quest for reversals either, this whole deal is in the bar itself. KEY reversal bars are unknown until after the bar closes. To work them properly we all know we will only be filled after the bar closes............ Brendan, ok, understood.

Later, shopping time. Heat wave, it is 32 outside

PS: I am not saying a breakout trader is required to take every signal. Just saying if we pick and choose we have only ourself to blame if we miss a move by not taking our own signals. OUCH!!!

 

Of course, but you are missing the point. Risk taking is a necessary but not sufficient condition for profit.

 

My second and last guess will be higher and lower time frame.

PA

 

... (no joke) try paper trading

 

... I believe this to be (very) incorrect Firstly: different forces control the market (!)

 

... to OP: obviously be very careful in (not) following the advice you get on this (and other) boards (including mine )

 

I still don't get what you say. So I take 4 signals???

 

In my opinion, the better answer is the run both day-trading and swing-trading systems. I run a family of systems diversifying over both markets and timeframes.

Generally, I would expect a swing system to have much better average trade size than a day-trader. Combined with less commission, slip etc. that is a very good thing.

Just one example: my core day-trader makes about 2c per share, while my core swing trader makes about 17c/share. The only thing to be aware of is that I'll be sitting on losing trades much longer in the swing trader; but as long as the stats work out, that OK.