For one thing, intraday you might trade against the swing trade, ie., a short intraday trend and you are long the stock. Two accts will allow you to do that seamlessly.
<< Of importance I think is the price range of the stocks being traded. I don't think less than $25 dollar stocks should be swing traded because like you said, the reward is just not there.>> I disagree with you here and have a problem when Elder said that you should look for a stock that has a wide point channel. The problem is that when using points it is static and we all know that the stock market is dynamic. If a stock has a wide channel @ 25 then the same channel would be too small @ 40. I really don't understand why he didn't use %'s instead. There are tons of stocks that have big channels to trade that are under $15 if you use %'s. I have a friend that swing trades almost exclusively under $25 stocks and does very well. Most of the low priced stocks move in very big %'s. Eric
Very good point shorty, I see what you are saying re: the lower priced stocks. And, you elucidated my point better than I did - my thinking is that given any percentage swing, say 10%, and applied to all stocks, the higher priced stock then swings a greater number of points, and as such potentially provides me a larger profit opportunity.
I am sure he knows this. Perhaps he doesn't want the extra competition of swing trading the low priced stocks. :eek: If you look in Come Into My Trading Room of the trade examples in the back there are alot of stocks below $25 which is a direct contradiction to what he says. And another thing the trade examples are all examples of him trying to pick a bottom and not one where he is going with the trend with the major downtrend happening at the time the book was published I find it very curious why none where ever indluded. Although I do love the book there were just some things that I thought were strange. Eric
Personally, I don't put mine in separate accounts. I find it better to mentally split my allocations of money and have the entire account accessible to me throughout the trading day so I don't have to toggle back and forth between accounts or with different software (if one used someone different for daytrading versus position trading).
Another point is pure psychological in that swing trades require larger stops and you should not be swayed by every tick in the market, which is what you are watching with your scalps. However I do use my realtick account to set alarms for stops and entries for swing trades. Jeff
+******* Don & Elites; That first paragraph is funny ,NOT particularly accurate. That last paragraph is accurate ,NOT particularly funny. Dr.Elder was right to illustrate his ''Trading for a Living'' with DAILY charts mostly. Not against 30 minute charts ; however ''The Market Makers Edge [ by Joshua Lukeman ] had mostly DAILY charts for illustrations also. This last paragraph is accurate AND fun. Don Bright ,do you still have your website chart [ad seen with one mouse click]]with a long DAILY chart, nice uptrend, with a NYSE tobacco stock ???????????????????????????? Don its the one with 20 DAYS + with a 20 day moving average [approximate]on a DAILY chart on [ seen with one mouse click] your website. The DAILY pattern continues, Don .I liked that daily NOT intraday chart in your ad!
In my personal experience, it is very difficult to mix time frames, I've never been able to do it successfully. Trader Vic warns against it.
after reading some of the archives ive concluded that too few of day traders make money and the ones that do lose a lot during the process of learning the skills. if the odds are so greatly against you than why even bother? Work full-time make your money, save your money, and swing trader part-time. more logical way to do things Im going to be trying swing trading out after a couple of months of paper trading than i'll post my journal