I don't known, but to me it seems as the if the author of the article doesn't have his own stuff together. If one cannot sleep during nights, then it's due to excessive position sizing or due "control issues" or stuff like that. I think those issues with swing trades will also manifest in intraday trading, but in different forms. One way to assess the effectiveness of day trading strategies is by how much of the available “daily travel range” a strategy is able to capture each day in combination with reasonable R/R (other variables need to be removed). Unfortunately, most index scalping / intraday trading strategies fail miserably in this regard. Obviously, there are exceptions, but those are rather rare. The way I see things is that the definition of day trading is being flat overnight. It has nothing to do with trade frequency. No one needs to be married to a monitor and react to every price wiggle and riding the emotional roller coaster while formulating their trading plan in the heat of the moment. Many index traders keep on spinning the wheels because the indices don’t present that many quality setups as a universe of big cap stocks does, therefore most index traders take sub-optimal trades on very low TFs (in attempt to increase opportunities), and it often becomes a never-ending struggle for some of them. However, if an intraday trader trades a universe of big cap stock, he then can choose explosive setups that capture ¾ of the available daily range (if one is good at identifying stocks that are being bought/sold by institutions). That's one way to create a "leverage". At the end of the day if there is still institutional buying/selling pressure in that stock, then the profit can be used to buy an option and turn it into a swing trade (with defined risk). With trades like this, the R/R can be very high, providing the initial risk was defined on a M5 TF in the morning. The above is just one method of many on how to swing trade with very limited risk in stocks that are being chased / sold by institutions. They’re big elephants, they cannot hide. Intraday trading can be used to fine tune entries and to limit risk, and not as the only way to trade full time. There are many ways to trade the market.
Swing trading is just a more efficient form of daytrading. BNL, touted the greatest day trader in history was actually a swing trader. Why make 10 trades when you can make 1 trade? Plus you can trade 10 stocks at once and not be this guy. Disclaimer I have 4 monitors.. Also, you don't have to sit in front of your computer everyday...don't get forced out of your position at the end of the day which is absurd lol. I go weeks without even looking at my account...case in point I'm here editing this post and didn't even realize the market is open...and I'm holding GME! Anyway, I'd rather be watching netflix or doing stuff. THAT is freedom....day trading is for suckers. People who day trade are usually low capital and margined to the eyeballs so they can't afford any over night risk. Probably 99% of day traders are retail traders who think they are going to be trading from their yacht in 1 year lol. btw trading IS boring...if it isn't then you are gambling. If you are stressed then you are oversized. My motto is trade like a turtle...slow and steady. If you are day trading you are going to get caught up in all the noise, when with swing trading you can sit back and see the big picture. I make all of my trading decisions when the market is closed, and my entry and exit levels are usually weeks ahead of price.
That is a completely assessment. Swing trading <> daytrading because in day trading you are accumulating losses every time you get stopped out or close a trade for a loss at the eod. The problem you guys are having is you are trying to manage risk with stop losses so you are essentially gambling not trading. Risk should be managed by size or hedging. Do you think hedge funds use stop losses lol. Stop losses were invented to sucker retail into creating liquidity for big money.
Thank you for the kind words. People like you and others, like @taowave is what keeps me around. I know what I don't know. I don't have the skills to trade nuances and microstructures in derivatives (like @destriero) and so out of necessity developed a method to make speculative single leg directional bets. It is more gambling than trading. One day, it will stop working, perhaps, yes, I am smart enough to quit while I am ahead. Best wishes.
You sir are one of the very few on ET that said it. Mine observations too and why I only experimented with single stocks in day trading.
I hope so,he was a really good guy... My bet it was an enormous mistake as he was "underqualified",getting paid close to 200k all in and 25% of his bonus was in stock....at a 25% discount...