My comment would be best addressed in the context of the quote by dbphoenix. I have no argument with what you say, nodoji, about the possible returns to be had by a well prepared day trader, and I likewise agree that the day trader is not exposed to overnight risk (though a day trader of individual stock issues is nonetheless exposed to the risk of a trading halt with an adverse re-opening). Yes, the "could have" refers to a now known event, but it was based upon the particular and specific price action that has taken place on this stock, i.e. Facebook (FB), since this journal began - the 11/26 pullback to test $45 as support, a rally attempt that paused at 47 on 12/2, and a retrace of the rally attempt to saw a breakout to new rally highs on 12/4. That entry would have gotten many a price action trader long around $48. After that, there was no reason to do anything but to stay long until 12/27 where an exit on the break below the 12/24 high would have had me out (and "time" matters little - I'd have exited there whether the trade was several weeks long over a daily chart or several minutes long on a one minute chart - the price action implies the same behaviors). If one did not take an exit based upon the 12/27 price action (understandable in the context of an on-going bull market) then one would nonetheless have to have been a bit rattled by the 12/30 break of the demand line drawn from the 11/26 low. And I do realize that the price action of 12/27 through today (12/31) may all be part of a test of the $54 level as support, in which case a new long entry may materialize in the coming hours or days. This of course all gets into the minutiae of a particular trader's particular trading plan, assuming said trader has such a plan. The point of my original post was simply this: If you want to day trade individual stock issues, and especially if you are going to limit yourself, as the thread author has, to one single ticker, then, as dbphoenix said, you need to be there all day, every day. Unlike futures, where much of the volatility occurs in the morning alone, individual stocks can lay there dead all day, even in the face of a strong morning rally in the broad market, and then give you your entry at 12:15 PM, or 1:30PM, or 2:45 PM, or 3:15 PM or whenever the market for that stocks decides it is going to get active. If the thread author cannot be there from bell to bell, then he would likely find more consistent success trading over a longer time frame.
Again posting now, 2 very good things happaned today: 1) I was able to sit with patiance and not trade until I had a good setup, altough the stock moved a lot. 2) I started using 1:1.5 R:R ratio and was able to reach my target. Raised shares amount to 250$, and will keep it that way for some time now. 1 trade today +31$ Closed GOOG today +98$. Also opened 2 new swings today: Long EBAY at 54.52, stop at 53.68, target 55.5 Long MSFT at 37.39 stop at 36.88 target 38.1 Still holding GLUU (+84$ for now)
OP What is your plan is to grow your account. making $50 - $100 seems fine but are you going to put more capital and increase the size? Just curious as to where you are headed if you have proved consistent profitability.
A great compliment you've given to me, to be sure, as I do admire dbphoenix and his contributions to trading forums over the years. But I am not dbphoenix. I am merely a student of his teaching. Thank you, and Happy New Year!
P.V. Tape I'm not experienced enough to comment whether it's possible to be profitable trading only the first 1.5 hours of the day. Maybe some more experienced and profitable traders can comment on this. I can mention two things: 1) I know at least one very profitable trader which only trades the first hour of the day (although he does do it on multiple stocks) 2) This is the only thing I can do right now due to my work limitations. That being said, as you've noticed I do try to expand myself to swing trading also, using the exact same method, so far with success. Also, as I progress with my trading I do hope to watch over more stocks (3-4 at least). I do believe that each stock can give you 1-2 good setups in the first 1.5 hours of the day, and that usually the noon time can be very choppy/untradable. In the last month FB consitently gave at least 2 trading setups each day in the first 1.5 hours, and I see no reason for it to not continue. I can't argue with the fact that some great opportunities can rise through the day, but as a wise man said "we're doing what we can with what we have". mspkash1, the last month trading was mainly to build my confidence in my trading plan and execution. I hope, in the coming year, to increase size gradually with strict money managment (I'm not going to risk more than 0.5% of my capital in each trade). Nonetheless making 100$ a day, in 1.5 hours of work each day, is considered very profitable where I live I'm not even there yet (mainly due to the fact that I can't even trade the full 1.5 hours most of the days, but I'm getting there), let me get to this point and we'll talk again. Happy new year everyone! Enjoy the night.
Daily chart of Facebook: I see a retrace of the decline that broke the demand line, so I'd be inclined to be looking for a short with a mental stop above today's $55.22 high.
Really hoped that with the new year coming I'd be able to trade properly, Unfortunatly was on the road all day, was only able to trade for 10 minutes. 1 trade. +24$ (200 shares) Still holding GLUU MSFT and EBAY