Using a risk reward ratio of 1:3 you should over time break even. It isn't smart experienced winning traders you are fighting against. The biggest enemy is commissions and the spread.
no kidding, and it doesn't have to be weeks. When I started out I only had enough money to scalp. But same thing, Get stopped out all morning and then hold for several hours. Back then there wasn't so much to read. Once a month you'd get a statement. And there it was, hundreds of small profits all wiped out by one big loss. And that was all you had to look at for a month. Eventually you figure out how to just turn it around and do the opposite of what you had been doing.
I always like emg's posts, I don't take it as emg is a naysayer. Instead, it reminds me to avoid the slow, meandering, easy times to enter, which is 95% of the time and never win. Instead, look for the sharp painful points that are only 5% of the time, they are difficult to catch.
hi snaky, why do you think that ? isnt there any way to make money with daytrading ? please tell me your serious opinion! regards
They lose because what they personally think is a good plan and adequate capitalization is, in fact, woefully inadequate. Given the lack of adequate preparation and naivety, they would have failed if the venture was starting a restaurant or a shoe store. The only difference is that trading is one of the lowest cost barrier ventures an individual can start. Hence, it attracts more naive idiots willing to donate their stake straight into a massive wealth redistribution system. And I would venture to guess that 90% of the 90% who fail are day trading stocks based upon some common variation of routine technical indicators using tic or very low timeframe interval chart settings. In other words, they choose to manually compete with the bots. Sitting in a double-wide outside Boise, Idaho with a DSL connection using a four year old box they originally bought for playing HALO. And they will be the most vocal and aggressive posters on ET; subject matter experts all.
i think i wil stop my daytrading. because i am so lazy. i am really so an lazy ass, incredible. Just swing my trades a few days and make really big money trades. 2 at the same time maximum is allright. i am so lazy.....ahh how much should i risk? for a 4 days trade ? 30% of the account, yeah, thats means 30% - 60% profit. the same i would make with daytrading. so same profit, but much less less less stress. Swing trading is for rich lazy assholes...
I bet many were stopped out from the big dropped in the ES 30 minutes ago. Those that were stopped out, think real hard if u want to do this.