Scalping for small gains is a fools game..as all you are doing is working for the broker! It is best to ignore the textbooks..which should be obvious..as most who try fail..right!! The biggest problem facing all newcomers..is being sucked into the hype and bull..and..I was no different..so I was just as silly as most who try their hand at trading..in fact..I was really silly..many times over Which is best..do one or two trades each day..and make around $500..or do 20+ trades each day and make around $250..the answer should be obvious! Even when you overcome the hype and bull..it is still an uphill battle..as you still have to master yourself..and that..is by far the hardest thing to master when trading..the act of buying and selling is the easy peasy part..the art of self control and discipline sounds easy..but in reality..or to be more specific..in real time trading..it is one of the hardest things in the world to master..reasons can be many..but answers can be few! Many thus turn to automation to remove this "emotional" problem..but that is next to impossible..as there are so many variables to cover it would require a super duper programmer who has access to the best traders in the world..and they would have to spend endless hours to cover all the things that affect price movements! There is a very well known quote in the business world..as follows.. Malcolm Gladwell — 'There can be as much value in the blink of an eye as in months of rational analysis' When you understand this..you will then understand why trading is so hard for most..and also what you need to do to rectify your bad habits!
Funny you said that since you are MrScalper! Anyway, since I don't day trade, I don't look for quick in and out trades but rather would wait for longer durations, either winners or unfortunately, losers too, so scalping is not my game as per our discussions on GILD. I went back and reviewed my winners and losers (options), I saw the correlations between the underlying and my option positions so back to chart reading exercises. And yes, I actually know what I have to do to be better. Best to you.
I was MrScalper As per your GILD trade..so far so good..but the danger of long term holding is giving back profits if no action is taken when markets reverse..which of course will happen..but when is another question! When you look at options..do you use implied volatilities..and if you do..what are you looking for when you look at IV's! If you are full time..then you have a major advantage over someone who is casual..and should use that advantage to maximize profits.
Yes it will happen as sure as the sun rises. But, if my time horizon is 10+ yrs, it probably doesn't matter? Best regards,
Please tell me what is the obvious and why the obvious is not so obvious. After 602 pages I still don't know what is the obvious and still cannot read charts. Maybe you help me out?
1. I trade directional, betting on (or against) the underlying. 2. I quit my day job years ago and my only "job" is trading. By ET definition, I am mom and pop retail, trading my own funds.
Maybe you are chasing the answer of the question the other asked instead looking for the answer of the question YOU ask?
ironchef, at least you are coming to the realization that you've been listening to a lot of nonsense. Your time would be better spent in study and observation and testing ideas based on the aforementioned.