Random day trading failures
Saturday, 1 October 2011 - - 0 Comments
Gann“The big money is made in the big trends.”New traders should consider this truth carefully.
Day trading provides the least return for your time and investment.One of the big drawbacks to day-trading is the profit potential is limited. There is only so much movement in one day which means there is only so much profit potential. also take into account , the fact that during intra day trading, the vast majority of the profits are made in a disproportionately small amount of time.To make enough money to cover your trading expenses (software, data, education, etc.) by day-trading, you have to trade size. It is hardly worth your time and expense day-trading just two or three futures contracts, even if you have a very high win rate.
Day trading forex is difficult because there are real supply demand transactions , news flow , economic transactions of governments, speculators and manipulation with intent to rewind money at a later period. The inconvenient truth here is that prices within a day move mostly randomly.We identify patterns/trends where none exist in a pool of random.
Try and apply any technique,system or method to above and you will may fail and lose money.
Livermore. . . the big money was not in the individual fluctuations but in the main movements—that is, not in reading the tape but in sizing up the entire market and its trend.He also states:
It was never my thinking that made money for me. It was always
my sitting. Got that? My sitting tight! . . . Men who can be both
right and sit tight are uncommon.Livermore’s trading dramatically improved when he effectively abandoned his focus on intraday noise and began to concentrate on aligning his individual stock positions with the broader market’s trend.
Day trading provides the least return for your time and investment.One of the big drawbacks to day-trading is the profit potential is limited. There is only so much movement in one day which means there is only so much profit potential. also take into account , the fact that during intra day trading, the vast majority of the profits are made in a disproportionately small amount of time.To make enough money to cover your trading expenses (software, data, education, etc.) by day-trading, you have to trade size. It is hardly worth your time and expense day-trading just two or three futures contracts, even if you have a very high win rate.
Day trading forex is difficult because there are real supply demand transactions , news flow , economic transactions of governments, speculators and manipulation with intent to rewind money at a later period. The inconvenient truth here is that prices within a day move mostly randomly.We identify patterns/trends where none exist in a pool of random.
Try and apply any technique,system or method to above and you will may fail and lose money.
Livermore. . . the big money was not in the individual fluctuations but in the main movements—that is, not in reading the tape but in sizing up the entire market and its trend.He also states:
It was never my thinking that made money for me. It was always
my sitting. Got that? My sitting tight! . . . Men who can be both
right and sit tight are uncommon.Livermore’s trading dramatically improved when he effectively abandoned his focus on intraday noise and began to concentrate on aligning his individual stock positions with the broader market’s trend.
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