Day Trading

[mit]

Looks like trying to catch knives at the moment IMO. I wouldn't buy in until it rallyed above 32.50.

(This is of course just idle rantings and not advice)

MIT

 

[Yippyio]

Agreed, I just got in and out and dropped a couple of K :swear:

 

[mit]

Lunch time now for all of the corporate traders. Wont get an idea of direction until after 2:30.

MIT

 

[It's Snake Pliskin]

Agreed, I just got in and out and dropped a couple of K :swear:

If a big stock is diving it's probably best not to buy. The institutions are selling and will remain to sell. Internet traders cannot influence a stock like the institutions can. It seems you got burned today yippyio; take it as a learning curve.

Catch a falling knife and what will happen?

 

[Joe Blow]

Back on topic please gentlemen.

If you wish to keep discussing NAB, please continue in the NAB thread.

Many thanks.

 

[Yippyio]

Sorry we are a bit conflicted, we were discussing Daytrading NAB ???

I am done for now, that is picking bottoms, smelly fingers and all that.

 

[mit]

Brisvegas,

Left out a couple of stages later in the piece

. Believe that the way you trade is the best way to trade because you have tried every other style and they don't work and you make sure everyone else knows it.

. Find out people are making a better returns using methods you rejected. Scratch head swallow pride and examine other methods again. (... this is me ATM : )

and finally

. Learn when to break rules


MIT

 

[It's Snake Pliskin]

Luck plays a large part in short term trading!

 

[Bronte]

Luck plays a large part in short term trading!

"Luck to us is simply when Preparation meets Opportunity"

 

[happytrader]

Yes Pliskin I think luck plays a part. Just keep doing things the way you know work and every now and then you get very lucky and catch a big ride. It makes up for all those other times when stocks don't trade as expected.

Even if you were a candlestick analyst and chose the right stock, then bought on green and sold on red each and everytime, you would make money.

But you would have to be mentally and emotionally very tough. Interestingly enough some of the most profitable traders I know have spent time in the armed services or are into martial arts.



Cheers
Happytrader

 

[wayneL]

Luck plays a large part in short term trading!

Only in the short term.

Long term, technique, expectancy and money management (or lack thereof) play the largest part in short term trading.

Cheers

 

[It's Snake Pliskin]

Wayne,

How much experience did you have before you started trading fulltime and day trading?

 

[wayneL]

Wayne,

How much experience did you have before you started trading fulltime and day trading?

I started fulltime right off the bat, trend trading. Started dabbling in daytrading soon after just for fun. (I punted semi-professionally before that, and learned about money management)

It will never be the only thing I do (I still have my position/swing trades) but it satisfies my traders lust

I've been doing futures for about 2.5 years.

Cheers

 

[It's Snake Pliskin]

I started fulltime right off the bat, trend trading. Started dabbling in daytrading soon after just for fun. (I punted semi-professionally before that, and learned about money management)

It will never be the only thing I do (I still have my position/swing trades) but it satisfies my traders lust

I've been doing futures for about 2.5 years.

Cheers

Wayne,

Straight off the bat! Not bad. It's interesting to discover how or why people do things.
So you learned through experience and reading? How did you know what you were doing?

Snake

 

[wayneL]

Weeeeelll, straight off the bat is not quite true, as I've been in the market since '86, so knew all the basics.

But two things happened. I discovered t/a, and I buggered up my back, so couldn't continue with my then business. This happened basically at the same time.

So I thought, right, I just jump in the deep end here. Read a few books, bought metastock, and away I went.

The key was that I already had my psychology, money management etc. sorted through punting, so it was just a matter of picking trends and climbing aboard, set stops, exits, and learning a few new tricks as a I went along.

 

[wayneL]

This price action action today clearly illustrates the value of dynamic support and resistance levels. You can see where they sold it off down to the pivot/fibzone and intraday support at around 1217-1219.

Sure, you could have picked up the trend and got a nice trade out of it, but the buy off the 2x bottom at those support zones made all the sense in the world.

 

[tech/a]

Wayne.
Fib zones are purely a mathamatical point calculated from a high or a low.

The index is then a conglomeration of trades in equities making up that index--100s of them. Collectively even individuals or groups of heavy buyers and sellers have very little influence---the indexes basically move as a mass.

Given that why do you think that levels do hold?

I'm afraid I cant subscribe to the theory that 1000s of buyers are glued to their screen waiting for 1000s of other sellers to sell of stock to a point where those buyers will see support is reached which has been invisibly drawn at a mathamatical fib--or gann level for that matter.

 

[wayneL]

Wayne.
Fib zones are purely a mathamatical point calculated from a high or a low.

The index is then a conglomeration of trades in equities making up that index--100s of them. Collectively even individuals or groups of heavy buyers and sellers have very little influence---the indexes basically move as a mass.

Given that why do you think that levels do hold?

I'm afraid I cant subscribe to the theory that 1000s of buyers are glued to their screen waiting for 1000s of other sellers to sell of stock to a point where those buyers will see support is reached which has been invisibly drawn at a mathamatical fib--or gann level for that matter.

Well I totally agree with what you say Tech, but I can only observe What Happens! I don't know why it happens, it just does, often enough to trade off it with better than even money probability.

I must admit, I have always had the question in my mind...Do stocks move the futures markets or do the futures markets move stocks?

But what is amazing is the instantaneous correlation between movements in the big stocks, and the index...I mean they all move together at presicely the same time!!!

It seems there are bigger powers at work than just individuals buying and selling individual stocks, and I (along with others) suspect it's the futures markets that largely leads intraday moves, while stocks lead the open, and perhaps the close.

FWIW

 

[wayneL]

Just to clarify: the fibzones I refer to are not fibonacci retracements. They are a calculation similar to floor traders pivots.

They are still just a mathematical calculation, but there they are

 

[mit]

Wayne.
Fib zones are purely a mathamatical point calculated from a high or a low.

The index is then a conglomeration of trades in equities making up that index--100s of them. Collectively even individuals or groups of heavy buyers and sellers have very little influence---the indexes basically move as a mass.

Given that why do you think that levels do hold?

I'm afraid I cant subscribe to the theory that 1000s of buyers are glued to their screen waiting for 1000s of other sellers to sell of stock to a point where those buyers will see support is reached which has been invisibly drawn at a mathamatical fib--or gann level for that matter.

Strange isn't it, but pivots and fibs seem to work. Note that one of the Fib points is 50% which would be psychologically important whether or not you believed in Fibs. Of course we buy individual shares but most would look at the index to make a decision on buying shares.

I've watched forex and it is interesting how often prices will hesitate at these lines.


MIT