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Daytrading

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Chipp

Joined
21 November 2022
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Given it seems this forum is mostly full of SMSF buy and hold types the idea of Futures Daytrading would seem to be a rare thing in here , damn even medium term swing trading seems unpopular . Just gauging whether
1/ anyone does it
2/ anyone is interested
3/ The consensus its impossible and it is gambling

I am not after a debate on it persay , just looking for people either actively doing it willing to exchange dialogue with an open mind .
 
If it could be systemized , I would give it a go finance permitting
 
Gidday Chipp

rcw1 swing / fast trades and gambles even all at the same time ha ha ha ha

Happy to discuss.

Kind regards
rcw1
 
eskys said:
I'm in but have lost the plot lately, so not doing much at the moment, hope to get back on board once I get my bearings right.
Click to expand...
she'll be right eskys @ Keyes rcw1 favourite former Commsec Community participant...

Offer you a rum ...

EDIT remove a word
Kind regards
rcw1
 


So here's a potential trade for you:

KOS

Entry +/- $5.79
Stop $5.49
Target $6.48

If you trade it as a stock position

Now I'd trade it as a vertical: Buy 19 April expiry, buy Call, strike $6 sell Call strike $7

Now just a warning: I haven't traded short term swings for probably a decade or so. It may blow-the-fuc*-up. LOL.



jog on
duc
 
not me , but thanks for the invite

my current setup isn't reflexive enough , and my forays into 'paper-trading ' have been very educational ( am highly likely to have a bad outcome )

BTW i did do rather nicely betting on long-shots on the race-tracks in my younger years , but that was then and this is now ( praying something on the internet doesn't break at a pivotal moment )
 

You were pretty darn good at it Duc
 
So I have entered a very small position:



I did a PUT Vertical. Which is a bullish trade. Limited my risk to $0.17. Expiry 19 April 2024.



Which was pretty much at the time I entered the trade.

So the plan behind the trade:

(i) Market is bullish a +3 this week
(iI) In the energy sector which is scored +3 is also bullish
(iii) the stock has (in my opinion) a bullish set-up and should benefit from overall market and sector bullishness

Used Options because:

(i) I hate stops
(ii) Can define the risk w/o a stop loss in the market or even worse in my head
(iii) Can set the trade up as a credit (unimportant in this tiny trade but put 1000 contracts on and more significant)

Negatives with Options

(i) Have to get the timing as well as direction close to correct
(ii) Theta can be an issue
(iii) IV can be an issue (managed via a spread)

Catalyst:

Has an earnings event in May. Now expectations should be bullish which will help move the stock higher into those earnings. My trade will be over before those earnings are announced.

jog on
duc
 
So we seem to have lost the protagonist of this thread.

Anyway:

After I left for work this morning, the market puked:



This is where a strong sector can help you overcome a bad market.



A breakout of the box will bode well for this trade.

jog on
duc
 
So of course, why? LOL.

Bulls were relishing 1%+ gains for the Nasdaq this morning, but a series of events ultimately turned the tide in dramatic fashion, and by the close, the Nasdaq was down more than 1% on the day.

On the geopolitical side, US Secretary of State Anthony Blinken made a comment this morning that Ukraine would become a NATO member, and later in the day, rumors spread that various US and Israeli intelligence agencies were preparing for an imminent attack on Israeli soil from Iran. Oil prices, which began the day lower, began to surge around mid-day and ultimately closed above $90.

Along with the spike in oil prices, we got more hawkish Fedspeak this afternoon from Minneapolis Fed President Neel Kashkari. Kashkari used to be a prominent dove but is now on the much more hawkish side of the Fedspeak spectrum.

As shown in the intraday chart of the Nasdaq versus oil prices below, equities didn't immediately react negatively to the initial turn higher in oil just after noon. It wasn't until the start of Kashkari's speech that stocks ultimately began selling off, and traders continued selling all the way into the close.



Random news causes random reactions in the market.

jog on
duc
 
My initial post was to guage interest and I aint no protagonist but i think my meaning of daytrading is different to yours . I really was looking to get a Futures intraday trading thread going but its been taken of the rails slightly so there is that . I do trade a lot and its been a good week to trade so i have been busier than usual . I will be adding content
 
As the initiator of the thread, you are the protagonist.

In any case, I understand your primary interest was 'daytrading'. However you also alluded to 'swing trading' (in the medium term).

I used to swing trade on a regular basis so I thought I would jump in with a swing trade just to get the ball rolling.

The problem (for me) with daytrading is that it is hard and stressful, interspersed with long periods of extreme boredom, which always tempts me to trade where I really should not.

Basically, I would bracket order a number of futures contracts for the open and be all done by 10am/10.30am.

However as far as this thread is concerned, I followed the link to Trader Girl's thread, which quite honestly was a waste of ink. Creating a useful daytrading thread outside of a live feed, really requires posting levels etc prior to the market being open. That way at least those following along can follow the concept/plan/etc. Some charts can be posted to illustrate the set-ups etc. A poster by the name FrankieD used to do this very well. His method I have to say was pretty unique.

Anyway, I look forward to seeing what you have planned.

jog on
duc
 
So day as intra day trades?
The shortest period I even did system trading was daily order at open (by sell) on market index proxies.
Would you consider this day trading? Probably not?
But interested in your approaches
But too busy during the day to be on the screen...
 
This is all too intimidating for those who don't understand or trade options. Every trader has his or her ways of doing things, how or what another person trades may not be what we do, or up to our standards. Can we go easy, please?
 
I'm bailing divs, wanna join you on your long shots, another strategy to get ahead? Anyway, have a great weekend, folks.
 
eskys said:
This is all too intimidating for those who don't understand or trade options. Every trader has his or her ways of doing things, how or what another person trades may not be what we do, or up to our standards. Can we go easy, please?
Click to expand...

Daytrading is not rocket science. What it is is stressful. It is stressful mostly because you are using a ton of leverage. If your futures movement is measured in a few basis points, then to make a living in dollar terms, you trade size. Futures themselves are highly leveraged.

This means that you can be in/out of a trade very quickly.

The 'Open' typically has the most volatility. Which is what you want.



A strategy can be sell the top of the box, buy the bottom of the box, take a few points profit in the middle. As you see, occasionally (often) this does not work and you need to close that losing position fast as it will kill your profitability to ride it out 'hoping'. Depending on your size to your account, it can be an extinction event.

Some traders place stops in the market. Not a fan. If the market really moves against you, there is no guarantee that you get executed. I know some brokerages will guarantee, but....

Swing trading is less intense.

Smaller position size looking for a larger % move = lower leverage = safer trade.

Options allow higher leverage, looking for same % move = higher profit.

Options also provide the ability to have a fixed loss, regardless of how the market moves. There is no need for a stop loss. It is built in. When the MM's run the stops (oh yes they do) you are not knocked out of your position.

Easy to sleep at night.

Down today:





jog on
duc
 
Always good to sell in the top box and then wait for resistance similar to a electronic circuit board, selling when the current is high.
 
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