Do you have to day trade to trade full time?

[Mr J]

In more ways that one. They cater to gamblers, but also because the take calculated risks in business. Surely your problem is with the term 'gambling', not with the action? You're simply using your definition and applying them to my argument, which is quite silly.

 

[nunthewiser]

for all YOU gamblers

http://www.youtube.com/watch?v=uzfCgycpoqs

 

[tech/a]

PS. off topic is anyone who is holding longs, as scared as i am that if wall street doesnt break 9860 tonight its gonna roll?

And herein is where the difference lies.

Profitable traders dont give a crap.
Tommorow is of no concern.
My bottom line is all that matters.
I know how to maintain an ever expanding bottomline.
So what happens o/n is of no consequence---or the day after or after that.

 

[lukeaye]

tonights action affects my plan for tomorrow, so yes i give a crap.

It will in know way affect my bottom line at all. but knowing the current action can tell me how to react. the more time i have the better

 

[weird]

PS. off topic is anyone who is holding longs, as scared as i am that if wall street doesnt break 9860 tonight its gonna roll?

The Dow ? De nada.

 

[Mr J]

And herein is where the difference lies.
So what happens o/n is of no consequence---or the day after or after that.

Overnight matters to someone who takes overnight positions. The vast majority of people on this site do not restrict themselves to intraday trading.

 

[tech/a]

The vast majority of people on this site do not restrict themselves to intraday trading.

Yeh I'm one of those.

Overnight matters to someone who takes overnight positions

The same then as it matters to someone who takes daytime positions I would imagine.(During the day)

 

[It's Snake Pliskin]

Sound business is to place yourself in front of demand,and remove yourself from markets which display little or no demand.(In of course the timeframe in which you do business.

People should take note of this post. Imo thats what trading is all about. Frontrunning demand to an extent.

And it added to the discussion to reveal what is important. Good comments.

 

[Bobby]

I'm just trading Index's at the moment , still hold a portfolio but like the quick action & time frame that happens with this form of trading .

I place a contradictory contract to cover when going over normal , thats set to trip but give's protection so not to stuff up the real positions .

Stops are now triple to bugger the BS spikes & setups are sort with greed , :

Best part I can relax & get half pissed whilst still trading . !

 

[shortlist]

Is it because you think of charts as magical, squiggley lines? Think of charting as the study of movement of price. Now consider that trading is an action that has the goal of capturing price movement. A chart is simply a visual representation of price movement. The movement is caused by the market, which is made up of people. People do not act randomly, and are often predictable and with emotion. Therefore, a chart is just a visual representation of this non-random, often predictable and emotional action.

LOL. I do not think of charts of any kind as magical, squiggley lines. I would amend one of sentences to say that "A chart is simply a visual representation of price movement in the past."

I am not doubting the use of charts, and I am enjoying learning TA so much from a purely technical perspective that I wish I had started all this years ago. My point is I for one will cast an eye over certain geopolitical fundamentals before deciding which charts to look at, if that makes sense. I would agree that charts represent non-random action, but they represent non-random action that has already happened. We infer patterns and project them into the future, and this is where the "gambling" starts. We can minimise the risk by knowing certain things that won't show up in charts for months.

 

[nomore4s]

We can minimise the risk by knowing certain things that won't show up in charts for months.

You might actually find things show up in the charts before alot of info is made public or common knowledge.

 

[tech/a]

We can minimise the risk by knowing certain things that won't show up in charts for months.

Or maximise profits by knowing certain things that are anticipated before they show up in charts.
Recognising opportunity.
Knowing how to take advantage of it.
Actually DOING IT---rather than Hypothesising.

I post the table below not as a gloat but as a reminder of how
Placing yourself in front of demand regardless of what "markets" may or may not do is simply profitable.

You'll remember what the holdings opened at yesterday if not refer to last pik.
Taken a few minutes ago.
You may notice the culling of losers very quickly and the holding of winners as long as they are in the blue.

It aint that hard.

 

[AlterEgo]

We can minimise the risk by knowing certain things that won't show up in charts for months.

How? I think that would be called 'insider trading'.

All information that's publicly available will already be factored in to the share price. Just how do you think you are going to find out some info on a company that very few others know about?

 

[Mr J]

I would amend one of sentences to say that "A chart is simply a visual representation of price movement in the past."

And since price is not random, past price movement can give as enough of an indication of future price movement to push the probabilities in our favour.

We infer patterns and project them into the future, and this is where the "gambling" starts. We can minimise the risk by knowing certain things that won't show up in charts for months.

There are two ways to find an edge in the market: to have information the market doesn't have, or to better interpret information that the market does have. The first applies to very few of us, so the vast majority of us will rely on making better use of information that is already known to the market. If it is known to the market, it will be priced in and reflected on the chart.

We infer patterns and project them into the future

You'd be surprised how reliable these 'patterns' are. Price action repeats over and over and over again. It is gambling, but that is why we pay attention to risk management. It's no less of a gamble if we were to trade by fundamental analysis.

 

[nunthewiser]

All information that's publicly available will already be factored in to the share price. Just how do you think you are going to find out some info on a company that very few others know about?

" The Geraldton Guardian "

been numerous occasions where local listed companies have made the local news paper in regards to various important news but only made the asx pages days and sometimes weeks later

eg . years back MGX finally recieved there train carruiages . the price got smacked cos of the delays . was mentioned in the guardian a week b4 the asx . was a "sure thing " punt the news of the recievals got taken well when announced on asx but for " locals ; it was old news

AVA . was written in local papers cabinet was rethinking its desicion on powerlines ........ got anns on ASX a week /cupla days later and ran 30+% even tho "locals "had it as old news

the AVA one best example , have a look in MGX thread for the date i posted the local news then check the ASX anns

lots of news available publically before the asx gets it on occasion . just gotta research a bit harder OUTSIDE the square to find it

 

[shortlist]

There are two ways to find an edge in the market: to have information the market doesn't have, or to better interpret information that the market does have. The first applies to very few of us, so the vast majority of us will rely on making better use of information that is already known to the market. If it is known to the market, it will be priced in and reflected on the chart.



You'd be surprised how reliable these 'patterns' are. Price action repeats over and over and over again. It is gambling, but that is why we pay attention to risk management. It's no less of a gamble if we were to trade by fundamental analysis.

Yes, I'm starting to see all this. I said last week I would post any gains/losses on my paper trading journey. Week 2 was harder than Week 1 -and I think this is a fair reflection of where the markets are heading in general. S&P 500 is going south, oil - pretty much the biggest traded commodity is down something like 10% in a few days. BDYI still contracting. I also feel G20 in PA will be a watershed moment leading towards the second half of a double dip recession and major turbulence in Q4 and beyond.

In all I opened 10 position (not all at the same time). 9 were in resources and 1 in tech. Of risk amount I lost 12%, 22% and 14% of three positions, and I made 2.5%, 6.6%, 3.3%, 7.5%, 15%, 3.6% and 24% from the other seven positions. In sum and due to the varying sizes of the positions I came out just above water with a small four figure profit.

Next week, looking forward to putting into practice some of the things I learnt this week, though overall very cautious about the markets now.

 

[shortlist]

" The Geraldton Guardian "

been numerous occasions where local listed companies have made the local news paper in regards to various important news but only made the asx pages days and sometimes weeks later

eg . years back MGX finally recieved there train carruiages . the price got smacked cos of the delays . was mentioned in the guardian a week b4 the asx . was a "sure thing " punt the news of the recievals got taken well when announced on asx but for " locals ; it was old news

AVA . was written in local papers cabinet was rethinking its desicion on powerlines ........ got anns on ASX a week /cupla days later and ran 30+% even tho "locals "had it as old news

the AVA one best example , have a look in MGX thread for the date i posted the local news then check the ASX anns

lots of news available publically before the asx gets it on occasion . just gotta research a bit harder OUTSIDE the square to find it

I haven't been to Geraldton for over a quarter of a century....! However, I now find myself reading their online newspaper - you're going to spoil it now and tell me the good stuff is restricted to the printed copy, right?

 

[nunthewiser]

I haven't been to Geraldton for over a quarter of a century....! However, I now find myself reading their online newspaper - you're going to spoil it now and tell me the good stuff is restricted to the printed copy, right?

yep actually

AVA news did not appear in online version until MUCH later . was in printed version . only certain stuff goes in the online bit . always been that way . i THINK you can subscribe for full paper via electronic version . unsure .....

i can read todays paper to ya word for word if you wish

today we have barry humfrey on the front page calling for action ! , theres a wheelbarrow racer ready for his perth run , oh and theres a new statue on the forshore

addition ...........

ok just checked online and its still on wednesdays and mondays news by the looks .....

 

[shortlist]

yep actually

AVA news did not appear in online version until MUCH later . was in printed version . only certain stuff goes in the online bit . always been that way . i THINK you can subscribe for full paper via electronic version . unsure .....

i can read todays paper to ya word for word if you wish

today we have barry humfrey on the front page calling for action ! , theres a wheelbarrow racer ready for his perth run , oh and theres a new statue on the forshore

addition ...........

ok just checked online and its still on wednesdays and mondays news by the looks .....

Got it - invest in wheelbarrows

 

[shortlist]

How? I think that would be called 'insider trading'.

All information that's publicly available will already be factored in to the share price. Just how do you think you are going to find out some info on a company that very few others know about?

Who said the info was on a company? I'm talking about inferring information from certain international political indicators in the public realm if you know where to look that most people just don't look at. This would be of more use in trading commodities than equities, I'll admit, but it's still worth looking at.

An example might be Obama. It was clear to me Obama would be president months before he was even selected as the nominee. From this it is easy to infer likely moves in pharma companies because of his inevitable healthcare overhaul. I'll admit this is long-term stuff and of no use to someone who buys and sells in a few seconds, but I consider it a handy tool in the box.

Thinking about it this is a bad example because it was clear the GOP were exiting stage right for a long time, but I'll think of a few more over lunch.