Is Daytrading dangerous?

[hari09omkar]

No conflict at all,my friend...........the important word missed is the all important word of "want".To make money,one has to limit one's risks and let the profits ride........to make money,one may be wrong many times but so long as losses are small,and profits allowed to run as long as possible.

If one truly wants to make money,one should give up the desire....the 'want' to be right all the time.Conversely,those whose attention is on the 'want' to be right always tend to take many small profits,and few huge losses....the exact opposite.Their batting averages are fantastic,but not their profits/losses.

Therefore,before we get confused and flustered,we need to realise that all important word "want"............can we be wrong all the time and make money.Definitely not.Can we be right most of the time and have huge losses?Yes.

So we look for a system ,backtest it,paper trade it......We can't make money by being wrong all the time,but we can make money even if we are wrong 60% of the time.Therefore,the question:Are we in this to be right,or are we in this to make money?If our focus is on being right,we do things that are not necessarily beneficial to our trading account.If our focus is to make money,then our focus is on big wins and small losses.......and from what little I know,truly beneficial to the trading account.

Saint

A champion post from a champion trader.....fantastic
Hari Om

 

[avinash]

No conflict at all,my friend...........the important word missed is the all important word of "want".To make money,one has to limit one's risks and let the profits ride........to make money,one may be wrong many times but so long as losses are small,and profits allowed to run as long as possible.

If one truly wants to make money,one should give up the desire....the 'want' to be right all the time.Conversely,those whose attention is on the 'want' to be right always tend to take many small profits,and few huge losses....the exact opposite.Their batting averages are fantastic,but not their profits/losses.

Therefore,before we get confused and flustered,we need to realise that all important word "want"............can we be wrong all the time and make money.Definitely not.Can we be right most of the time and have huge losses?Yes.

So we look for a system ,backtest it,paper trade it......We can't make money by being wrong all the time,but we can make money even if we are wrong 60% of the time.Therefore,the question:Are we in this to be right,or are we in this to make money?If our focus is on being right,we do things that are not necessarily beneficial to our trading account.If our focus is to make money,then our focus is on big wins and small losses.......and from what little I know,truly beneficial to the trading account.







lol,Kalyan.........I don't think you lack in either.And neither do you lack in the heart dept as well(after reading your post on charity in Karthik's thread).

Saint

Excellent Saint.And welcome back!

Avinash

 

[phoenix]

If you do not know how to swim, you will drown whether its a pond, river or a sea.

Hitting the nail on the head,beginner_av

phoenix

 

[uasish]

As usual ,an important point driven home lucidly.

 

[oilman5]

Compared to a very smooth looking, all parameter satisfied signal, which all the thousands of people see as a good signal, all of them take the signal, there is some combined buying, a little favorable movement, but because now there is no one left to buy, it falls?

I would appreciate comments on the above, because then I would like to stop taking such textbook signals as the chances of their failure are on the higher side, and would concentrate on difficult signals generated by my system

Difficult by my standards means the market ( bse) is 200 points up and there is a buy....I would be terrified a s a daytrader to enter anything.

dear ratan jain,now u understand the game.read nkp view.yes difficult to take profitable signal..loss or profit..any one shall come.its a random event.
but throwing loser early and holding winner...thats in ur hand. mastery of it...thats is the DISIPLINE of a real trader.
now u understand why ameteur enjoy being right..where as pro make money.
using signal take in on from higher time frame..if everything looks smooth as if very easy to see..better arise ur contrarian instinct..if u like to trade ..trade opposite direction...MONEY EXISTS THERE...that is atleast LINDA DOES
hope for the best
oilman5

 

[gandharvashu]

Hi!

Can I also join please.

I bought some shares and all r up. So my ratio is 1:1, which is good.

For NEWCOMERS it is a question, why it is so.

Others please keep it to urself

 

[uasish]

gandharvashu,

Here all of us r newcomers,if i feel i know more then actually i may brew a sense of Security which will creep in to lower my guards & make me lazy towards my quest of knowledge.
Plz remember in this solo activity that is my ONLY leverage.We are here to earn ,not to show our 2 bit crap to get appluase.

Asish

 

[gandharvashu]

hi!

When did I said i want to get applause. It was just a question, if u can answer let u answer, but i want to tell u answer is the most simple, common sense, so let us try and answer. I was just trying to give example of dangers of daytrading, but......

 

[beginner_av]

Compared to a very smooth looking, all parameter satisfied signal, which all the thousands of people see as a good signal, all of them take the signal, there is some combined buying, a little favorable movement, but because now there is no one left to buy, it falls?

I would appreciate comments on the above, because then I would like to stop taking such textbook signals as the chances of their failure are on the higher side, and would concentrate on difficult signals generated by my system

Difficult by my standards means the market ( bse) is 200 points up and there is a buy....I would be terrified a s a daytrader to enter anything.

dear ratan jain,now u understand the game.read nkp view.yes difficult to take profitable signal..loss or profit..any one shall come.its a random event.
but throwing loser early and holding winner...thats in ur hand. mastery of it...thats is the DISIPLINE of a real trader.
now u understand why ameteur enjoy being right..where as pro make money.
using signal take in on from higher time frame..if everything looks smooth as if very easy to see..better arise ur contrarian instinct..if u like to trade ..trade opposite direction...MONEY EXISTS THERE...that is atleast LINDA DOES
hope for the best
oilman5

??? Higher time frame?

 

[uasish]

beginner_av,

I think he wanted to Highlight ,dont go against the Signal given by EOD chart while trading in Intraday format.

Asish