Is Daytrading dangerous?

[Agilent]

this ratio 7/10 or 9/10 etc is the most misleading stuff. one can have a 3/10 win/loss ration and still make money, similarly one can have a 7/10 win/loss ratio and still loose money. one should be more interested in maximizing their capital rather than this win/loss ratio.

jdm.

Sorry but I wd disagree..

What u are saying may hold good for successful medium/long term investors (LTI) (including Venture funds). In their universe, typically a mere couple of 'multibaggers' can comfortably offset losses in maynbe a dozen poor investments

But my friend, in daytrading such phenomena (ie multibaggers) are absent; as a corollary : the variation between the average profit per trade and the average loss per trade will be very low, relative to LTI scenario.

If you agree with this premise (underlined) , then arithmetically you will make profits only if, in the long run, your Win/Loss ratio (defined as No of winning trades divided by No of losing trades) is generally more than 50 %.

Can you contest this mathematically/statistically, with some examples (even if hypothetical)

Happy to stand corrected ....

AGILENT

 

[jdm]

Sorry but I wd disagree..

What u are saying may hold good for successful medium/long term investors (LTI) (including Venture funds). In their universe, typically a mere couple of 'multibaggers' can comfortably offset losses in maynbe a dozen poor investments

yeah very true, but then you are taking about the winners. the losers just don't let their bull run and hug the bears, whatever the time frame may be.

But my friend, in daytrading such phenomena (ie multibaggers) are absent; as a corollary : the variation between the average profit per trade and the average loss per trade will be very low, relative to LTI scenario.

opportunities lies at every time frame.

as a trader i am not in lookout for multi baggers, nor win/loss ratio. as i already said, maximising my capital, thats what i am interested in.

If you agree with this premise (underlined) , then arithmetically you will make profits only if, in the long run, your Win/Loss ratio (defined as No of winning trades divided by No of losing trades) is generally more than 50 %.

the answer lies in proper MM.

Can you contest this mathematically/statistically, with some examples (even if hypothetical)

get into trading, you will get all the answers if you can overcome the initial hurdles.

cheers,
jdm.

 

[babs]

[posted the questions in two threads already]

i am a new trader

Kindly advise about the following.

1. Money control.com is giving hourly gainers and lossers list every day. Can u pls suggest how it wil be helpful for day traders? is it possible to forcast the next movement with thease information?

(1) If A sharp upmove of a stock during the last trading hours, normally what it means? is it advisable to believe that the trend will follow the next day?


2. Money control.com is giving end of day buyers only / sellers only data

a. for eg: if a stock showing around 15000 bids at the end of the day with no offers. Can we assume that the demand is more and supply is less hence will lead to a good up move of the stock for next day? and vice versa for stock with sellers only?


looking for your reply

thanx & rgds

babs

 

[Agilent]

Sorry but I wd disagree..

What u are saying may hold good for successful medium/long term investors (LTI) (including Venture funds). In their universe, typically a mere couple of 'multibaggers' can comfortably offset losses in maynbe a dozen poor investments

But my friend, in daytrading such phenomena (ie multibaggers) are absent; as a corollary : the variation between the average profit per trade and the average loss per trade will be very low, relative to LTI scenario.

If you agree with this premise (underlined) , then arithmetically you will make profits only if, in the long run, your Win/Loss ratio (defined as No of winning trades divided by No of losing trades) is generally more than 50 %.

Can you contest this mathematically/statistically, with some examples (even if hypothetical)

Happy to stand corrected ....

AGILENT

I suspect my post was too involved for a meaningful response from any successful daytrader (I had hoped CV or JDM would oblige)

So let me rephrase in simple terms ....

How is it possible that , over a long period, u can have a win/loss ratio of less than 1:1 and still make money as a daytrader

Is it thru stop losses alone (which 'minimise' yr losses), or is there any other secret feature of this game ?

AGILENT

 

[swagat86]

Dear Swagat.

Always trade in the leaders. Thats the secret mantra. Do not touch any illiquid stock and do not take your day trading postions home.

Did you register with the other site ?

Cheers

Of corse iv regisered with that site. Il b joininh u soon on Jabber.
Thnsks for ur writings, they r splendid. The last pos is from Aryan school of PFU ryt? I hav it all in a doc file saved and go thru again and again.

Can u pls explain wat u meant by leaders???? i mean on basis of volumes, patterns, or some setups??????
Waitin to learn from u more and more.

Thanks

 

[jayantraju]

DEAR Aryanshare,

I am into day trading.and i follow a certain startgey as well.most of the time it works well for me.
i want your view on certain stocks that i have been trading in for the last few months
Bomdyeing, HTMT, GItanjali, SRF, Godrejcp and Balramchin.Some other stocks that i have started to track are
dena bank, teledatin, indusindbk

I really intend to do day trading for a living.

 

[Agilent]

DEAR Aryanshare,

I am into day trading.and i follow a certain startgey as well.most of the time it works well for me.
i want your view on certain stocks that i have been trading in for the last few months
Bomdyeing, HTMT, GItanjali, SRF, Godrejcp and Balramchin.Some other stocks that i have started to track are
dena bank, teledatin, indusindbk

I really intend to do day trading for a living.

None of my business, but I suggest you dont put all your eggs in one basket.

I mean .... spread some of yr capital in other assets such as real estate, FDs, mutual funds, etc

Hope u do well each week in your new profession, of course

All the best

AGILENT

 

[CreditViolet]

I suspect my post was too involved for a meaningful response from any successful daytrader (I had hoped CV or JDM would oblige)

So let me rephrase in simple terms ....

How is it possible that , over a long period, u can have a win/loss ratio of less than 1:1 and still make money as a daytrader

Is it thru stop losses alone (which 'minimise' yr losses), or is there any other secret feature of this game ?

AGILENT

I will get back to this thread later Agilent, its been a hectic week

Rgds
CV

 

[CreditViolet]

Precisely ... thats what we are looking for ..

And if u have the supporting charts ready, that will be just great

Looking forward ! And thanks for your generosity

AGILENT

hmm...here are a few charts that I posted at icharts

http://www.icharts.in/forum/random-charts-t22.html

CV

 

[CreditViolet]

Dear Credit,
I look forward to yr tutorials for my self improvement.
Are you in India & if so in which place.Hod do i contact you if you have no reservation of meeting.I am at Chennai.
ranga

Hi rr
I am from bangalore.If you drop in sometime, send me a Private Message here.

Rgds
CV