Is Daytrading dangerous?

[CreditViolet]

You guys into day-trading.I have followed the best masters and found hardly one with a 5/10 score.Looking at the nifty and sensex charts through a microscope is wrong

Yes Agreed, very few survive but thats the nature of the game.

Looking at the nifty and sensex charts through a microscope is wrong

It aint wrong, its profitable! Anyway its better than looking at it through a telescope

Cv

 

[CreditViolet]

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

Its possible to make money with a 50:50 system.Its not about the win/loss ratio, its about the profit factor. There are many ways to daytrade from scalping to intraday trend following, so it all depends.


CV

 

[CreditViolet]

[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

This is a good example of how not to daytrade

CV

 

[kkeskar92]

Hi CreditViolet,
I see that you are using tradestation for your trading decisions. Can you tell me the real-time data vendor for tradestation prosuite? Your charts on icharts were incredible......probably because I could not understand your signals .Do you use the radar screen for intra day alerts?----KK

 

[CreditViolet]

Hi CreditViolet,
I see that you are using tradestation for your trading decisions. Can you tell me the real-time data vendor for tradestation prosuite? Your charts on icharts were incredible......probably because I could not understand your signals .Do you use the radar screen for intra day alerts?----KK

That was certainly not my intention

I dont use radarscreen, I trade a fixed no. of symbols which are easy to track.
I just switched to eSignal feed, little slower than the Reuters feed but its fine.

Rgds
CV

 

[kkeskar92]

Thanks Credit violet for your response.---KK

 

[raju600005]

Daytrading is not the best way to trade the markets.....
My advice is - Treat your stcks like you would treat real estate....

 

[kkeskar92]

Hi CreditViolet,
Can you tell me whether RT data can be downloaded from QuoteTracker to Tradestation prosuite?---KK

 

[raju600005]

Day trading is total time consuming and the returns are not fabulous by any standards.Best is to invest and trade the intermediate trends.i.e Sell in a intermediate uptrend in rallies and buy during a intermediate downtrend or during sell-offs.whatever stocks you have this is the way as long as that stock is above the 200 DMA

 

[Agilent]

Day trading is total time consuming and the returns are not fabulous by any standards.Best is to invest and trade the intermediate trends.i.e Sell in a intermediate uptrend in rallies and buy during a intermediate downtrend or during sell-offs.whatever stocks you have this is the way as long as that stock is above the 200 DMA

I agree.... medium/long term trading looks safer .... and if u pick the scrips well. the risk reward equation is attractive (definitely better than in daytrading)

Only problem is : how does one get sure it is an intermediate trend (and not the continuation of the preceding primary)

Look at the sensex since July, for instance (choose one yr)
http://finance.yahoo.com/charts#chart3:symbol=^bsesn;range=1y;indicator=volume;charttype=ohlc;crosshair=on;logscale=off;source=undefined

How many of us thought in July (after the carnage of May/June) that we were seeing the first of the intermediate rallies in a bear market ... only to be proved wrong.

How did You play in that period, Raju ?

AGILENT