Is Daytrading dangerous?

[hari09omkar]

Credit,
I have always seen you speak in support of Day trading.But,still the Law of Averages show the contrary result.
Then,considering you belong to the above average,what is the secret of yr success & which most appropriate single reason which you consider for majority failure.

Do u know d number of majority in terms of percentage? It is 99.9% according to him,who don't know to trade,on their own,in newhere in d world,b it day trading or night trading or s(w)ing trading.So please ask him,on our behalf,about d failure of d traders in all forms,including (but not restricted to) day trading.

 

[CreditViolet]

Credit,
I have always seen you speak in support of Day trading.But,still the Law of Averages show the contrary result.
Then,considering you belong to the above average,what is the secret of yr success & which most appropriate single reason which you consider for majority failure.

People spend three years doing a degree in commerce, four years for engineering, three-four years for a CFA, two years for an MBA...BUT...when it comes to trading, the only qualification is that one has enough margin money.No preparation, no studying, no research. Having a trading account doesnt mean one can trade just like having a bat doesnt make you a batsman.

 

[CreditViolet]

Contd, do you think the big hedge fund guys with their MBAs and CFAs and portfolio managers do day trading? Show me one.

Ever heard of quants and high-frequency trading? Maybe you should get out more.

 

[CreditViolet]

In the trading profession a good number of inexperienced traders go broke whatever the style is
Van Tharp is not a trader, he is a trading coach.
Curtis Faith made his millions, lost it due due to bad business debt and now is doing great again running his company tradingblox;he is a genius.

Anyways, I have nothing against day trading, the reality is most people go bust day trading and many of them are newbies who do not even know what a bid ask spread is.

You talk about Curtis Faith and Wizards, what about Simmons and Citadel? You think they are doing buy and hold? You think they hire CFAs? Simmons has gone on record saying he wont hire any MBAs.

The reality is most people jump into trading without any homework, that is the very nature of markets - the idea that easy money is possible. To say that they lose because of shorter timeframes is pure ignorance.Newbies fail because its their purpose to fail, why should it deter a prepared individual who has put in the work because of some generally quoted performance figures.

 

[rangarajan]

O.K,the conclusion is that day trading is profitable ONLY & ONLY IF u do yr Home work thoroughly & adopt the right techniques.It is perhaps an Art & science combined .
Happy trading

 

[hari09omkar]

You talk about Curtis Faith and Wizards, what about Simmons and Citadel? You think they are doing buy and hold? You think they hire CFAs? Simmons has gone on record saying he wont hire any MBAs.

I don't think people here are very much aware of the very existence of quants.CFAs and MBAs r not d best qualification for running a 500 crore hedge fund capital,it is first to b understood.
I ask u deepsa,do u know a single thing of Financial Mathematics,econometrics,stochastic calculus? If no,then how u concluded about d hedge funds being non-day traders? Financial engineers r in high demand there.Why? For researching on value-investing with an indepth knowledge of C++ ? And not only there,commercial banks and investment banks r not far behind.
This stock market is a small area.The huge arenas,like Bond market,Fixed income market,FX......the upcoming Commodity Market....the growing Credit Derivative market.....everywhere quants r doing pricing models.

 

[CreditViolet]

O.K,the conclusion is that day trading is profitable ONLY & ONLY IF u do yr Home work thoroughly & adopt the right techniques.It is perhaps an Art & science combined .
Happy trading

Wrong conclusion. The same is true about all types of trading and perhaps all other careers.

 

[beginner_av]

day trading for what? daytrading 50 shares a day from office and day trading for a living are completely different ball games.

qualifications do not make a trader. just like having a huge **** doesnt make u a stud if u cant hold for more than 2 mins (purists pl excuse!) even if you have everything, in the end you need BALLS to put a large order. a 1000 lot going against you 5 ticks per second......hmmm

How you can grow them can be answered best by CV!!!, though there are various ways to go about it.

how can you start? to start -
do you love trading?
do you have fun while trading (enjoy trading)?
if you have a huge loss, are you still gung ho about going back to the market next day? (with a thorough understanding of what went wrong)

reading my blah wont help you either...go back to your practice!

 

[rangarajan]

Credit,what exactly u want to say.Or,are u confused about what u want to say?In the process,confusing others aswell.should one indulge in day trading or not.If yes,what is the criteria to be followed.

 

[deepsa52]

Credit violet, I am not here for a fight, and you seem to have an attitude..
- First of all I never said buy and hold is good, even Warren Buffet sells stocks if the company is not doing good
- There are successful day traders as well, just that odds are very low, and I would stick with better odds of position trading.
- I never said Finance Quant Phds are not respected, they are the most respected and sought after .

I joined this board recently primarily to get some possible additional information on fundamental stock screening and back testing software ( unfortunely I have not seen a decent one yet catering to the small investor for Indian mkts, so Iam sticking to mutual funds for now )
FYI...I am a quant position trader myself and I trade commodities and FX as well.