Is Daytrading dangerous?

Just-Trade

Well-Known Member
Trading is not only risky but it is impossible to make money from trading consistently in the long run..due to the fractal nature of the markets..Markets geometry simply does not allow to make money in trading in long run...Only money is made in investing because stocks have value..
Have a look at this thread..
http://www.traderji.com/community/t...fe-but-its-good-to-give-up-in-trading.105874/
if this is the case then who trades commodity futures like crude oil, ng &all. Then, whether they are making any profits in the long run??
 
They are all market makers, arbitrage traders generating huge volumes daily & they are using sophisticated softwares which costs millions and they are competing against each other for those minor price discrepancies ..retails traders can never an advantage on them
 

headstrong007

----- Full-Time ----- Day-Trader
Anything is dangerous until u know how to perform it.
And day trading one of the HARDEST job in the world which makes it the Dangerous Business.

As a professional day trader, I can assure you, that it is not like any other business.
People think this is just like another business. No man, this is a sport, a trader is a player. U r constantly competing with best performers in the same field. Either u r a winner or a loser there is no place for an average performer like any other profession.
There is no level playing field like senior/junior like other games also, so trading is the hardest. U directly compete with pro, so in the long run either u become a pro trader or u are bound to lose.

It is the hardest part to maintain risk here mostly bcoz, 1.margin of error is too less. 2. The high leverage in day trading assures that we can lose everything very quickly.

Do you have 6-9 years to learn to swim and still lose(can't swim lonely) in the long run? Not possible, if u r just swimming for yourself.
  • But 6-10-20 years of practice can't guarantee that u are ready to compete with best swimmers.
  • Simple, in trading, you are competing with best traders.
  • Trading is not for everyone, but I can definitely say,
  • But it is not impossible to make money in day trading in the long run.
  • For the survival in the long run, you need to develop the trading skills and the trader's psychology both. Then comes the risk management, money management using position sizing technique.
  • Pro traders never trade with fixed position sizes like robots. Position size depends on risk attach to that particular trade. Right position sizing is the survival key in the market in the long run.
  • Another most important thing is few jackpots make the difference in the ledger in the long run. If u can't ride on your profit in trending market, then u r bound to lose.
  • Finally..
  • Yes, Day Trading is dangerous, Isme Kick Hai!
 
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Just-Trade

Well-Known Member
I have stopped losing money in the last 2 months in day trading. Though, I have not made much money but now I play it easily and not much tensed. I have been day trading for the last 2 years. Do you see any survival for me here in the long run?
 

headstrong007

----- Full-Time ----- Day-Trader
Not losing money or the break-even stage is the first stage to progress. This is also difficult to achieve, bcoz there is very high cost of trading (various taxes) is attached to Indian Market. You are not losing money means u are already winning the brokerage and other taxes amount.

Next step is to tune your system so that u can catch few jackpots when there are clear trends.
IMO: Out of 10 trades Usually, 7-8 trades cancells with each other (small profit-small losses). The rest 2-3 big profit trades which makes the differences. If any trader wants to survive in the long run, then u must able to catch few jackpots when the market gives easily.
Those 7-8 trades which cancelled with each other are the cost of trying to catch the jackpot trades with trailing stop losses.

Stop losses depends on the TF you are trading and entry. Whenever u want to put a trade, u must be sure about maximum risk and the possible reward. Put a trade only with either favourable risk-reward or when the certainty of success is very high.

Any mechanical system can generate 100s of signals, out of which may be only 40-50% may match low risk-high reward. The aim must be to catch a low risk-high reward trade and ride on profit until the trend end using trailing stops. If the system is good it will catch the jackpot automatically with the cost of overall 70-80% breakeven trades.
Treaders don't survive in the long run bcoz blindly following the mechanical system. Every trade signal is attached with different risk-reward. We need to filter out trades and vary position size according to risk-reward.
 
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Just-Trade

Well-Known Member
Not losing money or the break-even stage is the first stage to progress. This is also difficult to achieve, bcoz there is very high cost of trading (various taxes) is attached to Indian Market. You are not losing money means u are already winning the brokerage and other taxes amount.

Next step is to tune your system so that u can catch few jackpots when there are clear trends.
IMO: Out of 10 trades Usually, 7-8 trades cancells with each other (small profit-small losses). The rest 2-3 big profit trades which makes the differences. If any trader wants to survive in the long run, then u must able to catch few jackpots when the market gives easily.
Those 7-8 trades which cancelled with each other are the cost of trying to catch the jackpot trades with trailing stop losses.

Stop losses depends on the TF you are trading and entry. Whenever u want to put a trade, u must be sure about maximum risk and the possible reward. Put a trade only with either favourable risk-reward or when the certainty of success is very high.

Any mechanical system can generate 100s of signals, out of which may be only 40-50% may match low risk-high reward. The aim must be to catch a low risk-high reward trade and ride on profit until the trend end using trailing stops. If the system is good it will catch the jackpot automatically with the cost of overall 70-80% breakeven trades.
Treaders don't survive in the long run bcoz blindly following the mechanical system. Every trade signal is attached with different risk-reward. We need to filter out trades and vary position size according to risk-reward.
I try to make daily some points in NF and crude oil and succeeds some of the time and some times fails. But, m constantly evaluating my trades and tried it to optimise it. And It has started giving results too.
 
Why are we calling Day Trading so dangerous? Even crossing the road can be dangerous if you dont look both ways. Similarly, you need a framework to daytrade, just like looking left and right while crossing the road.
One thing that will SURELY tip the odds in your favour by a lot, is if you do not depend on trading for a living. THEN ONLY can you make trades in a detached manner.
 

sanju005ind

Investor, Option Writer
It is good you are in at the stage where you are not losing money anymore.You are on the right path.Most traders would give up at this stage.Just hang in there.Go through you trade logs and you are the best person to know about yourself. Look at little things that can be improve. Mostly it will be related to discipline or psychology.You will see fantastic results going forward. Do not expect anything out of any trade.Just take your trades as and when your system generates one.Exit as per your system Even you have a win ration of 30% it is fine.There should be a balance between Win ratio and RR. For High Win Ratio you can have a low RR.If your system has 50% or less Win Ratio then RR should be high.
 

MSN1979

Well-Known Member
Not losing money or the break-even stage is the first stage to progress. This is also difficult to achieve, bcoz there is very high cost of trading (various taxes) is attached to Indian Market. You are not losing money means u are already winning the brokerage and other taxes amount.

Next step is to tune your system so that u can catch few jackpots when there are clear trends.
IMO: Out of 10 trades Usually, 7-8 trades cancells with each other (small profit-small losses). The rest 2-3 big profit trades which makes the differences. If any trader wants to survive in the long run, then u must able to catch few jackpots when the market gives easily.
Those 7-8 trades which cancelled with each other are the cost of trying to catch the jackpot trades with trailing stop losses.

Stop losses depends on the TF you are trading and entry. Whenever u want to put a trade, u must be sure about maximum risk and the possible reward. Put a trade only with either favourable risk-reward or when the certainty of success is very high.

Any mechanical system can generate 100s of signals, out of which may be only 40-50% may match low risk-high reward. The aim must be to catch a low risk-high reward trade and ride on profit until the trend end using trailing stops. If the system is good it will catch the jackpot automatically with the cost of overall 70-80% breakeven trades.
Treaders don't survive in the long run bcoz blindly following the mechanical system. Every trade signal is attached with different risk-reward. We need to filter out trades and vary position size according to risk-reward.
Very well said. I would just like to say people have made systems very complex. Simplify your system, Stick to your system. Clearly define Entry SL and Exit (keeping in mind all the points mentioned above. If you can control your emotions while trading you will turn out to be a winner. Atleast I turned out to be fine.
 

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