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Learning to day trade during Covid-19, what do you need to know?

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Hi all,

During this pandemic I have started to take an interest in day trading.  I was wondering how day traders view the current trading climate, clearly it is very volatile, I have been looking at trading Forex mostly.  Would a day trading strategy need to change significantly in the current climate versus more average conditions?  Say for example I could be successful now can I be successful when markets are less volatile, is one condition easier than the other or do you just have to adapt?  Unfortunately I only have the current climate as experience.  I can look back at historical data but I can't simulate trading it.

Thanks for the advice

  

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7 minutes ago, u0362565 said:

Hi all,

During this pandemic I have started to take an interest in day trading.  I was wondering how day traders view the current trading climate, clearly it is very volatile, I have been looking at trading Forex mostly.  Would a day trading strategy need to change significantly in the current climate versus more average conditions?  Say for example I could be successful now can I be successful when markets are less volatile, is one condition easier than the other or do you just have to adapt?  Unfortunately I only have the current climate as experience.  I can look back at historical data but I can't simulate trading it.

Thanks for the advice

  

Same basic principles apply but with increased volatility you would want to increase amount of stops and targets but decrease position size.

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You need to know that it's really, really easy to lose lots of money.

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I'm trying hard not to play with my stops/limits once set but if you have a significant profit in your eyes but it hasn't reached the limit is it ok to close early?  Its hard to look longer term when you think, I could take it and run, until the next trade of course.. This is especially true in the conditions right now, maybe normally you play a longer game and expect things to happen at a more gradual pace?

 

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1 minute ago, u0362565 said:

I'm trying hard not to play with my stops/limits once set but if you have a significant profit in your eyes but it hasn't reached the limit is it ok to close early?  Its hard to look longer term when you think, I could take it and run, until the next trade of course.. This is especially true in the conditions right now, maybe normally you play a longer game and expect things to happen at a more gradual pace?

 

more vol = larger moves so stops and targets that fit now will be too big for times of less vol, use visual guide from the chart rather than hard numbers. Yes close early if momentum is dying and there are reversal indications appearing on the chart, nothing is set in stone.

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9 minutes ago, u0362565 said:

normally you play a longer game and expect things to happen at a more gradual pace?

That's what almost every legit person does ... there are a few internet-famous people who claim the ability to generate unlimited profits from 5 minute charts and they'll show you how for a fee 🤪

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4 minutes ago, Caseynotes said:

more vol = larger moves so stops and targets that fit now will be too big for times of less vol, use visual guide from the chart rather than hard numbers. Yes close early if momentum is dying and there are reversal indications appearing on the chart, nothing is set in stone.

Yeah ok thanks. I learnt quickly that trying to trade with a min stop of 4 & limit of 6 just wasn't big enough for the conditions-was just trying to be cautious.

I should also point out I am on a demo account and plan to stick with this for weeks/months until I see how I'm doing.  But I am concerned that its quite addictive & if its real money, will I be able to pull the plug if I'm not getting anywhere or will I be deluded & continue to lose money-can't answer that yet.

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5 minutes ago, dmedin said:

That's what almost every legit person does ... there are a few internet-famous people who claim the ability to generate unlimited profits from 5 minute charts and they'll show you how for a fee 🤪

Yeah I think thats sensible, its just right now you can make massive profits/losses in no time whereas normally maybe you wouldn't.  I don't really know why I'm dealing Forex either just started with it due to low spreads more than anything and swings are big and obvious

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1 minute ago, u0362565 said:

Yeah I think thats sensible, its just right now you can make massive profits/losses in no time whereas normally maybe you wouldn't.  I don't really know why I'm dealing Forex either just started with it due to low spreads more than anything and swings are big and obvious

I wish you luck, if you find it obvious then great - I hope you've practised on the demo platform first.  I wish I had.

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1 hour ago, dmedin said:

I wish you luck, if you find it obvious then great - I hope you've practised on the demo platform first.  I wish I had.

Actually I take it back, its not obvious when the reversal will happen but if you're lucky enough to be there as it happens, you can jump on it. Still I would rather set a position at the start of the day and leave it rather than monitoring all day, not very interesting.

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2 hours ago, u0362565 said:

Yeah I think thats sensible, its just right now you can make massive profits/losses in no time whereas normally maybe you wouldn't.  I don't really know why I'm dealing Forex either just started with it due to low spreads more than anything and swings are big and obvious

I think the potential for massive losses outweighs the chance of higher profits. The stats show that the vast majority of people lose at this game. Add in large price swings and things get nasty.

Give me a nice gentle trending market any day!

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In my humble opinion, choose your entry times carefully.

I mainly trade indices, wall st, dow etc. Trading these do not even try and enter a trade at the start 8.00 here and 2.30 usa. On the 24 hour markets there is often opportunities at 5 ish in the morning (if you can get up) after the far east closes. You can often map out where its going. Otherwise, look after 9 generally for the tend.

As ever have a plan and stick to it...stop loss wise....

What could possibly go wrong!? 

Dan

 

 

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Oh...and dont over trade....its easy done....bit like multiple posts....

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4 hours ago, dan-is-dead said:

Oh...and dont over trade....its easy done....bit like multiple posts....

Overtrading is the number one killer as far as I'm concerned ... good for IG though

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21 hours ago, dmedin said:

Overtrading is the number one killer as far as I'm concerned ... good for IG though

Just experienced this today, **** mobile app is dangerous & encourages impromptu trades. Focus, breathe deep & be patient. Oh & as you say don't try to undo your losing trades by thinking you can make it all back on the same day. Human psychology is a ****.

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On 17/05/2020 at 15:32, FXworld2 said:

I'm a forex trader I have a profitable strategy/ system 

Screenshot_20200515-120456.png

Looks like you're putting in multiple trades either simultaneously or in close succession while the market trends one way. If this is the case, I guess the risk is if you're wrong you've then got a string of losses to contend with. Also depending on your bet size you need a big account to deal with the margins needed for having multiple positions open.

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Day trading ! you are funny.  You have better survival hopes running directly in front of a red bus and making sure you are simultaneously shot in the head whilst ensuring that Jack the ripper is waiting to assault you. Day trading...its fun....Let me know before Jack gets to you.....

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Life is pretty depressing.

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Can you make money from trading?  Sure.

Can you make a 'living' from trading?  Just ask one of the thousands of people who apparently are successful traders, yet they are spending all their time making videos and training courses to sell to people ... kind of begs the question doesn't it?

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Not much i can say i'm yet to find a profitable strategy, granted only after a month or so of trying.  I'm dealing with the failure aspect of this whole thing but because i'm only trading a demo account i'm not feeling the financial hit.  And i guess my only advice is if you're losing money i would open a demo account if you can and only switch to live when you're consistently profitable if its possible and clearly it is for the few. 

What i find interesting is that there are so many people asking how to be successful and not one person who is actually explains how.  Now either this is some kind of selfishness or its because its too complicated to post in a message but i doubt or they feel they put in months/years of work to get there so why should they just divulge to someone who is new and not put the hours in and "gone on the journey" themselves.  These platforms are essentially here to make money from the streams of loss making traders and they don't care about the small % who are profitable.  I've never come across anything like trading where you get lured into a false sense of being able to see what is going to happen.  

Not that i'm in a position to give advice but i have ditched technical indicators, i've seen a lot of people say just read the candle sticks and i think they're right.  You can't predict the market but you can look for potentially sensible times to enter and again there are signs that you should exit.

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7 minutes ago, u0362565 said:

What i find interesting is that there are so many people asking how to be successful and not one person who is actually explains how.

The problem is that there is no 'one size fits all' approach as it's a process and not just a learned skill. See the thread 'Trade Planning and Testing' to see how to start the process and to progress in developing your own style. Trying to adopt someone else's style that doesn't suit will not work.

The market is just the market, it doesn't think and the big guys are not really interested in your half lot trade, most people lose all by themselves because of poor execution.

The one key lesson that is rarely mentioned is that every time a retail trader enters a trade they are absolutely dependent on larger traders, ones that can actually move the market, coming in behind them to push their trade along. If that doesn't happen the trade is lost no matter what the technicals, patterns, indicators say. That is why execution (timing and positioning) is so important.

 

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Most people can't, just like most people cannot become doctors or lawyers.  Real life is sh!t.

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It's as close to impossible as earning a living from blackjack or playing roulette, good luck.

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The last good 'buy' signal for the market below came on May 14th, when MACD crossed above zero close to the 200 SMA slope.  That was 14 days ago.  If you have the patience to sit and wait fourteen or more days for a reliable signal then maybe it's for you.  Most of us will lose everything and more from trying to trade every day, or almost every day, which just decimates your capital.  Hence 'day trading' - trying to make at least £150 - 300 EVERY DAY - it's just fking ridiculous and a c*ntish pipe dream.

716213376_WallStreet_20200528_14_42.thumb.png.2806740f5d71f3699d73ea1f39acec39.png

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3 minutes ago, dmedin said:

It's as close to impossible as earning a living from blackjack or playing roulette, good luck.

and yet there are supposed to be 10 million online traders worldwide so even if only 30% are profitable that's still 3 million.

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5 minutes ago, Caseynotes said:

and yet there are supposed to be 10 million online traders worldwide so even if only 30% are profitable that's still 3 million.

I'm stuck in a shitty IT job, 38 years old, falling behind in skills etc - I can't really afford to spend another five years 'practicing' trading.  If I don't learn marketable skills pronto I'm f*ked.  Trouble is I hate the IT stuff, I really f*king detest it.  Well anyway, I'm fked and that's nobody else's problem :D 

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6 minutes ago, dmedin said:

I'm stuck in a shitty IT job, 38 years old, falling behind in skills etc - I can't really afford to spend another five years 'practicing' trading.  If I don't learn marketable skills pronto I'm f*ked.  Trouble is I hate the IT stuff, I really f*king detest it.  Well anyway, I'm fked and that's nobody else's problem :D 

as said, you don't learn trading you learn how to become a trader, how long that might take who can say, certainly don't give up the day job and it could be worse, you could be working in IG's call center.

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Oh it needs some patience all right.  It's just about impossible to watch charts all day and resist the temptation to make some bad trades.  I could consign myself to looking at the daily and four hour charts two or three times a day.  In that case I need to learn some other skill to ensure I don't go into middle age qualified only to flip burgers.

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2 hours ago, dmedin said:

The last good 'buy' signal for the market below came on May 14th, when MACD crossed above zero close to the 200 SMA slope. 

If you've found a good reliable setup that suits your preferred time frame then why not concentrate on that, doesn't matter if it's infrequent because it going to be repeatable and there are dozens of charts to look through to find it. I know of a couple of traders who look for just one set up and scan the same hundred charts every day looking for it, a 1 second glimpse is all it needs to say yes or no and they usually find 5 to 10 a week.

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