Day trading frustration

[DavyJones]

1 hour ago, nit2wynit said:

Day Trading is a smaller time frame.  In and out in minutes on small moves.  The problem with SB and Day Trading is the small moves can often be the Spread so getting in and out is almost impossible.  However, the benefit is of course, it's Tax Free.  What this means is we must get out sooner than you would than if you were actually Buying and Selling shares.   It's the Spread that is creating the issue with Day Trading and Spread Betting, especially when we're talking about Scalping.  It means we need to take extra care on choosing our trades.  They need to be able to run longer and wider to cover the spread OR we simply need to realise we must accept a lesser profit and adjust our PL ratio.  If a trade moves 10pts or 10% or whatever, but the spread is 7pt, then we're not going to make much on it unless we're in very early and exit as late as possible, thus being longer in the trade allows for more chance of it reversing.

 

 

I made a post about this a while ago. I really struggle to see how you can make money day trading with stocks, unless as you say adjust P/L ratio, hope for larger moves or very confident of the direction. I find a 15chart is about the shortest  I can use for (5mins for entry, hourly for trend ).  and realistically the trade will run for hours all of which time odds are going against you for a reversal. 

Indices, oil, gold I have had better luck but again only 

If swing trading you have the whole overnight risk issue and share dealing doesn't allow short selling

Side note: Advantage of a trade journal and screen shots. It highlighted this as the major stumbling block!

 

Edited July 15, 2020 by DavyJones

[nit2wynit]

10 minutes ago, DavyJones said:

 

 

I made a post about this a while ago. I really struggle to see how you can make money day trading with stocks, unless as you say adjust P/L ratio, hope for larger moves or very confident of the direction. I find a 15chart is about the shortest  I can use for (5mins for entry, hourly for trend ).  and realistically the trade will run for hours all of which time odds are going against you for a reversal. 

Indices, oil, gold I have had better luck but again only 

Side note: Advantage of a trade journal and screen shots. It highlighted this as the major stumbling block!

I think the unspoken word with Day Trading stocks is small profits in short time then repeat.  What this achieves is Free Time.  A stock can jump 20% in the first half hour.  It will or might retrace the full amount and slowly climb again for the rest of the day, hence In and Out then you're done.   I'm yet to prove my success personally, though my success by my Analysis with IG is currently 50% with 1:2 PL.  I've adjusted myself massively to take a profit at 1:2.  Keep my stops at 1.5x Spread OR below red candle on pullback.  Only get in on  New High of Previous Day.  Anything else I try to avoid.  I trade less and end up Swing trading on other longer plays.

My worst 'Winner' recently was Velocycs Plc.  I was holding a position for a month from 2.5p.......got out and the next day it moved to 16p.  I was in too early, and got out too early too. 

Edited July 15, 2020 by nit2wynit

[DavyJones]

@nit2wynit

thanks, yeah I think day trading at the open is a heck of a difficult thing. Moves too fast for me  or by the time a find a big mover the best ifs over Catch 22 really, how can it be big until it actually happens . Maybe premarket orders and L2 pricing I guess

 

 

[u0362565]

2 hours ago, nit2wynit said:

Why not try this?

Last year I traded the FTSE.  It was at a Support Level and on News I was anticipating a rise.  I bet as small as I could.

If I'd simply gone Long with 1 trade, I'd have made a profit of £20, but what I actually did was an exercise in Timing.  Getting in and getting out; Anticipating Ups and Downs.  I placed about 20 Trades in total and made £50 instead of £20, but also gave back £16 on the way up; roughly 70% success.  So from point to point the Trade was worth £20, but I made £36 practicing.  It was exhausting, but I proved to myself I could read the chart in front of me.  How I actually came to blow my account was by trying to play a long game, with a short strategy.  then, like you. I quit.

I haven't given up, but I've invested instead.  Spread Betting may not be the way to go for Intra Day or Day Trading.  sure it can work, but it's difficult.

Yeah i guess time will tell for me

[THT]

The spread is crucial - I won't trade some markets because of the spread - it doesn't suit my business model

Trader psychology is also crucial - you have to place trades you're comfortable losing money on