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Can someone explain what makes daytrading difficult?
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Date: January 19th, 2018 10:15 AM Author: maize massive hairy legs From what I know, it doesn't seem as difficult as many make it out to be. What am I missing? (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188443) |
Date: January 19th, 2018 10:16 AM Author: orange trailer park If you have to ask this question you shouldn't be day trading. Even the most successful ones realize how difficult it is and mainly rely on advanced math and shit and intercepting trades. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188448) |
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Date: January 19th, 2018 10:20 AM Author: maize massive hairy legs Why does one need to rely on advanced math for this? (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188463) |
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Date: January 19th, 2018 10:21 AM Author: Gaped Area Filthpig unless "advanced math" is a euphemism for "insider information," one doesn't (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188472) |
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Date: January 19th, 2018 10:23 AM Author: maize massive hairy legs Who even needs inside information? How hard is following a trend? (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188487) |
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Date: January 19th, 2018 10:20 AM Author: Gaped Area Filthpig "advanced math" won't cut it (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188465) |
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Date: January 19th, 2018 10:16 AM Author: Autistic Startling Prole JFC (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188450) |
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Date: January 19th, 2018 10:21 AM Author: maize massive hairy legs Is it really that hard to follow a trend? (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188470) |
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Date: January 19th, 2018 10:17 AM Author: Citrine bateful menage old irish cottage It’s easy as fuck. Go for it (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188451) |
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Date: January 19th, 2018 10:19 AM Author: disturbing principal's office (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188460) |
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Date: January 19th, 2018 11:14 AM Author: slippery newt cr. also best to work with large amounts. so go all in. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188773) |
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Date: January 19th, 2018 4:12 PM Author: Mind-boggling pale church (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35191096) |
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Date: January 19th, 2018 10:20 AM Author: Electric Legal Warrant Institution Don't forget to mortgage your house first. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188467) |
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Date: January 19th, 2018 10:21 AM Author: Thriller fortuitous meteor buy low sell high this is not rocket science (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188471) |
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Date: January 19th, 2018 10:22 AM Author: disturbing principal's office If you're just starting out, I recommend trading FX or crypto. Remember, "follow the technicals." (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188479) |
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Date: January 19th, 2018 10:27 AM Author: Cowardly Stag Film Better to just download the crypto app on windows. Give yourself 10 ETH divy it up and see how you do over the month. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188500) |
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Date: January 19th, 2018 10:23 AM Author: flushed 180 school cafeteria generalized bond it's not hard to earn a tidy profit. just look at the charts, buy stuff that's about to go up, then sell it before it goes down. rinse and repeat (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188488) |
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Date: January 19th, 2018 10:24 AM Author: navy razzmatazz hissy fit one weird trick! (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188489) |
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Date: January 19th, 2018 11:14 AM Author: slippery newt cr cr (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188776) |
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Date: January 19th, 2018 11:42 AM Author: Lilac fiercely-loyal chapel (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188967) |
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Date: January 19th, 2018 10:25 AM Author: Dashing Piazza Background Story It's not hard if you're doing crypto. It is sort of hard if you're doing stocks. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188491) |
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Date: January 19th, 2018 10:26 AM Author: maize massive hairy legs I don't see what's so hard about following a trend. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188497) |
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Date: January 19th, 2018 10:27 AM Author: Nofapping Digit Ratio https://www.youtube.com/watch?v=gzDYgRc6eic insert day trading instead of 1st base |
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Date: January 19th, 2018 10:27 AM Author: greedy new version sandwich what makes you so certain you can consistently pick out trends that other people haven't seen? (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188502) |
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Date: January 19th, 2018 10:29 AM Author: maize massive hairy legs Even if others have seen them, there's so many shares outstanding that there's always shares to buy and sell. I've never bought a stock and had issues getting in or getting out.
I could go buy pretty much any stock trading over 1mm shares a day and have no problem buying and selling within the next 10 minutes. |
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Date: January 19th, 2018 10:31 AM Author: orange trailer park wtf did I just read.
incredible flame |
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Date: January 19th, 2018 10:33 AM Author: maize massive hairy legs I fail to understand what the issue is. I could go buy 1000 shares of Amzn now and sell them all 5 minutes later so what's the problem? Sure, if you're trying to trade like 500k shares at once I can see the problem, but even 5-10k shares shouldn't cause a problem.
You really think you're going to be left out in the cold with no one willing to accept your 2000 shares on a ticker that trades 1mm+ shares a day on average? |
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Date: January 19th, 2018 10:45 AM Author: greedy new version sandwich it's not about being totally unable to buy or sell, it's about other people noticing the trend and trading on it causing the price to move in the direction which closes the gap between the current price and the one predicted by the trend (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188589) |
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Date: January 19th, 2018 10:47 AM Author: maize massive hairy legs Isn't that what level 2 is for? (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188602) |
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Date: January 19th, 2018 10:29 AM Author: Multi-colored hell it's not difficult.
you've got a 1/1024 shot of nailing your first 10 YUGE coin flip plays. if you're the .1 percent then you'll be rolling.
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Date: January 19th, 2018 10:31 AM Author: chrome theatre ratface Day trading is difficult because the odds are stacked against your favor through transaction costs, data latency (if your not plugged into a big and expensive data feed system like Bloomberg or something similar you are getting stale info), short v. long term taxes, HFT and psychology.
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Date: January 19th, 2018 10:32 AM Author: maize massive hairy legs They have trading platforms that only charge $4.95 a trade (Schwab). To me, that's not breaking the bank if you're trading with at least a $15k account. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188521) |
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Date: January 19th, 2018 10:40 AM Author: chrome theatre ratface True, but those costs add up.
What I' saying is that it is a million little things that add up to make day trading difficult for most people to do effectively.
You stand a MUCH better chance when it comes to making short term dollars if you have a deep knowledge of the stock market and investing and can swing trade in a group of 2-300 stocks.
For example, two weeks ago a company I was following loosely over a 3 year period had a major news announcement that I knew would attract daytraders/speculative activity - so I bought a few hundred shares, held overnight and sold in the morning - made around 4k in a 24 hour period. That kind of stuff is really where you can make good money - but the thing is you have to be able to always spot that kind of shit - that means being constantly doing your work and reading reading reading about every aspect and facet of the market. |
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Date: January 19th, 2018 10:43 AM Author: maize massive hairy legs If that's the case, why not do that full time and make $5-10k a week or whatever?
If you can make that kind of money in your underwear, I say go for it. |
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Date: January 19th, 2018 11:29 AM Author: chrome theatre ratface See that is what makes it difficult - you won't know what the opportunity is until it surfaces and when it does you will have as little as 30 seconds to execute on it before the risk/return configuration goes out of your favor due to price action. The "right conditions" to do short term stuff do not exist for very long.
Most people can't live like that: Waiting, waiting, waiting for something they can't describe as an opportunity until they see it - and then they have a brief instant to act on it before it vanishes.
Imagine being a hunter who is away from his family for months, hunting something he needs to feed his family for a year but he dosen't know what the animal looks like. He sees new animals every day but most of them have poison meat, and he has precious little time to slay the right beast and make a kill.
It is a psychologically tough situation - just like in the movie Rounders with Damon's character and Knish - Knish is a dude who knows what it is like to bust out so he grinds it out at the table and put his winnings into other businesses (I think he had a distribution business) so it makes his daily grind less and less tough over time until he gets to independence from the grind.
Most of my money in the market is made from long term holding. |
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Date: January 19th, 2018 10:56 AM Author: alcoholic laser beams First, you need a lot of money. Any consistent and successful strategy will be based on volatility and is almost always direction neutral. The more aggressive you are, the more likely you are to get wiped out.
Reliable strategy for the clueless: If the VIX high, buy S&P puts. Otherwise, short the VIX. |
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Date: January 19th, 2018 11:25 AM Author: maize massive hairy legs $25k is a lot of money? (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188866) |
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Date: January 19th, 2018 11:52 AM Author: alcoholic laser beams $110k minimum needed for a portfolio margin account with Interactive Brokers (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35189036) |
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Date: January 19th, 2018 11:56 AM Author: maize massive hairy legs Who needs a margin account? For example, with $25k, you could buy over 1700 shares of a stock like Snapchat, see the price go up $0.80 in a day, and sell all of it while making roughly $1400 in the process.
Rinse and repeat. |
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Date: January 19th, 2018 12:07 PM Author: alcoholic laser beams Or you can see the price go down $0.80 in a day. You can't predict this shit. A direction neutral strategy (i.e., not really giving a shit if it goes up or down) is really the only thing that works consistently (+15-50%/year) for a retail trader. Margin accounts are needed for some of these strategies. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35189146) |
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Date: January 19th, 2018 12:34 PM Author: maize massive hairy legs Ever heard of a stop loss? If it doesn't go your way almost immediately, exit the trade. For example, if I buy SNAP at $14, I'd let it drop to maybe $13.96 before completely closing out the position. Sure, you eat the transaction cost and 4 cents a share, but what's $10-20 total? Your account would pretty much still remain the same.
How's that difficult? I honestly don't see why people make trading so difficult....exit the damn trade if it doesn't go your way almost immediately. |
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Date: January 19th, 2018 12:41 PM Author: Vigorous Transparent Gas Station Yarmulke With the strategy you described you will end up hitting the stop loss on almost all of your trades. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35189435) |
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Date: January 19th, 2018 12:45 PM Author: maize massive hairy legs That's fine...it ensures very minimal losses while making nice gains when the trade actually does go my way. It's the safest way to play. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35189462) |
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Date: January 19th, 2018 1:07 PM Author: alcoholic laser beams Commissions and stupidity will ensure consistent losses with your strategy (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35189644) |
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Date: January 19th, 2018 1:09 PM Author: maize massive hairy legs Unlikely. If you're barely losing anything on each trade, you can be wrong 50% of the time and still be profitable.
Even a string of being wrong 8 times in a row would still result in losses of less than $300 and the 2 trades you're right would wipe out those losses. |
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Date: January 19th, 2018 4:41 PM Author: Dashing Piazza Background Story If you can successfully make your trade within 4 cents of the bottom 20% of the time, you'll do great. More likely is that you'd be stopped out 10/10 times with a stop loss that tight. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35191320) |
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Date: January 19th, 2018 11:28 AM Author: Buff dingle berry hominid It's easy. People who make less than $250k/year should daytrade crypto or stocks or both. No excuse for being poor. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188882) |
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Date: January 19th, 2018 4:45 PM Author: At-the-ready boyish brethren orchestra pit (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35191360) |
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Date: January 19th, 2018 11:30 AM Author: Jet marketing idea trading fees nullify gains if you aren't dealing with enough money twerp (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188895) |
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Date: January 19th, 2018 11:37 AM Author: maize massive hairy legs You can't afford $4.95 a trade? (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188939) |
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Date: January 19th, 2018 11:32 AM Author: Rough-skinned Chestnut Roommate Locus I tried 'day-trading' once, when i first opened an internet brokerage account. I couldn't resist the temptation. I got up early in the morning on my first day of 'day-trading,' watched CNBC, read a few financial blogs, and bought the stocks that everyone was saying were HOT BUYS that morning. I lost everything. Never tried it again. |
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Date: January 19th, 2018 11:41 AM Author: Swashbuckling Cocky Alpha ever try doing the opposite? (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188964) |
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Date: January 19th, 2018 11:42 AM Author: Rough-skinned Chestnut Roommate Locus (George from Seinfeld) (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188970) |
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Date: January 19th, 2018 3:57 PM Author: slippery newt (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35190998) |
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Date: January 19th, 2018 11:39 AM Author: Hairraiser cyan party of the first part don't underestimate how much trading fees will eat into your gains. If you do just 10 buy/sells a day at $5/trade, that equates to $13,000/year in trading fees based on a 5-day work week. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35188950) |
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Date: January 19th, 2018 11:56 AM Author: maize massive hairy legs 10 trades a day sounds ridiculous. It shouldn't be more than 2-3. (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35189058) |
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Date: January 19th, 2018 4:43 PM Author: Hairraiser cyan party of the first part OK. $3900/year then. After 5 years ($19,500), what does that equate to as a percentage of the $ you have invested? (http://www.autoadmit.com/thread.php?thread_id=3864405&forum_id=2#35191345) |