For those that daytrade for a living (Bob K)
For those that daytrade for a living
Posted by Bob K
If I wanted to day trade for a living I would have to be tremendously disiplined. That means stops on the floor not mental. One would have to understand that sometimes there is nothing to do. One has to wait for a setup to produce a trade. Are you going to trade 2 or 3 markets or just 1? The most successful day trader I know trades Swiss Franc from 8.20 e.s.t until 9.30 e.s.t and then trades mini s&ps. He tries for one trade or two early in the morning and then goes away until 2. p.m. e.s.t and then he may not have a trade the rest ofthe day. The people who have multiple trades 5 or more just keep increasing the odds of failure. Can you be happy with just 1 or 2 trades a day and then your thru or do you need the action?
I position trade most of the time and then I day trade occasionally looking for certain low risk situations. Going long a market late on the second day of a decline or going short a market about 2.00 p.m. the second day of a rally. My stops are usually defined by the daily high. In the summer when beans and corn rally if wheat comes along I sell wheat because wheat has nothing to do with summer droughts. So many days I dont do anything because theres nothing to do. Linda Rasche suggests that good day traders will be out of action 2 days a week. Can you live with the thought of watching a screen for 8 hrs and doing nothing?
Following my ideas can be dangerous to your trading capital. The above is just some of my thoughts on day trading.