What Are You Day Trading?

[PTC]

Any favorite stocks? Hopefully some volatile ones? I've had great timing all week and Im looking to push my luck.

[PAYNORAKE]

I have been trading to UK stocks for the last couple of weeks, epic codes are SBRY and TSCO 2 of the biggest supermarket chains in the UK.

I am long on both...


Shaun

[sulaspaka]

Gold market. Safest place to trade atm

[mickn888]

The vast majority of amateur traders struggle to cash day trading and if they do it is normally just luck. Get out now while you stile have your cash! ;0)

But if you want a sure fire winner: Buy GBP/EUR at 1.06 and hold for year.

[PTC]

The vast majority of amateur traders struggle to cash day trading

Markets are usually too efficient for anyone to really gain an edge, it doesnt really matter how smart you are. Any information out there is incorporated into stock prices almost immediately now. There are some ways to exploit things, but anything that can exploit the market will usually only work for the big dogs. The reason others don't exploit through some methods like computer algorithms is because it's too hard for them to beat transaction costs. The edge you are gaining is usually pretty small if you quantify it.

[mickn888]

Hmm...I tend to disagree. I think markets are not efficient, and there are loads of high probability trading opportunities that arise on a daily basis. The pros can spot them, but you really have to devote yourself to it. And just because the pros can spot them, does not gaurantee they can make money out of them. So much more to trading than spotting opportunities.

The problem with us is that we really do not know how to trade, let alone find these high probability opportunities.

In fact, imho if you are a really good poker player, you will make far more cash trading the markets than playing poker. So much more opportunity in trading markets and transaction costs are lower.

[PTC]

Hmm...I tend to disagree. I think markets are not efficient, and there are loads of high probability trading opportunities that arise on a daily basis.

edited out my original comment, replaced with something more relevant....

There are just too many people looking for opportunities. If an opportunity exists, it usually gets incorporated into the stock price right away before anyone can really capitalize. Usually the first movers will change the bid/ask spread and within about 1-3 minutes the opportunity is gone these days. I think it's more like 10 seconds to be honest in most cases.

I guess there are always exceptions, but computer programs have really changed this.

[mickn888]

I presume you are talking about new news about a stock when you refer to "opportunity"?

I am more referring to technical trades. eg. if a stock has been down 14 days in a row and its the first time in 20 years that has happened. All indicators are showing is is severly oversold. Would you sell it? Of course now. That would represent a high probabilty trade to buy some. Of course its not tha simple,..but it should give you a picture.

[PTC]

I presume you are talking about new news about a stock when you refer to "opportunity"?

that is certainly a big part of it.

If you identify a trend that if stock X goes down 4% in a day, it tends to gain 9% over the next 30 days, that is a good opportunity. It's just not likely that you are the only person who knows this.

It's sort of a paradox because if you believe it's true, you'll drive the stock price up and make it true. The more people that identify this trend, the faster this will get incorporated.

If someone knows a stock will trade 9% higher in 30 days, they probably won't sell for less than 8% of what it is trading at. The normal ask size is probably like 500-5K shares, so that is all you can usually buy before you affect the bid/ask spread.

Its a bit of a mindf@#k if you ask me, it's always possible PTC is dead wrong. I just buy low and sell high and I don't see how I can possibly lose.

[PAYNORAKE]

Mick888

Your BGP EUR trade is a waste of time its low return I can make a bigger % return on daily trade with something like VOD, SBRY.

Shaun

The vast majority of amateur traders struggle to cash day trading and if they do it is normally just luck. Get out now while you stile have your cash! ;0)

But if you want a sure fire winner: Buy GBP/EUR at 1.06 and hold for year.