Comments on: The Disadvantages of Day Trading http://blog.stocktickr.com/2007/12/19/the-disadvantages-of-day-trading/ Improve your trading! Sun, 07 Nov 2010 23:29:05 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Richard Koza http://blog.stocktickr.com/2007/12/19/the-disadvantages-of-day-trading/comment-page-1/#comment-38395 Richard Koza Wed, 19 Dec 2007 17:18:38 +0000 http://blog.stocktickr.com/2007/12/19/the-disadvantages-of-day-trading/#comment-38395 uhh, sorry did not notice TYRO's message, which pointed to the same issue probably. uhh, sorry did not notice TYRO’s message, which pointed to the same issue probably.

]]> By: Richard Koza http://blog.stocktickr.com/2007/12/19/the-disadvantages-of-day-trading/comment-page-1/#comment-38394 Richard Koza Wed, 19 Dec 2007 17:13:50 +0000 http://blog.stocktickr.com/2007/12/19/the-disadvantages-of-day-trading/#comment-38394 Hi Dave, I have one more disadvantage which worked for me personally. I started with daytrading a lot of years ago but then I switched to swing trading and position trading as I was not able to go over this disadvantage. And it is: Emotional stress - quick decision making I am person that I need to think little bit about chart I see if it is saying something to me or not. I need to put all info (entry, stop loss and possible target value) into spreadsheet and calculate risk reward ratio before I decide if trade setup is OK or not. And I was not able to do it in daytrading as emotional stress to do quick decision was so hard for me to handle. In swing trading I can easy do pre-trade setup analysis in quiet environment before market or after market and I have enough time to decide if setup is OK or not. Richard Hi Dave,
I have one more disadvantage which worked for me personally. I started with daytrading a lot of years ago but then I switched to swing trading and position trading as I was not able to go over this disadvantage.
And it is: Emotional stress – quick decision making
I am person that I need to think little bit about chart I see if it is saying something to me or not. I need to put all info (entry, stop loss and possible target value) into spreadsheet and calculate risk reward ratio before I decide if trade setup is OK or not.
And I was not able to do it in daytrading as emotional stress to do quick decision was so hard for me to handle.
In swing trading I can easy do pre-trade setup analysis in quiet environment before market or after market and I have enough time to decide if setup is OK or not.
Richard

]]> By: Dave http://blog.stocktickr.com/2007/12/19/the-disadvantages-of-day-trading/comment-page-1/#comment-38386 Dave Wed, 19 Dec 2007 15:57:59 +0000 http://blog.stocktickr.com/2007/12/19/the-disadvantages-of-day-trading/#comment-38386 That's a good point, Tyro. Swing trading does allow you to research overnight and at least come up with a plan (and watchlist) to execute during market hours. I hope swing trading works out really well for you - it certainly does for a lot of folks. That’s a good point, Tyro. Swing trading does allow you to research overnight and at least come up with a plan (and watchlist) to execute during market hours.

I hope swing trading works out really well for you – it certainly does for a lot of folks.

]]> By: Tyro http://blog.stocktickr.com/2007/12/19/the-disadvantages-of-day-trading/comment-page-1/#comment-38378 Tyro Wed, 19 Dec 2007 14:43:46 +0000 http://blog.stocktickr.com/2007/12/19/the-disadvantages-of-day-trading/#comment-38378 I've tried long and hard to make day trading work and reluctantly decided to give it up for now at least. The biggest disadvantages for me at least were: * requires the ability to remain focused and attentive for many hours when very little may actually be happening. Depending on your strategy, this can range from mindless and repetitive to downright tedious * requires the ability to make good, fast decisions under pressure I figured I'd learn to cope with the latter (it's much harder than it sounds) but I'm just not willing or able to cope well with tedium. Maybe this means that trading isn't for me, but I'm hoping Swing trading can be a potential solution. At least then you can compact all of your study, analysis and decision making into one or two intense sessions after trading hours are over, when the pressure is off. I’ve tried long and hard to make day trading work and reluctantly decided to give it up for now at least. The biggest disadvantages for me at least were:

* requires the ability to remain focused and attentive for many hours when very little may actually be happening. Depending on your strategy, this can range from mindless and repetitive to downright tedious

* requires the ability to make good, fast decisions under pressure

I figured I’d learn to cope with the latter (it’s much harder than it sounds) but I’m just not willing or able to cope well with tedium. Maybe this means that trading isn’t for me, but I’m hoping Swing trading can be a potential solution. At least then you can compact all of your study, analysis and decision making into one or two intense sessions after trading hours are over, when the pressure is off.

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