RE: Daytrading vrs Position Trading, which will make you more money?

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Daytrading vrs Position Trading, which will make you more money?

in trading •  8 years ago 


Did I misread the chart again? Last time I sold way too fast so I decided to hold this time. But it's been a long time and the price might actually fall below the next support. Me thinks that if there's no movement after august 1 I should sell this off.

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How far back into the chart did you look into?

You should view the bigger story of the chart by zooming out to at least 1 month, preferably 2 months, to make a better informed trade and if you're not seeing the bounces from cracked bases on the larger view then you know not to even take the trade.

I recommend the following approach:

  1. zoom out 1-2 months
  2. draw your bases (and take note of the average drop/bounce from that base)
  3. set your alert to under the most recent base that you drew
  4. if/when the alert goes off, add layering buy orders based on the average drop/bounce length
  5. if/when some/most/all of your buy orders were executed set your sell order at or a bit past the base

Rinse and repeat until you get bored from making money from the market 😂

Hope this helps 🙏👍

Your time frame is a little small.. you need to be looking at a bigger picture to draw your bases.. if your looking at a week than you need to respond fast to bounces.. I dunno what to tell you with this chart..
Anyway, my rule of thumb is to never let a bounce get away from me without atleast participating.. so that means selling some on every bounce.. But honestly its your timeframe thats throwing you off.. you need to look at a bigger chart and run your odds, figure out what is a normal size bounce..

hey, thats what i like to see... Your evaluating the whole chart and now you have a good sense of your odds.. I would say that I probably wouldnt have taken a trade off the 700 break, but your odds are still very high, that you atleast get a break even trade..

On the second bounce, I would have sold some probably at least 50% of your total position. You profit off the last three trades which helps offset the costs from your first four.
I've made the same mistake quite a bit on my first couple weeks trading

I made the exact same mistake. If you look back in the chart you can see that the average bounce of the other bases is higher (around 12-15%%) and this 700 base is 8.8% so therefore it doesn't qualify as a base.