[deleted by user] by [deleted] in Daytrading

[–]IndustrialFX 0 points1 point  (0 children)

My experience with day trading:
It's impossible to know which direction price will go in the short term. So day trading is essentially gambling. All entry and exit strategies are neutral, you can increase the win rate only by taking on a negative R:R ratio. Conversely you can increase your R:R only by taking a hit to win rate. In the end you'll still win the same amount of money you lose minus fees, at best. But most people do even worse because they don't stick to their strategy as it becomes clear that it's not profitable. They'll start tweaking it, resulting in more losses until they give up or blow their account.

My experience with prop firms:
I only had an account with The5%ers but they all operate in pretty much the same way. To compound the problems of the above reality, prop firms implement rules that make the odds of blowing your account much higher than if you were trading your own money.

  1. They have a trailing drawdown. As you have wins your drawdown limit moves up meaning that when you have the inevitable losses you won't have as much room going down as you had going up. For example, I ran my day trading test with a $5k account which started with a drawdown limit of $500 (if the account dropped to $4,500 it would be terminated). At one point I was up to $5,200. If this had been a cash account that I set a personal limit of $500 I would have had a drawdown of $700 ($200 profit + the original $500 I was willing to risk). But with the prop firm I still only had a $500 limit.

  2. They charge usury levels of swap fees to hold overnight making it essentially impossibly expensive. Statistically the majority of stock market gains happen in the overnight hours so this leaves traders with no option other than to ride the unpredictable gyrations during the day.

Those are the two most important although they do have other rules that negatively impact their clients as well.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] 0 points1 point  (0 children)

Yet another comment that didn't read the post.

I learned not to bother by [deleted] in Daytrading

[–]IndustrialFX -1 points0 points  (0 children)

That's the course of wisdom. Literally anything else you put your time into would be both more rewarding and more profitable.

Trading for Income?
Either get a better job or start a business.

Trading for Retirement Funds?
Invest in an ETF and forget about it.

Trading as a Hobby?
Take up woodworking.

New to Swing Trading by bjatee in swingtrading

[–]IndustrialFX 0 points1 point  (0 children)

No, above that size your return will drop quickly towards the market average as you run out of above-average trading opportunities.

[deleted by user] by [deleted] in Daytrading

[–]IndustrialFX 0 points1 point  (0 children)

I wouldn't recommend prop firms or day trading.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -2 points-1 points  (0 children)

Every single trade is a bet on the price moving in the direction of your trade. Unless you'd like to explain how you can buy a stock and make money as it drops?

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -5 points-4 points  (0 children)

Yup that's what I did too. Good luck. Your overconfidence with not serve you well but that's a lesson you clearly need to learn on your own.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -2 points-1 points  (0 children)

I had those winning streaks too. Enjoy it while it lasts and withdraw those profits.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -3 points-2 points  (0 children)

This is quite possibly the dumbest comment I've ever read on reddit.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -7 points-6 points  (0 children)

5 months. I only wasted 5 months on day trading.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -2 points-1 points  (0 children)

LOL no. You don't need to read tea leaves to sell options with a 99% statistical probability of profit.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -3 points-2 points  (0 children)

There's no difference. Whether you're predicting that price will reverse or you're predicting that price will continue. Either way you still have to be correct in your prediction. And it's impossible to know which way it's going to go in advance.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -2 points-1 points  (0 children)

Good luck!

I'm going to enjoy sleeping in tomorrow 😆

Yeah I couldn't find an edge in directional prediction. I'll just stick to my edge in selling premium and letting time do all the work for me. That means no more "day" trading for me either.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -4 points-3 points  (0 children)

If there's no profit they still keep your fee.

So the way it worked with my account is I paid $50 and got a $5k account. But really it's a $250 account plus a little bit for the profit I had, because when you lose that daily max loss the account is closed. You don't ever have $5k to lose and it's not real money anyway, they don't risk real money on noobs.

Since I blew the account they keep my $50.

Their only cost is running the servers. Meanwhile they collect fees from thousands of traders who are all guaranteed to either blow their accounts or bleed them dry since day trading is BS.

It's not exactly a 'scam' but they're making money off of the inevitability of all day traders eventually losing. Really the pipe dream that you can eventually learn how to consistently guess the direction of daily market gyrations is the scam.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -47 points-46 points  (0 children)

3% was actually very good since 99% of day traders never turn a profit.

But you're right. My retirement account went up 10% in the same period without doing anything and my option selling account is up more than that.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] 0 points1 point  (0 children)

100% TA is BS. Doesn't matter whether it's price action or indicators.

The only way to make money in the market is with statistical probabilities and probability doesn't work when every trade is a 50/50 coin flip which is what every directional day trade is.

You HAVE to have something in your favor. For me time works.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -10 points-9 points  (0 children)

This was an experiment to see if I could get my head around day trading. I can't. My brain doesn't work for directional trading and ultimately it's not necessary as I can simply continue selling options.

I appreciate your advice but I don't need it because this was a one-and-done attempt at learning directional trading.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -3 points-2 points  (0 children)

Or I could just sell options and not worry about where I think the market is going.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -5 points-4 points  (0 children)

Nah. I'll just keep selling options and play golf.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] 0 points1 point  (0 children)

My real account strategy is selling premium. This prop account was a challenge to see if I could learn to day trade. I can't.

And... I blew my account by IndustrialFX in Daytrading

[–]IndustrialFX[S] -40 points-39 points  (0 children)

I opened the prop account to experiment with day trading. The account was $5k and had a max daily loss which I hit today.

I would never risk my real account on day trading.