Friday, February 6, 2015

Hanging up the hat on day-trading (for now)

Another month has gone by, with no success with my day-trades. Transaction costs are simply insurmountable on the shorter timeframes. Last week was pretty bad, and I finished the month at breakeven.

After three months of day-trading, I'm going to shelve it for now, and switch my focus to swing trading. I'm disappointed. Major lessons:

- TRANSACTION COSTS! These kill profit. Badly. Reduce them as a % of your profit whenever possible (can be done by trading longer-term and aiming for bigger rewards). 

- Day-trading is time intensive. This didn't bother me too much, but in the long-term, I'll probably miss out on doing other things with my life. The whole point of trading is freedom, right? 

- S/R works on the lower timeframes. There's no such thing as 'noise', despite what some gurus say. 

- The previous day's high and low are significant S/R levels. This may help with placing your entries and exits on the longer time-frames.

- Day-trading is more emotional. Opening and losing in minutes can psych you out and trigger revenge-trading. 

- You miss out on positive overnight rollover (although you also avoid negative rollover; perfect for when you want to short the AUD or NZD). 

Anyway, that's it for now. 

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