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.