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  #41  
Old 08-06-2018, 05:56 PM
CowboyGuy CowboyGuy is online now
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I think the best way for me is to do this and report back after a few days.
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  #42  
Old 08-06-2018, 06:05 PM
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only a few days?
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  #43  
Old 08-06-2018, 06:22 PM
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only a few days?
For a start. If we were talking about swing trading, should have been weeks. Few days are enough to report back some results for day trading.
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  #44  
Old 08-06-2018, 07:39 PM
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I strongly encourage you to open a paper trading account for this exercise... losing real money may focus the mind but why pay when you can experiment at no cost?
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  #45  
Old 08-08-2018, 10:11 AM
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Originally Posted by IANAE View Post
I strongly encourage you to open a paper trading account for this exercise... losing real money may focus the mind but why pay when you can experiment at no cost?
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  #46  
Old 09-10-2018, 01:20 PM
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Originally Posted by Abstract Actuary View Post
Stocks frequently move 2%+ in a day, you're right. But what you're not accounting for is that many times that movement happens (or a big chunk of it happens) at open. So if you're not holding overnight, you don't participate. So let's say it opens up 80 bp, then you buy, it ends up up 130 bp on the day (or only up 30 bp), you only fluctuate 50 bp. Assuming this dampens the gains and losses that you are expecting, the 1% min and higher max is less likely hit, and the foundation of the strategy is weakened. Maybe you need to reduce the thresholds (50 bp losses, 150 bp gains?). I'd be curious to see the stats on intraday movement - because the headline number is not truly intraday.
I haven't still pulled the trigger on this, and mostly because of the above. I agree intraday volatility is an issue for retail investors. I'm trying to think if there's any way to deal with it. Maybe trade leverage stocks, and as long as you have the stop loss applied, you should be okay?
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  #47  
Old 09-10-2018, 03:32 PM
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looking at the market from last week, not sure what is making you optimistic right now.

I feel like you are going to hit a lot of your stop loss orders over the next few months.
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  #48  
Old 09-10-2018, 04:13 PM
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looking at the market from last week, not sure what is making you optimistic right now.

I feel like you are going to hit a lot of your stop loss orders over the next few months.
Not being optimistic. Just trying to analyze the pros and cons of this strategy, especially in sort of a bearish market.
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  #49  
Old 12-06-2018, 05:25 PM
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So I finally opened a paper trading account on IB. I also signed up for a one week free trial at Warriors Trading chatroom. Tried to get myself familiar with how the chatroom works. Reason why I want to follow a chatroom is that I don't have countless hours on my hand to do all the market research. There are pros on chat rooms who are full time day traders and they're already doing that for you. Of course you shouldn't blindly mirror trade and follow them, but should apply your logic as well.

One thing I learned is that the quotes at IB are delayed. I was surprised to see that because even sites like Yahoo Finance give free of cost real time quotes. I learned that those sites actually pay the exchanges in bulk to get real time quotes. This is quite frustrating because I wanted to be able to see real time quotes on the broker's site that I'm trading.

Of course nothing is free. Scott's trade and some other brokers do provide real time quotes but good luck with paying $7 commissions per trade. Interactive Brokers is one of the cheapest out there.

I mostly followed the chatroom for small caps today. Traded a couple of pharma stocks through paper trading and made about 3-4%. I started trading quite late in the day and had already missed the high swings that happen at the start of trading. Will do it again tomorrow morning.

Ross, the founder of Warrior Trading recommends trading for only 2 hours when the market opens, that is when the big swings happen and volatility is high.

One other thing that I learned is that 1-2% stop loss isn't sufficient for small cap stocks. You'll easily get hit if you apply such narrow stop losses. Level 2 traders have access to info such as how many people have applied stop losses at what level. They then do pump and dump strategies for those stop losses to hit and then buy the stock to make their real profits. This is the reason why stop losses usually should be set at or below support level, preferrably a little lower than that.
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  #50  
Old 12-18-2018, 04:28 PM
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I saw an article (I think on LinkedIn) that said that intraday since xxxx (some year) stocks were down 4%, but interday stocks were up 571%. I can't seem to locate the article, and have no idea how accurate it is. But it highlights the idea that I pointed out earlier, that much of the major movements happen at market open, rather than intraday.
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