Recently, I have reduced my daytrading to try to capture more points while trading less. When I was daytrading, I would be extremely sensitive to small moves and had to be in front of the screen and focused at all times. I am still in front of the screen most of the time, but I can do other things like research and data mining during trading hours without worrying about the next 3 point move in the ES. There are drawbacks to swing trading. There is less capital turnover and fewer trades, which means the profit per trade has to increase to make up for it. Also, it is riskier if using the same trade size.
The positives are that you can get a much bigger profit looking at bigger time frames. Also, with daytrading, you can get lost in the forest by staring at the trees. I've realized that losing your position is deadly in this game. I don't want to lose my position just because I make a bad day trade. With swing trading, you aren't daytrading so minor intraday swings don't take you out of your position. You can keep your position and stay with it when swing trading. That is the most important factor.
I will daytrade less. I have noticed from my past results that more than 90% of my money is made on 10% of my trades. I will follow Jesse Livermore's words, the big money is made in the sitting.
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http://finance.yahoo.com/banking-budgeting/article/108837/dead-cat
Swing trading is effective only if the stock moved into runs higher than the stock moved out of.
yeah but jesse livermore blew up in the end. i dont think he's a good role model. i would try to book consistent small profits in the crappiest of market and go for the jugular when you see the whites of their eyes. also be as good long as you are short. you seen it all man, you're gonna make a killing
SWHC going to 6.50+ by mid April.
I'm already in @ 3.90
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