I’d like to explain with images how I felt first thing on Monday morning.
After deciding [a couple of weeks ago] to find a way to make daily profits from financial spread betting I set out to do so in earnest on Monday Morning.
I set aside 3-5 hours a day to trade as my partner has holiday time so can be with our daughter. I have normally been trying to trade from the morning at 9.00 am.
This is how I felt at the start of the week.
Fresh, crisp and healthy, I was sharp and ready to crack the code of the day traders. Brimming with confidence and an unquenchable thirst to succeed…
This is how I felt on Friday morning.
Well past my sell by date… battered and bruised from the continuous kicking the markets had been delivering.
At one stage during my frustration in trying to find a winning day trading system I was actually close to punching one of my monitors… no seriously I was.
Trying to day trade has been stressful and then some.
It was like regressing. Everything I have learnt and knew was put to the sword. At one stage I’m sure I started losing my hair.
If I bought, the price went down, if I sold, the price went up. If I tried to immediately follow the reversing trend the price went sideways and then in the opposite direction.
If I saw a pattern it turned out to be an illusion. Somehow trends existed but not when I traded.
I’m supposed to be good at this I thought?
Profitable Day Trading
And then… I had a breakthrough. I started trading 10 minute charts and things became a bit easier. The trends seemed clearer and all of a sudden I started to slowly but surely make a few points profit.
I was trading the DAX, nice and steady the trade had been. Then this happened.
From out of nowhere the price crashes 40 points.
I now feel like this…
The markets have eaten into my very core. I’m gutted, but why so gutted? I know from everything that Vince Stanzione has taught me that day trading is seriously hard and stressful work.
Truth is that I thought with my success at trading the longer term trends that I was going to be able to do this day trading just as easily… I’m not though, that much is clear.
This little exercise so far has cost me £100, OK that’s chicken feed maybe, but the savage fact is that it is actually 10% of the trading bank I am willing to lose testing this out. 10% loss in a week is ahhhhhhh! That’s what has alarmed me more than anything.
Have I learnt anything so far? Well yes… but it’s all jumbled up at the moment.
I think it is doable[to profit from day trading] but I need to really try and get to the heart of this.
As I have said I have seen trends but as small time frame trading is so volatile I just have not found the edge that other day traders must have found and are using.
In the last 3 weeks I have read and read anything and everything I can about day trading. But nothing is simple and mechanical. To make day trading pay, it is this simple approach and system that I am looking for.
So far these are my assumptions on Day Trading
- A profitable day trading system is possible
- It needs to be mechanical
- It needs to use guaranteed stop loss orders
- The bar charts used can be from 1 minute to 1 hour
- The trends seem to last from 10-40 minutes on 1 minute candles
- The trends can last all day using 10 minute candles and up.
- It can be easier to day trade using heikin-ashi charts
Obviously this is my first week trying this out, but I’ll keep you updated with my results and findings.
If you are going to try this type of short term day trading though start small as possible and use stops. This should help [will help] with bank preservation and that’s key.
I shall spend some more time over the weekend studying and reading… If there’s a way to day trade I’m going to find it.
Until then, you just can’t beat long term trend trading.