Can Day Trading be profitable for retail? | Traders Hideout - futures trading strategies, market news, trading charts and platforms

Traders Hideout

Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons


Can Day Trading be profitable for retail?

  #102 (permalink)

Super Moderator
Sarasota FL
Trading Experience: Intermediate
Platform: NinjaTrader, Sierra Chart
Favorite Futures: ES, YM
bobwest's Avatar
Posts: 4,963 since Jan 2013
Thanks: 37,482 given, 16,762 received

blb014 View Post
One of way of looking at it would be to examine a value trading meetup group I attend. Only one member had a negative return last year because he let his politics get in the way of his investing by continually shorting equities.

So 95% of our group is profitable and there are no marginal differences between traders in different markets?

Higher win rate in equities doesn't attract other retail traders because of return.
Equities investor/trader - Trader hopes to beat the S&P, last year 20% annual ROI
Forex trader - Traders hopes to turn is 10k into 100k by the end of the year. - leads to the much lower win rate

The question of this thread was whether day trading can be profitable for retail traders. All the discussion and all the data has been about short-term day trading.

This means it was not about value trading. You can't trade value on a time horizon that is only a few hours.

I'm not saying your point is wrong -- nor that it's right -- just that none of the comments that you argued against had anything to do with value-based trading or investing.

It's great that 95% of your group had a profit. But when someone says there is no marginal difference between markets, and he means short-term trading and you mean long-term trading in an equity bull market, you are talking apples and oranges.

Now, maybe long-term value trading is better.... fine. No one was saying it wasn't. At another time, we might discuss that, pro and con. For that matter, if you had said that long-term value-based equity trading gives better returns than short-term in-and-out day trading, many would say that is a reasonable view. Someone else might argue the point, and it could get interesting -- but it is not the present discussion.

So, if you just want to say that your equity value trading will make people money, that's cool. What do you think about day trading for the retail trader, which is what we're talking about? Is it a good idea or not? Why?


Update: I realize that I may have misunderstood your point, and if so I apologize.... but then, fill me in. Are you talking about day-trading time horizons or something longer term?

Visit my futures io Trade Journal Reply With Quote
The following 3 users say Thank You to bobwest for this post: