Intraday traders, how many trades do you make per day?
Talk about how many trades you make per day, and why..
Probably my earliest approach was to trade the high/low in trend channels, and this amounted to an inordinate number of small trades. Abandoning that, I moved to building positions (pyramiding) each time a new signal reinforces my belief, or scaling out of positions when signals do not reinforce my belief.
My trade count dropped from 100 per day, to about 5 on a good day. In days that do not offer a change in fundamentals, I can spend a lot of time not taking a position.
Do you suspect I am paying a high opportunity cost, or just keeping my money?
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If I trade a "full day" (which is about 8.30am - 8.30pm with breaks, UK time, for me) I do an average of about 4 trades per day. I only ever try to do a full day on Tuesdays, Wednesdays and Thursdays.
I stop for the day (at least - maybe for the week if it's Wednesday afternoon/evening or later) if I have three consecutive losses or am at any point "three trades down".
My trades can last anything between 5 minutes and about 5 hours, but the latter's incredibly rare, for me, and my average trade lasts just under half an hour. (If a trade goes on for longer than that, it's typically because my "third lot" is well in profit and still running, so my winning trade duration tends, therefore, to be much longer than my losing trade duration.)
I trade spot forex only, mostly GBP/USD and EUR/USD but some other major currency-pairs, too.
I estimate that, overall, I'm actually in a trade about 15%-20% of the time that I'm "trading". I'm very rarely in two trades at the same time (and never when they're closely correlated markets, and since all the major currency pairs are to some extent correlated, that's quite a significant issue to me).
I trade five different set-ups(!) each of which, independently, I'm satisfied has a genuine edge, but four of the five are based on slightly different types of breakouts of support and resistance and are broadly similar. After years of experiment and research, on and off, I've selected the five set-ups I routinely trade mostly because (a) I can conveniently trade all of them from the same charts, with only a couple of indicators which I find I look at less and less anyway, and (b) I can trade all of them with the same money-management (including position-sizing), with the same stop-losses and mostly with very similar take-profit procedures, too. So it's perhaps not quite as complicated as I've made it sound.
Very difficult to say, without knowing more, but if I had to guess I'd say "keeping your money".
This has the potential to become a very interesting thread, I think, and I look forward to seeing others' replies.
The following user says Thank You to Tymbeline for this post:
How can anyone answer that? Look at your PnL, there's your answer.
Everyone will have their own delusional ideas about how you should trade and how many trades per day you should take- Based on what's worked for them( Or what they think works for them).
Odds are if you're doing what the majority of others are doing then you're probably doing it wrong.
"Free markets work because they allow people to be lucky, thanks to aggressive trial and error, not by giving rewards or incentives for skill. The strategy is, then, to tinker as much as possible and try to collect as many Black Swan opportunities as you can"