For a long time I am trying to invent a successfull strategy for day trading.But I am losing constantly.?

Question

For long I am trying to invent a strategy for day trading.But I am losing constantly.I have heard that only five percent of the total day traders are successfull.If five percent is constantly successfull,then there is something in it. Can anyone tell me what may be the fault.

Answer 1

Day trading is no better than gambling. Except that you're competing against people with access to instant information and have super computers which can analyze and trade stock on that analysis instantly. For the most part it is a loser's game unless you have inside information fo which you will go to jail if you act on it. Better to be a good stock picker and hold onto your stocks for longer term gains. Good luck to you. When day trading you're swimming with sharks.

Answer 2

Banerjida,

You answered your question yourself, isn't it. Buying a stock is not a lottery ticket, it is part ownership in the business. If the business does well over the long term, so will the stocks performance. I am sure you have lots of examples in front of you -companies like ITC, HDFC, Ranbaxy, Infosys, and  many more that have been doing well for decades, so have their stocks, if you held on to them.

Dada, its time you read a real Investing book, Try One up on Wall Street by Peter Lynch, to start with. You will forget about wasting time in evolving trading strategies, and invest the time and effort in picking real good stocks, as Peter Lynch practically shows you how to. (There are better books to start with, but I am guessing you will enjoy the anecdotal style adopted by Peter Lynch more than the slightly more academic but nevertheless excellent reads like The Intelligent Investor by Benjamin Graham)

If you want to build long term wealth, change tack NOW. Or else, if you have enough money to fritter away, keep trying at the 1: 99 odds!

Answer 3

I think you answered your own question. If only 5% of day traders are successful, then that means 95% are unsuccessful.

Also, even the day traders that are considered successful will readily admit that they are not successful anything close to 100% of the time. Having managed investment personnel, including traders, during my many years in business, I can testify that even a successful trader frequently loses money. Successful traders simply have profits that exceed their losses over time.

Answer 4

Day trading is a losing practice 99.9% of the time.

Answer 5

Books-http://hudzila.org/

Answer 6

Not that I would give you the exact way to make money in the market on a day to day basis, BUT first of all day trading will get you no where... You need to be educated in the market to be able to get in and out at any given time-

You also have to be able to see the trends and figure out by calculations the down trends, and the up trends, as well as the gains, 52 wk. highs, & 52 wk. lows.

**I know this because my husband cracked the mathmatical code to the market and has been using it for the past 4 years and trust me, it's working perfectly and hasn't lost money in the market- I have the statements to prove it and his clients are just as happy....All the mess in the market now, everytime it drops lower, we're all making money-

Answer 7

That's easy then. Use your system/strategy to select your trade. Then do the opposite.Going on your empirical statistics you should be more successful.

Yes, I am serious!!

Answer 8

well the thing is it is a volatile market and with day trading anything can happen - it is betting so therefore you are gambling which can go in any direction. Those that do well i think are very well experienced and actually spend a lot of time doing research i.e looking at graphs etc and picking up certain trends and the aim is to enter at the right time and leave at the right time- so i think research or you know watch the market etc.