In the past, I found day trading to be a losing proposition. I lost money day trading when I wanted to day trade. I find it to be the most difficult aspect of trading I have ever experimented with.
I usually make money on a trade held for a short period when I am buried with work and have only a few seconds to make a decision. In those cases, I don’t over-think things. I just make the obvious decision and usually it is the right one.
Leigh Drogen explained to me that by not having the goal of day trading, I choose the best opportunities when they present themselves. I pick only the low hanging fruit. Focusing on day trading forces me to do go for some fruit higher up on the tree, and that is where I would lose money.
Recently, we decided to give day trading as a business a second chance. We decided to think creatively and develop our own methods using experimentation rather than use traditional technical and supply/demand indicators. So far the results have been quite amazing despite not using moving averages, Bollinger Bands, level 2 profiles, and other tools. It is still early in the game but we are very encouraged by the results.
What is your experience with day trading? Are you using uncommon methods to day trade?
Written by Michael Bigger, author of How Traders Achieve Creative Flow.