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Spekul8

Day Trading Crypto Currencies

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53 minutes ago, xrp_sea said:

Day trading is a zero sum game.

1

So is long term, swing trading, scalping, HFT, etc. Always Zero Sum Game.  99% of gains go to 1% of winners in any time frame and market. 

Edited by Spekul8

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51 minutes ago, Spekul8 said:

So is long term, swing trading, scalping, HFT, etc. Always Zero Sum Game.  99% of gains go to 1% of winners in any time frame and market. 

True. Vegas was built on the backs of the 99% and the 1% got it for free. 
Day trading is zero sum if the market actually gains big traction (adoption) - holders win bigger
Holders is a zero sum game if the market never matures (no adoption) - trades (some) win bigger

Either winner will be the 1%

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12 minutes ago, Palerider said:

True. Vegas was built on the backs of the 99% and the 1% got it for free. 
Day trading is zero sum if the market actually gains big traction (adoption) - holders win bigger
Holders is a zero sum game if the market never matures (no adoption) - trades (some) win bigger

Either winner will be the 1%

Day trading is a momentum and leverage game. it is having the ability to function under small time frames. It is an intense psychological challenge. Holders require an insane level of confidence while having your hands "tied" not to take a profit because of your long term belief system.  However, in day trading most fail because they base it on gut, no method. Long term holders are susceptible to confirmations biases.  It does not matter how the Crypto will evolve, 1% will win. No one can change that. 

 

 

Edited by Spekul8

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9 hours ago, Spekul8 said:

Is anyone of you day trades the crypto markets, XRP, ETH, etc ??  There is nice volatility in the markets, really more suitable for specific day trades.  

Yes I do, although not all trades are limited to intraday. I sometimes swing trade, so I hold the position for up to a few days. I'm currently shorting NEO (started a few days ago) and yesterday I took on a long trade for XRP when it formed a bullish pattern on the chart, but ultimately got stopped out at break even.

90%+ of my money in crypto is in XRP and bitcoin for HODLing purposes.

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9 hours ago, xrp_sea said:

Day trading is a zero sum game. The big gains will go to the hodlers. With day trading you might find a strategy that works for a while, but it will eventually backfire on you.

Not if you're disciplined with taking on risk and choosing leverage and position sizing appropriately.

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8 hours ago, djdhrubs said:

Not if you're disciplined with taking on risk and choosing leverage and position sizing appropriately.

There’s been a lot of research done on day trading and it all indicates that it doesn’t work over the long-term, unless you’re trading with information that you’re not supposed to have. You may think you’re making money, but have you really taken into account all of the associated costs? How about the lost opportunity costs associated with missing out on big gains because you’re constantly moving in and out? Transaction costs? Your time cost?

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24 minutes ago, xrp_sea said:

There’s been a lot of research done on day trading and it all indicates that it doesn’t work over the long-term, unless you’re trading with information that you’re not supposed to have. You may think you’re making money, but have you really taken into account all of the associated costs? How about the lost opportunity costs associated with missing out on big gains because you’re constantly moving in and out? Transaction costs? Your time cost?

I’m sure the majority don’t succeed at it. That’s not saying much. It’s difficult, and the main challenge is controlling your own emotions and disciplining yourself. 

Ive seen it done successfully by people over a long period of time. I’m sure they’re in the minority. 

I have a full time job and am learning trading just for fun and to make some money on the side. In all likelihood I’ll fail at it. But I feel your statements are a bit too definitive for my liking. Holders will win in the end. You’ll make money for a while but it will backfire. These are blanket statements which may sum up the majority of people but it’s not so black and white.

For instance you haven’t addressed the fact that most holders won’t have a clue when to sell. If their stock or coin goes parabolic, many will keep holding until and through the retracement. See the last year or so for example!

If you look at the history of bitcoin you can say that if you bought bitcoin at 1k and just held and held through the 2014-15 bear market and the dip to the 100 dollar range you’d make money eventually because it went to 20k. However many holders would have sold at break even, and/ or sold once doubling their money, and missed out on the 20x gains.

Ultimately a bit of trading knowledge is very valuable.

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