Buy and Sell

Eyeful

SH88SH88 said:

Uriziel said:

Is it possible in theory to buy and sell a stock every day?
There are stocks that are volatile and go up and down daily. Would it be possible to buy the stock at a low, then sell it when it goes up by for example 2%. Then sell it for the 2% gain and buy it once it goes down and repeat? That way you could make a 2% gain on a daily basis.

Check out a character called Michael Taylor,  he writes a Monthly column in the Investors Chronicle. He readily admits to being a Trader (as opposed to an Investor), however he covers both long and short trading, plus references to Charting etc etc. I believe he has a website,  part of which is probably free and part subscription. 

1. Can you show me any independently audited public track record that quantifies his exact long‑term performance or “success rate” in day trading?

2. If he is so successful as a trader why does he need to write these articles?

HedgehogRulez

Bostonerimus1 said:

HedgehogRulez said:

Tbh it’s not a bad idea. If I had a spare grand or two I’d defo try my luck!

First thing that comes to mind "one born every minute".

I don’t have a spare grand or two 😢

I have ten!

Emmia

HedgehogRulez said:

Bostonerimus1 said:

HedgehogRulez said:

Tbh it’s not a bad idea. If I had a spare grand or two I’d defo try my luck!

First thing that comes to mind "one born every minute".

I don’t have a spare grand or two 😢

I have ten!

Well if you try, maybe you'll be able to convert £10k into £1k.

UncleK

I've got a perpetual motion machine if you're interested.................

Cus

QrizB said:

masonic said:

In practice, the vast majority of people who try stuff like this lose money.

And:

InvesterJones said:

But I completely agree with the sentiment - the risk adjusted return of your approach is good. Day trading however has some horrendous statistics about likelihood of making a loss.

As an example, here's a small-print statement from the bottom of Trading 212's page on CFDs:

71% of retail investor accounts lose money when trading CFDs with this provider.

Everyone likes to think they're going to be one of the other 29% ...

I wonder what the timeframe is for this stat of 29% make money?

If it's over 20 years then you are doing better than virtually all investment managers according to some analysis...

Eyeful

I expect the 29% that make money are the fast computers that have been programmed for day trading. 
The humans attempting day trading making up the 71% who fail. :'(

Martico

I've heard the (apocryphal but also probably illustrative) 90 number before: 90% of day traders lose 90% of their money within 90 days

masonic

Cus said:

QrizB said:

masonic said:

In practice, the vast majority of people who try stuff like this lose money.

And:

InvesterJones said:

But I completely agree with the sentiment - the risk adjusted return of your approach is good. Day trading however has some horrendous statistics about likelihood of making a loss.

As an example, here's a small-print statement from the bottom of Trading 212's page on CFDs:

71% of retail investor accounts lose money when trading CFDs with this provider.

Everyone likes to think they're going to be one of the other 29% ...

I wonder what the timeframe is for this stat of 29% make money?

If it's over 20 years then you are doing better than virtually all investment managers according to some analysis...

Indeed. Likely a much shorter timeframe. I think it rather unlikely that all of those 29% quit while they're ahead.