intraday trading/etf trading

[acebach]

Hi Sol/other TI members:
1. intraday trading
I’m wondering if you have any suggestions for intraday trading strategies or approaches in the current market environment? Most of what I see discussed here leans toward long-term or intermediate-term investing, so I’m curious what methods you find effective for day trading?
2. etf trading
Also, I’d love to hear your thoughts on actively trading ETFs. My understanding is that ETFs are generally designed for long-term investing because of expense ratios and other associated costs, so I’m unsure how people balance ETF trading on a shorter timeframe. What criteria do you use to decide whether an ETF is suitable for short-term (1-6months) vs. long-term (>1 year) positions?

My default approach has always been buy-and-hold, but I'm planning to take a more active approach this year/moving forward. Any guidance or frameworks would be appreciated. Thank you.

[outof thebox]

I only position trade, day trading is too much of a hassle, you can make money but the stress outweighs the gains. For short term position trading I using 2X leveraged ETFs and my main time line is weekly and then i use daily for entry points. Note that at most I allocate less than 10% of my capital to this type of trading.

[MarkD]

VWAP with momenutum and Volume Profile. Don't do as much due to time constraints but it is profitable for me.

[acebach]

Thanks for the response @outofthebox and @MarkD. Day trading is definitely an intellectually engaging exercise.
I am paper-trading atm using IB and TW/finviz.

Happy New Year to everyone!

[SOL]

Day trading is fine if you have the time and the discipline. If anything, discipline matters more than time. You cannot apply the same rules you would use for long-term trading. The stress profile is completely different, and for many people, the risk-reward, once health is factored in, might not be worth it.

A useful experiment would be to measure stress hormones before and after trading. Cortisol is the easiest one to track. If cortisol is higher after trading, that is something worth considering. Chronically elevated cortisol and other stress hormones accelerate ageing and increase mortality risk. When you strip longevity down to its core, it is not about diet, supplements, or hacks. It comes down to how well you manage stress. Every centenarian I have known shared the same trait. They had a remarkable way of dealing with stress.

If you want a lower-stress alternative, short-term position trading is worth considering. Use the weekly chart to define the trend and the daily chart to execute. If you want something slightly faster, use the daily chart for trend and the hourly chart for execution. Two or three indicators are enough, but master them well. Most importantly, only a small portion of your overall portfolio should ever be allocated to this type of trading.

[Budge]

Thanks for the response @outofthebox and @MarkD. Day trading is definitely an intellectually engaging exercise.
I am paper-trading atm using IB and TW/finviz.

Happy New Year to everyone!

So how's it going?

Just be aware of mixed opinions on paper trading. I never paper traded. Too easy to fool yourself and cheat. Only when you have real money on the line, your heart is hammering through your chest, and you break out in a sweat do you find out if it's for you. Every day, look in the mirror and repeat "discipline and money management, discipline and money management" because if you don't that fucker looking back at you will screw it all up.

[SOL]

Thanks for the response @outofthebox and @MarkD. Day trading is definitely an intellectually engaging exercise.
I am paper-trading atm using IB and TW/finviz.

Happy New Year to everyone!

So how's it going?

Just be aware of mixed opinions on paper trading. I never paper traded. Too easy to fool yourself and cheat. Only when you have real money on the line, your heart is hammering through your chest, and you break out in a sweat do you find out if it's for you. Every day, look in the mirror and repeat "discipline and money management, discipline and money management" because if you don't that fucker looking back at you will screw it all up.

Hear hear, no discipline and you’re done, so discipline goes hand in hand with money management, and paper trading only works if you don’t cheat, and even then it’s just a warm-up for the real thing, which is why experience trumps theory every single time.