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27895442 No.27895442 [Reply] [Original]

>find stock that's stagnant
>all stocks fluctuate by a little each day
>for example, say the stock fluctuates between $4.50 and $5.50
>put limit BUY order for the stock when it's $4.90
>put limit SELL order for the stock when it's $5.00
>repeat
Could someone explain to me why this is retarded and won't work IRL?

>> No.27895534

idk, fees?

>> No.27895648

>>27895442
it's called day trading brainlet

>> No.27895651

>>27895442
because it wont always do the thing you think it will do and if in that case you have no plan for what to do if you are wrong than you will lose more money than if it does what you planned on it to do

>> No.27895693

You're describing day trading, OP. You can definitely still get burned because you have to use large sums of money for these minute fluctuations to be worth it, but if you've got 10k to risk you can make a few hundred bucks a day like this.

>> No.27895748

>>27895442
Because nothing actually behaves like that IRL.

>> No.27895946

>>27895442
Buy at 490
Goes to 499
500 sell never fulfills
Tanks to 384 and crabs
You are stuck holding or sell at a loss
Capital now locked cause your criteria didn't get met

You need stop loss at 480 or something to mitigate

Now say same day plays you sell at 480 to save face but the dip only went to 479 then pumps to 550 now you never bought back in

Day trading is akin to gambling you have no certainties and even if you have 10 days of profits you can lose it all on 1 day of loss. Our you can get greedy and want to 2x your buys or even put 10x the money in and its again an uncertainty and if you are that risk hungry by all means go for it. Its only retarded if you lose momey if you gain you can gloat about how smart you are

>> No.27895965
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27895965

Anons, i only hold sentinel, should i buy a ledger?

>> No.27896030

>>27895442
This is literally called Scalping. It's a day trading strategy that is extremely hard to make money with nowadays.

>> No.27896096

>>27896030
Why is it hard to make money with exactly?

>> No.27896142

>>27896096
Tax
Fees
Uncertainty
Crabs
Missing timing windows

>> No.27896177

>>27896096
because genius level iq nerds built algos to crack all of you gamblers. You might win 99/100, but that 100 you'll lose it all.

>> No.27896193
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27896193

>>27896096
because it always lol almost always goes the way you don't want it to go

>> No.27896201

>>27895442
If ir trades between 4.50 and 5.50 then you buy at 4.50 sell at 5.50 with a stop loss at around 4.40 you now have around 2.5% downside vs over 20% up. Welcome to not being a retarded trader. Short 5.50 cover at 4.50, stop loss around 5.60 boom youre now profting both ways in a high probability trade with a good risk/reward

>> No.27896226

>>27896096
>>27895946

>> No.27896230

>>27896177
What do you mean anon? Could you elaborate?

>> No.27896257

How hard would it be to reliably hit about 50 to 100 profit per day?

>> No.27896298

>>27896230
Any short term strategy to make money has been sniffed out. These funds control billions and can make the stock do whatever they want it to do. One day, they'll target your scheme and take all your money. Just a matter of time.

>> No.27896406

>>27896298
How do they target my scheme? How can they rig it against every individual day trader who invests in the stock? How do you learn about these algos?

>> No.27896452

>>27895442
Because the number of trades at a given percentage is better than the sum of it's percentage.

For example at $100, two 5% trades in a day yields better than one 10% trade. Same goes for five 2% trades.

In illustrating:
100*(1.1)=110, for 10%.
100*(1.05)^2 = 110.25, for two 5% trades.
100*(1.02)^5 = 110.41, for five 2% trades.

You're not looking for high volatility, your looking for a system that lets you increase trading even if it is a little.

>> No.27896497

>>27896406
The point is that there is no scheme that works. The algos are like a laser detection system. You're trying to get to the gold and avoid the lasers. Good luck.

>> No.27896514

>>27896406
They may not target you specifically but the repeat margins your attrmpting profiting on can be manipulated. Go put 100 dollars on an exchange and try your theory out we can only tell you fire is hot if you want to see how hot go put your hand in it and report back.

>> No.27896599

>>27896406
Because you are less unique than what you think.

>> No.27896657

>>27895946
>fall for round numbers

you gotta put the sell at 497-8, knowing 500 is too nice of a number.

>> No.27896660

>>27896599
>>27896514
I know I am retarded and I don't plan on doing this because if it's this easy to think of doing this it probably isn't profitable, I just want people to explain to me why it's wrong desu. Is there any info about how algos like this are made though?

>> No.27896728

One flaw is that stocks don’t always stay rangebound. Sometimes they break up or break down. So if you’re caught on the wrong side of the break, you lose a lot of money.

>> No.27896760

>>27896660
The algos are ever changing. They are based on what people do. If everybody try scalping a nickel, dime here - the algos will notice that and wait for you to scalp, then crush you. Daytraders mitigate risk by using a small percentage of their roll and setting stop losses because they know these hedge fund freaks programmed them to go bankrupt.

>> No.27896808

>>27896660
Its not retarded don't kick yourself for thinking about it, it just doesn't play out that easy.

There are some trading boys that had subscriptions you can probably Google those and see of there's any code available to look at. How they are made is coding, how they code the parameters is outside my skill I haven't leveled Judaism that high yet

>> No.27896846

>>27896760
Why do hedgies even care about them desu? How do day traders buying at lows and selling at highs effect the stock price in a way that is harmful to them anyways?

>> No.27896869

>>27896808
Trading Bots* I'm boomer posting in a tablet

>> No.27896969

>>27896846
You have to understand, the stock market is literally a casino with money on the table. The hedge fund billionaires want all the money and they are very keen on any leaks.

If you want to avoid their manipulation, you'll want to try this on a very popular retail stock on upward momentum. Something like a CCIV. The hedgies aren't going to mess with a stock that volatile.

>> No.27896972

>>27895442
high risk low reward. You gotta put in lots of money for a reward larger than a few cents, then one day suddenly some bad news drops and you lose thousands of dollars, with the potential upside of making like $500.

>> No.27897103

>>27896846
I'm not a financial advisor or anything, but I would strongly suggest you just do some pretend trading for a month or so. Keep a spreadsheet of your losses, figure out what are your chances of profit, risk of ruin, etc. Diving head first into the stock market is a very bad idea. There are people who make billions of dollars off making poor people poorer. And, you wouldn't believe the lengths they will go to make that happen. Cough Cough