The Independent Trader

Trading the markets is one of the most challenging endeavors. This is a field where only the best can survive unlike other professions where average can also make a reasonable livelihood.

1. SMB Training elaborates on the daily life of an Independent Trader.
2. Some psychological aspects of Trading
3. Difference between professional and amateur traders by Dr Brett
4. How to become an independent stock trader
5. One of the most tough tasks in becoming a profitable day trader is overcoming Transaction Costs.

Are you a Day Trader?

One of the common points of discussion among traders is about their timeframe. Day trading, Swing trading or position trading  or scalping ?

1. Many traders defend and elucidate the advantages of their timeframe ( for ex Intraday).
2. The point is I am a trader. Depending on the opportunity presented by the market I am flexible with the time frame.
3. Drakoln of  Speculator Academy opines on this here.
4. Tucker Report has  thoughts on Day Trading and opportunities in Very short or very long time frames.
5. Trader  Mike has an interesting take on Day Trading.
6. A scholarly day trading approach by DailySpec Lister .
7. Every trader has a niche. He has to practice and perfect it.
8. Trading intution can only be gained by years of Screen time.

INTRADAY FUNDAMENTALS

Intra-Day Trading  requires lot of attention to detail and a science in itself.

1. I have been inspired by several concepts from SMB Trading Blog like Stocks in Play, Second day plays, Earnings play.
2. Combining Intraday fundamentals with technicals.
3. Traders' intution as a result of  years of screen time ( 10 yrs min according to Outliers by Malcom Gladwell),ability to process breaking news ( witnesses in TCS - Friday) will result in good trades.
4. Identification of Niche of the trader is important since it tells us where the escape routes exist.

Fading Other Traders' positions

Assuming Day Trading is a fight between participants in the trade, Is there an edge to fading other traders positions ?

1. Trading floor used to give advantage of reading other traders or Tells.
2. Can similar edge be gained in brokerage trading rooms where novice traders positions are displayed to all?
3. What are the characteristics of "fadeable" traders ?
4. I am surprised to find sometimes the positions of other traders overriding all indicators, TA patterns will give a clue to short term positions.
5. If daytrading needs flash opinion on a stock what better market tell than an injured trader on the other side?
6. This may sound cruel but the practice of deception is the nature of the market.
7. Some characteristics of the trades I can fade are

• When there is a random stop on a losing trade
• Trader has taken a position rather than voicing his opinion
• Revege trading is visible
• Trader is trying to break even
• Cursing or exhorting the financial instrument
• Entering into trade to avoid regret
• Lowering stops on a losing trade
• Avoiding when the trader is strong or profiting in the trade
• Quick and random profit booking by the trader for emotional reasons
• Larger than normal size by the trader
• Timeframe of fadable trader should match your own

Can these observations of traders strength or weakness in a particular trade give an edge at least for entering the position and relying upon TA and indicators for managing and exiting the trades ? I had lot of anecdotal evidence of Stockbrokers fading the positions of their clients when they run their prop books.

Can the daytrader use this as a shortcut cutting across opinions , news, TA and Random noise?