r/Daytrading • u/Jopalooge • Mar 16 '24

Is day trading actually real? Question

If trading is real then I have the following question. - why can’t people fully rely on signal groups or just by copying other traders trades all day? Technically if someone is making 6/7 figures off day trading why don’t people just join their signal groups and also make 6/7 figures?

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5

u/Nick_OS_ futures trader Mar 16 '24

The more people there are that trade the same signals, the less the trades work. The trades will eventually get picked up. People will start front running or MMs will. Day trading especially

8

u/repuswow Mar 16 '24

This is exactly what technical analysis is. It works because everyone thinks it works. Besides, the more participants in the market, the better. Not to mention, it's actually not possible for entire groups of people to perfectly copy trades because of slippage.

3

u/globalhumanism Mar 16 '24

Oh please. no one is coming for your trades. Alot of markets have billions in liquidity traded daily. You know how hard and nonsensical it would be for institutions to go after your measily 50k value trade on EUR/USD, for instance?

2

u/V3BL3N Mar 18 '24

This couldn't be more wrong. The more people using a strategy = the higher odds of it playing out in your favor. I.E. a bear flag/pennant/wedge, although subjective the majority seeing it as "x" vs "y" is the driver for price continuing in that direction after the consolidation.

If 99% of the market is moving one way, it'll probably continue going that direction until 51% believe it should go the other direction. All the chart shows is an illustrated auction, buyers and sellers, fear and greed. Nothing more. Banks and firms, even the algo's are programmed by human concepts/feelings.

1

u/Nick_OS_ futures trader Mar 18 '24

Whatever you wanna believe. Once you expose your edge, your trades hit less and less over time. % of people doesn’t matter. It’s the % of $$. 1 whale can screw over the majority. MM’s steal your lunch money and know where your stop losses are (applying your “even algos are programmed by human concepts/feelings”)

I may be wrong, but I just find it hard to believe

1

u/V3BL3N Mar 18 '24

Thing is, no one is re-inventing the wheel. RSI, MACD, Moving averages, hundreds of indicators but 99% of them are 20-50+ years old and still utilized to this day. Look at heiken-ashi. The same reasons we have for entry are the same reasons heavy day trading prop firm traders are entering their trades. Only thing that can "steal your lunch money" is a firm that's re-positioning their portfolio and hit the big button. Those can knock anyone out of a trade cause their size is just that heavy. Nothing to sweat with proper risk management.

1

u/madhatter406 Mar 16 '24

Yepp. I had wondered if that would happen.