SPY-T trading is better than day trading (for most)
Day trading is about following the interday price activity of a stock or group of stocks. There are a number of statistics suggesting only about 5-10% of day traders make a consistent living trading stocks each day. It’s not easy.
I’m an OK day trader. I’m can make good money when I stick to my rules. Of course, that’s the catch. Keeping emotions, hunches, and boredom out of your trading can be the biggest obstacle.
Even worse, retail investors are the playthings of the big money and market makers. Retail day traders start off at a disadvantage. It doesn’t matter how smart and competent you are, you must have a plan, stick with your plan and keep solid as a rock.
Even if you do everything right, the big money can change your fortune for their needs in a matter of seconds.
On the positive side, day traders are out of the market at the end of the day. This can offer a better night’s sleep compared to those holding stocks and options over the night and on weekends.
SPY-T trading is a form of Swing Trading. Swing trading is active trading that can last overnight, weeks and months depending on the stock and trader signals or system. Swing traders are usually technical traders who find favorable entry and exit points in the stocks they trade.
SPY-T is an overnight swing trade using the Spy Tomorrow indicators. The up or down signal is posted for free on the front page of spytomorrow.com. Even day traders use the signal to set up or plan their next day of trading. The overall market mood (switch), all the data numbers, and the confidence level indicators are available to members.
The advantage of SPY-T trading versus day trading is your average win rate is generally much higher than 90% of day traders. Day traders often lose money by overtrading. Overnight trading doesn’t give the trader the opportunity to overthink a trade. You have to wait until the next morning to execute the sale.
However, when you sell your overnight trade, some day trading skills are valuable to increase profit or minimize losses depending on the next days market mood.
The Key To Winning with SPY-T trading
As with most trading, position sizing is important. In other words, what percent of your portfolio will you trade overnight? 1%,5%,10%,25%,40%?
The answer is based on how aggressive you are in your trading. How much can you stomach to lose? From the end of January to the beginning of June I’m up 1000%. My average trade is about 20% of my portfolio.
I’ve run statistics showing you can use up to 40+% on average rather safely over time. However, when you have a couple of solid down days and see 30% of your portfolio gone, the question is that something you can come back from mentally.
Although SPYtomorrow signals have improved over time, there are times it’s only been 60-70% correct over a month. It can make for some rough trading. Like day trading, it’s important to stick to the plan and not try to make up losses with bigger position sizes or day trading. It usually doesn’t work.
If you are looking for a way to be a more active investor (trader) with the opportunity to dramatically out pace the market, not feel helpless watching your 401k, and with less risk (statistically) than day trading. It might be time to test SPY-T for yourself.