MarketLife Ep 19 – Short term trading: what works for me

Podcast-Cover300This episode continues my look at short term (intraday and daytrading) systems and ideas. Here are the episode notes:

What’s really happening intraday

  • Academic studies of market behavior show departures from random walk on lower timeframe
  • These are distortions, but don’t assume that this makes for easy trading
  • Highly competitive and very noisy.
  • There does not have to be “a guy” on the other side of your trade! <= This is one of the persistent misconceptions about trading.

Styles of daytrading

  • In a way, nothing new here, conceptually. We have:
    • With trend
    • Countertrend
  • Countertrend often requires scaling in against moves. “Fade traders”


  • Whatever you’re going to do, it’s got to get done between the open and close. This brings some challenges regarding length of swings.
  • It’s hard
    • People exaggerate and lie (win ratio is a big one)
  • Time spent at the screen vs. payoff. Would you do better with a longer timeframe?
  • Be careful of marketing hype.

My experience

  • Scalping was a dead end. Maybe someone is doing it, but I haven’t found that person.
  • The less I did, the better.
  • Having a daily setup/gameplan is critical (maybe trade against that plan!)
  • Both with trend and countertrend approaches worked
    • Pullbacks
    • Fading new highs / new lows during certain time windows
  • Plays around the open

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Enjoy the show:


Adam Grimes has over two decades of experience in the industry as a trader, analyst and system developer. The author of a best-selling trading book, he has traded for his own account, for a top prop firm, and spent several years at the New York Mercantile Exchange. He focuses on the intersection of quantitative analysis and discretionary trading, and has a talent for teaching and helping traders find their own way in the market.