Firstly, hello and welcome!
1) I wouldn't say it's the "best" in general. It could be the best for you given any number of factors, but like anything there's huge trade-offs when you drill down to day trading over swing trading or position trading.
Day trading is considered a very 'active' style of trading. The time and focus you'd need to put into shorter timeframes (like day trading,) is far greater than someone who's just working an investment portfolio (more passive,) and only checks up on their trades once every few weeks.
Then there's the increase in noise, whip moves, etc... that are experienced as you go lower in timeframe. The significance of a sharp move on a minute based chart is greatly reduced vs the significance of a sharp move on a daily chart.. for instance. You'll have to deal with far greater amounts of price noise and unclear moves when day trading. Some traders actually want this (they build strategies around noise, mostly mean reversion based,) but for a novice this can be quite frustrating to deal with.
Then there's greater commission / spread costs.. You're simply going to pay a metric shitload more in transaction fees when day trading vs holding for longer periods.
On the other hand, typically day traders don't hold positions overnight, they don't have risk on while they sleep. This can be a benefit.
Day traders also end up spending more time practicing how to quickly let go of losers, as that's a paramount component to trading well on short timeframes. That is to say, the total transactions you do is quite a bit higher, so you have more opportunities to get positive and negative feedback for your actions while trading. This means you'll either learn quickly, or burn your cash quickly if you're stubborn. If you are approaching trading like someone who practices a sport, by cutting out styles / habits that are not returning the results you desire, and repeating the methods that are working for you, then the screen time and frequency of trades while day trading can be a 'crash course' of sorts...
So yeah, no "best" place to start for a novice, just trade offs.
2) This is a bad approach to picking a trading style.
It's easier for me to list the styles where I have zero examples of people making a consistent living from using them... but on the 'highest profit in the long run sense' that's gonna entirely depend on how one measures 'profit'** and market factors.
For example, we've seen a huge uptick in volatility since the pandemic started. There were "styles" that returned mediocre results back during the post credit crisis and pre-Trump presidency which, now, are huge winners. And there are other styles that made bank even a few months ago (covid related biotech pre-market runs, or currency bets on countries as various spending programs were being announced,) which now are duds. There is no 'long run'...
A trader's job isn't to do the same exact thing over and over for 50+ years. A trader is only as good as their ability to adapt to the fluid market as it changes. Perhaps they have an approach that works best seasonally.. perhaps they have a few styles that they apply as observe changes in the market... but the moment you stop learning and adapting, your career as a trader takes on a short shelf life.
Even old school traders who say they've traded the same setup for decades don't realize their approach has shifted over the years.. it can even be an unconscious thing. Some people can't even articulate how their strategy works, as they think it's just their gut feeling, but unconsciously they are relying on exposure to years worth of watching the markets evolve.. years and years of screen time.. patters burned in their memory.. etc.. .
Anyway.. hope that helps.
Hello Jack,
I was contemplating this today (I cannot describe my trading setup in a few words). Describing my trading strategy isn't straightforward. Apart from being an ICT practitioner, my approach is quite fluid.
To emphasize how abstract a strategy can be, I typically begin by analyzing monthly, weekly, and daily charts to get a sense of price movements over the next 7-15 days. Before the London market opens, I review these charts, with a particular focus on the daily chart to understand likely price movements within the next 5 days, including the current day.
Subsequently, I shift my attention to the 4-hour chart to identify key price zones that are likely to be relevant during the European and American trading sessions. I mark these areas on the chart as visual cues.
Once the trading session begins, I delve into the 1-hour and lower timeframes, refining my entries while closely monitoring the 1-minute chart. My approach revolves around tracking price dynamics, evaluating liquidity, discerning whether the market is in an accumulation or distribution phase, pinpointing the nearest pivot points on the 15-minute and 1-hour charts, examining the primary structures on sub-daily charts, and identifying signs of potential price expansions, among other factors.
What's important to note is that this approach is not a fixed setup; it's a real-time, dynamic process. I recognize various trading signals and patterns, and I act based on my observations.
For example, today, during a news event at 8:15 London time, I decided to buy EURUSD. My rationale was that it should target the predominant liquidity areas on the H4 chart, located above significant H4 and D1 lows established when the price dropped. This decision was informed by my exclusive focus on trading EURUSD throughout the week, allowing me to recall the key negotiation zones and potential areas with open interest.
As for my initial news setup, I had prepared for a short position placed slightly above the current price!!. However, contrary to my expectations, the price moved downward instead. This sudden turn of events invalidated all my preliminary analysis, and I had to quickly adapt and improvise within 30 seconds to reassess the situation.
On other days, I might enter a trade when I see price approaching my liquidity zone, encountering imbalances, and reaching a bullish order block on lower timeframes. In these instances, my timing can be precise and exact because there are specific trades I only execute at particular hours and minutes of the day.
ICT orderblocks, for instance, most people describe them as one or multiple candles. For me OBs are just price moving in a direction. It can be a wick, it can be what I decide it can be as price had that directionality. It is really very abstract.
The lesson here is that sometimes, traders comprehend a specific framework after years of practice, but the components are not fixed and may not always align in the same way. It's more about understanding the entire system and applying its elements as they become relevant, rather than adhering to a specific, rigid setup.
They become a part of you, as if they were etched into your brain, and you simply recognize them when you see the whole picture.
Regards.