I will say that you daytraders of bitcoins have gigantic balls and I salute you for that!
Hey, that made me laugh, too. I've been doing reasonably well daytrading, but this hasn't been intentional as I'm not in it for the money, but rather to reduce volatility and to help make bitcoin a useable currency.
I'm even happy to explain exactly what I've been doing because I think the market could use more dampening.
Here's what happened to me the other day:
first sell: I caught was confirmed as a liquidation of someone else's order (I forget whose) as a short squeeze happened after a large movement.
first rebuy: after any big market move up or down, there's a small retrenchment as arbitrage kicks in from Tradehill. catch it.
second sell: after recent market move, market depth is small, and it's easy to catch re-retrenchments
second rebuy: I didn't know what was going to happen next, so I sniped on the big bidwall, figuring that the big wall might disappear and a dump/crash might follow. It didn't disappear, and I somehow caught a coin dumper. I was asleep at the time, not sure what happened.
One other suggestion: rather than bid walls or sell walls, put a bunch of smaller orders over the range of a several cents, otherwise you'll get sniped (other bid/sells just below your chosen spot), or the whole order will be chomped wholesale by another player (which doesn't help with my goal of reducing volatility).
In the $2.64 to $2.7 range, there are clearly two order slopes. The steeper one on the left was me; the shallower one on the right is someone else doing the same thing. It seems to be a winning strategy, and others seem to be using a similar strategy.
Hope that helps and/or is interesting!