Very well said. Some days I take one trade, make my money from the day and I’m done. Sometimes within 10 minutes of market open.
changing my mind on day trading
- Thread starter Jdesey
- Start date
Congratulations. Working a little of the pre-market to get the "pulse" of the market for the day, then trading the morning (9:30-12) is a reasonable day. You can still keep the regular gig meantime as long as needed, no rush.
It's easy to make money trading, the hard part is managing correctly so you keep it. The Dow is now high, so expect and look for scary morning drops to bounce Mon-Tues. Don't play any tickers that ended high Friday.
Don't chase the first 10 minutes of the open up, they'll fall after. If you see a huge drop at the open on a ticker, quickly check for news, no news, bounce it.
Look at Friday's Dow, big open, up 200 til 11am, then killed. Expect that, play the Dow troughs. You could have gotten in at 11:30 and made money wherever you tossed it.
1)-Big open drop on an individual ticker with no news, bounce it, then expect secondary drop (EX: see TLRY Friday 3/25)
2)-Dow open plunge, give it til 10am (see Dow 3/10, 3/23)
3)-Big Dow open rise, wait for the drop (see Dow Fri 3/25) - play the trough
Hope this helps!
It's easy to make money trading, the hard part is managing correctly so you keep it. The Dow is now high, so expect and look for scary morning drops to bounce Mon-Tues. Don't play any tickers that ended high Friday.
Don't chase the first 10 minutes of the open up, they'll fall after. If you see a huge drop at the open on a ticker, quickly check for news, no news, bounce it.
Look at Friday's Dow, big open, up 200 til 11am, then killed. Expect that, play the Dow troughs. You could have gotten in at 11:30 and made money wherever you tossed it.
1)-Big open drop on an individual ticker with no news, bounce it, then expect secondary drop (EX: see TLRY Friday 3/25)
2)-Dow open plunge, give it til 10am (see Dow 3/10, 3/23)
3)-Big Dow open rise, wait for the drop (see Dow Fri 3/25) - play the trough
Hope this helps!
Thanks. The program I use is capable of dropping, cancelling or exiting up to 200 bids/per minute, all on one click each way. Without it, I'd be nuts.
You can slow it down to any speed, it's just having the speed allows the focus to be on the decision, not the execution, whatever style, since getting filled either to buy/sell/short/cover takes half a second, limit or market, as it streams market data directly.
You can slow it down to any speed, it's just having the speed allows the focus to be on the decision, not the execution, whatever style, since getting filled either to buy/sell/short/cover takes half a second, limit or market, as it streams market data directly.
You don’t know many top tier hedge fund managers if you think that way about their “15 percent”
the markets aren’t scary. But you should be compensated for the risk you are taking. To do that you should be able to build geometric wealth over time. That’s been my point. To do that you need strategies that aren’t capacity constrained at low levels.
You can start there if you need to, but you should be working on the next step. Personally, it’s likely I will be capacity constrained in the next 7 years. (how big can a event driven vol fund get?) I’m planning for it now because I will need different leverage ratios and different strategies.
the markets aren’t scary. But you should be compensated for the risk you are taking. To do that you should be able to build geometric wealth over time. That’s been my point. To do that you need strategies that aren’t capacity constrained at low levels.
You can start there if you need to, but you should be working on the next step. Personally, it’s likely I will be capacity constrained in the next 7 years. (how big can a event driven vol fund get?) I’m planning for it now because I will need different leverage ratios and different strategies.
Fun. Will include you on program release info when the time comes, if you'd be interested in a test drive.
always looking for another car.
What timeframe charts do you like to trade?
Not exactly sure of the question...my chart is set to 1 min ticks, but to trade any ticker, you need a context. Where is the ticker in it's 5-day trading band? Hi-Lo-Middle? Where did it end the last session? Equally important, where is it in reference to the last 6 months?
If your answer to any of the question is it ended last session high or in the midst of a 6-month high, you should only be playing big drops and flipping, not holding on a descending line.
Look at MULN Friday, dropped like a stone. Why? Go the the 1-year chart, look at the bottom and the sharp spike it's on. It's high. It was .60/share about Feb 24 or so. March 21, it was 4.25 after the "pump run" - then gradually downhill since. The sell down was predictable and forecast-able.
If you read the shape of the pump, that price spike mathematically predicted a drop back to 2.42, based on the where the pump started and peaked. They all retreat half way from the pump origin. Friday was simply big money taking profit, back down to it's destiny. However, two back-to-back selldown days usually gets followed up with a little climb, not huge, but something, so it could get a bump Mon-Tues, I'd look for an open drop before getting in, though.
Not sure if this answers your question, but don't enter tickers that ended the last session high, only trade drops. The market, despite the Dow games, is high and will fall. Play big drops and clear bottoms.
Hope this helps.
If your answer to any of the question is it ended last session high or in the midst of a 6-month high, you should only be playing big drops and flipping, not holding on a descending line.
Look at MULN Friday, dropped like a stone. Why? Go the the 1-year chart, look at the bottom and the sharp spike it's on. It's high. It was .60/share about Feb 24 or so. March 21, it was 4.25 after the "pump run" - then gradually downhill since. The sell down was predictable and forecast-able.
If you read the shape of the pump, that price spike mathematically predicted a drop back to 2.42, based on the where the pump started and peaked. They all retreat half way from the pump origin. Friday was simply big money taking profit, back down to it's destiny. However, two back-to-back selldown days usually gets followed up with a little climb, not huge, but something, so it could get a bump Mon-Tues, I'd look for an open drop before getting in, though.
Not sure if this answers your question, but don't enter tickers that ended the last session high, only trade drops. The market, despite the Dow games, is high and will fall. Play big drops and clear bottoms.
Hope this helps.
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I'm hanging on every word you write over here man. lol.
I trade simple setups on 1, 2, 3, 5, 10m charts, futures, no stocks or etfs for a good while but KC makes them look pretty good so I keep an eye open. Taking my time, belt and suspenders guy, lol.
MULN fits the kinds of stuff I like to look at pattern-wise, but I'd have no idea how to make a buck from a stock at that price to the downside.
Here's the kind of trade I like...
"Trading an Engulfing Candle at Support & Resistance provides greater conviction."
https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-10#post-5014575
It was an example, but if you're thinking about getting back into stocks, I would look at NASDAQs under 1.00, since they are cheaper to play, and many are out of compliance with the NASDAQ 1.00 rule, and need to get back over 1.00 - for those tickers, there are two groups:
-those over .50/share
-those under .50 share
The ones over .50/share tend to be more active - I'd look at these, which tend to be high volume. These are more likely to hit the 1.00 mark sooner, since they don't have to reverse split to get there, so they are generally safer to play if you end up holding any
-SNDL
-CEI
-GFAI
-NILE
-XELA
What you'd be looking for are .10 cent plus drops that you can bounce a few cents. Drops can be at 7am/pre-market, 9:30-10am, or walk downs intra-day. You can put in a standing 1-share "radar" buys at various drop points, to alert your phone to jump in.
These are just some, do your own vetting, play small until you have a "feel" for them and get used to how they move. Any under .50, I would shop under .30 cents, under .25 is even better, then flip on a .5 cent+ gain, not hold too long, since they are more likely to reverse split.
HSTO, TBLT, TXNP, MKD, ZOM are ones in the ".30 and under" price range. Play small, under 1.00 are also traded on sub-penny increments, which you also need to get a feel for, play 1/2-penny or 1/4-penny bid points, don't just bid whole pennies under 1.00
Something to chew on anyway for now.
-those over .50/share
-those under .50 share
The ones over .50/share tend to be more active - I'd look at these, which tend to be high volume. These are more likely to hit the 1.00 mark sooner, since they don't have to reverse split to get there, so they are generally safer to play if you end up holding any
-SNDL
-CEI
-GFAI
-NILE
-XELA
What you'd be looking for are .10 cent plus drops that you can bounce a few cents. Drops can be at 7am/pre-market, 9:30-10am, or walk downs intra-day. You can put in a standing 1-share "radar" buys at various drop points, to alert your phone to jump in.
These are just some, do your own vetting, play small until you have a "feel" for them and get used to how they move. Any under .50, I would shop under .30 cents, under .25 is even better, then flip on a .5 cent+ gain, not hold too long, since they are more likely to reverse split.
HSTO, TBLT, TXNP, MKD, ZOM are ones in the ".30 and under" price range. Play small, under 1.00 are also traded on sub-penny increments, which you also need to get a feel for, play 1/2-penny or 1/4-penny bid points, don't just bid whole pennies under 1.00
Something to chew on anyway for now.
Yeah grab that money while the grabbing is good. Nice slice out of the middle of so called noise.