An Honest Perspective Into This Profession
What is day trading was recorded on January 31, 2020.
I wanted to provide an in-depth perspective on this profession but I just did not have time to post it. After the biggest one-day market drop in my 30-year career, I thought it was befitting to post this video. What is day trading? Isn’t it like gambling? It is not like Vegas where you place a bet on red or black. That is a game of chance and the odds are stacked against you by the casino. What is day trading? Don’t traders make a ton of money? Don’t they have fast boats and airplanes? What is day trading? Do people fail? Unfortunately, yes. Most people who try to day trade fail. How can this be? What is day trading? Isn’t it working for yourself and being your own boss? If you are quitting your job because you hate your boss that is fine, but don’t become a trader. What is day trading from a work standpoint? The hours are long and if you think you can do this for 6.5 hours a day and then turn off the lights you are wrong. What is day trading? Do you talk to other traders? You don’t have face-to-face human interaction as you do in other professions. What is day trading? Aren’t you happy when you nail a big trade? Yes, there are certainly many times of joy and excitement. What is day trading? Have you ever been depressed by it? Yes, more times than I would like to admit. What is day trading? Do you ever get angry? Yes. when I was long futures and a tweet dropped the S&P 30 pts. That cost me thousands of dollars. What is day trading? Do you ever have any doubts? When I lost 80% of my trading capital in 2002 – 2003 in a slow market that just drifted lower every day my world was crumbling. What is day trading? Have you ever felt like a fool? For years I was embarrassed when my friends and family asked me, “how is the trading going?” What is day trading and how did you know when you were going to make it. For me, it happened in 2003 when we invaded Iraq. The market released like a coiled spring and all of my hard work paid off. It was like shooting fish in a barrel. What is day trading? Aren’t you swimming with the sharks? Yes, but I am the little fish. When the sharks eat I eat. I respect the sharks and I stay close to them. I know that if I stray too far I will become their next meal. What is day trading? Do you trade commodities? I don’t trade commodities, but many day traders do. “What is day trading?” started out as a video that takes a hard look at this multi-faceted profession. I recorded it on 1/31/2020, but I never got around to posting it. Today the market suffered its biggest one-day drop in my 30+ year career (3/12/2020) and I thought this was a good time to post it on YouTube. What is day trading and are there special rules? Yes. A pattern day trader gets in and out of the same position 4 or more times in a 5 day period. What is day trading and what do you watch? A day trader has to be aware of everything. You can’t afford to get blindsided by a scheduled event like an economic release, a Fed statement, a Fed speech at a convention, a press conference by the president, or a host of other events. What is day trading? How do you know when you have a good trade? Earlier I referenced a professional poker player. He knows which cards have been played and what his probability of success is. What is day trading? Do you have a system? I use this term to describe a process. This does not have to be an automated trading system. What is day trading? Are you entering and exiting trades all day? The answer is yes, but only when conditions are right. This is a classic mistake for novice traders. What is day trading? Doesn’t everybody see the same thing? Day traders have to be very creative. You are competing with the smartest minds on the street with infinitely more capital and resources. I hope you enjoy this video that answers this question that has many answers.