Some Personal thoughts observations and insights on day trading

…Day trading was all the rage back during the dot com mania. Everybody wanted to give up their day job and live off of day trading. It was and still is very seductive. back then most day traders just played the tech stocks long
There were no 3Xers . Some more sophisticated traders used futures and options.

Alas when the tech bubble was in full force EVERYBODY and his Donkey was a genius and was making money.
Some guys did quit their jobs . But Alas it was all a mirage and these guys were “hooked” and found out the hard way..they couldn’t make it in the long run.

Now I will share a little lesson / lecture I got from Rambus….Right after I convinced him that his work was so unique and powerful that it should be shared in a pay format..”IF YOU BUILD IT THEY WILL COME”…WE URGED HIM (My partner Audept and I )

So in late 2011 we opened for business and I had the day trade bug….here is what happened and what I was told .

Keep in mind Dave Rambus is a very reserved gentleman and not given to tirades…this was the first and last one



OK so lets establish the fact that not 1 in 1000 traders can make a long term living day trading.

However right now …many of us are stuck in semi quarantine and have no job , no sports , no concerts, no parties . no nuthin’

So of course we are turning to doing a little day trading….primarily with the 3X Stock market bull and bear ETFs

I sense that many of you are doing pretty well too.

Here are some observations that are helping me presently

1…Pick ONE Item and watch it , study it , stick with it.
All of the underlying etfs move in lockstep basically…but pick one and get to know it. Personally I have chosen the QQQs….they have been very well behaved for the last little while.

2…. For me…I have to keep it simple I am just using price action…pure Chatology…no indicators , divergences no moving averages no cycles…justdrawing lines trying to find consolidation patterns and fibos and breakouts and backtests. This works best for me

3…To get the overall picture I draw some lines and fibs on the day chart..then I turn my attention to the Hour chart ONLY. In the past I would go to the 30 min 15 min 5 min charts and they make me NUTS.
The hour chart is for day trading IMHO…anything less will whip you around. look for a good set up every morning and look for a target then get in and watch it .

4…if it is going your way….resolve to NOT lose money in it today…Sometimes you will sell at break even and it will turn around and piss you off as it goes your way without you.
Break Even is a GOOD day …a Profit is a very good Day…a Large Profit is a Great Day…a Small loss is meh…but a big loss is your fault ..learn from it.

5…There will rarely be a day when at the end you wont say…Sh!T I shoulda sold earlier…or I sold too soon or I shoulda bought more or I bought too much….

6…Small bites at first…add if the momentum is building in your favor but sell some if it looks dicey.

7…NEVER HOLD A LARGE POSITION OVERNIGHT…You may get lucky but mostly you will regret it as you watch the futures go against you and lose sleep.

8…Watch closely while you have a position on but if you are getting impatient or bored..step away for a few minutes….often you come back and things are more clear.

9…You don’t have to play every day. Some days there is no obvious set up…take a break…it’s spring !!!

10…Don’t give up your day job if you still have one BUT if you are at home like most of the world is now trading …your own personal way.. can be a great way to pass the time and make some money too.

11..Good Luck…because much of this is luck…no matter how much you study your craft

oh and

12…fear and Greed are your constant companions …observe yourself