“A Basic Look into Day Trading”

 When I first got into trading, I thought it was looking through financial statements all day. There are some types of traders that do, but I am mostly a day trader. Day traders mostly look for catalyst and/or momentum and/or stocks that may lose momentum to short, but we rarely go through financials in depth. We do pay attention to the environment of the market for example the VIX, SPY, and sectors etc.  I am going to tell you a secret.  A company can be a great company but if there’s no buyers, is their stock really worth anything?  It is like saying, your house is worth 200k but no one’s willing buy it, is your house really worth 200k? The share price is only worth as much as someone is willing to pay for it, PERIOD.  Therefore, the name of the game is what are people

looking at and thinking, and where they are putting their stop orders or cover.  Remember, this is just a general post. People think trading is driving nice cars, hot woman, and more money than you can spend.  Here is a news flash for you.  Most real traders live very humble.  Could you have great things when you become a great trader?  The answer is yes, but you have to go through hell before this happens.  When I mean go through hell, I mean it. I tell people if they want to trade, jump off a two story building and slam your face into the concrete ten times, and see if you want to jump the eleventh time. Myself, I think I’m on my 50^th jump. You will lose some money at first.  Most traders call this tuition.  I advise you to paper trade first.  Once you get good enough paper trading, try to trade small amounts of real money, so you can practice controlling your emotions.  Real money is harder than paper trading. Some new traders may get lucky on one stock, and think they can do it for a living. They think they have the market down. Most new traders will lose their profit they gained because they do not know what it takes to be a real trader, and/or they think they know everything.  Trading is a humble lifestyle.  I say humble is because it is a probability game.  YOU WILL ALWAYS LOSE.  IT IS ABOUT YOUR WINNERS RUN MORE THAN YOUR LOSERS.  When I mean that, you need a strategy that will have a ratio of 3:1. The hardest part as a trader is controlling your losses. Most have a hard time doing this because they think they are always right. You will find your personality real fast trading. You will find your weak points and your strong points. If you cannot say you are wrong and cut your losses fast, you need a new profession.  You will lose all your money if you think you will be right all the time. Another point is, if a trader is on the internet or social media during the trading hours showing their fast cars or their big mansion, he/she is not a real trader.  They are a sale person selling you a dream, not a skill.  They are on the internet during hours because it's how they make money, not trading.  There are many traders out there that love to trade and talk about it. You just have to find them. Therefore, when you start trading, do it because you love it not because you think you will get rich overnight.  It can be extremely satisfying, but you have to have great discipline and love what you do. There is a small % of people that can trade for a living. I have always looked at myself as different, and I can do anything. You have to have the same mentality. It just takes finding yourself and the right strategy.  Here is a brief intro into trading.  I will be posting more detailed blogs later. I just want people to see from the start and not jump into the complex part.  Have a great week everyone.

Jesse Crow  

 Link for paper trading software: https://www.thinkorswim.com/t/pm-registration.html