How to get started as a day trader

[Music] thank you and hello everyone Welcome to our program I am your host Brian Rogers and it's great to have you with us for investor education month we've already dedicated most of October to helping you figure out your unique situation and who you are as an investor or a Trader and you're going to level up your knowledge no matter what your current skills so we have plenty of free education events throughout the month so be sure to check them out at our calendar of events you can just visit www.td.com I am for more details now we have a fascinating conversation today coming up that's all about day trading if you aren't familiar with day trading it involves involves the buying and selling of stocks within a single trading day in hopes of earning a quick return it's a very active approach geared to individuals with a high risk Tolerance day trading is definitely not for everyone but it can be highly profitable for those who Master it so we're going to learn all about what it takes to get started with this style and some key lessons to keep in mind along the way and joining us is Shea founder of humbled Trader she has more than seven years of experience as a day trader and she shares her approach to day trading on her very successful YouTube channel and with her community of Traders Jay thanks for taking the time to chat with us today thank you thank you Brian hello everyone thanks for joining me today yes I'm really excited to talk to you shay one thing I wanted to mention first I love the humbled trader name so I've watched many of your videos and uh you know you've even said several times you know you see those videos on YouTube where somebody's saying yeah you can get this Lamborghini and then you can also you know have these exotic vacations and it's super easy just take your five minutes to learn how to be a day trader and you said it's not like that it's not that easy um so you were humbled even in the beginning yourself um so yeah what what made you decide to start the humble Trader community and share your experiences day trading um well first of all when I started humble Trader it was just to share some fun videos online um when I first started I was doing some trade reviews and kind of what I think uh the certain stocks are doing in the market some Market sentiment stocks um at the time I was trading a lot of small cap stocks so I should just share my thoughts with them whether they were short squeezes whether the news is just a pump and dump or you know I was just trying to share some ideas out there um so you know I never knew it was gonna grow this big right now the channel is running about 900 000 subscribers and that's you know that's beyond my wildest dream and thank you to everyone who supported me along the way um but I really just want to be out here and sharing some ideas and uh selfishly it was also just because you know I wanted like a creative outlet outside of the market because you know it's it's I'm not saying it's easy easy to make money in trading but it's very difficult to keep it so at the time when I didn't have YouTube I have all the free time in the world right my market closes at you know like 1 pm here local time in Vancouver so I'll trade in the morning I'll be done around nine o'clock and for the rest of the day I'll just throw money back into the market it was really stupid um so that's why I wanted to create YouTube to have a creative outlet and also be a distraction for me from the market so that was my selfish reason for starting the YouTube channel as a side project is a passion and uh you know and it agreed to be like it is today and I'm very proud and very thankful to have everyone supporting me and watching me on the channel well yeah you've definitely built quite about quite a following and I know I'm a fan for sure I've followed quite a few of your videos and I'm excited to ask you a number of questions but before we get to that I just wanted to pull up on the screen and remind our viewers today on how to navigate Best navigate this platform for this webinar today so if you just look down at the bottom you can see there's a video player controllers you can see you have those little icons at the bottom you can look for a number of different resources you have a viewer slide as well you're gonna be able to see slides that we will pull up occasionally you should see myself and Shay on the screen as well and if you continue on through uh through exploring through the console you'll be able to see other things such as um you know tips how to watch other webinars we have more webinars available we also have um questions or comments you can ask those questions and comments so that's what we're really going to enjoy today because we're going to have Shay in the last half hour we're going to go through some questions conversation for about a half hour and then hopefully the last half hour we'll be able to get to all of your questions we'll get as many as possible uh we have this hour-long session and then take a look at the upcoming events down at the bottom you can see there's a couple icons that will show you any of the upcoming events or there's also a survey that we do want you to fill in so just explore through this uh this platform we're trying to pull up some of the slides just to show you the the available resources and things like that so uh if we have the resources we can pull up there and we also have a few other things we've got webinar and Master Class links so there are other classes if you're interested in technical analysis or if you're interested in options trading um other things things that might be mentioned here today we won't have time to go into detail on all some of the things that Shea May mention um she might get into some technical indicators and things like that check out our series of webinars and master classes that we have available for all those different types of topics so that being said let's get back to our conversation Shay I'm excited to ask you these questions and really excited to hear what answers you have for our audience today so first off what made you want to start day trading in the first place College um I was living in Los Angeles at the time and my job at the time wasn't that stable I was working in the film and animation industry so we'll have work sometimes for two three weeks and have two weeks of break it's all gone really short-term contracts so I wanted to make some supplemental income on the side to pay rent and to to just be able to live because although it's really expensive right so that was my entire initial drive to learn day trading I thought you know just like most people I thought it was going to be very easy you know I can make really fast money make Lamborghini money really fast but definitely wasn't the case sadly but that was the initial idea the initial inspiration nice nice we all want that Lamborghini money yes that's interesting you're in the film industry so now maybe one of these days we can look at making a film about the uh day trading I know there's lots of really successful movies that way yeah that'll be fun actually I will find it it sounds good so how would you describe your day trading style and how does it work in a just at a high level yeah so I'm mostly a momentum Trader meaning that I trade high volume High liquidity high range so you know whenever there's any hype stocks in the market for example last year in 2021 we have all the Wall Street beds movement all the mean stocks GameStop AMC um bbby those are the high volume high range stocks I love to trade um both long and short um so that's kind of why I trade so both on the small cap side and the large cap stocks recently this year I've been trading more a lot of the tech stocks um for example Nvidia AMD just because they're so volatile up and down so that's kind of the style I trade okay well what I want to dig into a little bit further with you on that is that what are the some of the must-haves when it comes to investment knowledge so we have a lot of uh viewers and we have uh you know clients that attend classes and things like that they want to know what are the skills and you know what kind of personality and things like that would you need to become a day trader of really active Trader such as yourself yeah so I think to become a day trader because I just want to make it clear that day trading and investing are very different things um investing you're kind of buying and holding right for longer term capital gain for day trading if you use all the skills you learn and investing you're actually gonna lose a lot of money um so you kind of have to have to really realize that okay when you're day trading you're not buying coding for two days two months two years you're literally buying the same day and selling it the same day so you're taking advantage of the short-term volatility um within a single day that's why it's called day trading um so you know some some skills and some personalities you need to have so you need to be very patient as a day trader and to be patient wait for your setups sometimes there will be hours where I don't even take a trade and they're gonna be other days where I place a trade right at the open it's all about patiently waiting for your strategies and for your setups to show up so that's very very different from investing investing kind of just buy it and forget about it for the next two three five years um so it's very different um and also you need to be very disciplined in terms of uh day trading you need to have a set of rules um that you know you need to keep in order to obviously keep your trading Capital safe um you need to be very detail oriented and do your research um and I think you most of all you need a really big appetite for risk so and for those people who are not just you know the lazier well not sure not lazy but you know there's Canada set it and forget it way to invest and you know let your money grow day trading wouldn't be for you because day trading in itself it's a whole business it's it's a career it's a very very active um job so so that's a really big difference there um but I would say day trading you know you have to be ex you have to expect that you are gonna lose money the first six months to a year as you're learning to to get into this profession right it's kind of like going back to school you have to pay your tip tuition so you shouldn't expect to make any money in your first year but once you get through that once you have a certain set of strategies and you learn all the rules we talked about you learn strategies you know how to execute your trades then then it's time to slowly scale up and eventually uh make money whereas in investing you kind of just buy the stock and you know you expect longer term in the five-year Horizon hopefully the investment is positive but it's a much slower growth but day trading you're gonna be read to start um definitely but once you get the the growth potential is exponential yeah I've heard a lot there about the actual you're saying discipline and patience and almost seems like there's a little bit of a School of Hard Knocks there at first too right you're learning as you go is that correct yeah because you know any High income profession like being a lawyer or doctor you have to go to law school you have to go to med school everyone goes into a a lot of debt six figures in student loanstead to learn those skills I'm not saying you need to do that with day trading but you definitely need to pay and like lose some money to learn first and that's what people need to kind of that's the right kind of expectation you need to pay your Market tuition to learn the skill yes the tuition is definitely necessary all right so we have uh and that brings me to the question on you know some beginners might want to quit their full-time job they're seeing these exotic vacations and Lamborghinis we talked about and uh dedicate themselves fully to learning how to day trade why would you caution against this approach yeah please don't do that the best time to learn to day trade is when you're not worried about money but when you're financially stable hopefully um with a keeping a job whether it's part-time or full-time when I was learning day trade I think I was able to keep going at it even though I was losing money for close to two years but it's because I I still have my job at the time even though I hated it the pay wasn't that great even though it wasn't stable but I had that income to pay my bills pay rent so that's the reason I can keep on refunding my trading account to make sure that I really give myself the proper chance to learn and give myself the time if you don't have any income and you just want to quit your job to day trade I think that's a that's a really really big mistake um and you know a lot of people do that and they fail right away and that's it they don't have any money to trade with great words of wisdom and just to that note too there's a quick note for our audience TD direct investing if you're thinking of going through there paying that tuition and and learning and getting that education we do have a lot of free education plenty of webinars master classes on demand videos so anybody that's a TD direct investing client you can learn about technical analysis fundamental analysis understanding Market developments um check out the resources widget on the left hand side in this console today for some of the suggestions and and you can also visit our Learning Center and web broker for all those existing TD direct investing clients and you can browse that library and then you can make that distinction of you know am I a day trader do I like long-term investing but the key is just giving yourself that foundational education for sure so uh in addition to this Jay I wanted to know so what sort of financial preparation do you think is necessary to eventually make the jump into full-time day trading so what kind of money would you would you need I'm sure it's subjective but what would you suggest is there any rules of thumb there yeah um ideally pay off any any um bad debt that you have for example like credit card debt um you know car loans that's technically a bad debt uh mortgage is fine uh I would pay off any you know High interest debt um and also I think the most important part is you know you save up at least six months worth of living expenses outside of your trading account at the time for me I saved that one whole year but I'm just one person you know at the time I was really really young like in my early 20s um so I just saved up my whole year of living expenses outside of the trading account and also those savings are from my employment income so that's another reason you don't want to quit your job um so save up one year six months to one year of living expenses um and also like you know have your finances in order budget making sure that you know exactly what you need to do for the next six months to survive um make sure you have all the all the basic needs met um and then you know make sure you actually can finally focus on day trading full time so give yourself that time and and obviously making sure that you have at least one more two strategies that are profitable for you to to start going into full time with okay so having that emergency fund and making sure you have enough time to allocate to getting started um is there a you know like a starter kit you know if somebody were to sell a starter kit you know how much would you estimate it costs like what are some of the things you would need and you know what are those elements you would want to have to get started in terms of maybe like hardware and and what you want to have at home any any suggestions there yeah so I I know a lot of people ask me that because they see that I have two huge monitors uh you don't have that you don't need that but I would say at least a PC laptop minimum PC laptop or desktop um no you cannot trade on your phone or on your live on your iPad like it doesn't work you need a proper computer laptop um PC not MacBook because nothing runs on MacBook in terms of trading platforms um okay so yeah so one monitor minimum obviously but I think it will be very um helpful if you can you know monitors you can buy like a second-hand use monitor for like 50 bucks now on Facebook Marketplace so buy an external monitor it's gonna help a lot because you can watch a lot more stocks at the same time um so that would be ideal if not that's fine but yeah just a laptop laptop um one monitor external if you can and a desktop bro career platform and I think minimum five thousand dollars in your trading account minimum right right so speaking on the topic of money I want to try and maybe save some of our viewers a little bit of money I have a son that's in University right now and I know that tuition can be expensive so going back to what you were referring to on that you have to pay your tuition right you have that uh Azure learning and that's to be expected you're going to have some losses you know how were you able to hone your trading Knowledge and Skills without risking a lot of money when you first started day trading was that is or is that actually impossible oh it's absolutely possible so this is where you know before in the first six months um you need to trade very very small so instead of risking a thousand two thousand dollars I was risking ten dollars twenty dollars so when I lose I lose twenty dollars it sucks but twenty dollars very much recoverable and once again like I said we're just taking the first six months to a year as your Market tuition right you're paying that twenty dollars per day or ten dollars per day to learn how to trade so you are paying that money to watch the stocks go up hold back you know watch enough for a proper execution you're practicing oh where is the best place to enter the goal is never to make money in your first six months to a year the goal is just to learn the proper ways to set up your charts know what stocks relate to each other know what to do when a stock goes against you how do you practice you know stopping out how to practice uh letting your winners run that's all you're doing the first year you're not gonna make money we established that but you can really much control how much you lose that first year if you're risking only ten dollars twenty dollars per day you're not gonna blow up a five thousand dollars account I never even thought of that on controlling the amount you lose that's I like that angle yeah for sure so what does your average workday look like for you would you walk us through that process eh um so nowadays uh I wake up because I'm on on the west coast so I wake up about 4 30 a.m my local time uh I kind of eat breakfast stretch exercise for about 30 minutes so at 5am my local time which is eight o'clock in the morning Market time um that's why I get to my desk start looking through all the news I'm looking at the charts look at all my scanners and pick out stocks that potentially interest me so usually it starts with a list of 10 stocks and I'll narrow it down to four to five um for my watch list so from about um 8 30 Market time which is my 5 30 to 6 o'clock um that's the time where actually go um live with my community members and I'll go over my plans for the day go over the 04 of the watch list stocks I go over the why right we need to analyze the news we need to learn to look at how it's gapping up we're gapping down Primark my kids we need to talk about the key levels on The Daily charts and the potential setups whether it's a long or a short so that's all the preparation it's in the first sorry I say yeah the one that one hour so by six o'clock which is nine a.m um eastern time I'm pretty much done prepping for the day so I have the next 30 minutes you just kind of observe and kind of see what else is going on and to get ready to place my trades um after market opens okay yeah once again we always hear that all the time you know you fail to plan then you plan to fail right you have a plan every day it looks like yeah every day it should be good because you want to make it so most of the decision making happens before you get into the trades right a lot of new Traders they they get in the stock first and they worry about what to do after you need to do the office pit plan out everything entry exit risk management stops do all that before you enter the stock you're going to be you're gonna be able to do so much better as a Trader if you do that yes well and I want to delve into that a little bit further so on the trading plan so you mentioned this creating a trading plan for all of your trades why is this so important in your view and and what does a good trading plan look like are you able to give us a sample or an outline yeah so a good trading plan should be something where let's say I'm long biased on the stock let's say if I'm long on The Daily breakout let's say let's say the stock is breaking through daily resistance so I think it's a long so that's your plan right your plan is if the stock breaks through that key resistance then it's a loan so in reality after the Market opens then you can watch whether the stock actually breaks to that key level you're talking about and pull back consolidate hold the ball that just hypothetically say ten dollars level and go higher if it does do that then that's a proper setup then you can actually go long on that pullback but if the stock just pops to ten dollars rejects back to 920 then it's probably not long anymore I think it's probably a short so it's important to have essentially you want to know the perfect scenario of what your trade should look like if it goes according to your plan and you need to know what it should not look like meaning that you need to know when you should bail on the trade or you should flip your bias or leave it alone so that's what a plan does essentially you need to know the key level long or short you need to know what the chart should look like you need to know what it looks like when it's successfully broken out and what it shouldn't look like meaning that if it fails then you shouldn't go long so half of the battle in trading is knowing when not to place a trade so that's that's why you know it's important to know that as a Trader right right okay knowing is always half the battle for sure we definitely know that uh well speaking of which I know I've watched some of your videos before and you just made me think of the fact that I think it's something that's really important for viewers as well especially any of those newer investors you had mentioned in there you were saying going long a train or going shorter trade I know I think we have some slides on there that have some of those definitions but can you help us on because that's a really key element in day trading on the fact that I think a lot of people think well if the markets are down I can't day trade because you know when I make money if the Stock's going down all the time can you help us you know elaborate a little bit on that idea of Short Selling so you were saying you go along a position and then maybe you can go short so you can go in different directions within a day is that right yeah for sure um and I would say 2022 this year has been really good for short selling because obviously my kid's selling off um so short selling means that instead of buying a stock from a broker you're borrowing a stock from a broker to sell it to someone else so I can borrow a stock on TD and sell it to Bob so I'm shorting the stock that I don't own I'm selling something I don't own and I can buy it back lower when the stock drops from let's say ten dollars down to five dollars think I buy it back you got profit from the difference so that's Short Selling um you're essentially betting a stock is going to go lower okay all right well if I kind of go into that a little bit further do you have a sort of research or Preparation so you know if you're looking at okay I'm going to go long you mentioned the video earlier a stock Link in a video I was going to go long in this instance or it might go short today when you're preparing your plan what sort of research and preparation do you do to identify potential stocks to trade and the types of Trades that might make might make sense in that particular instance yeah so um what I do is I usually pick out stocks from like a scanner so the stocks gapping up or gapping down uh but if it's something like a media which is a stock that generally just trades with the market then then I'll look at what the market sentiment is like that day for example this morning everything was really polish and videos breaking out AMD was breaking out the entire Tech S P 500 is breaking out so I follow the market right if the market is going up higher and breaking through all the all the recent resistance and Nvidia tends to do the same thing I'll be more lawn biased if I'm short on video like a day like today I'll be like jumping in front of the train so I don't want to do that so it depends on the stock um but usually but for stuff like Nvidia which very much follows the market that's what I would be doing I'll be seeing what the Market's doing and looking to go long on media okay yeah that's something I you know I definitely would consider the the same thing I like that that idea so there are times you've said you like to utilize price action versus uh using you know technical analysis too much but you do some technical indicators um what would be some of those in terms of what are some technical indicators you most frequently use as a you know as a beginner to help you execute your trades so those that are in the audience what's something that they could use to help identify those uh trading moves mm-hmm um so in the beginning in the beginning stages I tried out a lot of different indicators um by a fine working the best for any newer traders who want to try into day trade uh try day training day trading um volume is one I use volume and I use like a volume moving average at the bottom of the chart um yeah that's what it looks like on the screen so at the bottom there's a volume bars I also use a volume average um I use the 13 day um and in the actual um stock chart I use v-wap a pink line over there voting weighted average price so I use that to gauge the trend of the stock and also how strong the stock is because it's taking into consideration the volume on the day as well as the price so on the average this stock rblx the the v-wab on the days 42 40s according to that screenshot for that day so as long as the stock is stay above the web and holding up higher lows then the stock is trending it's really bullish the moment it breaks down and States believe what that's when I'll get a little bit more short biased because a stock is unable to hold the breakout um essentially um so I use I still use V web and volume um I don't use the other one as RSI I don't use that one personally anymore but it really helped me out a lot when I first started which is the the little bar at the very bottom the the neat volume so it measures when a stock might be overbought or oversold so it's something you can use to gauge potential reversal on the stock um so zero to I set it to zero to one e so just oversold meaning the stock has sold off too much it could eventually bounce but it could right it doesn't have to um 80 to 100 just suggests the stock is overbought meaning it's it's um spiked up too high and can potentially get a pullback soon um so that's what's that's how it helped me a little bit when I first started trading um but I think you know in the beginning it's fine to use all these indicators but eventually you want to focus on just the charts and the volume if you want to be a day trader just to look at the price action yeah I believe the secret is to get started on these two right using these and seeing what happens when you're using these different indicators and that you know as you said with RSI you may not use that any longer but it's something that you were that was part of your education and you learned as you were testing that out on the on the system is that right yeah yeah at first you rely on them and then eventually you you try out okay what if I you know look at it less and because all the indicators are a little bit lagging right most of the indicators are and same as v-wap and RSI but it's it still helps but you don't want to rely too heavily on them right right there you have it there's uh it was in 30 minutes or less to teach us everything she knows about uh day trading I don't know if we got to everything Shadow there's a lot more knowledge there that we didn't get today um that's why we do have we do have questions from our viewers so you're all right to stay and uh answer as many as possible are you are you ready for that are you excited uh yeah let's go let's see what we get okay so we're gonna put up some uh poll question so let's see what we've got here we've got a question that say which would you like shade to answer so this is because we often sometimes get you know hundreds and hundreds of questions from our viewers we have our people in the background putting together some of the top questions so if you guys can vote on those so anybody if you haven't started voting yet out of our audience click on take a a moment to read those and and see what you would want to consider as the most important question you want to ask Shay so as an example if you're reading down the list what is your average hold time for a trade you know for day trading do you look at fundamentals or focus on technical what are the best books on technical analysis and day trading and I really like that one how long do you usually wait after opening after opening before you take a trade so after the opening bell and they leave is what they're asking and do you consider dividends and dividend stocks when day trading so we'll wait a moment here for your votes so we've got a few coming through and then keep your questions coming too so as I said we may not be able to get to all of them we have about a half hour of Shane's time to uh to pick her brain on whatever questions you have and uh yeah we'll get the ones that we can uh we think the audience is most interested in seeing but yeah put in whatever you uh we like and we'll see what we can we can get to all right so just as we're waiting for some of those polls to come through I think I'm going to grab another question here as well let me see if I can get this we have a question from Omar which is what were the most important lessons or tips that you that your Mentor taught you so we didn't even talk about any mentors that's a great question so what are some of the lessons or tips that your Mentor taught you that you would have never learned or realized yourself yeah I think um risk management is the most important thing about day trading because in the I think most people did this and I did too in my first year all I was focused on was finding out one perfect strategy while finding a strategy that's gonna work 100 of the time or 90 of the time when in fact day trading I think this is also what my own opinion I think what matters more in trading it's not your strategy strategies are great don't get me wrong I have a set of different strategies I trade every day long and shorts but that's it's not what matters the most what matters the most is risk management especially this year I know too many traders who have you know High win rate but this year they don't have risk management and they lose everything so risk management meaning that you control your risk so something we talked about earlier you know which is why I think all the beginner Traders should start in the in their first years focus on the risk management how to stop out how to make sure when you lose money you're only losing 10 20 dollars and when you make money your your gains are two times three times more than your losses that's the most important thing to start practicing early on with a small amount of money just do it with ten dollars so when you lose lose ten dollars we make ideal to you let your trades right out to make twenty thirty dollars so I think that's the most important thing it's not so much about the perfect strategy the perfect indicator it's about managing a risk and stopping out all right so Lessons Learned From The MENTOR for sure all right so we have a really simple question for you now Shane it's from uh riazat and he's saying how many stocks do you trade in a day it depends on how many stocks are breaking out we'll have by high volume or have good range on the day so today I traded probably four different stocks but they're going to be days where I only trade one uh last year I was really busy there are days where I have 20 positions so it really depends on them on the day on what the markets like depends on if you want to keep your sanity too right yes yeah it depends on if you want to go to bed when I go to sleep if I don't want to sleep just yes you have to be able to sleep at night for sure yes so if you can see on the screen on right now we've got our poll results and it looks like we've got some winners on the the questions I would say there is a tie oh there's a tie for sure so let's go to the top one so what is your average hold time for a train I like that average hold time I think I would say about 20 30 minutes yeah it's not very long absolutely it goes quick speaking of which since we that was a quick answer which I love that uh we've got that other tie let's ask that one as well so how long do you usually wait after the opening before you take a trade how the trades are setting up um for example today I waited hold 30 minutes but there are days where at the open there was a trade so on average I would say I usually wait 15 minutes um but it's it's the same as the you know how many stocks do you trade in a day question it depends on the day so today I waited probably 30 minutes okay yeah this is what a question for me just to follow up on that is do you trade in the after hours you to take part in the pre-market or the after session um not so much so much um this year pre-market volume hasn't been the best so not a lot of Trades pre-market this year uh but I would say last year oh my God last year you know instead of waking up at 4 30 I wake up at three so it was a lot of pre-market trading last year a lot of volume a lot of range um this year just waking up at 4 30 is enough well that's another caveat for our viewers on the west coast you have to get up early to be a day trader really early all right so I have one more from the poll that I want to take a look at is for day trading do you look at fundamentals or do you focus on technical analysis and Trends purely let's say for small cap stock unfortunately the fundamentals doesn't matter as much so small caps that mostly just trade technical analysis and trends for a large cap stocks this year the fundamentals does matter a lot for example right now we're in earning season so tomorrow I'm gonna be looking at Google and Microsoft I'm gonna be reading into the earnings report and know the fundamentals of what they're projecting for next quarter so that matters a lot if I'm day trading those specific stocks um but generally speaking if my fundamentals matter Less in day trading when compared to investing um generally speaking when you the the less time you're holding a stock the less the fundamentals matter but in day trading I would say for large cap stocks at least I still read into the fundamentals as well as the technicals okay so to dive into that even a little bit further I've got a question from Darman I think May apply to what you were just saying so if you buy a stock and see the potential for the stock to continue moving higher do you hold on or do you still close the trade at the end of the day so does day trading lead to missed opportunities on uh he's got on here on Multi bagger stocks so I don't know if I've heard that term before but I like it so so the so like uh so for is he saying like uh there's like a second date breakout potentially yeah I think he's looking at is there are you missing out on opportunities if you do close during the day and I think he's also asking are there instances where you may hold it longer than a day oh yeah yeah there are so I would say this year it's a bit tougher for swing trading um so what I used to do is yeah if I I'll close I'd say half a position by end of the day and hold on to the half for the next day you either have a huge gap up continuation breakout and so into that um but this year it's been 50 50. I've been trying that out this year it's it hasn't worked out the best whether by Swing stocks I find the success rate of any overnight is less than 50 percent this year so I'd rather just close it all out because you know you can look at it today the market closed out nice QQQ at highs Spire highs and after hours after Google and Microsoft earnings everything just tanked so this year is definitely a lot tougher to trade and to hold your swings so for me to answer that question this year I'm okay missing out on some potential upside to protect my downside so this year you have to play safe this year right yeah it depends on that environment I agree Victor is kind of one of those situations where we mentioned fundamental analysis that you do some of it occasionally you said you may not all the time look at fundamentals he's saying could you trade without knowing what the stock is so I'm assuming he's meaning you're going to know the symbol but knowing you know what do they do what's their fundamentals and could you just trade off of the chart yeah technically you can if the chart is very clear so let's say you know a stock for example is going parabolic there's a trade there and I sometimes don't I don't I usually still kind of check what the float is what the uh what sector is in um I still really quickly look but technically speaking you on some setups you only need to see the chart to trade the stock okay I wouldn't say do that all the time but if the chart is very clear it's clearly a dip buy then yeah when you say parabolic what do you mean there so parabolic is also a price action term where the stock just goes straight up from that's a dollar to two dollars to 10 to 20 with no pullback uh that's parabolic and they can do that for like 30 minutes straight all going up up okay all right and how do you identify resistance levels this is a question from Ivy which I think ties in really well right here uh resistance levels are basically the previous areas on the chart I usually look at a daily chart that the stock has sold off so how do you identify it as to zoom out of your chart go to the daily chart scroll back maybe two months ago two two years ago to find the previous areas where you have high volume on the selling side um on the peak let's say a stock broke out to thirty dollars and since then sold off to 20. then that thirty dollars probably gonna be a resistance ah nice all right so we want to go jump back to the poll questions I think we still have some poll questions here that we may be able to get to so out of our voting we have eyes these are new sets so we've got our large caps only affected by institutional traders that one didn't get us quite as much vote so down at the bottom I have what are four places where to look for stocks to trade um I'll give you three that could be three I'm sure yeah so um so what I do is I have a stock scanner basically you can look at all the stocks as gapping up on the day um so by percentage I just sorted by percentage and I see the volume so for example this morning I believe um what's that stock was gapping up um and the GM was gapping up this morning a show that I'm a scanner and so did um Logitech because they both had really good earnings so I see that my scanner so scanner that's the first place second place is just one news so I have a news wire specifically for trading um so it shows all the major headlines uh for example uh certain stock is flying because they have FDA approval so that's the news headline I see the stock and look at it hey I can probably trade it so scanner technically the gappers new used fundamentally the news headlines and third is sometimes I just look at ideas from my trading community so I have a Discord Community with a humble Trader community and we have a lot of Traders throwing up ideas there so I look at it I know that Trader is really good at going long then I see he has an idea ABC and I'll look at the stock oh maybe I was doing it for like a long on the dips same thing on short short selling we have a lot of really good short sellers I see the mentioned a penny stock ABC I look at it okay I really want to short it as well so those are the three top places to find stocks to trade all right we got three that's that's good enough for me so we have uh we have the scanners and then you add news so like a streaming news portal like we have those within our thinkorswim platform for example and the scans as well and web broker and thinkorswim and then uh lastly you're saying any kind of community as well you can get some ideas from from your community personally right yes all right so we also have let's look at one other question in the poll here so what is the average percentage to make in a day if you're going to be end up working from home as a day trader doing homework or does it just mean working from home yeah I don't think they may do any homework like school work or anything like that I believe they're saying uh yeah to get yourself home as a day trader is what my interpretation was what kind of percentage would you need to be able to I guess go to that earlier question and be able to quit your job and and make it as a day trader so percentage is tough to say because I can say it's good to risk only one person per day so one percent of your entire account that's your risk for the day how about about how much money you can make it depends on what the market gives you right some days you risk one percent you can make two three percent some days it sucks you risk one percent and you really do lose one percent so it really depends on what the market gives you and percentage is different right I can be trading a six figure account one percent is one thousand dollars lost that's fine for me but somebody else can be Trading a ten thousand dollars account and one percent is a hundred dollars so it really depends um on what kind of capital you're working with uh but I would say if you wanna at least for me well I started making a full-time income I was trading with a twenty thousand dollars account 20 000 U.S but again you don't start having

a twenty thousand dollars account you like start with five thousand solely build it up you may lose some but eventually you want to work towards having that twenty thirty thousand dollars account to trade with right right so when it comes down to income I know we were asking that question in terms of percentage did you have a time when you were as a day trader that you looked at okay I need to get this amount of money maybe just to replace your your daily income or your weekly income did you have any scenarios like that at one point Jay yeah uh I was making around two times my income from work but I I wasn't making that much money from work so yeah so when I was starting to make two times a month away I usually make at work then that's the time to start prepping for me um at the time I was saying that oh I was consistently doing this now it's the time to start saving up that one year of living expense and once I saved up and I'm still doing well as a Trader part-time then I was ready to quit to become full-time Trading okay so we have one of these analytical questions from my it looks like Sue Long asking in one day how many transactions will you trade in and out oh I hate to say it again but it also depends on the day so for example today I probably traded 30 different trades today so that's 30 different transactions buy and sell uh so that's today but I know yesterday I traded a little bit less yesterday I think I traded only 10 different transactions so it's five buys five cells so it really depends last year there are days where I traded like hundreds of transactions in a day okay so on those transactions though Jenny has a question that relates pretty well to this is is it with one stock do you focus on or do you trade multiple stocks like how many would you typically um Venture towards in a day uh so for example today I traded five four four or five stocks um so there are some stocks that scale into one some stock that's about one entry went entry out yeah but the days were so slow that I just trade one ticker and and you know one entry in one entry Bill and that's it do you follow your this is another question from Victor that I just noticed do you look at your profit and loss while trading or do you just make sure you execute well so I think um it's a good idea to hide your p l window at the beginning I think it's a good idea that's a really good idea and I did that too um but after a while it just makes more sense for me to know exactly because you have to understand like if well if you're trading a larger account size at some point you need to care about how much unrealized you're in so nowadays I do look but I do look just to know that okay I need to take care of my risk how much money I'm about to lose or make I need to take care of that um so I do keep it there but not to but right now I keep it there because it's not gonna I'm not gonna make any um irrational decisions just from seeing let's say a thousand dollars read unrealized nowadays for me to start realizing okay I need to have to scale out we'll add into my position so how nowadays I do keep my p l up but in the beginning I would avoid it because it used to make me really emotional now it's not about the emotional side it's about okay what I need to do to to reduce the risk to scale up or size down right right I know I would never ask this question to my wife but Michael's asking me to ask you this question how often are you wrong every day including you're not it's impossible for anyone to be right 100 of the time all the time so that's why I said it's about it's okay to be wrong but when you're wrong I want to lose very little so I can be wrong but I lose only a hundred dollars but why am I right I want to make 300 500 so it's fine like today I I was wrong on a couple of other stocks and that's fine I took it for a loss but I was able to make make the trades work for the ones that I'm writings and capitalize on that so in trading it's not about never lose money it's about making sure you only lose a small amount when you lose let's say ten dollars like we said earlier but when you are when you're agreeing when you're right you make thirty dollars forty dollars that's what trading is about it's not about being right all the time because when I win rate is only 60 percent 60 win rate that means on the sixty percent of the time I make money the gains are two times three times more than 40 percent of the time when I'm wrong yeah and making those mistakes as part of that tuition we talked about earlier right you definitely learn from your mistakes yeah you have to anybody out there like sports analogies if you're a baseball fan you know like a Hall of Famer is somebody that can hit the the ball hit a home run three out of ten times right so if you're only running a few times that uh that definitely helps all right so we have the we have another set of poll polls coming up here so some results that we're showing on the screen now uh so let's take a look at the most popular one there so what is your stop loss strategy so like if you can explain to the group too what that is what is your stop-loss strategy manual or trailing is what the question is yeah um so usually I do manual there are only specific setups where I let them Trail um so most of the trend joining setups long or short I'll let them Trail um but if it's a lot of momentum strategies I I like to be there to either stop out or to take profit um so it depends on the setup but I would say most of the time it's manual uh unless I'm letting it I have to step away I have to have a market stop to stop out of my positions okay so you're using a stock market so either you're either there doing the trade yourself where you're going to just close it out like I've seen you do that on some of your videos um close it out manually is what you're saying or you might use just like a stock market order if you didn't have that time to be sitting there manually and you were worried about a drop is that correct yeah all right so what's your opinion on options trading uh I think it's fine um it's not I know it's not for me um but I think my opinion of options is I think you need to all the best options Traders I know came from stock trading so at least they know how to read the stock charts they at least they know how to you know how to see when a chart is bullish that's that's the best options Traders I know the the options Trader I know where they don't even you know learn about charts they just don't jump straight into options and uh unfortunately last year it became really popular with the Wall Street betsyolos YOLO calls they call it uh unfortunately you know last year it probably worked really well but most of those people this year they blew up I think options it's I think it's fine like if you know how to trade it trade it but I would say it's riskier than trading stock yeah it takes a lot of knowledge on the options and you should learn I think you're right learn that Foundation of stock trading then move on to options but uh yeah that's that was a great question on should I get a coach or find a system online that's the next kind of most popular one on the poll or should I just try random setups to start so I think I think it's okay to just try out in the beginning but I think what you're gonna find is that nowadays it's not the lack of information right online and you go on any YouTube video you can find someone else's strategy or you can find like you said a random setup to start but what man what what but why trading is so hard nowadays is because you don't have a structure it's hard to find a structure to go step by step from a strategy can be teaching you let's say I teach you a parabolic short how are you gonna know what a parabolic short is if you don't know how to read the charts so knowing out there is going to give you the system step by step unless you're in an actual program so I would say you know try out the random stuff stuff online I have a lot of free YouTube videos for you to start but I have a playlist in the order I think people should start you can start with that if that's what you like um but I would say you know in the beginning stages a lot of people they they get lost because it's there's just too much information right you don't know how to go from point A B C instead you can be starting from you know EF said so that's why it's hard in trading it's there's too much information out there um and you know I'm not saying my videos are gonna be the answer but I would like to think that okay I think I have a lot of beginner friendly videos in the structured way so that would be under as a humbled Trader if you just looked on YouTube typed in Humble Trader is that where you would find that list yeah so if you go to my my YouTube channel and go to playlist this day trading for beginners playlist and then it should be in the order that I think people should watch all right so going back to Reddit and Wall Street bets I'm kind of glad you mentioned that because this fits in with a question from Sheila saying you know have you ever shorted a stock that went the opposite direction so a lot of people that if you don't know there's that Wall Street bet situation with a gme GameStop where you know it went the opposite direction it went way up when a lot of the market was trying to the big players in the market were trying to short that stock has that ever happened to you have that had that situation before Shay um yeah I got short squeezed yes that has happened all right can you elaborate on that just so those that may not know what is what is the short squeeze what happens in that situation so a short squeeze is uh so for example like I'm shorting a stock at 100 let's say thinking it's going down to 90. so if that's the case and the stock does go down um to 90 then I profit the 10 difference right so if I'm sure it's a thousand dollars I make ten thousand if I'm short a thousand dollars I make ten thousand dollars sorry I had to do a math yeah so but it's a stock instead of going down from 100 to 90 it goes to 200 let's say it does that and let's say for some reason I don't have risk management I don't stop out then I lose a hundred thousand dollars I'm not short so that's why short telling is risky because technically your risk is infinite right when you buy a stock at the hundred the lowest it can go is zero the worst you can lose is a hundred dollars on one share of a stock but if a stock should squeezes and go to the 100 to 500 to a thousand my risk is technically infinite so that's why it's risky that's why if you want to sell a stock you need to be really good at managing your risk and step out of your trades yeah that risk management comes up a lot it is definitely a really important thing that brings me to our last question I think we're going to be able to squeeze in here within the time you've been so great I really appreciate all this what is your top advice for a beginner and this is a question from Muhammad my top for beginners uh my my opinion for you is if you if you're really serious about this I mean first of all I think every let's say everyone here is interested in trading I would try out all the free resources you can so sign up for a free paper trading account I know TD offers it uh a lot of other Brokers offer it sign up for a free paper trading account Watch the free videos on my YouTube channel you're not gonna lose any money that way watch your free YouTube videos Try It Out On simulated trading that's paper trading so you're trading fake money essentially and see if it's ready for you try it out first and buy that process I guarantee you ninety percent of the people here will be thinking oh there's too much work it's not for me and that's fine you're not losing any money you're just losing time that's that's fine um so I will do that first right making sure this is actually something you want to do before you commit to paying any money market tuition or you know assignment out for Brokers or anything else so that's the first step and then you know once you have those paper trading account then you know try out some strategies online pick one or two strategies you either find online or you can you know consider joining a community like like my community for example if that's what you're interested um because then you can trade along other professionals and you can learn how to create your trading plan and to eventually make your own decisions um that's why I was recommend I would be very careful about people who live stream online whether I don't live stream for that reason whether it's a free online stream or paid streams I'll be very cautious upon those ideas um I got sucked into those in the beginning I lost a lot of money um essentially buying and sell following alerts I'll be very wary of that um but day trading is trial by fire You're Gonna Learn what works for you and uh and what not to do hopefully all right there you have it so you can you can try a paper money account so paper training those if you don't know what it is is that where you can do some fake investing uh so you're using the actual real Market but you're just doing it on a paper basis right you're just doing practice trades we do have that available with think or Swim Canada so if you type in thinkorswim Canada and Google you'll get the link right away it should come up on the top and you can dow

2022-11-02 06:08

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