Day Trading Rules and Guidelines: Stock Whisperer Edition




There Is No Spoon

First off. Read my disclaimer below.

Secondly, I don’t advise anyone to just jump into Day Trading. It took me more than 10 years to officially become a pattern day trader, as I have always read about the risks. You know, “You’ll lose all your money!”

The thing is, it takes a certain mindset to day trade, and I believe that yoga and meditation have been a large part of my day trading success. Because you have to be very patient, and you have to keep an even, level head about the whole concept of day trading before beginning.

And, that’s why I would never recommend anyone just jump in and start doing it. Because you WILL make a mistake, and you could lose all your money if you don’t know anything about risk management and how to manage your entire portfolio, to begin with.

The path is paved with many potholes along the way, so making small mistakes is better than making a huge mistake and then feeling disillusioned about the entire process.

And the whole thing is a learning process, and it may take time.




Adaptation, Improvisation

I can’t express this any more clearly than the Zen quotes from The Matrix.

Adaptation. Improvisation.

That is what typically gets me through day trading, because like my experience as a jazz drummer, day trading happens in real-time!

As the bid and ask calls are being made, these transactions occur extremely fast and in real-time. So, capturing quick uptrends within 10 minutes to an hour is what day trading for me is all about.

And my strategy is Zen-like… simple.

I do nothing but look for stocks that are in a dip for the day. And I buy on that dip and ride the wave upward. I sell when resistance at the top begins to waver. And that’s it!

Zen simplicity.

I don’t do anything else like options or short a stock. Keeping it simple helps me stay uncluttered within my mind.

And if you do one thing repeatedly. You get really good at it, no?




Morning Routines and Daily Rituals

I try to wake up about an hour before the stock market opens. On the West Coast that is 5:30am in the morning since the stock market opens at 6:30am.

I go through a morning ritual of making my raw cacao smoothie, opening the shutters and just getting a nice start to my day. Sometimes, I enjoy the sunrise (this can be important).

Then I simply read the stock market news and see how the DOW Futures are doing, if they will rise, if they will fall… I also watch CNBC in the mornings. It’s part of my trading platform. And I look for upbeat news on key stocks.

For instance, Starbucks recently reported strong quarterly earnings and the stock was set to surge. I made $470 within that first 10 minutes of trading! Those are the news info you need to look for.

On a typical day, I work on the stock market no more than 2 hours. I might randomly do some research as I’m doing various tasks on my computer, but I’m multi-tasking all the time throughout the day, so I don’t count those as solid working hours for trading.

The ideal scenario is to profit nicely within an hour of trading, after doing an hour of research. I make my money for the day, then I’m free to do other things for the remainder of the day.

I never liked the 9 to 5 routine, but I work very hard at what I do. The whole thing is to work smarter. Make more money in the least amount of time spent working.

More on this later…




Disclaimer: The content provided here is for information and entertainment purposes only. It is not intended as an offer or solicitation to purchase any investment. And this material should not be taken as investment advice, since investors’ needs and strategies may vary. Investing in equities is subject to extreme volatility.
Trade at your own risk.

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Carlos Rull

Carlos Rull is a musician living in the San Diego area. His interests include Yoga, Eastern Philosophy, Zen Buddhism, and Gardening. He plays drums, piano, and composes New Age & Ambient music, and his albums are available on iTunes and Amazon.com.

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