Friday, November 16, 2018: Volatility Equals Day Trading Opportunities




Markets Finally Rebounded Yesterday, But…

DOW +208.77—-NASDAQ +122.64—-SP500 +28.62—-NYSE +86.03




Portfolio Leaders: BA, ISRG, SHOP
Portfolio Laggards: MA, MSFT, T

So, after the markets had tumbled for 5-6 days in a row, yesterday finally saw a rebound of decent proportions. Although, we still have a long way to go to get back to October 1st levels.

This morning, market futures are showing red once again, but the increased volatility in the markets could bring us back in the green later in the day. You just never know with this current stock market under the current administration.

But some analysts predict that we will not see any major rebound until after Thanksgiving. Which is logical, since next week tends to be a slow time in the stock market just prior to Thanksgiving and as investors go on long extended travels until the following week.

So, I look to the beginning of December to watch for a rebound.




Day Trading Notes

In the middle of October 2018, I made the official decision to become a Pattern Day Trader.

I think it takes some serious commitment to begin Day Trading, as 1) you need at least $25,000 in cash (many brokers require a balance of at least $25K) and 2) nerves of steel and a very calm persona.

To be honest, I’ve been trading stocks for more than 10 years now, mostly as a long term holder and position trader. But now that I’m using a sophisticated trading platform, I thought it was time to day trade while managing short-term and long-term investing. This trifecta strategy (if you will) assures that I am not just risking all assets for day trading. Day Trading is just one aspect of my entire stock trading strategy.

One big thing that I’m learning about Day Trading is that when you buy and sell stock within a trading session, the funds need to settle after the trade, and this will take a couple of days. So it’s important to keep a rotation of cash so that you have available funds each day for trading, and you don’t miss out on any opportunities because you’re waiting for funds to settle.

The most important thing is to have an entry and exit strategy, and stick to it. That way, you are assured to always make money because you have a strategy that works every time. Getting too greedy can get a day trader into trouble. And I never use a margin account where I borrow funds from the broker. In my opinion that’s just asking for trouble. Manage your own cash.

More later…

Randomguru’s Top Three Stocks

Boeing (BA)
finviz dynamic chart for  BA
Shopify (SHOP)
finviz dynamic chart for  SHOP
Intuitive Surgical (ISRG)
finviz dynamic chart for  ISRG

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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