Learning day trading
Pick the right stocks for the day Make sure your odds are good, for example 1:2 ( bet 1 to get 2 ) this makes your odds of break even at 33% bet, get, result 1 2 0 1 2 0 1 2 2 -> break even
1 3 0 1 3 0 1 3 0 1 3 3 -> break even
the problem might be getting 3x return would be hard - I am not sure how even getting 2x return is possible
Focus on Accuracy and Profit to Loss ratio Trade only in high quality stocks - something which I also beleive in By trading in high quality stocks you increase your accuracy by default Good accuracy is the baseline on which good feedback loop builds
Criterion for stock selection Indicators of High Demand and Low Supply
- Demand: Already up 10% on the day
- Demand: 5x Relative volume ( 5x above average volume today )
- Demand: There is a news event moving the stock higher
- Demand: Most day traders prefer $2 - $20
- Supply: Less than 10 million shares available to trade ref: https://www.youtube.com/watch?v=m5zu_X-_51I