Home > Lessons from the trading floor > day trading extreme volatility

day trading extreme volatility

Day trading and investing to the casual observer can seem very similar. See a trade execute the trade and see what happens. Nothing to it.

When I teach our Equity Trader 101 class I make it clear to everyone who has never watched the stock market on a full time basis they are in for a shock when they see how fast intra day trends and market sentiment can change on a dime. Not only can those trends change quickly but then in order to make a living from those changes they must be prepared to make instantaneous confident decisions.

My background has a deep history in baseball, I played hardball until I was 37 years old. Many of my friends played softball, and any time they got a team together for a league I was always the first person they would call when the winter was over. I always said thanks but no thanks. Why? Because to me baseball is a sport, softball is like watching paint dry. Day trading and investing are similar. I am not saying anything bad about investing, I am comparing the necessity to make quick decisions.

I am comparing the thrill of being prepared and seeing the results of that preparation playing out immediately. I am talking about having a strategy and testing it out with immediate results, profitable or not you can make swift changes to improve. Instant feedback and a new day to try again are two of the biggest thrills I enjoy from day trading.

The point I am making is that if you expect to have any chance of succeeding as a day trader you must be prepared and FOCUSED all day. Don’t get married to a position or idea or you will get flattened. Do your best, and then come back again tomorrow.

The extreme and unprecedented volume and volatility the last 7-10 days has been amazing to trade. 200 or 300 point intra day moves are common the last week or so. I am proud to say that in this midst of this extreme volatility the method we teach in our Equity Trader 101 training program is standing up to the real world with flying colors!

Today Keystone traders set a new intra day record for P&L as a group! Trust me not an easy task and I am very proud of that. Our people understand at its core ther is a big difference between someone who reads charts and someone who trades! Keystone builds traders!


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