The opinions of the entrepreneur are expressed.
I am a professional day trader and wrote about the principles that can keep you out of all kinds of problems when trading in past articles.
Today’s column is different. I will get a little more technical because I need to explain the turn that happened Daily trade The world. This is also a turn with an opportunity.
While referring to the “ankle bites”, the historically the general exchange of the trade has been a small language. The profession was not accepted by the main media as a profession. Instead, the avatar was a refueling child with a red bull, who surfed social media with one hand and placed trading in gamestop with others. The US specialists are short, but then it was easier to reject the dayter traders.
Already. Now in three brokers, day traders are almost 25% of all US exchange. The daily share of the stock market is actually greater than 25%, taking into account the scores of other brokers.
This was the lover of the exchange market in about ten years ago, HFT or high frequency traders. These were the theme of books like more than 60% of the market and Michael Lewis Flash boys. They have already fell to about half of the market and are the Upper-Text for Trade Day.
Don’t make me wrong – the last thing I have provided is to try to beat the HFT crowd in his own game. Half of the market still has basically unlimited money to hire the most brightness, and they measure the amount of calculation power on servers.
So no, the plan does not beat them in their own game. Fortunately, we have no obligation. We can continue to grow with trade shares without trading or trade. Let’s look at what they do first.
Related: Today I lost this trade bugs so much money
Stocks as to trade
. This is convenient to make these HFT trading, with this HFT trading, it is convenient to make it comfortable as a small gain in any operation, because it can make it as stated.
. Then, it later likes the lower volatility, both as the HFTs, but also the low volatility, but also to move up or down to the price. If the HFTs were manufacturers, they will be a beautiful, predictable supply chain.
3. The third type of stock HFTs love is another shortage: ETFs or exchange processing funds. These are the baskets of shares or other investments, and many combine the above-mentioned factors: narrow spread and trade in relatively stable prices.
4. High-valued shares are the preferred feature of the fourth of the HFTs as they allow more potential earnings.
5. Finally, HFTs prefer well-established shares with a large number of shares. They like to trade in a high volume, but they like the size of these volumes not changing much. Again a predicted supply chain.
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Shares I like to trade
I do not agree with the old saying: “Em ‘if you can’t beat the EM. There is no background or so to build my own HFT platform. Therefore, I say,” If you can’t beat em, do the opposite. “
I want to be ankle biter. I want to put my money under the radar of the Nation of HFT. The above means looking at the HFT Stock criteria, but radically different advantages.
1. I focus on stocks relatively inexpensive. My sweet space is the shares that sell for $ 2-20 in the 3-5 dollar range. Tesla, Apple and Nvidia are hundreds of dollars for a stock away from the highest profile shares.
2. I want to trade the stocks in the news. This can be a biotechnics stock of a drug that has a drug or combination of FDA today. These things serve as a catalyst to sit on other day traders and focusing on shares.
3. Looking for the reflection of pre-trading resources: I want those who are at least 50% more than in the price of yesterday. Why? This type of action is a giant dog whistle for all retail traders in the world. At the moment, the stock will be highlighted on a computer screen. It is not rare to trade 300%, 500%, 500% or 700% of the world in super active stocks. HFTs hate this type of stock and that makes me laugh.
4. Shares love while trading 500% or more on average 50 days. Another lighthouse for other traders should pay attention to these funds.
5. I like to have the number of shares available for trade (“floating”) to be below 10 million. This means that any great interest in the stock can fly it.
All these criteria sounds like a lot of work, aren’t it? Fortunately, shareholders now live in a world where all these criteria can watch in real time. You do not have to shoot and investigate the books. In fact, any analytical study is useless for day traders. I focus on what is happening right now.
I have a share in the sights meeting my criteria once, I have halfway: I do not compete against HFT computers; I am competing against all fears, biases and other traders with emotions in the game. Now, I just have to be more disciplined and knowledgeable than the majority to be your day.
If you are an ankle-bit, the seizure of the market share from the computer sharing of retail trade must be the music of your ears. There is money to be done in variable, emotional markets.
Related: I transformed $ 583 to $ 10 million with daily trade
