{"id":33049,"date":"2015-11-13T09:31:08","date_gmt":"2015-11-13T14:31:08","guid":{"rendered":"http:\/\/www.technologyinvestor.com\/?p=33049"},"modified":"2015-11-13T09:34:07","modified_gmt":"2015-11-13T14:34:07","slug":"is-day-trading-all-we-have-left","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=33049","title":{"rendered":"Is day trading all we have left?"},"content":{"rendered":"

Bad stuff happens after hours:<\/strong><\/span> Exhibit A:<\/p>\n

\"BadStuff\"<\/a><\/p>\n

We could have day traded Nordstroms yesterday. Look at the valleys and peaks. Perfect for eecking out a few pennies.<\/p>\n

\"Nordstroms\"<\/a><\/p>\n

But holding it through the night would have been devastating.<\/p>\n

I don’t know why it missed its earnings. At one stage I was enamored with Nordstroms, but dumped it eons ago when myu inviolate stop loss rule kicked in. It’s been an awful performer this year:<\/p>\n

\"NordstromsYTD\"<\/a><\/p>\n

And I probably should have sold it short. But I had no idea that retail was so awful this year. Look at Macys:<\/p>\n

\"Macysytd\"<\/a><\/p>\n

I’m being skewered by some readers because I’ve been positive on day trading. But when a nice sine wave pattern appears during the day, there is money to be made — especially in a declining market where holding stocks is simply stupid. For example, Blackstone is a really well-run operation with a sterling reputation, growing strongly and all that. But look at this horrible chart:<\/p>\n

\"BXYTD\"<\/a><\/p>\n

I dumped my remaining BX yesterday.<\/p>\n

Day trading relies on:<\/p>\n

A. A nice sine wave.<\/p>\n

B. A willingness to take a few pennies profit and get out.<\/p>\n

C. An obsession with not staying in the stock overnight. Take one’s lumps or minuscule profits and get out before the end of the trading day.<\/p>\n

D. A knowledge of what happens early in the morning of a down day. Typically the stock that reported after hours will plummet first thing, as panicked sellers dump their holdings. Then it will bounce as institutions pile into buy the new bargain. That’s a good time to get in yourself, ride it for 25 cents and then get out. Might be fun to watch Nordstroms this morning. See if it follows that pattern.<\/p>\n

E. A willingness to not day trade if you don’t have the time, there’s no nice sine wave and you generally feel uncomfortable. Go for a walk. Play tennis. Read the comics.<\/p>\n

In the old days you buy a good portfolio, change a few of your holdings through the year. That strategy worked from March of 2009 to maybe June of 2015. But it’s well and truly over now. Earnings are erratic. QE is over. Interest rates are going up. And “fashions” are changing. Look what happened to organic food:<\/p>\n

\"WFMYTD\"
\n<\/a>
\nWould someone please explain to me..<\/strong><\/span>. what two bathtubs have to do with old people (also called alta kaka) sex?<\/p>\n

\"CialisTubs\"<\/a><\/p>\n

Note, they still have the faucets attached.<\/p>\n

\"HarryNewton\"<\/a>
\nHarry Newton who wants to get this blog out and up at the open.<\/p>\n