After party

This afternoon, I went to day trading friends party at his home. 5 traders, 6 if plus me. They all started less a year ago. 2 of them are younger, at around 26, one at 33, two are a little older ,about 38.

They were in the day trading class about a year ago, all of they went starting daytrading in the trading office after the training, one dropped out (I guess the reason was he broke the loss limit too many times), one is trading far better with 2000 shares buying power, one newer guy is trading 1000 shares, the other two are trading 300 and 500 shares.

if trader consistently makes more then his average profit for 5 days, then he will get more buying power, everytime go under his average profit, his buying power will be reduced accordingly. And stop limit will also be adjusted accordingly too.

if trader has 2000 shares buying power ( he can buy most of available stocks , not restricted by share price, but higher price stock will fluctuated more in cents) , his daily trade stop is $200 dollars, if he loss more then $200, he can't place any trade.

cut loss is 1, 2 or 3 cents for maximum.
only trade one market at a time, holding two or more markets will not work well
enter and exit using Level 2 screen to minimize slippage
use Level II to observe market strength

use daily P/L ratio: win average and loss average, number of winning trades and lossing trades use performance management:

300-500 daily profit with 300-500 shares buying power
20 day moving average profit/loss leads to increase or decrease of buying power
1/5 MA profit is the daily stop limit

There are a few tricks
- not trading in the first 15 minutes
- price top or bottom boundary is likely to be explored in the first hour
- gap fill , if not filled in first hours, most likely not be filled later
- gap fill, check the stock back in its history, if precedent gap cases gap filled, then more chances this time
- gauge the energy buy watching how the price moving across major levels, like 10.00, how fast and how much resistance ...etc
-technical analysis is not really helpful in timing, becuase when you see the moves on 1 min chart of SPY it is already too late, and the most of stocks follows SPY, then will be too late put limit order in. technical analysis doesn't give specific timing. for example of divergence, you will not know when it is going to happen, the price can be far over extended before
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