Learn to Trade the Market
Hitler, Vietnam, Day Trading
That’s quite the combination, isn’t it? Hitler, Vietnam, and day trading. What in the world do they have in common? Lots. Much more than you may initially think. And it all revolves around guerrilla warfare.
Guerrilla warfare is an irregular approach to warfare in which a small group of combatants, such as paramilitary personnel or armed civilians, use hit-and-run tactics, such as ambushes, sabotage, raids and petty warfare, to maneuver around a larger and less-mobile traditional military force. European resistance movements engaged in guerrilla warfare while fighting against the Nazi occupiers during World War Two. Later on, in North Vietnam, although the United States military is considered to be one of the most (if not the most) formidable fighting forces in the history of the world, they suffered significantly as a result of the jungle warfare tactics used against them.
In guerrilla day trading, as the term suggests, you are in hiding, waiting for an opportunity to move in and out of the financial jungle in a short period of time to generate quick profits while keeping your risk to a minimum. Your goal is not to defeat or outsmart the investment banks and hedge funds of Wall Street. You are simply patiently waiting for the opportunity to make a smart and calculated move.
Be very selective in when you make a trade and monitor the price action very, very closely. Find the best possible stocks to trade each day. Find the moments when Wall Street’s computer formulas and algorithms cannot take your money. Find your entry point. Make your move. Make your exit. Take your profit.
Experienced day traders are like guerrilla soldiers. We jump out at just the right time, make our trade, take our profit, and then get out of the way. We will often trade in time periods as short as ten to thirty seconds. We usually make only two or three trades each day. We then cash out and enjoy the rest of our day. And, if you live on the West Coast like I do, given the time difference with the New York markets, you will have many hours each day to enjoy the fruits of your winning labors.
Today’s lesson: be a warrior. Be a guerrilla trader. Engage in guerrilla warfare. Wait for an opportunity to move in and out of the financial battlefield in a short period of time to generate quick profits while keeping your risk to an absolute minimum.