Notes for Chat with Traders, Episode 46

Added on by C. Maoxian.

Episode 46 ... Hans Dederle (46:39)

[Can't tell if this guy really makes any money?]

  • Worked for accounting firm doing tax prep, quit
  • Joined brokerage firm, got series 7
  • Got interested in trading off of earnings reports
  • "So to speak...."
  • Started trading a couple months before the 2008 peak
  • Blew up his account a couple of times [doesn't give details]
  • Boredom traded, revenge traded, averaged down, blew up
  • Had eleven months of trading profits, friends and family wanted to give him money [11 month track record?]
  • Managing other people's money, he's less emotional, more professional
  • For his style, high volatility stocks the only way to go
  • Looks for reversals in the first thirty minutes of the day
  • Don't try to beat the market makers, join them
  • Uses five minute candlesticks, finds support on gaps down, resistance on gaps up
  • Trades one to three things a day
  • Looks for extreme volume in individual stocks
  • Buys calls and puts, not the actual stock [how does he price them?]
  • Also looks at Level 2 
  • Commissions will eat up your profits if you overtrade
  • Trails a stop on his option positions [market liquid enough to do this??]
  • Holds positions usually one to five minutes [what?!?]
  • Tries to set entry and target with every position
  • Done by 10:30 AM every day, never swings anything
  • Trades NFLX and AMZN all the time
  • "For me, ...."
  • Don't confuse yourself with too many indicators, keep it simple
  • Uses RSI (lagging) to judge extreme moves
  • You need a system to stay disciplined
  • "Fail your way to success" [Zen koan?]
  • Don't think about the money, think about staying true to your strategy
  • Has tweaked his strategy all along, adapted to changing markets
  • Paper traded his strategy for six months to fine-tune and gain confidence
  • "Hold and hope" instead of stopping out -- deadly
  • Everyone in the beginning cuts her profits short and lets her losses run, it's only natural
  • Figure out what works for you
  • Twitter: @Hdederle