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