The Great AdapterQ: So, when you were day trading, would you go for a half a point
to a point on your winning trades for these 500-share positions?
A: That’s pretty safe to say. At that point I’d say a lot of my money
came from the open, where stuff would just scream two, three, four
points either way—sometimes both ways within an hour- to two-
hour period. So that was probably where 80 percent of my profit
was coming.
Q: And did you learn to read the open? You learned how to
successfully trade the open, which is what gave you the profitability
edge, is that right?
A: Yes. I knew it was essential. If you were going to spend a hard
two hours working, that was time to do it.
Q : Would you trade preopen, would you watch the activity
preopen?
A: I pretty much just walked in, had my coffee, the bell rang, and
I’d start to work. I really didn’t do any, pre- or postmarket analysis.
At that point I was trading as a scalper. I didn’t care about much
outside of Level 2.
Q: So you really learned how to read Level 2?
A: Right. My style is momentum based. I never really tried to
fight the overall market either.
Q: If it was screaming up, did you buy the offers?
A: If I thought I was early enough—those days with fractions
you could—there could be a quarter- or half-point spread in some
of these things. If you entered 1,000 shares you’re down$250 out
of the gate. But sometimes you just get the feel for the way the