Millionaire TradersQ: When you are doing all these filters, let’s say there’s a stock
that you’re just not familiar with, do you need to know what the
story is behind the stock?
A: No, I don’t have to know anything. I don’t think it helps for
what I do, which is momentum. If the Level 2 looks right, the chart
lines up and it’s going the right direction, I’ll get onboard.
Q: So you really think that fundamental news is a detriment
because it kind of biases your reaction time?
A: Oh, I won’t say it’s bad; I just don’t have the time typically. I’m
basing my entry off the way the filters are set up, and my trading
style. I really don’t care about anything else besides that. But on
the flipside, I run full briefing news now and another audio news
service. I’ll jump on a news trade here and there.
Q: Using sort of fundamental, momentum play, where there’s
news on the stock that’s going to materially impact it. You want to
be the first guy to the ball?
A: Exactly. And I won’t play too many of them—probably one
or two a day. I’ll jump on, and if I’m 50 percent successful I’m
pretty happy. This week we caught a couple of nice ones. For
example, say an FDA approval is announced, first on the squawk,
then briefing, and everybody’s buying, then it comes across CNBC
a couple minutes later.
Q: You can sell it to those guys, right?
A: That’s right. I’m not going to hold it for long. Sell it to the late
buyers...[laughter].