The Dark Side of Day Trading Nobody Talks About

**SPEAKER_1** (0:00)
Let's go to the trading tip of the week.

**SPEAKER_2** (0:03)
Most traders will be better off trading off the one hour or the two hour and having less trades per month, but having entries at a better entry price to avoid being stopped on it. I know it's a lot more fun to probably trade off of a two minute, 60 second chart. Some people are trading, I've even seen people trade 10 second charts. It's exciting and exhilarating.
But less is more. And the reason why I bring this up, I've had a conversation with somebody yesterday who was on a verge of taking their life because of a loss.
And when you get to that point, that's not the time for counseling for what went wrong and what could have been done better and et cetera. But whenever I've had these conversations, it was because the leverage was too big and then the time horizon that you're trading off of is too small. Now, when the market is closed, everyone says, well, yeah, I'm going to look at the week, the day, the hour. Then I'm going to go to the 10 second chart and make my entry. If you've ever traded off of micro timeframes, it's moving so fast. All you can do is put your eye on the smaller time frame chart. So you'll be much better trading off the one hour or the two hour or in your swings trading off the eight hour into 12 hour and have a bigger macro view opposed to constantly trading on the smaller time frame, trying to get a better entry and you're not seeing the big macro picture of what's going on in your trades.

**SPEAKER_3** (1:35)
That's 10 seconds. I guess you got to know what kind of investment.

**SPEAKER_2** (1:39)
I mean, even with that, that's one of the biggest lies that ever get told in investing in trading too. You got to know your personality. Your personality does not give a damn. Like, it doesn't matter when it gets to sweeping liquidity.
You got to know the real buys. That sounds good. People tell you that because they don't want to tell you the answer of when to buy. It's like when Buffett be like, yo, just buy the S&P 500 I know that dipshit, respectfully. But tell me the real thing to buy that you're going to put 35% of your holdings into. The personality does not matter on when liquidity sweeps and stop hunting.

**SPEAKER_3** (2:15)
That is true. I'm just speaking from a personal standpoint, the idea of watching something on a 10-second chart, trying to invest something on a 10-second chart.
I mean, you have people who will scalp. And from that standpoint, know what you want to do. Not the type, but just know what you want to do, right? Because that is extremely volatile. It would cause me anxiety, right?

**SPEAKER_2** (2:38)
And the algos don't even do it. Like, it's a great chance.

**SPEAKER_3** (2:41)
And if you're trading 10 seconds, right? Think about what the algorithmic traders are doing. Like, they're doing less than a second. They're doing a 10th of a fraction of a second. So you're actually still behind by a large gap in terms of time.

**SPEAKER_2** (2:55)
And even when the algos are trading those fraction of a second trades, they're still looking at price disparities on higher timeframes.
Yeah. Be careful. Not saying that it can't be done, but for 99.8% of people, it's not gonna happen.

**SPEAKER_3** (3:13)
My trading tip is this, and I mean, Shadi had this conversation earlier. You know, nobody spoke about this, but quadruple witching actually happened last week.
Right. And so that's when option contracts expire and the large amounts of it, when the year starts, it's usually four dates that come out. It's usually a January date. There's a March, there's a June, September, and then usually toward the end, they'll put out the December one. And so it goes in rotation, that would be five, but like January, it kind of fluctuates. And so why is that important? Because the June options expired, that June 19th date, obviously the market was closed, but they expired on June 18th.
New contracts start to be created. And so when I'm talking about we're adding to the expiration date, now I'm looking at, okay, if June 26th is off the table, are we now going into Jan one, or January, whatever date, 2029? I'm looking two and a half years out. I'm looking for companies that have depreciated in value, that are gonna be strong companies. I'll just use an example, Microsoft, trading at below 20 to 30%, strong company, has a strong balance sheet, has cashflow. Can we look to contracts out there? So that would be my trading tip of the week. Once you start to see quadruple witching happening, which is a lot of sell-off, new contracts are created. So let's start looking out to those dates. I'm sure Nvidia will be out to January 29 at some point in the next two weeks. Microsoft, Apple, all the mega cap companies will start expanding out and then the ETFs will go out as far there as well. So if we want to buy time, this is the time to start looking at them early.