Famous Day Trader Insights
Ross Cameron is a successful day trader and in 2016 he reportedly made $222,244.91, though he doesn’t boast about it and recognises that it could easily have been more or less.
What can we learn from Ross Cameron?
Cameron highlights four things that you can learn from him.
First, day traders need to learn their limitations. They need to recognise when they are getting exhausted and move away from trading as this will have a negative effect. On top of that, they can work out when they are most productive and when they are not. Cameron found that he was more productive between 9:30 and 11:30 am, and so he kept his trades to those hours.
Second, day traders need to understand risk management.
Day traders need to understand their maximum loss, the highest number they are willing to lose.
Cameron says that he only gets into trades if he is 99% certain and then sets a tight point to stop at.
Third, they need to know what to trade.
He looks for stocks that have the ability to move 20 to 30% in a day. Identifying these stocks before they become this active is what takes up most of Cameron’s strategy.
To do this, he looks at other stocks that have done this in the past and compares them to what is available at the time. A key sign to Cameron that a stock may make these kinds of moves is that they are already moving around 5% or more.
Fourth, keep their trading strategy simple.
“Day trading is an exercise in repetition,” he says. Day trading strategies need to be easy to do over and over again. This reduces the chances of error and maximises potential earnings.