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Ted Aguhob, an expert in day trading, is no stranger to the world of finance. With a wealth of experience under his belt, Ted shares his unique insights into what has made him successful in the volatile world of day trading. This article delves into the strategies he uses, the lessons he’s learned, and the mindset he maintains to navigate the highs and lows of the stock market.
The Path to Day Trading
Day trading is a strategy used by investors to buy and sell stocks within a single trading day. This strategy hinges on the ability to predict short-term market movements and capitalize on small price changes. For Ted Aguhob, day trading was not his original path but rather a strategy he adopted after years of experience in the market.
The Time Frame: Early Morning Rush
Ted Aguhob discovered that the best time to trade is between 9:30-10:30AM. This period, often referred to as the “first hour of trading”, is known for its surge in volume and volatility. Investors, including Ted, strategically look for breakout stocks and trade during this flurry of activity.
# Ideal Trading Time
ideal_time = ‘9:30-10:30AM’
The Trade Strategy: Riding the Wave
Ted bases his trading decisions on the Elliott Wave Principle, a form of technical analysis that traders use to analyze market cycles and forecast trends. He specifically looks for Wave 3 breakouts, which often indicate a strong upward price movement. This strategy has proven successful for Ted, even leading to a remarkable $8000 profit in a single day.
Elliott Wave Principle
The Market Condition: Down but Not Out
Ted emphasizes that even during a significant market downturn, there are “pockets of strength” that can be exploited in day trades. For instance, on a day when NASDAQ was down 180 points, he made several hundred dollars trading BITO, a Bitcoin ETF.
The Golden Rules of Trading
Through his years of trading experience, Ted Aguhob has established some non-negotiable rules that guide his trading decisions.
Rule One: Never Short
Despite the potential profits that can be made from shorting stocks, Ted strongly advises against it. He warns that the losses from shorting can be exponential, often leading to a margin call or a deep negative balance. The emotional toll of hoping for a market downturn is something he considers not worth the risk.
“NEVER short EVER…despite whatever trend it is, the worst feeling in the world is getting squeezed…your emotions get really bad and hoping for a market to go down is the worst thing you can do.” – Ted Aguhob
Rule Two: Avoid Swing Trading
Swing trading, a strategy of holding stocks for several days to capitalize on price changes, is another method Ted advises against. He views swing trades as a form of gambling, given their susceptibility to overnight news that can drive futures down and result in significant losses.
“NEVER swing trade…Swing trades I’ve learned over the past 22+ years trading are gambling …for example in the past two days if I swung TQQQ with 800 shares I would have ran into a $1500 or so loss because of overnight news that drove the futures down….Swing trading is gambling mostly…gap down futures when your holding triple ETFs can results in massive losses…even if the market closes at the highs and looks bullish the previous day, you’re pretty helpless.” – Ted Aguhob
Conclusion
Ted Aguhob’s experience in day trading offers valuable lessons for both new and seasoned traders. His insights into the best times to trade, the strategies to use, and the rules to follow provide a roadmap for navigating the turbulent world of day trading. But as with any form of trading, it comes with its risks and should be approached with caution and adequate knowledge.
