Trader Newswire was able to speak with famed day trader Pete Doom, on what makes him a great trader and offering some advice to traders just starting out.
Pete, thanks for taking the time to speak with us today. Firstly, can you tell us a little about what got you into trading stocks?
I was looking for a way to supplement my income. I stumbled into the concept of trading. After mulling it over for about a month,
I determined that having a 2nd boss was not going to work for me, I didn’t even like having 1 boss. So I had narrowed my options to
start my own business, or start trading. Since I didn’t have the capital to start my own business at the time, trading was the final decision
Do you use scans in your trading?
I don’t use a scanner, I like to use free resources like finviz to scan for unfound stocks in hot sectors, then I proceed to do my homework and cover my bases.
What do you look for in finding a good ticker?
I try to look for sector catalysts first, from there the Chart set up is next. Many traders don’t care about how well a company is doing financially. They care about what might happen short term, and what the catalysts that will get people excited are. It’s important to note the different meaning in “trading” & “investing.”
In the end, I still scan all filings and articles to minimize my chance of getting caught in a negative PR or offering.
The main goal is simply to locate stocks that don’t have a ton of noise on them, do the necessary DD to make sure there aren’t any red flags.From there it’s get in early and be patient. When fundamentals and technicals align, that’s when I get most confident in positioning with larger size.
Who would you recommend to follow for tickers that may help others?
I really can’t put a list here, there are too many good traders out there & I would without a doubt forget to put some on here. At the end of the day, look for the traders who have no trouble admitting they aren’t perfect or that they took a loss. This is usually a good indication that they are honest. Regardless of how honest anyone is, never follow blindly, do your home work, after all, it’s your hard earned money.
Any advice to young traders who aspire to get to where traders like you are?
Truthfully, I didn’t advance in my trading until I stopped scanning the various social media sources. Ihub, Stocktwits, Twitter etc… While there are people with good info here, trying to distinguish the difference between those who are truthful and those who are full of it is nearly impossible if you do not first educate yourself as a trader.
I have friends who sold stocks because they got worried when a 16 year old who had been trading stocks for 3 months predicted a stock had a 90% chance of going down via a social media link. The thing is, they didn’t realize it was a 16 year old with 3 months of experience, so you really need to be careful about who’s information you react to out there.
What important lesson have you learned through the years trading that novice traders might learn from?
TOO MANY! But, the number 1 lesson I learned was that I wasted my first 5 years trading trying to follow the hot hands of others. Use others as a resource, as mentors, as teachers, as teammates. But, never rely on others for your buys and sells. I said it before and I’ll say it again, it’s your hard earned money so make sure you remember that every time you make a trade.
Thank you very much Pete – We wish you best of luck in the future!
Please check out Pete’s twitter page (click below) to get more insight into some of the stocks he trades!