DT: a round trip on XL, sell 3.98 first, bougt back at 3.82

After so much day trading this and last year, I would say the most important thing about DT is not to lose sight of big picture. If you are right at big picture and DT busted, you can hold onto your DT position, turn it into short term or long term. Just remember that a CD only yield under 5%, so if you hold your busted DT position for 3 months, 3 month may seem like eternity for a day trader, but it is not a long time at all, during 3 months, it is very easy to make a profit of great than 5% in this volatile market, it is just that when the time comes, you become more greedy, do not want to sell. If you are wrong at big picture, then a busted DT should be cut loose.

Another observation is that there is no logic in DT, the only logic is noise, what you want to do is just trying to make a spread on the noise, buy low and sell high. You need to be correct on big picture first, if this is a up market, you should go with buy first, then sell. Backward operation will put too much a stress on you.

You need to be patient even in DT, do not rush in and out, this will ruin your mindset. I am a stubborn bull, my current problem is always to buy too early, because I am bullish. I need to remember if it is meant to be a day trade, it is a day trade, forget abut bullish or bearish reasons/logic, just plain playing with noise. If you miss it, plenty of chance ahead, do not be greedy. I bought XL back too early today at 3.82.