Outside SHS - Vincent Damato, Day Trading Expert
Post date: Oct 17, 2017 7:50:48 PM
By: Korey Alder, Co Editor-in-Chief
Posted October 17th, 2017
For this installment of Outside SHS, I spoke with Vincent Damato about his hobby: day trading. Day trading is a type of market strategy in which an investor buys and sells securities within one day (rather than over the long term), hoping to make a profit off of short term market changes. Vincent described his experiences to me, providing insight into this interesting hobby and profession.
What’s your activity?
Day Trading
When did you start day trading?
I first got into day trading at the beginning of middle school with a paper trading account. Once I started noticing consistent gains and developed a strategy, my father gave me the privilege of investing real money.
How did you learn about this activity?
One day I noticed my father watching “Mad Money” by Jim Cramer. I was so amused by this market and the liquidity to it, I had to dip my toes in the water. I decided to purchase a book Day Trading by Justin Kuepper to get a grip of knowledge. This book gave me a good understanding, and was followed by my second book Technical Analysis for Dummies.
Do you feel you’ve learned any valuable lessons?
One thing I’ve definitely learned is to trade with your strategy and not your emotions. The market can fluctuate depending on the type of equity you decide to invest in, and it can often be stressful. If you stick to your initial game plan, having a goal for each position, things are much easier.
Does this activity have something connected to what you would like to do after HS?
Most definitely, I would love to pursue career among a proprietary firm.
Do you find this activity satisfying?
It’s always nice when you can end the day with some return. However, I wouldn't say it’s necessarily satisfying. I’d have to say the best feeling is watching a setup you use repeat itself, being consistent.
What is the greatest misconception about trading?
The greatest misconception about the stock market has to be “Get rich quick!”. The market holds incredible opportunities, but no one gets rich overnight. It took me about three years until I actually starting seeing consistency in profits. Many people will try out the market and give up because they start losing money. Losing money is all a part of the game and shows the importance of having a trader's’ checklist!
Why should other people take up day trading?
Trading is a great opportunity for others to invest their money based off their own knowledge. I feel that trading isn’t for everyone but once you get the hang of things, you will enjoy it.
What would you suggest to other students interested in the stock market and trading?
I’d suggest to give it a try! There are multiple websites out here as well as brokerages that offer a paper trading simulator. You’ll basically start with $100,000, seeing what it’s actually like to place live trades and watch the market. One thing I have to say about paper trading, though, is that there’s nothing to lose. If you ever want to invest your real money, always start with a small amount and get a feel for what it’s like losing your hard earned money. You’ll notice quite the difference when it comes to holding a position through a rough patch.
Many people see the stock market essentially as gambling. Do you think this connotation is undeserved and why?
I’d have to say the stock market is an exception from pure gambling. Yes, nothing is certain in the market but if you put your mind to it you can become successful. As to every single investment out there, there’s a risk/reward. It’s up to you what you want that ratio to be with the capital you use.
Is trading profitable for you (omitting specific numbers) and do you think it is worth the time and effort that it takes to learn how to trade effectively?
Like mentioned previously, it took me a little bit to get going. I think that trading is a great hobby/profession that teaches you how to manage your money, as well as keeping you informed on our current economy. Everybody has their turning points and are notorious for opening crashes. If there is one thing to take away from all of this is discipline, and just sticking to your game plan.
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Outside SHS is a series of articles by the Nite Crier showcasing student activities outside of school. If you are interested in being a part of one of these articles (don’t worry, a formal interview isn’t required!), please follow the link below: