I teach automotive and motorsports technology and engineering at a career center to high school students. One of my students takes a personal finance class at his high school and he shared with his teacher what I do and the little bit I shared with them in my class. If some of the automotive tickers showed any momentum potential I would bring up the charts on the Smart Board and show them the news and a little bit of technical analysis. Well I get an email from his teacher and she asked if I would come talk to her classes about Day Trading. Of course the feelings she had towards day traders was not favorable so I felt she secretly wanted me to bomb and she could prove I didn't know what I was talking about. The evidence I had was all of the times my student came back and told me his personal finance teacher said I was wrong and that I was an idiot and that I should stick to talking about cars. So I knew I needed to be well prepared and I was motivated to make a good showing.
My goal was to share the differences between long term investing, swing trading, and day trading. I took them through a typical morning in my life and how I use technical analysis as well as the "tools of the trade" to find and vet tickers. I wanted to show them, and their teacher, just what day trading was all about and that if you followed a plan, you could be successful. I didn't know how the network would work out but I really wanted a trade or two to set up during the classes.
The beautiful thing is it did not take long for the students to become engaged, and the teacher really warmed up to what I was covering. I swear her bottom jaw was touching the ground for a while. I don't think she believed things would go that well or that she would actually learn something from me.
Thankfully I was able to log into everything. Equityfeed, my platforms, and chat. The first class started early enough that I was able to actually take the through my morning routine. We vetted the gappers that came up on my Equityfeed scanner and found a couple to watch out of the gate. I had stated over and over again that I was long biased but I did show them what I look for when I short sell tickers.
When the bell rang we were watching CNAT, because I thought that would have the best chance for setting up for my 15 minute opening range breakout strategy and I could show them how the gap and go setup worked. Well prior to the open the ticker faded from a premarket high of $8.94 to $8.26 at the open. It seemed to sell off and I saw the twinkle in the teachers eye that what I was looking at wasn't working and she was ready to say see, I told you so. Then one of the students asked if it made a lower high again would I short it. A light bulb went off because honestly I wasn't thinking about shorting at all. So I said "of course! That's the beauty of day trading and why it's important to follow the chart and not your heart"! Thanks to that student I was able to salvage my day. Now that was a reversal!
It made a lower high and I immediately shorted it. I went in with 1000 shares simply because I was showing off. Inside I was nervous as hell! I shorted it at $7.65 and it immediately dropped over .20 in 3 minutes. I got out at $7.44 for a profit of .21 or $210. Perfect lesson for the first class! And, one of the students made it happen. Needless to say I was pumped and couldn't wait for the next class.
We had another opp for the second class but it took a little longer I only exited because the class was ending and it was time for lunch. This time I entered at $7.41 and it faded until the class ended and I covered at $6.90 for a profit of .51 or $510. I proved my point about how day trading if profitable if you follow the rules and only trade using the chart, not your heart.
$210 profit CNAT Short Stock by AverageJoeTradr
$510 profit CNAT Short Stock byAverageJoeTradr
I shared our success in the morning classes with the afternoon class and I showed them our P&L. $720 in about an hour total time. This is usually the time I switch gears and start looking for top and bottom reversals. We found 1 ticker that was setting up for a bottom reversal. I usually start watching them early to help me determine whether they are actually good candidates so this one was slow, but had a couple of good fakes that I could show the class and how if I fell for them I would have lost money. It finally triggered but it died on the way up and didn't make the move I wanted it to but it was a win none the less. The students learned and I looked very competent in front of a skeptical teacher.
$90 profit AEM Long Stock by AverageJoeTradr
I know I am still relatively new to trading and I am definitely still learning but I had a great time sharing my knowledge with these high school students. They were blown away by what I showed them and I think some of them for the first time in their lives see a legit way they can make their dreams come true. I honestly believe if I could teach this everyday in school I would not be looking to retire at the end of this year. Also, the teacher has changed her tune about day traders. Hope she doesn't read my blog because I shared it with the students. By law I can't share my Twitter with them so I gave them my blog address.