Starting to Day Trade? Take it Slow, Cautions Former NYSE Trader

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Decided to use the extra time that you now have because you can't leave home to pick up day trading?

Kenny Polcari, senior wealth strategist at SlateStone Wealth, has some advice for anyone trying out day trading, and he weighs in on how you can approach earnings season.

Watch the full video above for more.

Video Transcript:

Katherine Ross:
For some, being at home during the coronavirus pandemic may have given them a little bit too much time on their hands. So, if someone were to say, "Pick up day trading," what's some key advice to follow?" Well, joining me today is Kenny Polcari, Senior Wealth Strategist with SlateStone Wealth. Kenny, Dave Portnoy, founder of Barstool Sports, has picked up day trading. As someone with over 30 years of experience when it comes to investing, what's the one mistake day traders or really any trader should avoid?

Kenny Polcari :
You got to avoid emotion when you're day trading. If you're just starting out to day trading, you better take it very slow. Specifically, in the markets that we have today because you can see how quickly they turn and they can whip around. But for the most part, when you're a day trader, you're got to concentrate on what you're doing. You got to concentrate more on the technicals. Don't get married to a position just because you like the name. Don't be married to it if it's going in the wrong direction. You've got to be able to cut your losses and then look at it again at a different time.

Katherine Ross:
Kenny, this market, although not as uncertain as it was a month ago, is still somewhat uncertain. So, for traders who are just picking this up or going forward, what advice do you have for them then, especially during earning season?

Kenny Polcari :
Listen, I'm going to tell you, it is actually probably more uncertain over the next three weeks just because we've now entered earning season. If we were not in earning season, I might agree that maybe it's settling a little bit, but the fact is we're right in the throws of earnings season, and there's going to be negative news. There'll be some positive news, but there'll be more negative news every day as we go through the next three weeks in terms of individual company reports.

Kenny Polcari :
We're also going to get negative macro data. We're starting to see that. We're going to see it at least for the next two months, if not longer. And so, the day trader has got to be very sensitive to that. There are times when the news won't make any difference because the market will be focused on corona or a treatment, and that will override any of the macro data, but there are and can very quickly turn on a dime if suddenly you get a piece of macro data or you've got a company earnings that came out that was far different than what the street's expecting.

Katherine Ross:
Kenny, thank you for joining us today. For more on the coronavirus pandemic go to TheTtreet.com.

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