Ask HN: Non-technical day trading strategies?

3 points by coryl 8 years ago | 6 comments

I do fairly well with my stocks and cryptocurrency investments. My general strategy is to buy and hold. I have done well by sticking with what I know (tech).

I'm interested in dabbling in a bit of cryptocurrency day trading (maybe stocks later) but I don't really believe in technical analysis and crazy graphing.

I'm curious to know what other kinds of strategies exist for day trading with the goal of making small profits every day. Listening/watching for news?

Perhaps I should simply continue my buy and hold strategy and simply liquidate a small amount every month?

tboyd47 8 years ago |

Only certain kinds of investments generate income, and those are profitable businesses that pay dividends.

The key to investing in those is to buy them at a low price. Pretty hard for average people to do that these days since we're in a stock price bubble.

You can only purchase at a low price if you have better information than the market about what you're investing in.

coryl 8 years ago | |

Many investments do not generate income, and the profit is made from the appreciation of the asset (ex. A Da Vinci painting, or gold).

You can make a profit off of the mispricing and misjudgment of others.

Better knowledge exists in many ways, not just insider news/current events. Example: I understand what hashing algorithms are, the difference between Proof of Work and Proof of Stake, therefore I may be better at judging the feasibility of a cryptocurrency and thus better at valuing it.

tboyd47 8 years ago | | |

That is essentially what I am saying.

What I think OP was asking for is strategies to beat the market by buying and selling at the right time. I don't have any strategies like that, and would advise against following any such "strategies."

If OP wants to take regular income from investing, the smartest thing to do is just invest in businesses that pay regular dividends. Unfortunately, those stocks are all very expensive now, but as they say, "them's the breaks." I personally only invest in crypto and don't take any income from it.