Hi,

I´m 21 and 10 months ago I started working 9-5 and I don´t want this for the rest of my life. I did my research and started investing in an ETF and some stocks. I kinda like the investment world, but the trading world seems even more interesting.

So I decided I´m going to start learning how to day trade. I am conscious that the probability of taking consistent profits is low and the probability of losing a lot of money is very high. I also know that I need to study a lot, specially risk management, my strategy and my mentality for this.

I bought the book "How to Day Trade for a Living" by Andrew Aziz and I think its been a good start for me to understand how day trading works.

Can you recommend me more study material or books?

Thanks in advance

If you had €25,000/$25,000 to invest today and your time horizon was 10+ years, how would you allocate it?

Would you go all-in on index funds, buy individual stocks, add some Bitcoin, or diversify across different asset classes?

chart by r/PierresLongTermCharts

I can't help wondering if we might get a change in trend, for Bitcoin, back to up.

Why?

Well for a change in trend, we would need to see the price rise above the peak you see at my arrow "C".

At the moment the trend is very much down.

We are seeing lower lows. (see line A)(Line A is pointing downwards, as each lower low gets made.)

But if one looks below on the indicator, what do we see?

The very same lows are not falling too. They are rising. Each low is HIGHER than the one before it. And line B is pointing upwards.

This difference in the two is what they call "buy divergence."

It can mean that the price is now running out of steam. It might not be falling so hard anymore.

And often what happens, is that the price will now rise to test the highest point between the lows.

And that is where my down arrow "C" is.

Lets see if I am once again wrong.......

Here is where the smart money is moving right now.

The days of a few massive tech stocks carrying the entire market might be coming to an end. Investors are starting to take profits from overheated tech giants. But this money isn't leaving the market. Instead, it is flowing into parts of the economy that were ignored for months.

This shift is called sector rotation. Money is moving into small-caps, industrials, and value stocks. Industrials are getting a huge boost from spending on AI infrastructure, defense, and energy. At the same time, defensive sectors like healthcare, real estate, and consumer staples are holding up well during tech volatility.

This is actually good news for the broader market. When more sectors participate in the rally, the entire market becomes more resilient. The era of pure tech dominance is broadening out into a much healthier economy.

What is your move here? Are you sticking with tech or buying the "real economy"?

Over half of total SPX options volume on most days is now 0DTE. Three years ago that number was a fraction of what it is now. The structural shift has changed how the index moves, especially in the last hour, in ways that affect equity holders who don't trade options at all. Writing the explainer because the news coverage is bad and the financial-Twitter coverage assumes you already know.

0DTE meaning. Zero days to expiration. An option that trades and expires on the same calendar day. Used to be rare. Now over half of total SPX options volume on most days.

Why this happened. CBOE added more expirations. SPX used to have monthly and weekly expirations only. Now there are SPX expirations every weekday. Same for SPY and QQQ. The instruments exist because the exchange listed them. Retail and institutional both showed up. Initial volume was institutional (market makers, prop firms). Retail caught on by 2022-2023. The growth from there has been compound. Theta is concentrated. A 0DTE has its entire time value collapsing into the session. That's attractive to premium sellers and to short-dated directional buyers. Different reasons, same instrument. Hedging dynamics changed. Market makers selling 0DTEs to retail and institutional buyers need to hedge their gamma exposure. Hedging moves the underlying. The underlying moves the option. Feedback loop.

What this means for equity-only investors. The last hour of trading on big-news days is increasingly options-mechanical, not "people positioning for tomorrow." You're a passenger in someone else's hedging dynamic whether you trade options or not. Volatility spikes happen faster and recover faster than they used to, partly because 0DTE positioning creates and unwinds risk inside the session. Holding through a session with significant 0DTE flow (Fed days, CPI, big earnings prints in mega-caps) means you're exposed to mechanics that aren't in the fundamentals.

chart by r/PierresLongTermCharts

We have now zoomed right in to where the right hand inverse shoulder is busy forming.

These candles each take a whole week to form.

The price is trading above its rising 30 week sma, seen here in blue.

The long term trend is up.

With this type of formation it is said by technical experts that one should wait for a clear break above that neckline, before buying.

This should happen, as this is a bullish formation, but sometimes these do fail.

So what do we have here?

We have a green candle that just closed above the neckline.

Then the red one, called "dark cloud cover", a well known and common strong sell signal, brought the price back below our line.

The candle with a small body and long wick on top ("shooting star") is often found at tops, and is a sure signal that lower prices could come.

It closed below the wick of the dark cloud cover thus confirming the sell signal.

The pull back has begun.

We then got a hanging man, with its small body and long wick under. This one is also found at tops and can signify a pull back coming.

And last weeks red candle also brought the price back down a bit.

This weeks candle, which is not yet completed, could be the first little sign of the end of the pull back.

It is green and has a small body with a wick below.

It is called a hammer.

Its wick also just touched our lower red line. (see up arrow)

It is found at bottoms or at the end of pull backs.

But its not yet finished forming.

So no buy signal yet.

But get ready for one. Its coming.

If you already are holding Nokia, hang on tightly.

There is a lot more upside coming. (not advice)

I do get it wrong sometimes.

A lot of people look at what you do and simply see another vehicle for sports gambling. What do you say?

If you define gambling to mean any speculation, then all financial markets are gambling. There’s speculation on all financial markets. Actually, most activity in most financial markets is speculation, right? And you really don’t get liquid, vibrant financial markets with real price discovery without speculation. If it’s just hedging by itself or capital allocation by itself, that doesn’t build a real marketplace. So that definition of gambling, where people are putting some money to make more money on something they don’t control — well, that encompasses everything.

The core differentiator with sports gambling is whether you are trading on an open, fair, liquid marketplace or in a closed forum system against the house that picks winners or losers. One of them you can win. It doesn’t mean you will win, but you have the opportunity to win. That’s how the law has been set historically. That’s why we have the Securities and Exchange Commission and the Commodity Futures Trading Commission.

chart by r/PierresLongTermCharts

This ETF is traded on the New York Stock Exchange.

It tracks a whole lot of shares, worldwide.

Change your timeframe to a weekly one. And then use candlesticks, rather than a line chart.

Add a blue 30 week simple moving average.

And if you looking for a strategy, you could maybe try the following:

Only buy if the price is ABOVE the blue 30 sma, which must be flat or rising.

And then buy when the RSI-14 seen below, crosses upwards, through 60.

It must first fall below 60.

But not lower than 40 of course.

Then you can hold the investment, while its above the sma.

Should it fall under the blue sma, watch for a dip under 40 on the RSI, and mark the offending candle, with a line, at the low for that week.

If the price closes under the line the following week its time to exit.

Otherwise you just hold.

Can you see what I mean?

The price rises at a very rough 17% per annum.

Its a bit overbought right now, so maybe wait a bit.