267 · An Edge with Correlations Across Time Frames w/ Dan McDermitt

Ian Cox Podcast Leave a Comment

Stinging losses with mutual funds in 2008 drove Dan to become an active manager of his portfolio. Enticed by the legalization prospects of marijuana, he dived into learning the fundamentals and technicals of the sector. Learning how these stocks traded relative to each other, he cultivated an awareness of the correlations between these companies. These interrelationships would later be applied to large cap stocks, Commodities and Crypto across different time frames to give insights on when to participate in Bull and Bear runs, and when to back away.

Feeling the pain of big early profits evaporating over months, Dan was forced to cultivate a mental flexibility in trading by considering both Bull and Bear signs in every stock he follows. Combined with correlations over multiple time frames with other stocks in the same sector, influences from Commodities, the dollar and various sectors, he flushes out nuances with scalpel-like precision and is ready to flip bullish or bearish without attachment.

Disclaimer

Trading in the financial markets involves a risk of loss. Podcast episodes and other content produced by Chat With Traders are for informational or educational purposes only and do not constitute trading or investment recommendations or advice.

Topics & Timestamps:

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  • 0:00 Intro and background
  • 3:00 First penny stocks bought
  • 6:50 Expanding from penny stocks to regular stocks
  • 8:50 Early mistakes 
  • 13:30 Switching to day trading
  • 17:00 Zooming in can lead to over trading
  • 18:15 Using different time frames to trade
  • 21:20 Why Dan started trading Crypto
  • 25:43 Trading style switch
  • 32:45 Signs of a bubble market
  • 36:00 Relationships and correlations
  • 46:45 What is a Bull and Bear thinking with this chart
  • 50:00 Reflecting on the conversations in our head
  • 54:30 Visualize your trading and personal life
  • 56:20 What Dan struggles with most in trading
  • 60:40 Highest points as a trader
  • 64:20 Dan as a farmer
  • 66:20 How to reach Dan

Dan McDermitt

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