Hardwork

 “Genius is one percent inspiration and ninety-nine percent perspiration.”

—Thomas Edison

for One Good Trade, Hard Work assumes a different context from what you might originally assume. It is about the work you must do beforehand.

Watching your trading screens intently and gathering important information is how we define hard work. We must ask the following questions at a rapid fire pace, just as a batter determines the prospects of an incoming 95 mile-per-hour heater.

Who is buying?

Who is selling?

What levels are most important?

Is this stock stronger or weaker than the market? 

Is this stock stronger or weaker than its counterparts in its sector? 

Where is most of the volume being done? 

How much volume at a price causes the stock to move up or down? 

What is the spread? 

How quickly does the stock move when it is ready to find another price? 

How is the Specialist treating your orders? 

Are there any big prints? 

Is the stock trading in a particular pattern?

These are the questions that I answer before trading a stock. This information—yes, all of this information—should be gathered before you make One Good Trade. This is what we mean by hard work.

Most successful trades are easy trades. They result from doing the above, seeing an excellent and simple trading opportunity, and then pouncing. Watch, watch, watch, and BAM! Your edge comes into play, and you make your next trade.

If you are trading a stock, and it is not offering excellent risk/reward opportunities, then move on. Type up some other stocks, and watch them intently. Gather all that information from before. And do not make a trade until you have this information, as a new trader. Never. Do not make trades unless the edge you require is present along with the right type of information.

Woody Allen said: “Ninety percent of life is just showing up.” The same idea applies to trading. Showing up every day matters. Searching for support and resistance levels every day will positively impact your trading. Heading home early because a few moves went against you should be saved for special occasions when you really must clear your head.

To make One Good Trade you must prepare properly, work hard, and have patience.