Skip to main content

CONSISTENCY

 There are three basic reasons for such a high level of success:

1. They develop a skill set over time that allows them to get in and out of stocks efficiently

2. They develop pattern recognition skills that enable them to accurately assess their risk versus reward

3. They are in the RIGHT stocks

The RIGHT stocks are those that we have identified as Stocks In Play. These stocks will have greater order flow than normal. This does several things that gives you an advantage: (1) increased order flow increases liquidity, which allows you to risk less on each entry and exit from a position: (2) the greater order flow creates additional volatility, which leads to many favorable risk/reward scenarios during the day; and (3) the large number of orders will overwhelm the dopey algorithmic trading programs, which results in a stock moving more cleanly.

Earnings Stocks

Traders should choose no more than two or three of these stocks each day to focus on. You can make a lot more money trading one or two stocks well than trading many stocks poorly.

once earnings season began his focus would change to stocks with fresh news. This is where a skilled trader’s edge exists. The increased order flow in stocks with fresh news creates greater liquidity, intraday volatility, and great risk/reward setups that are EASILY recognizable.

THE IMPORTANCE OF PICKING THE RIGHT STOCKS

Give me the information that I need as a trader (technical levels, news, average daily volume, short interest, average daily range), and I will go forth and trade. At the end of the day, I am going to figure out these stocks. As uncomfortable as they are initially to trade (think jumping out of an airplane with just the faith that your parachute will open), I take the plunge. And if they are moving, I am going to make an awful lot of money.

The market does not reward stubbornness. The market is not interested in how you wish stocks would trade. You adapt to the market. You do what the market demands. And that is the way it will always be.

Comments

Popular posts from this blog

Maximizing Your Profits with Scoring

SETTING YOUR MAXIMUM INTRADAY TRADING LOSS First things first: set a max intraday trading loss. There will be days when you just do not have it. Why do you think coaches pull their players when they are not playing well? They are more harmful on the field than off. When you are underperforming, you are hurting your team and your trading business. You need a system to yank yourself over to the bench. A stop loss is your answer. TRADING BASED UPON THE TIME OF DAY A good trader makes note of what time of day it is, when he trades most profitably, and adjusts his trading to fit such times. Your numbers at the end of the month will not reflect your true trading potential. Make the most trades with the most size during the trading periods that statistically are most profitable for you. Money saved during your weaker trading periods is money earned. Consistency The fact is that most trades you make will start working for you right away. But the new traders also hold stocks that are trading ag...

So what is your money blueprint set for?

Are you programmed for managing your money well or mismanaging it? Are you a spender or a saver ? Wealth principle: The only way to permanently change the temperature in the room is to reset the thermostat. In the same way, the only way to change your level of financial success "permanently" is to reset your financial thermostat. You can become an expert in real estate or the stock market. All of these are tremendous "tools." But in the end, without an inner "tool-box" that is big enough and strong enough for you to create and hold on to large amounts of money, all the tools in the world will be useless to you. Your income can grow only to the extent that you do. Remember that the first element of all change is awareness.Watch yourself, become conscious, observe your thoughts, your fears, your beliefs, your habits, your actions, and even your inactions. Put yourself under a microscope. Study yourself. Wealth principle: Consciousness is observin...

Wealth File #4 Rich people think big. Poor people think small

Wealth principle: The law of Income: You will be paid in direct proportion to the value you deliver according to the marketplace. The keyword is value. It's important to know that four factors determine your value in the marketplace: supply,demand,quality and quantity. The factor that presents the biggest challenge for most people is the quantity. The quantity factor simply means, how much of your value do you actually deliver to the marketplace? Another way of stating this is, how many people do you actually serve or affect? Most people choose to play small. Why? First, because of fear. They're scared to death of failure and they're even more frightened of success. Second, people play small because they feel small. They feel unworthy. They don't feel they're good enough or important enough to make a real difference in people's lives. But hear this: your life is not just about you. It's also about contributing to others. It's about living true...