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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.

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