Well Thanks a bunch Roger and Jill for the kind words...
i certainly appreciate it...
i'd like to address some things traders, especially newbie daytraders need to address...and seriously think about...
THE 10 CARDINAL RULES FOR ANY GOOD DAYTRADER TO THINK ABOUT....
1...WHO ARE YOU??? AND WHAT ARE YOUR GOALS FOR TRADING THE MARKETS???..WHAT ARE YOUR EXPECTATIONS??...AND HOW MUCH MONEY DO YOU WANT TO MAKE EACH DAY..GET IT SET UP IN YOUR MIND FIRST AND FOREMOST...
2...DO YOU HAVE ALL THE PROPER TOOLS TO BE A SUCCESSFUL TRADER...HARDWARE, COMPUTERS, MONITORS, QCHARTS ETC ETC ETC...WHY BOTHER IF YOU ARE NOT SET UP PROPERLY...
3...ALWAYS "SELL TOO SOON"..SELL YOUR LONGS ON THE WAY UP, AND BUY BACK YOUR SHORTS ON THE WAY DOWN..DO NOT WAIT FOR ANY REVERSAL STICKS IN THE OPPOSITE DIRECTION..IT WILL BE TOO LATE, AND YOU'LL LOSE 1/2 YOUR PROFITS..SELL SELL SELL..AND DO NOT LOOK BACK, JUST GO TO THE NEXT BEST TRADE..
4...ALWAYS USE STOPS...ALWAYS...NO EXCEPTIONS...AND USE HARD STOPS NOT MENTAL ONES...IF YOUR IN A GOOD TRADE..JUST TRAIL UP THE STOP..NOT AS A SELL STOP..BUT AS A STOP "GAIN"..YOR MAKING MONEY SO IT'S A STOP GAIN OF YOUR "PROFITS"...IF YOUR LUCKY AND IT CONTINUES TO MOVE UP OR DOWN..JUST KEEP ROLLING WITH THE FLOW..ALWAYS TRY TO GET A BREAKEVEN STOP RIGHT AWAY..PRESERVATION OF ONE'S CAPITAL IS THE MOST IMPORTANT THING TO REMEMBER..IF YOU GET STOPPED OUT?? SO WHAT???
5...ONLY TRADE 1-2 STOCKS AT A TIME..FORGET 5-10, YOUR NUTS IF YOU DO THAT..BE SENSABLE ABOUT YOUR APPROACH TO MAKING MONEY EACH DAY..AND ALWAYS CONSIDER GOING BACK INTO THE SAME TRADE AFTER YOU'VE GOTTEN A "FEEL" FOR THE STOCK..I KEEP READING ABOUT ALL THESE SI GURUS TRADING 10-15 STOCKS A DAY??? FOLKS WHAT A CROCK OF SHIT...I KNOW IT BECAUSE WE LIVE IT...IT'S ABSOLUTELY NOT POSSIBLE..THEY ARE LYING THRU THEIR TEETH...IGNORE ALL PEOPLE THAT CLAIM THAT JUNK..
6...DO NOT FIGHT THE DAYS TREND...WHY GO SHORT IF IT'S A "TREND DAY UP"???? IT'S NUTS!!!!!...ONCE YOU'VE ESTABLISHED THE TREND FOR THE DAY, BUY ALL "PULL BACKS TO THE 20/40 EMA ON A RISING 20"...OR IF IT'S A "TREND DAY DOWN"??? SELL ALL RALLIES ON "BACKSIDE BOUNCE'S UP TO OVERHEAD RESISTANCE AT THE 20EMA..ALL OF THESE ON THE 5 & 15 MINUTE CHARTS....PERIOD...ENDED..
7...STOP IN YOUR TRACKS FROM BECOMING OVERLY TECHNICAL...FORGET IT EVERYONE..YOU'LL NEVER BE ABLE TO MAKE A TRADE, OR PULL THE TRIGGER...DO NOT OVER BURDEN YOURSELF WITH ALL THIS TECHNICAL MUMBO JUMBO YOU KEEP READING OUT THERE IN LA-LA LAND...IT'S A TOTAL WASTE OF TIME...WHAT I AM SAYING IS USE THE "KISS" METHOD OF TRADING TECHNICALLY...DO NOT USE EVERY INDICATOR IN THE BOOK??? FORGET THAT STUFF..YOU'LL BE JUST LIKE A "DEER IN THE HEADLIGHTS"..FROZEN AT THE MOUSE BUTTON<g>..YES WE TRADE TECHNICALLY BUT WE USE SUCH LITTLE IMPUT TO DO IT SUCCESSFULLY..
8...WE ALL KNOW ABOUT THESE REVERSAL PERIODS..HEY USE THEM FOR WHAT THEY ARE...DO NOT DEPEND ON THEM SOLELY BECAUSE THEY DO NOT ALWAYS WORK...MORE IMPORTANT IS TO DEFINE REDUNDANT CHART PATTERNS EACH DAY ON SELECTED STOCKS AT CERTAIN TIMES OF THE DAY..ROGER AND ME AND OTHERS ARE "SEEING THESE VERY TRADABLE CANDLESTICK PATTERNS", DURING THE DAY..MUCH BETTER TO IDENTIFY THESE, THAN WORRY ABOUT A REVERSAL PERIOD???
9...SCALPING FOR A LIVING, MAKING A "DAYS PAY"...FORGET THE STEROTYIPICAL TV AD'S YOU SEE OF THE HARRIED DAYTRADER GOING BONKERS AT THE COMPUTER<vbg>...WE TRADE CALMLY AND RELAXED ALL THRU THE DAY TOGETHER...SCALPING IS SO IMPORTANT TO MAKE YOUR PAYDAY A PROFITABLE ONE...TRY TO DO IT EARLY IN THE FIRST 2 HOURS, AND BOOK THOSE HARD WON PROFITS EARLY, TAKE THAT 1 POINT ON 500 SHARES FAST..THATS OUR ROOM GOAL..$500 PER DAY...THEN??? GO AWAY FOR 1-2 HOURS..DURING THE LUNCH TIME DOLDRUMS...HAVE LUNCH OUT, WORK OUT, TAKE A SHOWER, DO BILLS, RUN ERRANDS...NOTHING REALLY HAPPENS DURING THOSE HOURS ANYWAY..AND THEN COME BACK REFRESHED FOR THE AFTERNOON SPIN FROM ABOUT 2.30 TO 4.00..DO IT FOLKS...IT WILL MAKE A BIG DIFFERENCE IN YOUR MENTAL THINKING...ELEPHANT HUNT USING THE BEST SET UPS FOR RISK REWARD LATE IN THE DAY..DO NOT GIVE BACK WHAT YOU EARNED EARLY..CUT YOUR TRADING LOT SIZE DOWN IMMEDIATELY..
10...I HAVE FOUND THE MOST IMPORTANT THING FOR YOU TO REMEMBER IS TO LOOK IN THE MIRROR...AND DEFINE WHO YOU ARE???...CAN YOU DO THIS??..AND WHATS ENOUGH FOR A PROFIT???..SET GOALS..MAKE SURE YOU HAVE A GAME PLAN..FIRST AND FORMEOST..WRITE DOWN EVERY TRADE, EVERYDAY..ADD THEM UP EACH WEEK..AND SEE IF YOUR WINNING OR LOSING THIS GAME...THE NUMBERS DO NOT LIE..KEEP HARD RECORDS OF YOUR TRADES..AND ABOVE ALL ASK "BEFORE" YOU TRADE OR LEAP INTO THE ABYSS, ANY QUESTION THAT CAN LEAD TO CLEARING THE WAY FOR A SUCCESSFUL TRADE...
ANYWAY..JUST SOME THOUGHTS ON A SUNDAY MORNING..LIFE IS GOOD EVERYONE...
REMEMBER THIS...TRADING WITH FRIENDS IS VERY IMPORTANT..DOES NOT HAVE TO BE A PAY ROOM, COULD BE JUST 1-2-3 PEOPLE EXCHANGING IDEAS...BUT FOR SURE..
"IT TAKES A VILLAGE" TO ENJOY WHAT I DEEM AS THE HARDEST JOB IN THE WORLD...TRADING FOR A LIVING...
WARMEST REGARDS
OJ |
