Reminders for myself, in no particular order. Some of the lines are mine, many are gleaned from others.
BEFORE buying, use the TGL checklist, or make your own DD checklist, and follow it!
Learn some money management/allocation. The only sure way I know of, for guaranteeing you will be able to trade tomorrow..........is having CASH available to do so.
Don't chase it up. Get it, when it drops back, simply because, THEY ALWAYS DROP BACK, they HAVE to, it is just part of the mechanics of the market maker system, and of course, the inevitable profit taking, and if you aren't taking profits relentlessly, then what the hell are you doing here?
In my humble but useless opinion, the open, and the first 20-45 minutes or so, are for SELLING, not buying. Be patient. If it's a gapper and you are not in yet, don't be the bozo giving the gifts to those in the day before. WAIT!
Market order?? It just ain't in my vocabulary. Unless you enjoy getting hosed.
If you haven't already, learn at least some rudimentary T/A Go to clearstation.com to the education section also Big Charts. bigcharts.com and learn to set up the interactive charts.
A great site, with a learning area, simulators, and much more, is rookiedaytrader.com
Reducing risk/reward at the first opportunity is always a safe route. That may mean selling 1/3 or 1/2 a long way from the top, but I'd rather protect my investment, and live to play again, than just slowly let the original pile erode.
A profitable trade, is a good trade.
. Beat the crowd in and out the door. You have to take their money before they take yours, period.
. Don't chase momentum if you can't find the exit. Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble.
Get out, when you CAN, not when you HAVE to.
NEVER let a winner, turn into a loser. But we all do, why? Think about it, one answer, always....GREED!
NOBODY wins all the time. Learn to take your losses, EARLY, don't let them grow, until it's too late.
A big gap up, in the morning, is a gift, ACCEPT ALL GIFTS. Sell into
strength. Then buy it back later, on a shake or walkdown if you wish.
MM's biggest trick - making stocks look their best, before they make them move.... in the opposite direction.
Over time, there is only one thing that always works, and that is, dance with what the market likes and make sure you are dancing close to the door.
Timing - all stocks go up eventually, but all stocks also go down, eventually.
If you are jumping on those with news, playing the momo's, etc. I strongly suggest you sit in one of the live java based chats, of course I'm swayed to our own TGL LIVE goldenlists.com and tgllive.com, but there are other good ones.
READ, MEMORIZE, PRINT OUT, TAPE TO YOUR WALL, WAYNE'S "ALL STOCKS ARE SHIT" PHILOSOPHY
Message 13282288;
Often people ask me, "what is your target", "how long will you hold", and other assorted crap. It's very simple,
if it goes up I will SELL and take profit, if it goes down I will SELL and take loss, if it just sits there I will get bored and SELL.
Good luck, happy trading, and get a Level II. |
