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!
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?
Market order?? It just ain't in my vocabulary. Unless you enjoy getting hosed.
If you have not read books on how the MM system works, I suggest that
you do so, ASAP. "The Electronic Day Trader" is a good one.
If you haven't already, learn some T/A especially Williams%R, stochastics,
MACD etc etc. Go to clearstation.com to the education
section.
For volume+ and Williams% use Big Charts. bigcharts.com and
learn to set up the interactive charts.
Control greed, learn discipline, set reasonable targets, and stick to them.
Ya right, if it breaks xxx it's gone, sure Jim, sure...
ALWAYS reduce risk/reward at the first opportunity. 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.
Get out, when you CAN, not when you HAVE to.
Stocks move in the path of least resistance. If it is hard to buy, it is
going higher, if it's hard to sell, oooops it may be too late, and you're a reluctant long.
When you have what you want, take it and run, and don't look back. Don't
wait, for the market to take it back.
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.
Volume precedes price.
As long as there is volume, and volatility, $$ can be made, bear or bull.
Timing - all stocks go up eventually, but all stocks also go down, eventually.
YOU CAN'T FALL FAR, FROM A BASEMENT WINDOW, LOOK FOR BOTTOMS but always remember, the shovels can come out, and dig lower the foundation.
Good luck, happy trading, and get a Level II. |
