Archive for January, 2007
Trading on the Winning Team
January 16, 2007 at 12:16 am
I’m an independent person and I love to do things my way. Many of us do! But when trying to make our way in the market, we can’t ignore the importance of being on the right side of things, and that means going with the flow.
Trading on the winning team is far and away the most important way to not only locate trading ideas, but also the easiest (or least-difficult) way to extract profits.
Check out my thoughts on the topic in the Free Newsletter this week. There’s also a free trade idea you might be interested in.
And by the way, you can sign up for the free newsletter on the Free Newsletter page at TheStockBandit.com. An opt-in form is provided at the top of the page which puts you in full control of your email subscription at all times.
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
Trading Articles
January 11, 2007 at 3:46 pm
I just wanted to give you a heads-up regarding all of my archived trading articles. There has always been a full list of them available over at TheStockBandit.com (more than 150 articles), and along with the chart patterns page, it’s one of the most heavily bookmarked pages of the site.
But now they’re all arranged by topic, nice and orderly!
That makes it easy to skim the list for any general trading topics which you’d like to read about. The topics include such things as technical analysis, trading psychology, trading tips, and there’s even a nice archived list of my free newsletter articles which started being posting directly on the site a few weeks back. So the next time you need some reading material, check out my stock market articles list!
Hope you enjoy them, and I’ll of course continue to churn out the content here going forward!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
3 Signs You’re Trading Too Big
January 9, 2007 at 3:12 pm
Are You Trading Too Big?
The market tends to expose our every weakness. Whether it’s emotional extremes, a lack of preparation, or simply being stubborn, trading will reveal your Achilles’ heel!
One common mistake we all make from time to time is trading too large of a position. This may be the case when an account is too small, or it may be a product of the market you’re trading and whether or not there’s ample liquidity to allow for entries and exits with minimal slippage. Sometimes trading too big can mean trading your normal size in an overly-erratic market. While there are several factors involved in trading too large for your own good, focusing on realizing when you’re trading too large can be quite helpful.
Here are 3 clues that you’re trading too big:
If you’re adding on trading size because you’re on the wrong side of a trade, you’re trading too big. Why add fuel to the fire when you’re wrong? It costs money and you’ll often come out of the other side of the trade not knowing which way is up! Compounding one mistake with another will often lead to even worse performance, so focus on working your way out of the first bad trade without adding to it.
If you can’t sleep at night, you’re trading too big. The phrase “sell down to the sleeping point” is often used but for good reason. If you walk away from your screens at the end of the day and all you can think about is the trade you’re in, then it probably means too much to you. Lighten up on your position, and you’ll usually find greater clarity which leads to profitable decisions.
If you are acting like a baby, you’re trading too big. Screaming at monitors, smashing keyboards, and banging on your desk is for toddlers, not traders. If you’re not acting rationally, then it’s time to cut down that trading size. I’ve been on a number of trading floors and witnessed this behavior, as well as been guilty of some of it myself. Such actions indicate that emotion is in the driver’s seat rather than logic, and that’s a huge disadvantage in trading. Trading plans should be in place to direct your next move, but how can anyone follow a logical plan when they’re busy throwing a temper tantrum? I don’t ever recall my own or anyone else’s childish behavior leading to a good day or rescuing a bad one! If this sounds like you lately, take a breath, lighten up on that position size, and get back to your game plan.
Position sizes should be increased when you’re trading well, not struggling. Cutting down position sizes during times of frustration will allow you to get your confidence back and find some clarity.
Wait for your mojo to return before you step back up to full size, and while you wait, focus on trading well rather than P&L!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
Two Freebies to Start 2007 Right
January 2, 2007 at 7:53 pm
It’s the start of a brand new trading year, so why not kick it off with a pair of freebies? Be sure to check out this week’s Free Newsletter where I discuss trading goals (just in time). I talk a lot here about having some direction in trading, and as with any other endeavor worth pursuing, I believe that setting specific goals for yourself is a must if you want to propel yourself to a new level of success.
You can sign up for the free newsletter on the Free Newsletter page at TheStockBandit.com. An opt-in form is provided at the top of the page which puts you in full control of your email subscription at all times.
And don’t forget the weekly Market View page, which is a direct excerpt from the Bandit Broadcast stock newsletter where you can get a glimpse of what the major market indexes are looking like and some key levels to watch in the days ahead. This is provided nightly for our members along with specific trades I’m planning to make, but the market excerpt is posted weekly for the public so stop by and check it out!
Trade well this week and kick the New Year off right – I hope it’s your most profitable year yet!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
