Archive for December, 2009
Video Review of the Indexes 12-20-2009
December 20, 2009 at 2:49 pm
The bulls remain in the driver’s seat as we close in on the end of the year, but do they plan to finish strong? An opportunity certainly awaits them if they can produce a breakout, but with light volume and a holiday-shortened trading week, expectations may be low.
As we head into a brand new week of trading, let’s examine some important levels in the indexes to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Thanks for stopping by and I’ll see you here soon with more.
Until then… Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
The Importance of Off-the-Screen Goals
December 17, 2009 at 7:54 am
Ah, the end of the year! A time for pigging out, hanging with relatives, and reflecting on the previous 12 months.
For some, it’s a rewarding time. Looking back on achievements and areas of growth brings some satisfaction and motivation for the year to come. But for others, disappointment and disgust dominate their thoughts as they wonder how they could have set such lofty expectations just 1 year ago.
Goals can be great. They can drive us to achieve more, reach higher, and to get clear on what it is we really want.
But goals can also hinder us when we find ourselves in a rut. They can be a psychological burden, annoying us – no, pressuring us when we stop to think how far away from them we are. In those times, we need no additional motivation – our own frustration is plenty. And in the trading realm, there are times when that is definitely the case.
I’ve realized over time something of great value: I really need off-the-screen goals.
The reason why is so that trading isn’t everything. I don’t want it to be everything. I do love it, but it isn’t my life.
When trading is going well, it’s great. But when it isn’t, I’ve found that mentally I get a huge boost to be achieving in other areas of my life. It’s just part of my personality that I need to be achieving somewhere in my life, so if I rely solely on trading to provide that, I’m setting myself up for some disappointment during those challenging stretches. I don’t want that – life is too short!
Let me encourage you to first make the time to set some goals for 2010, but furthermore, to include some off-the-screen goals to strive for. Maybe they pertain to relationships, health, travel or a hobby. What matters is that you’ll have them, because trading isn’t always fun – at times you’ll need those diversions away from the screens.
Remember, trading isn’t everything, so don’t treat it like it is. Give it your very best day in and day out, and be passionate about it, but don’t let it dictate your happiness. Bring some balance into your life, and it’ll help your trading in 2010.
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Other Goals-Related Posts:
Eyeing Range Expansion in ACL
December 16, 2009 at 7:53 am
The ascending triangle pattern is commonly found within uptrending stocks, so in a bull market like we’ve been in since March, you can spot quite a few of them.
But just because it’s a bullish setup doesn’t mean the pattern will always pan out that way. In fact, I recently discussed pattern failures and the opportunities they can also deliver, so it pays to always stay on your toes.
I’ve been eyeing the chart of ACL in recent days with its ascending triangle pattern, and given the narrowness of the consolidation, this one looks like it’ll be resolved very soon.
Given that the trend is up, I’m on the lookout for continuation with a push through $164.50 as the next breakout level. However, this year I’ve seen a number of ascending triangle failures which offered some excellent signals, so it’s worth noting that if the lower (yellow) rising trend line gets broken at $162, it would be a short sell signal. Either way, this one looks ready for a decent move, so it’s on my radar for a trade.
Here’s a closer look for you:
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
How to Lose Like a Winner
December 15, 2009 at 1:48 pm
I recently heard that in relationships, you can be happier if you choose to accept the whole person. The idea is that instead of trying to weigh everything you like vs. everything you dislike, accepting them as generally positive is a better decision. Thankfully, my wife does that for me, looking beyond my numerous flaws and allowing my positives to overshadow them.
If you stop to think about it, this is a pretty good way to measure everything and everyone in our lives. Staying objective about ‘it’ lets you recognize that overall it’s a positive thing.
The successful trader is no different. He looks at his overall trading operations for a given timeframe, and if the profits are there, then the mission was accomplished.
That’s not always an easy thing to do. In fact, I’d suggest that your inability to view your trading in that general light could put you in the popular camp of those who can’t cut it in this game. It’s much more natural to allow specific trades to stand out and influence our line of thinking. It can result in a directional bias, a pet stock, or a slew of other closed-minded patterns of thinking – all of which can lead to the destruction of one’s account.
What we want to do is to win. And if winning is defined as overall profitability, then winning will involve some losses along the way. You and I have to be able to lose like winners!
Here are 4 ways you can do that:
1. Allow no single trade to define your trading. Dwell on it for a short time if you must, but then move past it whether it was a big win or a disappointing loss. You might have put a lot of preparation, concentration, and capital into that one great idea, but it’s over now. Either pat yourself on the back for a trade well done, or brush yourself off and get back on your feet. Think about how you can use it to your advantage. Maybe you fattened your account with the profits from it, or expanded your comfort zone because of it. Great. Get back on your horse.
2. Win the war, not every battle. Put on individual trades which have sensible risk/reward, but place emphasis on your overall operations rather than each individual effort. Basically, see the forest and not just the trees! Accept that there will be some some losing trades, perhaps frequently, depending on your timeframe, and aim to overcome them with larger or more frequent winners. The point of taking this step is not to go to battle with every trade due to the mindset of having to be correct. Accept it when you are wrong, and no single ‘battle’ will ever sink your ship.
3. Cast fear aside. Fear is arguably our biggest enemy in trading. It can cripple you if you allow it. This is manifested in ways like trading so small that a win or loss has virtually no impact, or maintaining stops so tight that the stock isn’t able to fluctuate naturally without shaking you out. Those who spiral down the drain of losing are often times gripped by fear. Don’t allow that to be you. Maintain a healthy respect for the market, but don’t be afraid of it.
4. Learn from every loss. You’ve paid the tuition, so you might as well get the lesson! This makes a loss something you can still gain from, and every winner does it. Always seek out ways to increase your trading knowledge, whether through specific education like a stock trading course or simply picking up on subtle behaviors in price action that are starting to surface. Is the market starting to change, or are you refusing to avoid methods which aren’t paying off? Keep an open mind, always look for the lesson, and let the long-term losers be the stubborn ones.
Lose like a winner this week, and you’ll have more to show for it.
Thanks for stopping by and I’ll see you here soon with more. Until then…
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Video Review of the Indexes 12-13-2009
December 13, 2009 at 3:08 pm
This market is at home on the range, and just one glance of the daily charts over the past several weeks makes it clear that the standoff between buyers and sellers is still in effect. The bulls have maintained control for 9 months and counting, yet with a wonderful opportunity to produce a breakout and stretch their legs a bit, they’re hesitating. Why?
Who knows. The fact of the matter is that as traders, you and I must recognize such things as a trading range, and adjust as needed in order to survive. For me, that has meant keeping tighter stops and staying selective until better momentum surfaces. Eventually, this too shall pass, so hang in there!
As we head into a brand new week of trading, let’s examine some important levels in the indexes to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Thanks for stopping by and I’ll see you here soon with more.
Until then… Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Pattern Failures Are Worth Noting
December 8, 2009 at 2:44 pm
While the bulk of my trading revolves around chart patterns, and most notably the confirmation of them, failed patterns are certainly worth identifying.
Anytime a stock appears to be gearing up to make a move in one direction and suddenly goes the opposite direction, you can bet there are plenty of participants who are poorly positioned. Such is the case when patterns fail.
Obviously, the original plan goes out the window when a chart pattern fails, but that doesn’t mean you should turn your back on the stock. In fact, watching for plays to emerge in the new direction can often prove fruitful.
I just ran across an example that I wanted to point out to you. AXP had created a continuation pattern with a high channel following an uptrend, but price fell out of that channel last week to the downside. Now the stock is setting up for a possible secondary move downward, and it’s on my radar after seeing this chart today.
Here’s a look at it:
Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
Video Review of the Indexes 12-6-2009
December 4, 2009 at 10:22 pm
The major averages each pushed north of new highs last week, but only temporarily. Intraday milestones simply don’t carry the same weight as those which occur on a closing basis, and last week proved to be no different as resistance was cleared, only to be given right back by the end of the session on Wednesday, Thursday and Friday. Will this next week prove to be any different, or will the trading ranges persist yet again?
As we head into a brand new week of trading, let’s examine some important levels in the indexes to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
This clip was also posted over on the Trading Videos site (as always), and perhaps you’ve seen it there – but in case you didn’t, I wanted to put it here on the blog for you.
Let me highly suggest clicking the “HD” on the video player and then going full-screen for best quality.
Thanks for stopping by and I’ll see you here soon with more.
Until then… Trade Like a Bandit!
Jeff White
Are you following me on Twitter yet?
