Archive for March, 2012
Video Review of the Indexes 3-31-2012
March 31, 2012 at 2:40 pm
Last week we saw the indexes break out to start the week, only to see some mild profit-taking mid-week to leave stocks short-term range bound.
Selectivity remains the key for new plays, which I’ve been noting within the member area. A number of stocks are building high-quality patterns, which should make for plenty of opportunities in the days ahead.
In preparation for the trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s part of our weekend process.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Follow @TheStockBandit
Why Your Option Trades Fail
March 30, 2012 at 8:41 am
Frequently traders will tell me instead of trading the common, that they’re eyeing the options instead. The idea is that they can ‘control the stock’ at a much lower price, which is correct, but it’s not as simple as they expect.
For example, with XYZ trading at $50, the $55 call might look cheap by comparison at $0.25, and many will go this route of buying a ‘cheap’ call instead of the shares. That isn’t much, but with only about a 10% chance of finishing in the money by expiration, the odds certainly aren’t favorable. Then consider the fact that to turn a profit, the stock has to move even higher ($55 + $0.25 paid for the call), and the likelihood of turning a profit diminishes even further.
Whether it’s options or common you’re trading, you never want to be in a position where you NEED the stock to make a sizeable move to just get your money back.
So the next time you’re considering buying an option instead of the stock, go deep in the money and consider paying what might look to be a more expensive price. The odds are more favorable, and you’re not putting yourself in such a needy position from the outset of the trade.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
LIVE Chat on Thursday, March 29, 2012
March 27, 2012 at 8:00 am
This Thursday morning for the eTradingExpo, I’ll be chatting live at 11:30am ET. I hope you can make it to my session!
Specifically, I’ll be discussing Adapting to Changing Market Conditions. I have a lot of good stuff planned, and we’ll talk about being equipped with different techniques and having an awareness of what to watch for to indicate the landscape is shifting. I’m excited about giving you some insights for better trading and having the opportunity to answer your questions live.
Make plans to attend virtually by pre-registering today (it’s free)!
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
Week 12 Trades Review (Video)
March 25, 2012 at 8:00 am
Despite a lack of direction in the market last week, my account grew.
We caught some nice trades for the week inside the Bandit Hideout, so I wanted to offer a video recap of each of them. Once again, the numbers game of trading proved essential as several stopped trades were offset by some nice winners. Diversifying trading directions, timeframes and strategies has some big advantages.
This show-and-tell look at the trades I took this week should give you a feel for not only how I managed my trades, but also the kinds of setups which have been working well of late. And for those curious about our trading style in the member area, this should give you a good indication of what a typical week looks like. Check out the trial if you’re interested in adding our ideas to your own.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
Video Review of the Indexes 3-23-2012
March 23, 2012 at 4:32 pm
The market churned last week with mixed results, yet it was very constructive price action from a technical standpoint.
Selectivity remains the key for new plays, which I’ve been noting within the member area. A number of stocks are building high-quality patterns, which should make for plenty of opportunities in the days ahead.
In preparation for the trading week ahead, let’s examine some important levels to keep an eye on for the indexes. That will have the greatest influence on how individual stocks are going to move, so it’s part of our weekend process.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
The Self-Education of a Speculator
March 20, 2012 at 10:28 am
As a full-time trader, I don’t have a typical job. I have a 5-second commute to my home office. I wear t-shirts to work! There is no boss standing over my shoulder, and the actual trading hours require a relatively brief daily commitment (6.5 hours) as compared to other occupations. And I’m thankful for all of it.
The market closes at 3pm for me, offering lots of time to tend to other things – if I so desire. However, my desire is to succeed at trading for the long haul, which means I have lofty goals. In turn, I’m not the type to walk away when the closing bell rings. I work at it every day to improve and educate myself on an ongoing basis. I have to stay sharp.
That means I’m reading books, blogs, spending considerable time working the charts in search of what’s working best right now, and of course reviewing my own trades in order to continue learning.
Because successful trading is so much about finding a style that fits your own personality, it is only fitting to investigate what styles exist. An energetic and impatient person may want to become a scalper, looking to day trade quick moves within a short timeframe. A laid-back trader may prefer a less-intense style like swing trading, taking positions to hold for days or weeks. There are many approaches to the market, and finding your own style can come as a result of identifying with the style of another trader.
Raising Your Awareness
The road to expertise isn’t a short one, particularly in trading. I’ve been at this long enough to be considered an expert, yet there are still plenty of days where I’m reminded that I sure don’t know it all! Trading will humble you like that, but that’s part of it. Regardless, here are some ways for you to get educated as you further not only your knowledge but your trading career in the process.
Books.
I’ve read a couple hundred of them on trading, and while there’s plenty of worthless paper out there, you can still find some great ones with timeless lessons. I think it’s important to continually seek out information, whether it’s new and applicable now or just a lesson to be reminded of (before the market does it for me!). Your self-motivation will help you improve, so dig through the classics for starters. Mark up the margins, underline the parts which resonate with you, and return to them often.
I particularly like the Market Wizards books by Jack Schwager. He profiles traders in all kinds of markets (bonds, equities, options, futures, mutual funds) and of all timeframes. Yet despite their differences, all are highly successful. The interview format he utilizes gets you in the minds of these great traders, offering countless lessons. (I regularly visit TraderInterviews for the exact same reason). Every good trader trades in accordance with their personality, as we all should.
The newest book I would highly suggest is One Good Trade, which is the best trading book I’ve read in a long time. Bella covers it all and overlays his lessons with a variety of trading characters (based on real people), which helps drive the lessons home that trading is all about performance, adaptation, learning, and having the right mentality. Once I started it, I couldn’t set it down, and I’ve re-read it since.
Blogs.
Reading posts like this one can’t help but to expand your knowledge and open your mind up to some new possibilities. There are countless blogs on trading, but there are some good ones. Hunt for those which offer whatever it is you’re lacking….encouragement, psychological lessons, trade reviews, sector snapshots, news on industry developments, interviews, trading videos, etc.
If you’re willing to get honest with yourself and figure out what you’re lacking, you can find some blogs to visit regularly as resources. Just be sure they’re written by traders, honest, and not wasting your time, as there’s no shortage of distractions out there that won’t help you grow at all.
Results.
If you don’t track your own trades, start yesterday! You can record your trading via screen-capture software, but even a journal or simply a grid outlining entries, exits, holding times, patterns, trade context and objectives will shed more light on your trading than you can imagine. As you collect results, start to compile them. I did this for the first few years of my trading, until I really understood what I was doing, and it helped me assess my strengths and weaknesses. Monthly, I’d review my results and calculate statistics which gave me plenty to work on.
You just can’t argue with data! Getting mixed results? It may be time to make an adjustment. Figure out how your wins and losses stack up against each other, as that’s a great starting point. Over time as you endure periods of profits and pain, you have stats to compare against and you can more readily see when something is out of line.
Premium Services.
I’d be leaving a huge part of the mix out if I ignored premium services in the education process. Early on, I subscribed to a number of sites while I figured out my own style. Once I got to the point where I had my own opinion, I knew I had learned enough to need them no more.
Here at TheStockBandit, we offer a nightly stock pick service outlining my own trading plan for tomorrow, which some use to generate trade ideas and others use as a learning tool to see why I plan to take each trade (since each are explained).
We also offer stock trading courses in a video-on-demand format. The trading courses explain everything I know about trading, making them an incredibly valuable resource to return to over and over (depending upon current conditions in the market), helping traders see a huge variety of trade types and which kinds of market conditions are well-suited to those plays.
And while I’m certainly proud of and stand behind what we offer, there are plenty of others to choose from which are produced by legit people with a lot to teach you. If you want to accelerate your learning curve and truly build your skill set, let someone help you who has done it.
You Get What You Give
If trading is your job or a part-time endeavor you’re passionate about, recognize that your level of effort in the growth process is going to be reflected in the results you get. Be willing to apply yourself regularly as you learn more about not only the market, but yourself.
Staying educated and keeping a learning mindset is going to eliminate mistakes as well as some big disadvantages you currently face if you’re halfway new at this. As you make that a habit over time, it’s going to continue to pay off in a number of ways. Become a complete trader and commit to educating yourself. You won’t regret it.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Week 11 Trades Review (Video)
March 17, 2012 at 9:00 am
Last week was a solid week for trading as I added to my swing exposure while producing some steady cash flow via day trades.
Inside the Bandit Hideout, we took a number of trades, so I wanted to offer a video recap of each of them. Once again, the numbers game of trading proved essential as several stopped trades were offset by some nice winners. Diversifying trading directions, timeframes and strategies has some big advantages.
I wanted to give you a show-and-tell look at the trades I took this week. It should give you a feel for not only how I managed my trades, but also the kinds of setups which have been working well of late. And for those curious about our trading style in the member area, this should give you a good indication of what a typical week looks like. Check out the trial if you’re interested in adding our ideas to your own.
(Direct video link is here for those interested in embedding it elsewhere to share).
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Get our free newsletter to keep up!
Follow @TheStockBandit
