All Entries in the "Trader Development" Category
Ron Artest, Scrabble & Trading – WTBR Episode 4
April 24, 2012 at 8:40 am
Today, I bring you Episode 4 of When The Bell Rings.
In this episode, we’re talking about something that’s paramount to your success as a trader. It’s a mindset, but it’s something that requires intentional planning and not a fly by the seat of your pants mentality.
A weekend sporting event was too pressing to delay this message any further, so here it is.
I hope you get a lot out of this installment. Keep coming back for more in the days ahead, and of course if you find these helpful, then let me know!
Run time is 4:26.
(Direct video link is here for those interested in embedding it elsewhere to share).
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Strategic Adjustments that Pay Off Big
April 12, 2012 at 7:40 am
Like sports and business, trading requires the ability and the willingness to adapt. This involves continually learning and growing so that you’re never stagnant with a single approach.
Recently I sat down with Tim Bourquin for a MoneyShow Interview, and we discussed this topic of how Strategic Adjustments can Pay Off Big. The clip is 3 minutes and can be viewed here.
In the segment, we discuss trading biases, contingency plans, backing down when you’re uncertain, and the importance of focusing on a single market while still allowing yourself some ways to diversify within it.
(Other 3-minute videos from this same interview discuss The Trade Plan that Works For Me, as well as Win More by Risking Less, which you may also enjoy.)
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Win More by Risking Less
April 5, 2012 at 8:10 am
Each of us understands that we have to take some risks to get paid, but for most traders, improvement lies in taking the right kinds of risks.
Recently I sat down with Tim Bourquin for a MoneyShow Interview, and we discussed this topic of how to Win More by Risking Less. The clip is 3 minutes and can be viewed here.
In the segment, we discuss the mentality traders should bring to trading, the importance of knowing your exit, risk/reward ratios, and position sizing. We also discuss the often misleading notion of accuracy in trading and what that should be replaced with.
(Another 3-minute video from this same interview discusses The Trade Plan that Works For Me, which you may also enjoy.)
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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Follow @TheStockBandit
Think Like a Poker Pro
April 4, 2012 at 7:40 am
I love the movie Rounders, in which Matt Damon is a poker player looking for a big break (and then a way to get out of some serious trouble).
In the movie, his character Mike McDermott makes a comment early on that as a player, “your goal is to win one big bet an hour – that’s it.”
Notice he said “win one big bet” rather than “place one big bet.” There’s a key distinction here and it applies to trading.
Amateur Hour
Amateurs too often think they need to place some big bets in order to win big. They couldn’t be farther from the truth.
Amateurs are also generally too proud to fold. That’s admitting defeat, and rather than seeing the bigger picture of losing some battles in order to win the war, they take a stand when they shouldn’t – and they pay for it.
How the Pro’s Play
Professional traders, on the other hand, realize there’s plenty of quiet time to endure before those payout opportunities occur. They realize it’s a matter of hanging around, staying in the game, in order to be fit to capitalize on the best “hands” they are dealt.
Professionals understand that taking small hit after small hit is easily undone by just a win or two – so long as they’re losing smaller and winning bigger. Be willing to fold repeatedly if necessary – the goal is to be net profitable, but that won’t happen every single time you commit your capital.
Trading is a numbers game, and professionals only play (or play for meaningful stakes) when conditions are most favorable. Very simple, but very difficult for many amateurs to do.
So the question is… are you thinking (and acting) more like an amateur or a pro?
(Hint: your results are likely already reflecting it.)
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
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When The Bell Rings – Episode 1
April 2, 2012 at 7:30 am
I’ve been doing free trading videos here for a long time, but they’ve all been in screencast style as I narrate what’s on my charts and share insights with you. Those will continue, because certain things in trading must be illustrated in that manner in order to show you what I’m telling you.
But…
It’s time to put a little different spin on things and I felt that through some on camera face time, I’d be able to connect with you a little better and deliver some ideas and concepts that you absolutely MUST have as a trader.
So today, I bring you something I’ve been excited about lately but haven’t previously revealed with this new video series. I’m calling it When The Bell Rings, and here in Episode 1 I’ll explain why. Subsequent episodes will of course build on what’s delivered here, so by all means stay tuned and share your feedback if you’re finding these helpful.
Enjoy!
(Direct video link is here for those interested in embedding it elsewhere to share).
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
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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
