The MOST Important Trading Lesson You Will Ever Need

For my good and for YOUR good, i am not gonna trade today. Clearly Mr. Market has a vendetta against me and doesn't wanna give me anything this week. 7 trades: 5 losses and 2 wins. ALL the setups i think about taking did phenomenally well and the ones that i actually took either treaded water or downright stopped out for losses. I am taking small losses but these small losses do add up and as a result i will ONLY trade with HALF SIZE, until i manage to get my groove back. SO PLEASE NOTE, FROM NOW ON ANY ALERT YOU GET FROM ME, IF YOU DECIDE TO FOLLOW, PLEASE USE HALF OR 1/3 OF YOUR NORMAL POSITION SIZE UNTIL FURTHER NOTICE. I am 100% confident, i will get back my winning ways but in the mean time, it's about bad streak management. In other words, MUCH SMALLER SIZE in trades and SAFER STOCKS. You might see stocks like IBM, CAT or JPM (instead of SOMX, BCRX or SPPI) in my alerts now if you see any alerts at all.

Look, as a trader there will be times when stuff doesn;t go your way and nothing works and i personally have seen these times many many times and know that these times is just like when you are flying in an air plane and you go thru a zone of turbulence. The air plane pilot knows that turbulence is a temperary thing (it's scary, frustrating and it seems like it will never end) and it's about riding thru it but it also needs to be respected and manage thru the zone of turbulence so that when you come out on the other side, you will still be in good enough shape and to ride out smoother times later.

Guys, i am telling you right now, if you are here to learn how to trade then what you are seeing right now, will be the some of the most valuable lesson you will ever learn.

WRITE THIS DOWN SOMEWHERE:

TRADING IS ALL ABOUT MANAGING WINNING AND LOSING STREAKS. THAT'S WHAT TRADING IS ALL ABOUT. THINK ABOUT THESE WORDS I JUST WROTE. TRADING IS ALL ABOUT MANAGING WINNING AND LOSING STREAKS.

The way you mentally handle bad streaks and the actions you take following bad streaks is what successful trading is all about. When you are making good trades and every trade is a winner, LIFE IS GOOD and trading is fun as your piggy bank get bigger BUT how DO YOU handle when the coin flips?? Personally, I TRY(i know it's hard) and stay AS POSITIVE as possible and i try to put things in perspective(i know this is a temperary setback in my trading and every trader goes thru it). I also take proactive action. Go back and read that SOMX trade alert email again and you will notice my tone of voice: It was a tone of caution and i urged to take half positions because i was NOT TRADING WELL LATELY.
How many of you keep trading with BIG or NORMAL SIZE knowing fully well, you are not trading well?? be honest.

This is a classic example of what i do when i am trading poorly, i will trade as little as possible and use much smaller size UNTIL I REBUILD back my winning rhythm. I know i will eventaully but in the mean time, IT'S ALL ABOUT BAD STREAK MANAGEMENT. This is the MOST important trading lesson i have talked about in the 20 weeks of ART OF TRADING service history. Save this email please and re-read over and over again. It took me years of heart ache and pain to realzie what it mentioned in this email.

see you guys tomorrow.

High Probability Setup: SOMX

i deem this a high probability chart and has a good chance of success. will watch it and might issue an alert. History doesn't repeat but it rhyms, SOMX has a habit of exploding once it sees a breakout with volume. see chart.

Why Are We Trading This??

Choppy markets are a trader's WORST enemy. As traders we live for trends. Random, choppy price action leads to severe emotional decision making and hurts ALL traders in my humble opinion. Gonna sit this mess out until some more eye pleasing charts come back.

Flu Plays Spreading Momo Love :-)

LPX Breaking Out

Very bullish setup happening here.

Stocks To Watch

72.7% Return In 19 Weeks of Live Trading

Check out the trading performance here: http://artoftrading.net/performance

16 UP weeks with only 3 small down weeks!!

"Hi Stu

You are a total inspiration mate. I've learnt as much if not more from
you this week than any other.

I follow a few traders and some I just hate as they never admit to
losing anything. I pretty quickly stop following them.

Have a good rest mate. We'll rinse the market next week!

All the Best

Stuart"



Much more than trading alerts: I want to teach you!

TRY IT OUT FOR 14 DAYS FREE AND SEE FOR YOURSELF WHAT CURRENT MEMBERS ARE TALKING ABOUT!!

12 Weeks Ago

That was the last time, i took four bad trades in a row.


I spoiled you guys with win after win for 12 weeks in a row with tiny minimal losses. :-) I FULLY intend on bringing you guys and myself top notch ideas, but this week clearly i have a monkey on my back. I am proud of one thing tho and it took me YEARS to get to this point: I kept my losing trades to an absolute minimum without throwing reckless trade after trade trying to recoup losses and i even took all of tuesday and friday off. I realized that i was NOT "feeling" it this week. I ONLY took 4 four trades and kept losses super tight. Compare these four trades to other weeks where we average 11 trades a week. That's 3 times less than the average, ALL because i noticed that i was sucking this week. There are weeks where we ALL WILL SUCK. We are in the 'human being business' and we will ALL make mistakes at some point. Don't be too fooled with fancy computers, cutting edge software and cool trading lingo, in the end human beings make trading decisions and we will ALL make mistakes. The traders that will survive in the long run are the traders are admitting to themselves that they making mistakes and quickly taking action to secure their accounts.
No room to be reckless in trading.

Anyway:

This week i am 0-4. Four trades and four losses. Here they are:

LONG/SHRT	Symbol	Entry Price	Exit Price	% Profit/Loss	Holding Period
LONG	VNO	54.4	54	-0.74	day trade
LONG	DAN	4.93	4.86	-1.42	day trade
LONG	GMCR	56.95	56.14	-1.42	day trade
LONG	RDN	8.82	8.55	-3.06	day trade

I am calling it a week and yes, that means that in 19 weeks of Art Of Trading history, this will be my 3rd losing week with 16 winning weeks. I am very proud of this and i FULLY intend on continuing to keep this going!! I am going to take off today and tomorrow. If you are new to this service, this week was a bad week to join. HA! But i hope that you ALL are getting something positive from this service and what i am trying to do here. Trying to make YOU a better trader.

I will still be here to answer any of your questions but do not expect any alerts from me today as i ride out thru this trading mental block.

good luck!! much love!

Watch This Chart Closely

The UUP has been moving inversely to the SPX lately and i'd watch this chart closely.

Eerie Feeling Lurking

This week's behavior in the market is leaving me with a very strange and eerie feeling(in my opinion at least). It feels like a big event is lurking. The only question is will it catch the bulls or the bears by surprise??

Art Cashin Feels The Same Way Maybe? Listen to this video and you decide. I personally do not believe that the rally off the march lows is over but i am ALL for a little bull cage rattling!! But i'll let the charts make the ultimate decision.

trade em smart.

What Now??

Well, reviewing the closing charts on many stocks, it sure looks like the easiest way to make money today was to come into today with open short positions. Because once the indexes gapped down, they pretty much chopped sideways all day. Today's move, not just on the indexes but on many stocks i follow has created big gaping holes in the charts and has caused a lot of damage. These will be hard obstacles to overcome for the bulls. I think short term the bears are in control here and we still have room to drop some more. I am very excited about this as i believe we will see a solid buying opportunity in time but for now, my focus will be on shorts and bounce plays. I have some key stocks that i will be watching tomorrow for potential bounce plays and i deem these as high likely likelihood for bounce ONLY if we open lower in these names: LINTA, GMCR, EJ. These stocks, i am hoping they open lower tomorrow morning.
I do not believe that the bull run is over but i am hoping many people believe it is!!

74.3% Return In 18 Consecutive Weeks Of LIVE REAL TIME Trading!

Check out the trading performance here: http://artoftrading.net/performance

16 UP weeks with only 2 small down weeks!!

"I am really impressed by your quick alerts with appropriate stops.

Also it is great to read intra-day comments/trend from you which helps understand market direction.

You have won a long term loyal member in me !!! Thanks again."



Much more than trading alerts: I want to teach you!

TRY IT OUT FOR 14 DAYS FREE AND SEE FOR YOURSELF WHAT CURRENT MEMBERS ARE TALKING ABOUT!!