Today i was having a discussion with Art Of Trading members and i wrote this email:
Fast and spiking breakouts, followed by quick and fast reversals on failed breakouts, ALL ON LOW VOLUME to boot. Last time i tried to play this action, i lost money. TRADING SHOULD BE EASY. NOT HARD. I am not trying to be a hero. I want to put on trades that are easy to understand and easy to see. The best trades are the easy ones. The ones that shoot up 5-15% from entry and in many cases continue to run hard are the ones that work right away and the ones that easy to put on. Your gut/instincts will not fight you or make you hesitant. Your technicals say GO! your market analysis says GO! and your gut says GO! All this creating a high probability trade.
Right now, is NOT the time to be aggressive. I know we all wanna make some money in the stock market BUT you need to think like a true professional. A Pro knows that not every day will be a day to trade. The guys who will suffer are the guys who are the action junkies: If i am not a trade then i am not doing something right. I need to try a different system, i need to try a different pattern, i need to trade: FALSE, FALSE, FALSE. Professional traders know when there is an edge and when there is NO EDGE.
KNOW WHEN TO TRADE.
Here's what some have responded:
"Hi Stew
I think the best lessons I have learnt from you, and one of your best
attributes is your ability to manage timing.
Every day is different, and you have to play what you see. If there is
nothing to play, sit on your hands.
That is something i always found hard to do until I began to learn from
you.
Thanks a lot
All the Best.
Stuart"
"Great mail, thanks! There are 100s of people in forums, chats and on Stocktwits that tell you what to trade but very few know when NOT to trade!
Cheers,
Philipp"
Fast and spiking breakouts, followed by quick and fast reversals on failed breakouts, ALL ON LOW VOLUME to boot. Last time i tried to play this action, i lost money. TRADING SHOULD BE EASY. NOT HARD. I am not trying to be a hero. I want to put on trades that are easy to understand and easy to see. The best trades are the easy ones. The ones that shoot up 5-15% from entry and in many cases continue to run hard are the ones that work right away and the ones that easy to put on. Your gut/instincts will not fight you or make you hesitant. Your technicals say GO! your market analysis says GO! and your gut says GO! All this creating a high probability trade.
Right now, is NOT the time to be aggressive. I know we all wanna make some money in the stock market BUT you need to think like a true professional. A Pro knows that not every day will be a day to trade. The guys who will suffer are the guys who are the action junkies: If i am not a trade then i am not doing something right. I need to try a different system, i need to try a different pattern, i need to trade: FALSE, FALSE, FALSE. Professional traders know when there is an edge and when there is NO EDGE.
KNOW WHEN TO TRADE.
Here's what some have responded:
"Hi Stew
I think the best lessons I have learnt from you, and one of your best
attributes is your ability to manage timing.
Every day is different, and you have to play what you see. If there is
nothing to play, sit on your hands.
That is something i always found hard to do until I began to learn from
you.
Thanks a lot
All the Best.
Stuart"
"Great mail, thanks! There are 100s of people in forums, chats and on Stocktwits that tell you what to trade but very few know when NOT to trade!
Cheers,
Philipp"
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