http://www.thestockbandit.net/2005/12/14/goal-number-1/ Trading blog with trading insights, discussion on swing trading, day trading, and trading psychology. Fri, 16 May 2008 05:32:37 +0000 http://wordpress.org/?v=2.0.9 http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-67070 Sun, 20 Apr 2008 18:53:21 +0000 http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-67070 [...] * Capital preservation is a priority to traders, but even longer-term investors would be better off incorporating some risk management elements into their plan. It all boils down to respecting the market and setting that ego aside. Your need to be “correct” can become costly if you allow it. So respect the market, or it will force you to respect it! We have to accept some level of risk in order to profit in the market, but even a small measure of humility should be a part of the plan because your timing may be off. [...] […] * Capital preservation is a priority to traders, but even longer-term investors would be better off incorporating some risk management elements into their plan. It all boils down to respecting the market and setting that ego aside. Your need to be “correct” can become costly if you allow it. So respect the market, or it will force you to respect it! We have to accept some level of risk in order to profit in the market, but even a small measure of humility should be a part of the plan because your timing may be off. […]

]]> http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-34591 Sat, 10 Nov 2007 17:13:54 +0000 http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-34591 [...] Here are a few articles about my trading style… *Deciding if a Stock is Trade-Worthy *Small Mistakes = Small Consequences *Goal Number 1 *The Day After *Check Your Rolex *Another Definition of Trading [...] […] Here are a few articles about my trading style… *Deciding if a Stock is Trade-Worthy *Small Mistakes = Small Consequences *Goal Number 1 *The Day After *Check Your Rolex *Another Definition of Trading […]

]]> http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-28463 Thu, 27 Sep 2007 15:32:37 +0000 http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-28463 [...] At times, you’re going to be better off just not trading at all. For some, it’s the first few minutes of the trading day or the very end of the session. For others it’s when you have personal distractions, such as during the holidays when family is in town, or when a life-changing event comes along. Some traders just can’t stand to trade during the light-volume summer months. Whenever your least-favorite trading time happens to be, it’s up to you to identify it and avoid it. Shutting down the PC during that stretch will keep your mind clear as you avoid any confusion which would result from your trading activity then. You’ll be preserving your trading capital (Goal #1) instead of adding to your broker’s bottom line while your account stagnates. Take a trip. Go tee it up or scratch some things off your to-do list. Just find a way to take a break so that you don’t trade when you know it isn’t your ideal time to locate profits. [...] […] At times, you’re going to be better off just not trading at all. For some, it’s the first few minutes of the trading day or the very end of the session. For others it’s when you have personal distractions, such as during the holidays when family is in town, or when a life-changing event comes along. Some traders just can’t stand to trade during the light-volume summer months. Whenever your least-favorite trading time happens to be, it’s up to you to identify it and avoid it. Shutting down the PC during that stretch will keep your mind clear as you avoid any confusion which would result from your trading activity then. You’ll be preserving your trading capital (Goal #1) instead of adding to your broker’s bottom line while your account stagnates. Take a trip. Go tee it up or scratch some things off your to-do list. Just find a way to take a break so that you don’t trade when you know it isn’t your ideal time to locate profits. […]

]]> http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-4274 Sat, 27 Jan 2007 19:04:23 +0000 http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-4274 [...] How ironic! He failed to mention that a long-term investor such as himself can indeed suffer considerable losses during a market correction, especially considering how few are hedged or short selling the way most day traders do. It’s also interesting to note that his long-term investors can be at greater risk than a day trader during a downturn, especially considering that they are mostly invested at all times and a day trader can take a position in cash (thereby preserving capital, not losing it). [...] […] How ironic! He failed to mention that a long-term investor such as himself can indeed suffer considerable losses during a market correction, especially considering how few are hedged or short selling the way most day traders do. It’s also interesting to note that his long-term investors can be at greater risk than a day trader during a downturn, especially considering that they are mostly invested at all times and a day trader can take a position in cash (thereby preserving capital, not losing it). […]

]]> http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-3683 Wed, 27 Dec 2006 23:31:24 +0000 http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-3683 [...] Achieving greatness in trading begins with humility. Stubborn pride doesn’t accept losses easily, so put it aside on a regular basis. Check your ego at the door. The market’s bigger than we are, so if we argue with it long enough we’re going to lose! Keep those stop losses in place and give yourself the best possible chance to win this battle! [...] […] Achieving greatness in trading begins with humility. Stubborn pride doesn’t accept losses easily, so put it aside on a regular basis. Check your ego at the door. The market’s bigger than we are, so if we argue with it long enough we’re going to lose! Keep those stop losses in place and give yourself the best possible chance to win this battle! […]

]]> http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-268 Wed, 03 May 2006 15:23:37 +0000 http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-268 [...] The next thing to consider is the amount of money you will be trading with, or your ‘risk capital.’ This amount is different for every trader, but it ought to be an amount which is large enough to generate good profits for you, while remaining small enough (initially at least) that if you were to suffer some setbacks it won’t affect your financial well-being extensively. Yes, all losses will be felt, but I am referring to your nest egg. If you’re starting out as a beginning trader, it’s wise not to roll the dice with that big savings account you’ve worked so hard at building for many years. Take a portion of it to use for your trading, and dedicate your time toward learning how to first preserve it (see Goal Number 1), and then how to grow it. [...] […] The next thing to consider is the amount of money you will be trading with, or your ‘risk capital.’ This amount is different for every trader, but it ought to be an amount which is large enough to generate good profits for you, while remaining small enough (initially at least) that if you were to suffer some setbacks it won’t affect your financial well-being extensively. Yes, all losses will be felt, but I am referring to your nest egg. If you’re starting out as a beginning trader, it’s wise not to roll the dice with that big savings account you’ve worked so hard at building for many years. Take a portion of it to use for your trading, and dedicate your time toward learning how to first preserve it (see Goal Number 1), and then how to grow it. […]

]]> http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-263 Tue, 02 May 2006 17:34:19 +0000 http://www.thestockbandit.net/2005/12/14/goal-number-1/#comment-263 [...] I’ve written a number of posts in the past about such topics as Trading Without Emotion, Trading your Personality, Goal Number 1, Trading Goals, Doing Your Homework, How Much to trade and even When Not to Trade. This series will be an attempt at going a bit deeper on these topics as well as tying them all together for the benefit of any trader, regardless of timeframe or trading experience. [...] […] I’ve written a number of posts in the past about such topics as Trading Without Emotion, Trading your Personality, Goal Number 1, Trading Goals, Doing Your Homework, How Much to trade and even When Not to Trade. This series will be an attempt at going a bit deeper on these topics as well as tying them all together for the benefit of any trader, regardless of timeframe or trading experience. […]

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