Comments on: Get A Grip! http://www.thestockbandit.net/2006/06/27/get-a-grip/ Trading blog with trading insights, discussion on swing trading, day trading, and trading psychology. Sun, 20 Jul 2008 13:59:32 +0000 http://wordpress.org/?v=2.0.9 by: Patient Progress | TheStockBandit.net http://www.thestockbandit.net/2006/06/27/get-a-grip/#comment-76119 Thu, 22 May 2008 15:10:47 +0000 http://www.thestockbandit.net/2006/06/27/get-a-grip/#comment-76119 [...] Observe the market, observe other traders, and always observe yourself. Don’t let your emotions get the best of you - and you will find yourself fighting them plenty! Giving yourself the best odds for success in every individual trade, every week, and every month will leave you knowing that over time you have an edge. [...] […] Observe the market, observe other traders, and always observe yourself. Don’t let your emotions get the best of you - and you will find yourself fighting them plenty! Giving yourself the best odds for success in every individual trade, every week, and every month will leave you knowing that over time you have an edge. […]

]]> by: Administrator http://www.thestockbandit.net/2006/06/27/get-a-grip/#comment-988 Tue, 04 Jul 2006 01:41:30 +0000 http://www.thestockbandit.net/2006/06/27/get-a-grip/#comment-988 Wavetrader, sounds like you're pretty systematic about your trading and I like that. I'm not an Elliot Wave watcher, but if it works for you and promotes a disciplined approach, then it's a good one to stick with. I like anything that can help remove emotions and help a trader enter and exit positions without the fear and excitement that can so easily complicate matters! That's why I set up every one of my newsletter trades with risk/reward profiles and I know my exit on them all before I get in. It helps me trade the right size and it's easier to accept those losses when they come because I knew going into the trade where I'd be getting out! Thanks for your comments Wavetrader, Jeff Wavetrader, sounds like you’re pretty systematic about your trading and I like that. I’m not an Elliot Wave watcher, but if it works for you and promotes a disciplined approach, then it’s a good one to stick with. I like anything that can help remove emotions and help a trader enter and exit positions without the fear and excitement that can so easily complicate matters! That’s why I set up every one of my newsletter trades with risk/reward profiles and I know my exit on them all before I get in. It helps me trade the right size and it’s easier to accept those losses when they come because I knew going into the trade where I’d be getting out!

Thanks for your comments Wavetrader,

Jeff

]]> by: wavetrader http://www.thestockbandit.net/2006/06/27/get-a-grip/#comment-980 Mon, 03 Jul 2006 20:24:49 +0000 http://www.thestockbandit.net/2006/06/27/get-a-grip/#comment-980 You're exactly right Jeff. Getting emotional about a stock is dangerous at best, psychotic at worst. Even when performing your technical analysis, people are often predisposed to see what they want to see rather than what the market is telling them. What I do is look for patterns and play the pattern. I look at technicals to confirm the pattern I've spotted. I never get in to early, I wait for the pattern to reveal itself. The methodology one uses is important as well. It must be applied consistently and directly. Your trade should be a well thought out plan, with an entry, and exit and a profit target. I personally use a combination of Swing Trading, as described by Landry, and the Elliot Wave theory. I pick the entry points at a spot that will give me the best chance for success, I don't anticipate. For example, in an advancing trend, using the Elliot Wave, there are three impulse waves and two corrective waves. Wave three is usually the best money maker because it typically has the longest leg. But I don't enter wave three until it has been confirmed and fully retraced leg 2. Some might say this is foolish because I may be missing out on as much as 50% of the profit potential. But I find it more profitable over the long run because the chances of that third wave coming to fruition is far greater at that point than it is if I chose to enter it when it first came out of wave two. If it declines to break, then I fall back on a stop just below the peak of wave one, therebye avaoiding a loss and chalking it up to a flat trade. If I miss, no big deal, I'll just wait for the next pattern setup. The stock market aint going no where. You’re exactly right Jeff. Getting emotional about a stock is dangerous at best, psychotic at worst. Even when performing your technical analysis, people are often predisposed to see what they want to see rather than what the market is telling them.

What I do is look for patterns and play the pattern. I look at technicals to confirm the pattern I’ve spotted. I never get in to early, I wait for the pattern to reveal itself. The methodology one uses is important as well. It must be applied consistently and directly. Your trade should be a well thought out plan, with an entry, and exit and a profit target. I personally use a combination of Swing Trading, as described by Landry, and the Elliot Wave theory. I pick the entry points at a spot that will give me the best chance for success, I don’t anticipate.

For example, in an advancing trend, using the Elliot Wave, there are three impulse waves and two corrective waves. Wave three is usually the best money maker because it typically has the longest leg. But I don’t enter wave three until it has been confirmed and fully retraced leg 2. Some might say this is foolish because I may be missing out on as much as 50% of the profit potential. But I find it more profitable over the long run because the chances of that third wave coming to fruition is far greater at that point than it is if I chose to enter it when it first came out of wave two.

If it declines to break, then I fall back on a stop just below the peak of wave one, therebye avaoiding a loss and chalking it up to a flat trade. If I miss, no big deal, I’ll just wait for the next pattern setup. The stock market aint going no where.

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