Not long ago I noticed that buying dips and pullbacks within uptrends [1] has been working much better for me than the breakout plays I generally prefer. This is largely a function of the market having run for so long without a meaningful rest, and fortunately my trading experience helped me to recognize that (along with, of course, a few failed breakout plays!). This has shifted my focus toward more of these types of plays in recent weeks, and my performance has improved substantially as a result of this minor and simple change.
The key to this change was when I took a closer look at my trades to see what was working well and what was costing me money (I do this regularly). It can be tough to admit the need for change if your ego is tied too closely with your trading, but remember that we’re in this to inflate our wallets, not our heads!
What aspects of your trading might need a little changing? Closely examine your process and the results you’re getting, and I’m confident that if something needs tweaking, it will stand out. Sometimes the smallest adjustments can make the biggest differences.
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com [2]