Archive for August, 2011
Embracing Market Changes
August 5, 2011 at 7:15 am
The market is ever-changing, both in what it fixates on and in how it moves. At times it’s earnings, at other times it’s politics, and still other times it’s the economy. Sometimes it sprints, sometimes it crawls, and sometimes it jumps back and forth across the same line to get nowhere.
As traders, it’s this constant change which actually provides us with serious opportunity. The long-term buy-and-hope type doesn’t have a different approach for profiting from a momentum market vs. a sharp correction. You as a trader do, so embrace that!
When it’s time to adapt, be willing to do it. The same old patterns might not work, so at times you’ll need to modify what you’re looking for and go with something a little different. Experience will teach you this, but right alongside that is your ongoing willingness to listen to the market and identify what’s working.
I want you to check out this post from the archives where I talk about Profiting From Market Changes – you’ll learn from it.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Let Your Trades Go
August 4, 2011 at 7:15 am
Trading on certain timeframes requires that we monitor every tick, gauge the momentum, and continually modify our management of the trade.
For most traders, however, more of a hands-off approach is far better. Whether it’s a job that prevents fixating on the screens, or simply an aversion to that high a level of activity, many traders choose to operate on a timeframe that doesn’t require their nonstop full attention.
When I’m swing trading, there’s a tool I utilize that makes all the difference in the world. It allows me to take a set-it-and-forget-it approach to my trades so I can set them up and let them go. It helps me prevent interfering with my positions so that my original trade plan can fully develop.
Just as you should, I already know from the outset of my trade what I’ll risk if I’m wrong and where I’ll ring the register if my target is reached, so with those pieces of the equation already known, all I need to do is plug them in.
Read this post for an explanation and a video I made explaining how I trade with Peace of Mind.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Elevating Your Odds
August 3, 2011 at 6:05 am
Each of us would say we want every advantage possible in our favor, regardless of the activity. But a closer look at your trades would likely reveal occasions where you didn’t quite wait for all the elements of your trading plan to come together.
Perhaps that’s out of impatience or anxiety, but we’ve all done it and either suffered diminished returns from lowering our standards or we’ve implemented some poor habits which came back to bite us later.
When it comes to daytrading, our greatest odds for success come when we combine multiple favorable conditions before placing trades. That might be locating setups which point to the same outcome on multiple timeframes, or it might be considering the overall market environment and trading in such a way that we’re not fighting that.
Go check out this post from the archives which has both a written explanation & a video showing you what I mean, because the key is to Stack the Odds for Daytrading Success.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Don’t Let Trading Be Everything
August 2, 2011 at 2:15 am
I love trading – it’s such a challenge with multiple rewards. I look forward to it, I think about it alot, and I’m passionate about it so I work quite hard to continually improve at it.
But it’s good to constantly remind myself that trading isn’t everything.
It can’t be. There’s too much more to life than just watching numbers and letters on the screen. Trading is a means to an end, and for each of us that may be something different. What we have in common though is that we have to keep trading in perspective.
One of the ways to ensure you’re doing that is to have off-the-screen goals. Maybe you’ve got another hobby or you’re a runner or a cyclist or a golfer or you have a side business. Whatever “it” is, the good thing is that you have it. Don’t view it as a distraction – think of it as a necessary diversion.
Thinking about your trading constantly shows that it’s important to you, but it borders on obsessive and that’s not good. Inevitably, there will be tough days filled with frustration, and that’s not something worth fixating on. Being able to walk away from your desk and shift your mind to something else (once you’ve reviewed your trading session) is critical to your ability to return tomorrow mentally prepared.
Check out this post for more of my thoughts on The Importance of Off-the-Screen Goals.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Take Time to Rest & Relax
August 1, 2011 at 7:15 am
This week I’m on vacation – and how sweet it is! But I’m still going to deliver some goods for you to read here…every day, actually, so keep coming back.
Today I wanted to discuss the importance of stepping away from the screens from time to time to rest up and recharge. The market will always be there when we return, but if we trade with fatigue of any sort (physical, mental, or emotional), we’ll be far from our best. That brings suffering to both our confidence and emotions – both of which we need in this game.
As you well know, trading is very demanding, so for us to show up each day with our full focus, we have to stay rested and avoid burnout.
I felt this post from the past was particularly pertinent to the current market environment. We’ve seen lots of day-to-day indecision, some sizeable gaps, and some wide-ranging bars in both directions lately. That’s not allowing many stocks to establish quality bases, which means the opportunity that’s out there is rather narrow at the moment. That will at some point change, but for the time being this is a good time to step away and let some of the dust settle.
Check out this post: The View From the Hammock for more of my thoughts on R&R.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
