Archive for November, 2011
Video Review of the Indexes 11-6-2011
November 6, 2011 at 1:48 pm
A sharp pullback to start last week left the indexes testing some important levels and filling some gaps, both of which proved to be technically beneficial for the market. Dip-buyers emerged to stem the losses though, erasing a fair chunk of the deficit from last Monday and Tuesday.
More progress will need to be made for the bulls to regain their October momentum, but overall the price action is constructive and this pullback – if kept shallow – could still result in a higher low on the daily charts of the indexes.
As we head into a brand new week of trading, let’s examine some important levels to keep an eye on in the days ahead. That will have the greatest influence on how individual stocks are going to move, so it’s where the trading week begins.
Update: direct video link is here as the YouTube embed code is hit/miss.
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
4 Traits of the Perfect Trader
November 3, 2011 at 9:48 am
Maybe ‘perfect’ isn’t the right word. We can strive for it, but we’ll all fall short of it given enough time. Greatness, though…that’s attainable. But what does it take to become a great trader?
Well, I’m still working toward it myself, and maybe you are too, but we can agree it’s a combination of things. It’s having the ability to walk the line between two sometimes contradicting attitudes or beliefs. Here are a few of those, and I’d love to hear your thoughts on it if you have others to add to the list.
Great traders blend:
A ‘Just Go With It’ Attitude with a ‘Question Everything’ Mindset. What do I mean by that? Well, traders can be a skeptical bunch, but the best traders still act on what they see. A market move might be difficult to trust, but it’s underway and it’s happening with or without you. Traders know they can exit right away if it doesn’t work out, because after all, isn’t that why we trade rather than invest? I recently saw a comment regarding a “real bull market” by a self-proclaimed trader. I find it silly that a trader actually cares. Real traders don’t mind if the moves last or not, they just go with it and adapt along the way.
Flexibility with Structure. Great traders have a game plan in place, which gives them structure or a framework of rules to guide them in the right direction and help them avoid trouble. But they’re also very flexible in how they implement their game plan. They may not deviate from their discipline, but they can shift gears quickly when conditions call for a momentum-based tape or some fade trades when prices are range-bound.
Confidence with Respect for the Market. This is a tough one and in my experience, never completely mastered. Great traders understand risk, and they know the market can take their hard-won capital quickly if they don’t defer to the price action when their timing is off. However, they aren’t afraid to participate, so when they see what they like, they execute with confidence. This might be among the hardest things to get a grip on for a developing trader.
Science with Art. Trading is definitely a science to some (quants, that’s you!), and it’s an art form to others (tape readers, holla!). Some traders develop their own discretionary system whereby they know exactly what they’re looking for but weigh a number of factors before executing. That might mean taking into consideration if the market’s fast or slow, or if there’s a trend or indecision, or how a run ahead of scheduled news might prompt a reversal. Great traders develop a feel (art) through their experience, helping them identify better when to implement the proper strategy (science).
Where do you fit into the mix? Are you out of balance in one or more of these areas? What can you start improving on today?
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
Chasing Trades Isn’t Paying
November 1, 2011 at 7:27 pm
Current conditions and the overall complexion of the market is always subject to change, but it’s still always worth taking note of. The market seems to be continually morphing into another phase, whether it’s range-bound, trending, highly volatile, or really tame.
Right now, we’re in short-term pullback mode after seeing some upside continuation. The past couple of sessions have been characterized by hefty downside gaps accompanied by limited intraday follow-through. So with that in mind, I wanted to discuss the idea of chasing trades in an environment like this.
In this video, I’ll show you what I mean based on the last couple of sessions.
Be sure to view in HD (720P) and full-screen mode for best quality in the video.
Trade Like a Bandit!
Jeff White
Producer of The Bandit Broadcast
Follow TheStockBandit on Twitter or get our free newsletter to keep up!
