May 02, 2012 at 8:50 am | | Comments 0

Have a Unique Trading Routine

I heard from a trader this week with whom I’ve worked for 1 year this month.  He’s a class act and quite likeable, making him even easier to correspond with. 🙂

During that time, he’s completed both the Basic Trading Course and the Advanced Trading Course, and he’s been a subscriber of the nightly stock pick service.  He has truly put in the work, and he’s utilized me and my experience along the way as well (as he should).

One of the things which has made him successful is that he has truly modified everything I’ve given him to fit his own unique needs.  I’ve mentioned this to many in the courses and nightly newsletter, but some do it better than others.  This guy has done it exceptionally well, so I wanted to share with you what it looks like.

It’s different than mine, and it should be different than yours.  But by seeing it, you’ll notice things which spark ideas for your own routine. You’ll identify ways where he has adjusted and you have not, and it may expose a weakness you haven’t previously considered.  I’ll tell you the same thing I have told him, which is to take what’s useful to you and then make it your own.

Here’s his routine:

If the indexes have a big gap, I know most of the movement has been sucked out before things have started (unless it is a panic dive out of stocks). I won’t start trading until after 9:30 to avoid the amateurs and HFC causing strange movements and pullbacks, though I sometimes make exceptions, but want to plan them. For instance a sustained pullback on a troubled stock will sometimes be an exception. (Though more often than not I end up regretting it.)

I have personal things I have to watch. My (physical condition) affects how sharp I feel and how confidently I respond to situations, so I take that in consideration on how much or even if I should be trading.

I look at which way I think the market will continue to go (coming back later to see if I was right) opening, and whether it has been going up, down, or randomly/sideways. I honestly look at which direction I am confident in trading. There is no point starting a trade you do not trust – you’ll just pull out too early with a loss.

I decide on my loss level. If there is little juice left in the market I may only let a trade come back a support level or so. I need a strong runner to make it worthwhile in that case.

I look at how long I can trade. I have limits depending on how my arthritis is on how long I can sit, I also may have personal commitments, but decide to see if I can get a good runner that I can leave with a trailing stop when I run out of time. Of course on a weak day where I would use support levels that is out of the question.

Afterwards I come back and look at how much I lost/made.

Great stuff from a guy who has put in the work. He has a routine that suits him – he isn’t trying to mimic someone else. Can the same be said about you?

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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