In this episode, we’ll talk about some distinct differences among traders regarding their approaches to trading.  It should either give you some added motivation, or a boost in confidence.

I hope you get a lot out of this installment. Keep coming back for more in the days ahead, and of course if you find these helpful, then let me know!

Run time is 3:08.

(Direct video link is here for those interested in embedding it elsewhere to share).

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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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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Follow @TheStockBandit

In this episode, we’re talking about something that’s paramount to your success as a trader. It’s a mindset, but it’s something that requires intentional planning and not a fly by the seat of your pants mentality.

A weekend sporting event was too pressing to delay this message any further, so here it is.

I hope you get a lot out of this installment. Keep coming back for more in the days ahead, and of course if you find these helpful, then let me know!

Run time is 4:26.

(Direct video link is here for those interested in embedding it elsewhere to share).

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Get our free newsletter to keep up!
Follow @TheStockBandit

Recently I sat down with Tim Bourquin for a MoneyShow Interview, and we discussed this topic of how Strategic Adjustments can Pay Off Big. The clip is 3 minutes and can be viewed here.

In the segment, we discuss trading biases, contingency plans, backing down when you’re uncertain, and the importance of focusing on a single market while still allowing yourself some ways to diversify within it.

(Other 3-minute videos from this same interview discuss The Trade Plan that Works For Me, as well as Win More by Risking Less, which you may also enjoy.)

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Get our free newsletter to keep up!
Follow @TheStockBandit

Recently I sat down with Tim Bourquin for a MoneyShow Interview, and we discussed this topic of how to Win More by Risking Less.  The clip is 3 minutes and can be viewed here.

In the segment, we discuss the mentality traders should bring to trading, the importance of knowing your exit, risk/reward ratios, and position sizing.  We also discuss the often misleading notion of accuracy in trading and what that should be replaced with.

(Another 3-minute video from this same interview discusses The Trade Plan that Works For Me, which you may also enjoy.)

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Get our free newsletter to keep up!
Follow @TheStockBandit

In the movie, his character Mike McDermott makes a comment early on that as a player, “your goal is to win one big bet an hour – that’s it.”

Notice he said “win one big bet” rather than “place one big bet.”  There’s a key distinction here and it applies to trading.

Amateur Hour

Amateurs too often think they need to place some big bets in order to win big.  They couldn’t be farther from the truth.

Amateurs are also generally too proud to fold.  That’s admitting defeat, and rather than seeing the bigger picture of losing some battles in order to win the war, they take a stand when they shouldn’t – and they pay for it.

How the Pro’s Play

Professional traders, on the other hand, realize there’s plenty of quiet time to endure before those payout opportunities occur.  They realize it’s a matter of hanging around, staying in the game, in order to be fit to capitalize on the best “hands” they are dealt.

Professionals understand that taking small hit after small hit is easily undone by just a win or two – so long as they’re losing smaller and winning bigger. Be willing to fold repeatedly if necessary – the goal is to be net profitable, but that won’t happen every single time you commit your capital.

Trading is a numbers game, and professionals only play (or play for meaningful stakes) when conditions are most favorable.  Very simple, but very difficult for many amateurs to do.

So the question is… are you thinking (and acting) more like an amateur or a pro?
(Hint: your results are likely already reflecting it.)

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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Follow @TheStockBandit

But…

It’s time to put a little different spin on things and I felt that through some on camera face time, I’d be able to connect with you a little better and deliver some ideas and concepts that you absolutely MUST have as a trader.

So today, I bring you something I’ve been excited about lately but haven’t previously revealed with this new video series.  I’m calling it When The Bell Rings, and here in Episode 1 I’ll explain why.  Subsequent episodes will of course build on what’s delivered here, so by all means stay tuned and share your feedback if you’re finding these helpful.

Enjoy!

(Direct video link is here for those interested in embedding it elsewhere to share).

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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Follow @TheStockBandit

For example, with XYZ trading at $50, the $55 call might look cheap by comparison at $0.25, and many will go this route of buying a ‘cheap’ call instead of the shares.  That isn’t much, but with only about a 10% chance of finishing in the money by expiration, the odds certainly aren’t favorable.  Then consider the fact that to turn a profit, the stock has to move even higher ($55 + $0.25 paid for the call), and the likelihood of turning a profit diminishes even further.

Whether it’s options or common you’re trading, you never want to be in a position where you NEED the stock to make a sizeable move to just get your money back.

So the next time you’re considering buying an option instead of the stock, go deep in the money and consider paying what might look to be a more expensive price.  The odds are more favorable, and you’re not putting yourself in such a needy position from the outset of the trade.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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Follow @TheStockBandit

Specifically, I’ll be discussing Adapting to Changing Market Conditions. I have a lot of good stuff planned, and we’ll talk about being equipped with different techniques and having an awareness of what to watch for to indicate the landscape is shifting. I’m excited about giving you some insights for better trading and having the opportunity to answer your questions live.

Make plans to attend virtually by pre-registering today (it’s free)!

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

Get our free newsletter to keep up!
Follow @TheStockBandit

The market closes at 3pm for me, offering lots of time to tend to other things – if I so desire.  However, my desire is to succeed at trading for the long haul, which means I have lofty goals.  In turn, I’m not the type to walk away when the closing bell rings.  I work at it every day to improve and educate myself on an ongoing basis.  I have to stay sharp.

That means I’m reading books, blogs, spending considerable time working the charts in search of what’s working best right now, and of course reviewing my own trades in order to continue learning.

Because successful trading is so much about finding a style that fits your own personality, it is only fitting to investigate what styles exist.  An energetic and impatient person may want to become a scalper, looking to day trade quick moves within a short timeframe.  A laid-back trader may prefer a less-intense style like swing trading, taking positions to hold for days or weeks.  There are many approaches to the market, and finding your own style can come as a result of identifying with the style of another trader.

Raising Your Awareness

The road to expertise isn’t a short one, particularly in trading.  I’ve been at this long enough to be considered an expert, yet there are still plenty of days where I’m reminded that I sure don’t know it all!  Trading will humble you like that, but that’s part of it.  Regardless, here are some ways for you to get educated as you further not only your knowledge but your trading career in the process.

Books.

I’ve read a couple hundred of them on trading, and while there’s plenty of worthless paper out there, you can still find some great ones with timeless lessons.  I think it’s important to continually seek out information, whether it’s new and applicable now or just a lesson to be reminded of (before the market does it for me!).  Your self-motivation will help you improve, so dig through the classics for starters.  Mark up the margins, underline the parts which resonate with you, and return to them often.

I particularly like the Market Wizards books by Jack Schwager.  He profiles traders in all kinds of markets (bonds, equities, options, futures, mutual funds) and of all timeframes.  Yet despite their differences, all are highly successful.  The interview format he utilizes gets you in the minds of these great traders, offering countless lessons.  (I regularly visit TraderInterviews for the exact same reason).  Every good trader trades in accordance with their personality, as we all should.

The newest book I would highly suggest is One Good Trade, which is the best trading book I’ve read in a long time.  Bella covers it all and overlays his lessons with a variety of trading characters (based on real people), which helps drive the lessons home that trading is all about performance, adaptation, learning, and having the right mentality.  Once I started it, I couldn’t set it down, and I’ve re-read it since.

Blogs.

Reading posts like this one can’t help but to expand your knowledge and open your mind up to some new possibilities.  There are countless blogs on trading, but there are some good ones.  Hunt for those which offer whatever it is you’re lacking….encouragement, psychological lessons, trade reviews, sector snapshots, news on industry developments, interviews, trading videos, etc.

If you’re willing to get honest with yourself and figure out what you’re lacking, you can find some blogs to visit regularly as resources.  Just be sure they’re written by traders, honest, and not wasting your time, as there’s no shortage of distractions out there that won’t help you grow at all.

Results.

If you don’t track your own trades, start yesterday!  You can record your trading via screen-capture software, but even a journal or simply a grid outlining entries, exits, holding times, patterns, trade context and objectives will shed more light on your trading than you can imagine.  As you collect results, start to compile them.  I did this for the first few years of my trading, until I really understood what I was doing, and it helped me assess my strengths and weaknesses.  Monthly, I’d review my results and calculate statistics which gave me plenty to work on.

You just can’t argue with data!  Getting mixed results? It may be time to make an adjustment.  Figure out how your wins and losses stack up against each other, as that’s a great starting point.  Over time as you endure periods of profits and pain, you have stats to compare against and you can more readily see when something is out of line.

Premium Services.

I’d be leaving a huge part of the mix out if I ignored premium services in the education process.  Early on, I subscribed to a number of sites while I figured out my own style.  Once I got to the point where I had my own opinion, I knew I had learned enough to need them no more.

Here at TheStockBandit, we offer a nightly stock pick service outlining my own trading plan for tomorrow, which some use to generate trade ideas and others use as a learning tool to see why I plan to take each trade (since each are explained).

We also offer stock trading courses in a video-on-demand format.  The trading courses explain everything I know about trading, making them an incredibly valuable resource to return to over and over (depending upon current conditions in the market), helping traders see a huge variety of trade types and which kinds of market conditions are well-suited to those plays.

And while I’m certainly proud of and stand behind what we offer, there are plenty of others to choose from which are produced by legit people with a lot to teach you.  If you want to accelerate your learning curve and truly build your skill set, let someone help you who has done it.

You Get What You Give

If trading is your job or a part-time endeavor you’re passionate about, recognize that your level of effort in the growth process is going to be reflected in the results you get.  Be willing to apply yourself regularly as you learn more about not only the market, but yourself.

Staying educated and keeping a learning mindset is going to eliminate mistakes as well as some big disadvantages you currently face if you’re halfway new at this.  As you make that a habit over time, it’s going to continue to pay off in a number of ways.  Become a complete trader and commit to educating yourself.  You won’t regret it.

Trade Like a Bandit!

Jeff White
Producer of The Bandit Broadcast

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