| Wednesday, Jul 28, 2010
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| Time Out |
| By Invested Central |
| Wednesday, Jul 28, 2010 10:41 |
If you are a trader, you need to figure out a way to get a little time out once in a while. Depending upon how much you trade, this could be anywhere from a few hours to a few days to a few weeks.
What really matters is you manage to keep up your energy so you are sharp when you move into action. You don't want to enter each and every trading day feeling burdened and dragged down. Instead, you want to be on top of your game.
Taking a time out here and there is good for you mental sharpness and will allow you to put things into perspective. If you are going through a rough trading period, taking some time off might reinvigorate you. Or, if you are having a good trading period, why tempt fate? Why not take off some well deserved time and resume refreshed?
Just try to take care of yourself even more than you are now. You deserve some time outs here and there because you work hard to make your money. |
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| Tuesday, Jul 27, 2010
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| Shooting for the Moon |
| By Invested Central |
| Tuesday, Jul 27, 2010 10:37 |
If you are a trader who always shoots for the moon, then you are probably getting nowhere fast. If every trade you make needs to be a homerun, then you are likely frustrated and still getting nowhere fast.
How do we know that? Because unless you adopt a more balanced strategy, you will be forever going for the fences, and the reality is the grand slam comes once in a very great while.
If you are someone who is forever swinging for the big one, try to start thinking singles, doubles and triples. Then once in a while, if you are lucky, you will hit one out of the park.
What's wrong with nice, consistent little scores on a regular basis? The truth is, they are much more likely to happen then the big hit, so you have more opportunities to profit if you just ratchet down your expectations.
Just think of this analogy. Back in the 1960ss, when man finally landed on the moon, it was an event and accomplishment of monumental proportions. Why do you think shooting for the moon all the time in the market is any less monumental? |
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| Friday, Jul 23, 2010
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| Preparing for Change |
| By Invested Central |
| Friday, Jul 23, 2010 10:35 |
If you are a trader you need to always be ready to shift your strategy when the market is flashing signals to do so. The market might be in rally mode or it might be in sell mode but start sending out signals that things are about to change.
No matter how you go about figuring a shift is about to occur, the important thing is you are ready to change your strategy to fit in with what the market is telling you. For example, if you are heavily long and signals show the market is ready to make a move lower, you need to trim your long positions big time. This might sound simple, but if you are mostly a bull, it is much easier said than done, and that's where the problem comes in.
Too often, traders take a wait and see attitude, then by the time they are ready to make a move, it is too late and losses have mounted. Stop and ask yourself the question, if you saw a tornado heading directly toward your house, would you just stand there and wait for it to hit or would you take proper steps to get out of the way?
The market is no different so don't think for a moment that you can control the direction. The market has a mind of its own and really doesn't care what you think.
So, instead of staying in harms way when you see an ominous cloud appear over the market horizon, take proper precautions, because if you don't, no one else will get hurt but you. |
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