| Saturday, Feb 20, 2010
| Permalink |  |
| Luck versus Skill |
| By Invested Central |
| Saturday, Feb 20, 2010 08:55 |
When you are a trader, you need to make intelligent choices all the time. This means you need to do your homework and to make your decisions based on the best information available at the time of a trade. Some people think good trades are based upon a combination of skill and luck. This may be true, but the fact is if you rely upon luck too often, it won't do anything to fatten your trading profits. Instead, you need to be able to make spur of the moment decisions grounded in facts rather than rely on luck to see you through the trading day. Not that a little luck here and there isn't helpful, but relying on luck in lieu of smart choices doesn't make sense. Learn to make intelligent choices that increase your odds of succeeding. Learn as much as you can about technical analysis and what the successful traders know that you should as well; better good than lucky. |
|
|
| Monday, Feb 15, 2010
| Permalink | |
| Planting the Seeds |
| By Invested Central |
| Monday, Feb 15, 2010 06:30 |
When you are a trader, there are definitely times where you need to get yourself set for periods that might be slow or are setting up for a nice upswing. If you are able to do this, then when the time comes along to be more aggressive, it can really pay off big time. This might mean that there are a number of weeks where you play very lightly if at all, which calls for big time discipline, especially if you like to trade daily. You have to make the choice between active trading where it gets frustrating and possibly costly or going very lightly knowing there will be a right time to be in the market full speed ahead. A good place to start is slowing down a bit, pacing yourself, preserving your capital along the way. This way, if things turn against you, it won't put you out of the market forever. For some reason traders think being in the market is a 24-7 thing when the reality is you can determine exactly when you are in and out. Planting the seeds for something bigger down the road takes practice and patience, but if you can at least begin the process, it will pay nice dividends down the road. |
|
|
| Tuesday, Jan 26, 2010
| Permalink | |
| Knowing when to Bail! |
| By Invested Central |
| Tuesday, Jan 26, 2010 11:42 |
If you have even been in a boat where the water was starting to come over the sides, you probably pitched in and helped to bail the water out. After all, if too much water got into the boat it would ultimately sink, and who wants to go down with the ship? When you are trading a stock and you have a good idea where the next support level is, make sure you are ready to pull the trigger on the trade if that support level is breeched, particularly if that support is breeched on heavy volume. Too many traders wait for the breech then keep waiting to see if the stock will recover, and often it simply won't, and before you know it, the stock is down further than you could imagine. Then, if you continue to hold, you may find it takes a very long time for that stock to retest what now has become resistance. Increase your chances for success as a trader by having that bucket ready to bail you out, otherwise, you might just sink! |
|
|
|
marketSNAPSHOT
