Can you smell it? Sssshhhhh...its' $$$$$...it's all around you...you just have to learn how to pick it off the tree of life....
1) SIT DOWN IN FRONT OF YOUR COMPUTER REFRESHED AND READY TO MAKE MONEY! Pens, pencils, paper, calculator, and notes all within reach. Your mood will determine some of your success, and it's more likely failure for you if you get moody and arrogant! Don't bring your world of problems into the mix or you might have lost before you even begin; a bad mood will cloud your judgment and actions. Keep a sense of humor as well. Good traders know that the mind needs a break, even during market hours, so they talk about their computer set up, food, a hunting trip, remodeling, etc., trying to relax the brain once in a while to stay fresh when it's needed. The person that barks, “Let's stick to stocks!” is losing and mad, and they stick out like a cold pizza!
2) ALWAYS DD any stocks that you're interested in, and remember their source in case the DD is great, or just hot air! I've found out over the years that some people have great picks most the time, others hit and miss, and a few just guess in order to join in on the conversation – know the winners! Some give a tip and cannot even read a chart, or pump a stock, giving false information! Learning to read charts accurately is your best defense on protecting your funds from disappearing. Get very familiar with a few chart indicators & over-lays and stick to them, don't get confused by constantly switching chart parameters! Instead of looking at another person's unfamiliar charts, simply add the stock symbol to your own chart set up to read it by the indicators that you're most familiar with - to avoid mistakes!
3) NEVER CHASE, unless you're using settled funds, you watch that stock every single minute that the market is open, you're FEELIN' REAL DARN LUCKY, and you have a death wish! Just because you see one run up 600% (like ZANE), that is still the 1 in 1,000 exception; don't think the next one will do that! And don't just 'jump in' to get your feet wet, paper-trade for at least three months before actually risking hard-earned monies - because if a stock goes down 80% and you don't know what to do - it takes a rise of 400% just to break even again, which that rarely happens. Three red ticks and I usually sell a day trade.
4) HAVE AN EXIT PLAN "BEFORE" BUYING a stock, and no two stocks will have the same exit plan, even if they are in the same price bracket. Know your resistance points and write them down. Use charts that give automatic support and resistance amounts! And keep in mind when developing your plans > that you usually 'day-trade' penny stocks, you 'invest' in large cap stocks.
5) SELL YOUR WORST STOCK RIGHT NOW! If you have more than ten stocks sell your worst stock right now and you're already ahead for the day! Learn from whatever went wrong and don't forget it. (Education is expensive isn't it!) A multi-millionaire that trades here tosses out his worst stock every three months (that's part of the reason he's a multi-millionaire!), and he looks for an even better one, always trying to improve himself. He knows better than to hold a stock for a major payday. He takes hundreds of 10% to 25% 'bites' instead of losing by holding for that killer profit that rarely comes.
6) BE VERSATILE! BE AGGRESSIVE! BE CONFIDENT! Leave my pizza alone! Be ready to jump in and play like you're the biggest bad guy on the block! Your metal attitude is half of your arsenal; your money is the other half. They can do nothing by themselves, together they can make dreams come true! But don't be a stuck-up! Share information, take advice, listen to other people's styles, be adaptable to ever-changing market circumstances, keep up with stock market news & world events that change and effect your stocks, and see if ‘their trading style' will work for you. Look up their stock tips on your own chart settings (that you are familiar with), and you might just do well today!
7) RARELY HOLD PENNIES OVER NIGHT, and most say to never hold them over the weekend (just like it is a bad idea to hold large cap banks over the weekend because many banks are seized by the government after Friday's closing bell with no warning!). Also keep in mind that penny stocks are short plays in a bull market, and even shorter plays in a bear market (averaging 10 to 30 minutes, to a few hours most of the time).
8) ADD TO A POSITION when it is a SOLID large cap stock (either inching its way up, or during a dip). NEVER add to a losing penny position, thinking you will lessen the loss (unless you're really good at catching a falling knife [literally!].
9) PLAY FORWARD SPLITS, RUN FROM REVERSALS! The odds are in your favor that a stock will go up in price as the last day to buy approaches (forward splits are written 3/1, 5/1, 10/1, etc. [you end up with the first number]). I play them as much as I can and walk away with money most of the time 'if' I get in just after the split news is official. I lose a higher amount of times if I stay in after the actual split, because many times the new shares take a few days to get into your account and the price keeps going down while you wait, losing money all the while. Reversals are usually losing deals, so I avoid them all together (reversals are written with the larger number second, like 1/5 or 1/10 [you end up with the first number]).
10) BANKRUPTCY (BK) PLAYS, are best played by using the psychological bounce a few days after the main crash (after the BK announcement). There is almost always a bounce a few days after the main PR crash called a 'Psychological Play' when many people buy the stock on the hopes that it will come back. YOU don't care whether it survives or not! Advanced traders make mega bucks off BK's all the time. Typical psychological BK declining 'bottom' point increments are $2.00 $1.00 .50 .25 .10 .05 .02 .01 NEVER EVER LIMIT YOURSELF – get educated on the proper tactics and protocols of the BK play and jump in! And of course NEVER fall in love with a stock, especially if you hear rumors of a BK – get the heck out, you now know that it is going down on the rumor alone! If you have enough knowledge to play a BK, buy back in after the crash. All the thoughts here are strictly my opinions. And please keep in mind that your 'facts' and 'opinions' stop where another's 'facts' and 'opinions' begin....
**I'd like to thank Stockhideout.com for making such a wonderful trading forum, safe & friendly, for all people to trade at, receive free stock trading education at, and be one big happy family; the family I never had. Think twice before you buy once! Be well! Never fall in love with anything that cannot love you back! Happy Trading! Long Live Pizza! Copyright/c/2010 Jeff Vincent, CML, MA
Last edited by Bigred; 03-15-2010 at 03:45 AM. Reason: add informationSee the original at:
http://www.stockhideout.com/showthread.php?t=8782&p=40328&mode=threaded#post40328
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