Excerpts from The Electronic Day Trader
- If a stock is hard to buy, it is going higher. If it is hard to sell, it is going lower.
- If a stock is supposed to go higher and it doesn't, it is going lower. ***
- Only play stocks in motion.
- Identify the catalyst that triggers any other short term traders' actions.
- Watch industry and market leaders for clues to determine strengths and weakness of market.
- Be aggressive in trending market.
- Try to establish who the real buyers and sellers are in a given situation.
- Get out when you can, not when you have to.
- Limit your losses. ***
Exerpt from How to Get Started in Electronic Day Trading
- Winners see positive events that happen to them as permannet. Negative things as temporary.
- Technical indicators are electric fences. If you brush against one of them, you get a shock. They are there to enforce trading discipline. Their purpose is to remind you to exit trade in a timely fashion - always cut you loss short!
- A good trader can make money being right only 30 to 40 percent of the time... other traders are right 80 percent of the time or even more - and still lose money! They lose more by holding losing trades than they make on their winners.
- Beginning traders should use technical analysis for trade maintenance. Set mental and technical stops. Follow them rigorously to keep profits and minimise loses.
- Do NOT hold losers. Admit you are wrong and be done with it.
- Do not beat yourself up when you are wrong. This is not easy to do when losses amount to thousands of dollars, but it MUST be done.
- Prepare to do battle another day.
- You picture in your mind exactly how you expect a trade to take place. If it does not follow you script, you close it out immediately.
-Do not wait for the obvious, trade ahead of news and events.
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