I know that lately it has seemed that we have been in a squirrel market more often than not; so when the squirrel is removed we just have that itch to jump into something that is moving up.
In order to trade well, we need to fight against that temptation! We need to make sure that whatever we are trading is still at a good buy point and is still something we understand (knowing the pattern).
Trading works best when we are maximizing our gains and the best way for us to do this is to make sure we are jumping into stocks that have good buy points.
Ask yourself if the trade you are about to put money into is at a support and moving up.
Too often I find the excitement to begin trading again getting to our students, that some forget to follow the basics of what was learned in seminar 1. I hear in some cases that the stock was moving up with the market which was the only reason considered to jump into a trade. Although it's great for the stock to move up with the market, this does not necessarily translate to a good trade.
Keep the basic rules of buying at support and selling at resistance.
Understand the pattern of the stock you are trading so that the stock can be more predictable.
Have yourself predetermined sell points before you enter the trade.
Know when the earnings of the stock is and ask yourself, does the stock have enough volume to trade?
These small steps will help you make better trades.
Congratulations, we are out of the squirrel market! I can't wait to hear about the trades you make by keeping the rules and being patient and persistent.
-Andrew W, Office Manager