To be a successful trader or at least semi successful, you should never do the following :
1) buy pre market
2) buy after hours
3) buy the open
4) buy gap ups
5) chasing a fast moving stock
6) panic
7) revenge trading
8) Over trading
There are times when buying the open will render a great trade to where you will make 5-10 points before 10:00 am. That said, its few and far between and its a bad habit to get into. I like to wait at least 5-15 minutes if I need to buy near the open so the smoke can clear. I lost countless amounts of money from buying gap ups at the open only to watch profit takers dump the stock indiscriminately. This is after looking at the charts and determining there was an actual set up despite a gap up. Far too many times I have let adrenaline supercede disipline and patience only to watch my position drop like a rock. The open will also render the most intense losses and it can be hard to get out with a minimal loss. If I get into a position at 9:40 rather than 9:30 and need to get out quickly, its much easier to do at that point than near the open. Im not saying these rules are bullet proof because they are not, intuition is an “ x factor” that cannot be taught but I will tell you, if you follow these rules in conjunction with your research, your chances of being successsful will be increaesed quite a bit. Also, never panic and sell too early. That being said, not buying the open usually avoids this and a pull back can easily be dealt with rationally. You also do t want to over trade. If you make a nice profit, there is nothing wrong with walking away. Why give back a profit?
One final note, its usually best to pre determine where you want to establish a position and let the stock come to you opposed to chasing it and getting in too late to where more upside is minimal. Also have an exit stradegy. You know where you want to buy but where are you selling it and when ?
On a “ final final note”, Never “ bet the farm” on a stock with the hopes of recouping a bad trading day with that one shot in the dark gamble.. Revenge trading causes more intense losses. Its what all gamblers do, they want that one big trade just to break even. It never works.. Go home, get a good nights rest, forget about it, and prepare yourself for the following days trading.
1) buy pre market
2) buy after hours
3) buy the open
4) buy gap ups
5) chasing a fast moving stock
6) panic
7) revenge trading
8) Over trading
There are times when buying the open will render a great trade to where you will make 5-10 points before 10:00 am. That said, its few and far between and its a bad habit to get into. I like to wait at least 5-15 minutes if I need to buy near the open so the smoke can clear. I lost countless amounts of money from buying gap ups at the open only to watch profit takers dump the stock indiscriminately. This is after looking at the charts and determining there was an actual set up despite a gap up. Far too many times I have let adrenaline supercede disipline and patience only to watch my position drop like a rock. The open will also render the most intense losses and it can be hard to get out with a minimal loss. If I get into a position at 9:40 rather than 9:30 and need to get out quickly, its much easier to do at that point than near the open. Im not saying these rules are bullet proof because they are not, intuition is an “ x factor” that cannot be taught but I will tell you, if you follow these rules in conjunction with your research, your chances of being successsful will be increaesed quite a bit. Also, never panic and sell too early. That being said, not buying the open usually avoids this and a pull back can easily be dealt with rationally. You also do t want to over trade. If you make a nice profit, there is nothing wrong with walking away. Why give back a profit?
One final note, its usually best to pre determine where you want to establish a position and let the stock come to you opposed to chasing it and getting in too late to where more upside is minimal. Also have an exit stradegy. You know where you want to buy but where are you selling it and when ?
On a “ final final note”, Never “ bet the farm” on a stock with the hopes of recouping a bad trading day with that one shot in the dark gamble.. Revenge trading causes more intense losses. Its what all gamblers do, they want that one big trade just to break even. It never works.. Go home, get a good nights rest, forget about it, and prepare yourself for the following days trading.
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