A Long List of Short Trading Thoughts
Stockscores.com Perspectives for the week ending September 11, 2009
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In this week's issue:
This may be a short commentary for the newsletter but I think it will have a lot of value for all traders. Print it out and read it often.
1. Buying a weak stock is like betting on a slow horse. It is retarded.
2. Stocks are only cheap if they are going higher after you buy them.
3. Never trust a person more than the market. People lie, the market does not.
4. Controlling losers is a must; let your winners run out of control.
5. Simplicity in trading demonstrates wisdom. Complexity is the sign of inexperience.
6. Have loyalty to your family, your dog, your team. Have no loyalty to your stocks.
7. Emotional traders want to give the disciplined their money.
8. Trends have counter trends to shake the weak hands out of the market.
9. The market is usually efficient and can not be beat. Exploit inefficiencies.
10. To beat the market, you must have an edge.
11. Being wrong is a necessary part of trading profitably. Admit when you are wrong.
12. If you do what everyone is doing you will be average, so goes the definition.
13. Information is only valuable if no one knows about it.
14. Lower your risk till you sleep like a baby.
15. There is always a reason why stocks go up or down, we usually only learn the reason when it is too late.
16. Trades that make a lot of intellectual sense are likely to be losers.
17. You do not have to be right more than you are wrong to make money in the market.
18. Don't worry about the trades that you miss, there will always be another.
19. Fear is more powerful than greed and so down trends are sharper than up trends.
20. Analyze the people, not the stock.
21. Trading is a dictators game; you can not trade by committee.
22. The best traders are the ones who do not care about the money.
23. Do not think you are smarter than the market, you are not.
24. For most traders, profits are short term loans from the market.
25. The stock market can not be predicted, we can only play the probabilities.
26. The farther price is from a linear trend, the more likely it is to correct.
27. Learn from your losses, you paid for them.
28. The market is cruel, it gives the test first and the lesson afterward.
29. Trading is simple but it is not easy.
30. The easiest time to make money is when there is a trend.
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I made a typo in the symbol of one of the featured stocks last week, it should have been FSII and not FSSI. Sorry.
I ran the same sort of Market Scan this week as last, looking for stocks trading abnormal volume and breaking through resistance. I check the charts for good chart patterns and if the risk reward relationship looks good, I consider it a good trading opportunity.
Here are this week's findings:Back To Top
1. CVGI
CVGI has not been in a narrow trading pattern for very long but is making a good break from low price volatility after beginning its upward trend about 6 weeks ago. It looks like it wants to continue higher in the weeks to come. Support at $4.60.
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2. NURO
NURO is a stock that I featured in the Daily newsletter a few months ago and since then it has not done much. Today it made a big break out on big volume and looks like it is ready to move in to an upward trend. Support at $1.77
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3. WRES
WRES is my favorite chart this week, a very clean breakout from an ascending triangle pattern. Volume support is very strong, this is a near perfect set up. Support at $2.26.
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References
Get the Stockscore on any of over 20,000 North American stocks.
Background on the theories used by Stockscores.
Strategies that can help you find new opportunities.
Scan the market using extensive filter criteria.
Build a portfolio of stocks and view a slide show of their charts.
See which sectors are leading the market, and their components.
Disclaimer
This is not an investment advisory, and should not be used to make
investment decisions. Information in Stockscores Perspectives is often
opinionated and should be considered for information purposes only. No
stock exchange anywhere has approved or disapproved of the information
contained herein. There is no express or implied solicitation to buy or
sell securities. The writers and editors of Perspectives may have positions
in the stocks discussed above and may trade in the stocks mentioned. Don't
consider buying or selling any stock without conducting your own due diligence.
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