Ooo Way
Stockscores.com Perspectives for the week ending April 12, 2014
In this week's issue:
Stockscores Market Minutes Video
In this week's Market Minutes video, I show how to use the Stockscores Market Scan tool to filter for dividend paying stocks, plus I provide my regular weekly market analysis. Watch the video by clicking here.
Upcoming Events
8 Rules for Successful Stock Market Investing
Learn how to read charts, manage risk and harness the power of the Stockscores analytical tools. First 500 registered receive my book, The Mindless Investor, free (courtesy of Disnat). Register now at this page.
Can't make a live event? We are doing a live webinar as well (without the free book offer).
Surrey April 15
Webinar April 17
For details and to register now, Click Here.
Succeed by Not Trying
I am reading a book right now called Trying Not to Try by Edward Slingerland. It discusses how the people who succeed at most anything do so without thinking too much. It is based on ancient Chinese philosophy call wu-wei (ooo way) that is very applicable in today's world. The athlete that thinks rather than performs moves too slowly to win. The artist who lets her head get in to her work produces undesirable art. In most things, you succeed by just doing, rather than trying too hard.
Consider this about the act of riding a bike. You could read a book about riding a bike; perhaps have someone explain in great detail how to do it. Will you be good at riding the first time you get on? Of course not! Despite having a good understanding of all of the rules that you need to follow in order to keep from falling over when you ride, most people will still stumble or crash when they try to do it. Beyond rules, you need to practice.
The same can be said for trading. To be a good trader, you have to practice and develop good strategies. From that practice, you gather the experience that allows you to trade well, to get in to the trading zone. Understanding the rules of trading can make your learning process a lot quicker and less expensive, but until you learn to effortlessly apply those rules and really understand them, you cannot get in to that zone of trading profitability.
This is not to say you should be impulsive and not think when you trade. You still have to read the market and make decisions based on what you see. The difference is that trading profitably requires that you keep your emotions out of the process and apply your strategy rules with the expertise that comes with practice. Think too much and you will lose.
A few years ago, I was at a car racing school. I loved it, learning how to go fast and stay smooth to keep the car in control as it flirted with breaking the laws of Physics. With each lap, I picked up speed and lowered my lap times until I got to the point where I was going really fast around some of the corners, fast enough to take me out of the zone that I was in with thoughts that crept in to my head, "what if I crash?"
Guess what happened? The moment I started to think too much instead of just doing what my skills allowed, I lost control of the car. Fortunately, it just meant an excursion off the course where the car did a bit of landscaping.
When you trade, you have to have your strategy rules but you have to understand them so well that they become part of you. Your knowledge needs to go from conscious thought to something that is closer to instinctual.
Think about areas in your life where you have gone from performing really well to making a lot of mistakes. What changed? There is a good chance that you just started trying too hard.
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The market is undergoing a sector rotation with investors selling the high flying US listed stocks and moving in to the safety of bonds or the sectors that have lagged over the past few years. That has people buying the Energy sector and starting to take an interest in the Mining area. While the US markets sold off sharply last week, the Canadian market held up well because of its concentration of commodity stocks. This week, I scanned the Canadian market in search of good chart patterns. Here are a couple of stocks to keep an eye on.Back To Top
1. T.PXX
T.PXX made good gains this week, creating a weekly chart that is breaking from a rising bottom after it recently broke its long term downward trend line. Has good potential to go to $4 in the near term with support at $2.50.
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2. T.CNE
T.CNE is a stock that I am watching for a breakout but I won't act on it until it can get up and through the $7.40 price ceiling. Watch for a breakout through that level, if it happens then there is a good chance it will move up to $10.50. Support at $6.90.
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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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