You Don't Have to Work Hard
Stockscores.com Perspectives for the week ending September 19, 2016
In this week's issue:
In This Week's Issue:
- Fall Trader Training Events
- Stockscores' Market Minutes Video - Where Do Down Trends Reverse
- Stockscores Trader Training - You Don't Have to Work Hard
- Stock Features of the Week - In Search of Alpha
Fall Trader Training Events
Here is an overview of training and live trading events I am planning for this Fall, nothing written in stone yet so please let me know what you are interested in and if you have any suggestions:
Free Webinars
Will be posted later this week, look for them on the Upcoming Events area of the Stockscores home page.
Active Live
Watch me day trade the market each morning. I enter my positions in the first two hours of the day and exit at the close. See my screen and hear me call out what I am doing as I do it. Only open to those who have taken the Active Trader course, will be included for any new Active Trader student enrollment, past Active Trader students can enroll for $195. Details will be emailed out soon. Starts in October. Course sign up here.
Investor Nightly
A week of nightly market scanning webinars to practice applying the Stockscores Investor strategies and reading charts, doing risk management etc. Only open to Investor or Active Trader students, will be included for new students or past students can enroll for $195. Starts in November. Course sign up here.
Small Group Mentorship
Once a week, for four months, I will do a live teaching webinar focused on the finer details of trading my strategies with a focus on active trading. Plus, each student will receive two one on one private coaching webinars. $5495 including the Active Trader course, past students can upgrade for the cost difference. Will start in November, email me for details (tylerb@stockscores.com).
Stockscores Market Minutes Video - Where Do Down Trends Reverse?
With recent market weakness, many wonder about where will the pull back end. Simple rules of chart analysis can help to answer this question. Click Here to Watch To get instant updates when I upload a new video, subscribe to the Stockscores YouTube Channel
Trader Training - You Don't Have to Work Hard
This is the time of year when it is really necessary to be selective with the trades you take. We are at the seasonal end of the weak season for trading; the market tends to improve sometime in October or November.
Before that happens, the market also tends to be its most volatile and difficult. We often get sharp corrections at this time of year so it is essential to be very fussy about the trades you take. We are likely within a few weeks of an improvement in the market, so be patient.
It's better to miss a good trade than to take a bad one. Missing a good trade doesn't deplete your capital-it only fails to add to it. A bad trade will not only reduce the size of your trading account, it will eat up emotional capital and your confidence.
A losing trade is not a bad trade. Bad trades are simply taking the trade that doesn't meet your requirements. Bad trades come from working hard to see something that's not there, guided by your need to trade rather than the market offering a good opportunity.
I have read very few books about the stock market, but one that I've read more than once and that I think is a must-read for every investor is Reminiscences of a Stock Operator by Edwin Lefevre. Here is a wonderful quote from that book that captures the essence of what this chapter is about:
"What beat me was not having brains enough to stick to my own game-that is, to play the market only when I was satisfied that precedents favored my play. There is the plain fool, who does the wrong thing at all times everywhere, but there is also the Wall Street fool, who thinks he must trade all the time. No man can have adequate reasons for buying or selling stocks daily-or sufficient knowledge to make his play an intelligent play."
-Reminiscences of a Stock Operator
I advise all my students that they will make more money by trading less, at least so long as trading less is the result of having a high standard for what they trade. If you tell yourself you're limited to only making 20 trades a year, you're probably going to be very fussy about what trades you take. With less than two trades to be made each month, only the very best opportunities will pass your analysis. All of the "maybes" or "pretty goods" will get thrown out.
We take the pretty good trades because we're afraid of missing out. It's painful to watch a stock you considered buying but passed on go up. You remember this pain and the next time you see something that looks pretty good, you take it with little regard for the expected value of trading pretty good opportunities.
Pretty good means the trade will make money some of the time and lose some of the time, and the average over a large number of trades may be close to breaking even. The fact that one pretty good trade did well is reasonable and expected. In the context of expected value, taking those pretty good trades many times will lead to less than stellar results when the losers offset the winners.
You shouldn't judge your trading success one trade at a time. You must look at your results over a large number of trades. To maximize overall profitability requires you to have a high standard for what trades you make. Maintaining that standard will be easier if you take the trades that stand out as an ideal fit to your strategy, not by taking those that are marginal and require a lot of hard work to uncover.
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Alpha stocks are those which trade on their own story and can lead the market rather than trade with a strong correlation to it. These are the kind of stocks you want to focus on when market conditions are uncertain. To find these stocks, I ran the Abnormal Up market scans for the US and Canada and found a few names that have chart patterns that are worth considering:Back To Top
1. T.GEN
T.GEN is making a break from an ascending triangle pattern with strong volume today. Support at $0.17.
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2. SIEN
SIEN has been in a tight trading range for the pat 6 or 7 weeks but came alive today with abnormal price and volume activity. Support at $8.
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3. PTCT
Strong volume and price action on PTCT today indicating investors are excited about something. Support at $8.60.
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4. ZYNE
ZYNE has been stuck under $11 resistance for months but broke through that level today with pretty good volume. Support at $10.20.
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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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