Trading Lesson of the Week

• January 11, 2026
• BLNK | CERS

In This Week’s Issue:

• Market Outlook – Strong First Week
• This Week’s Market Minutes video – This is Why Stock Trading Will be Better Next Week
• Trader Training – Don’t Make Stock Market Goals
• Strategy – Abnormal Gainers

Market Outlook – Strong First Week

The first five trading days of the year are often cited as an indicator for how the year will go. If that holds true then it should be a good year for SmallCap stocks which lead the way higher, outperforming the S&P 500 and the Nasdaq 100, although these markets were also up to start 2026. Opportunities in Small Cap stocks are starting to materialize after a lull to end 2025. Precious Metals stocks continue to be strong but are risky given the considerable gains made over the past year.

This Week’s Market Minutes Video – This is Why Stock Trading Will be Better Next Week

After a slowdown in the markets over the holidays, we should see action pick up next week for a number of reasons. This week, I discuss improved market conditions, the overall market condition and the trade of the week.

CLICK HERE TO WATCH ON YOUTUBE

https://youtu.be/OFJo2UfrSkg

Commentary – Don’t Make Stock Market Goals

Investors and Traders will often set goals. Make $1000 a day, earn 20% return in the year, avoid big losses. It seems like a great way to start a New Year.

These are meaningless.

They are obvious; everyone wants to do these sorts of things. However, most people will not achieve because having the goal is not enough. Instead, you have to have the systems in place to find success.

Does a golfer who states that their goal is to win the tournament win because they made the goal? Of course not; every golfer in every tournament has the same goal but there is only one winner. The one who wins performs better than the rest.

Performing better means more practice, better analysis, stronger mental preparation, a higher level of determination and any other factor that contributes to success. Goal setters dream, winners make it happen.

So, whether you are an investor or trader, you need to focus on the process. Do you have a strategy that works? Do you have tools that give you an edge? Have you practiced enough? Is there a system in place to identify and execute good trades? Do you have the support of someone who can help keep you on track? Are you determined to succeed? Can you overcome your emotional self?

These are simple things to say but harder to execute. They take more than lip service and goals. They take targeted action.

I find it is best to break down the goal into parts that can be delivered on. Here is how it might look for a person who wants to make $1000 a day by day trading the stock market.

• I have a day trading strategy that can earn 4 times reward for risk (RR) per day. Some days will be more, some will be less, but an average RR of 4 per day is reasonable. This strategy is well tested and I believe in it. This strategy has specific rules for entry, exit, position sizing and process to identify trades.
• Risk $250 per trade and averaging 4RR per day will mean $1000 a day in profit on average
• Establish a gradual process of increasing risk to get to the goal. Start with $0 of capital and simply make practice trades to earn an average 4RR a day. Then use real capital, with a $50 risk tolerance per trade and achieve a consistent average of $200 a day. Once that is achieved, increase the risk to $100 a trade. Achieve success and then raise it to $200 a trade in risk. Step by step, always making capital preservation the number one priority.
• Have sufficient capital to hold enough positions to achieve 4RR a day
• Expect to have some losers and limit the size of the losses by selling when the trade breaks support. Always plan to lose
• Allow winners to win by letting profits run until there is an exit signal
• Use tools and a process to find trades in time to take advantage of them
• Have the focus to repeat the strategy consistently
• Constantly analyze the results to ensure the strategy continues to work and to identify failings in the execution of the strategy. What good trades did I miss? What invalid trades did I take? What were the problems in my execution?

Goals are easy and pretty obvious. It is the plan for achieving the goal, and then the purposeful action taken to get that is important. Stop dreaming and start doing.