Trading Lesson of the Week

Check back weekly for another free trading lesson:

The Right Trader Mindset - Stockscores Perspectives for Jan 26 2026

In This Week’s Issue:

  • Market Outlook – Precious Metal Frenzy
  • This Week’s Market Minutes video – This is the Key to Making Abnormal Profits in Stocks
  • Trader Training – The Right Trader Mindset
  • Strategy – 3 Names to Consider

 

Market Outlook – Precious Metals Frenzy

While the overall market is generally healthy, the Precious Metals market is red hot, with parabolic trends in Gold and Silver. Trading these markets requires you only buy stocks early in their upward trends or breaks of pullbacks in the upward trend. Don’t chase stocks that are far above their trendline. Day trading action has been improving since the start of the year while swing trading is still a bit slow. Focus on the abnormal and liquid stocks that are attracting the crowd.

 

This Week’s Market Minutes Video – You Must Know the Right Stages to Buy a Stock

There is a simple trigger for almost every stock that makes market beating returns. This week, I show how to find the next hot stock and how to avoid a common mistake that will prevent you from missing out on hot stocks. Then, I provide my analysis of the markets and whether we should be concerned about a stock market crash. Finally, the day trade of the week on SXTP.

Click Here to Watch on YouTube

https://youtu.be/-U4Twb4Pq64

 

Commentary – The Right Trader Mindset

Want to know how to consistently do well in the stock market? Let me give you an outline for the mindset you must have.

First, understand that the stock market is not fair. Some people get better information than others. They have an advantage.

Second, use this lack of fairness to your advantage. When people with better information act in the market, they leave a trail for the rest of us to follow. If you want to find stocks that have a better potential to move up significantly, don’t listen to what the media says. Don’t listen to what people say. Look only at what people are doing with their money.

When a stock suddenly shows strong buyer interest with stronger than normal volume, take notice. These are the characteristics of Alpha stocks and trading Alpha stocks is how you beat the market. They lead the pack.

Learn how to read a stock chart. If you don’t know how yet, sign up for my webinars in October, links above. Watch the free videos on the Stockscores YouTube channel. It is not hard, but it does take practice. You have to know the basics of chart reading because not every stock that shows abnormal price and volume activity is worth buying. Only those that make abnormal moves from a predictive pattern are worth considering. I can teach you how to read chart patterns.

Realize that even the best analysis on the stocks that have the most standout chart pattern breaks does not guarantee success. Trading is a numbers game. Some trades will work, some will work really well and others will be losers. What matters is how you do over 10 trades, not just one. This requires an appreciation for Expected Value. Don’t know what that is? I will teach you that to you in October.

Since you will not be right on every trade, you must be good at losing. You must know when to take a loss and have the discipline to take that loss when the market proves you wrong. Good losers do well in the market because their losses don’t outweigh their winners.

You must always be learning and evolving. The market has always been about human fear and greed but the ways to take advantage of it change over time. After 30 years of trading, I am still always looking for ways to be better. We have to be one step ahead of the crowd.

Finally, if you want to be successful in the market, focus on yourself. Emotional control, discipline, focus, determination and optimism are the characteristics of most good investors and traders. Whether you succeed or fail is entirely in your control, you just have to take the time to understand how the market really works and how to take advantage of it.

Get the weekly email from Stockscores founder Tyler Bollhorn

Get our weekly trading lesson and stock trading ideas direct to your email in box with the Stockscores Foundation newsletter.

Learn how to be a better investor and trader plus see how to best utilize the tools of Stockscores.com.

This is a free service from Stockscores with no spam (we hate spam!). Enter your email address below to register for future email editions and see the archive of past newsletters.