I want to get in a habit of being aware of my mistakes at the very latest every weekend. I feel like I've been learning so much the past couple of months but haven't been able to adjust quickly enough. I am much more confident that I can make money in this environment but am also aware that it'll take much more effort from me. For this upcoming week, here are the things I want to focus on:
- My main job as a trader is to manage risk.
- I am looking for the best prices only, a trade that offers 5 unit of upside for every 1 unit of risk that I put on.
- If an idea doesn't provide a low risk opportunity, then I'm going to skip it.
- When a trade breaks out, it's okay to peel some off the short-term strength.
- I use a combination of technical analysis and fundamental research to find my ideas.
- I use TA to find important levels where buyers/sellers may step in.
- I use fundamental research to find catalysts for In-Play stocks, whether it's a news event or industry-wide movement.
- Using multiple signals to get into a stock.
- Use multiple timeframes to timely find low risk and high probability entries.
- I want to have as many things going in my favor as possible.
- Get into the best plays with the most size.
- Be aware of when the best setup is forming, and add a clear buyer/seller is identified.
In addition to the things that I could do intraday, let's not forget about the foundation of success: preparation!
- Being adequately prepared each day to trade.
- Get in the office by 7:20am and get an hour of thorough preparation in.
- Be aware of my risk (and potential reward) prior to getting in a trade.
- Know the fundamental events coming up for swing candidates.
- On weekends, I need to review my work.
- This begins with having the discipline to capture all of my trades real-time through video, journal, and snapshots every session.
What makes you a better trader?
Monday, January 17, 2011
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