All this stuff might come off a tad bit corny. After all, isn’t this a website dedicated to stocks, trading, investing and candlesticks?
So a couple of things. Believe it or not; I too at some point concluded that having a “Daily Motivational” page is corny AF (azz *uck) but decided to go forth with it anyway.
As the main driving force behind this website, newsletter, 15th year confessions of a stock trader - whatever you want to call it - I’ve seen some things.
If you’ve taken a few minutes to peruse shortmetina.com, you’ll stumble on the fun fact that in my prior life I was a Therapist. I spent over 7 years formally studying human behavior and have some bad ass looking 8 x 11s (Bachelor of Arts & Master of Science) vouching for my competency.
The recent volatility in the Stock Market have many scratching their heads. For the past two years or so; we’ve had the beauty of a market that only went up. We did not have this chop that we’re experiencing now. For folks that are relatively new to the stock market, do understand that these sorts of market moves are not as ‘uncommon’ as you may think. Granted, we have not experienced them in a few years but for those (like myself) who’ve been in the Market since the early 2000s; this is somewhat familiar territory. So, to the question that’s on everyone’s mind.
How do you get through these types of markets?
Original article published on 5/2/2016
What is this all about and why is it important? Unless your are EXTREMELY good at picking solid companies and have the patience level similar to that of Warren Buffett to hold for decades and decades; trading requires you to be governed by rules.
Position sizing is something I reference to often when talking about my trades. It’s different for everyone. That is, if you ask 20 traders about position sizing; you will more than likely get 20 different answers.
So, I am not here to debate what’s the better approach. Although, I would like to hear your thoughts behind it (drop your comments at the end of the article)
At any rate, I see position sizing as a necessary nuisance (there are times I want to put 100% of my money behind a trade-but I wont) to trading survival.
How often do you check the quote of a stock you own? If you’re anything like me; you’re usually plugged into the market 12-15 hours out of any given day. I want to say; since early 2000s; not one single day has gone by without me checking a quote in some fashion or another. This, in my opinion, is beyond ‘crazy’ behavior and can possibly work against you if you’re not careful.
I guess you can add this blog, along with the others I have written, under the category “trader psychology”.
I think a lot, I am a thinker! And this thought came during one of my forever happening thinking sessions.
I am not sure if you’re aware but Electric Car Maker, Tesla (TSLA) is up over 2000%.... YES 2000% since IPO-ing at $17 in 2010. To put that into perspective; if you invested $10,000 in this company when it IPO-ed and left your money in Tesla; that 10k is now north of a quarter of a million dollars ($250,000).
Question: If you made 15 losing trades in a row, taking loss, after loss, after loss; would you be able to take trade #16 without hesitation?
Stock Market Leaders, where are they? One of my very first blogs since starting shortmetina.com discussed the need to pay attention to the overall markets, at all times. It’s important to know what the overall market is doing because that should dictate the direction in which you trade. For example, if we are in a bull market, you want to be net long in your trading portfolio. Meaning, when the market is going up, most of your trades should be on the long side. The opposite holds true. When the market is bearish, most of your trades should be on the short side. Again, it’s super important to know where the market is going because, wherever the stock market goes, so goes your stocks.
What is a hedge or what does it mean; to hedge? If you're a long-time follower or supporter of Short Me Tina, you are aware that I view the Stock Market as uncertain. There are no guarantees when you place a trade. That is, you have the potential to make a lot or lose a lot of money in the stock market. When you're a market participant and engaged in the stock market, understand that your risk is always on. There's just no going around it. Or is there?
Learn simple swing trading strategies that work!
It’s important that you read our articles, What is Swing Trading and How to Start Swing Trading after tackling swing trading strategies. They will give you context to work within and an overview on swing trading in general.
Now that is out of the way; let’s talk about swing trading strategies.