Have you ever seen a Jackson Pollock painting? Probably.
If you haven’t, it’s a trip: lots of crazy colors, splattered all over the place, with no rhyme or reason to the whole thing. Seeing it for the first time, many people say, “This is considered art?” Quickly followed by, “I could do this!”
But the difference between Jackson Pollock and you is that Jackson Pollack actually did it. Furthermore, there is a craft to what Pollock did – a disciplined, well-honed, practice-driven craft.
Day trading isn’t much different. Folks hear about people making millions day trading and they say, “I can do that,” or “How hard can it be?” but many times those who fail lack a disciplined plan.
Such a plan involves a stop loss – your entry, exit, and escape price for a specific stock – as well as a disciplined adherence to technical analysis, be it stochastics or day trading wedges.
There is one area, however, where it pays to not be like an artist, and that is to approach your craft without emotion and know when to take a loss. (Artists tend to be an emotional bunch and then to thrive on drama.)
I just had to take huge losses in BION, HHII, and PLPE. PLPE gave back the 27% gain it made the day before. I couldn’t let PLPE turn into another losing trade like BION and HHII. I have wide stop-losses in place for penny stocks because they are so volatile. You have to set what your stop-loss is and then stick with it.
If you happen to be new to stock trading and looking to learn a few things about volatility - such as what the best volatility indicator is, then you have come to the right place. Before we elaborate on this topic and before you take a plunge into the market without giving your indicator any thought.... More »
Understanding the fluctuations of the stock market can be tricky and a tried and true system on how to make money in the stock market can seem impossible to peg down, here are a few rules and tips that can keep you in the game:
- When evaluating a company, try to anal.... More »
Anyone who trades knows that it is in their best interest to avoid false breakouts. Having a no loss trading system is nearly impossible, but it is always a goal. Circumnavigating buying or selling stock at inappropriate moments goes a long way to ensuring that the money spent on a pa.... More »
The Donchian channel is by far one of the most widely used indicators used in technical trading systems today, and having said this, is one of the most effective you will come to find in your arsenal of tools – especially if you find yourself working on larger, well-trending markets.
Donchian .... More »
If you are new to stock trading, you will come to find that there are a myriad of technical overlays available to you. However, due to the ease of use and the incredible profit opportunity at hand, most stock trading newbies prefer to use Bollinger Bands as their personal entry.
Before we contin.... More »