What if I could show you the two secrets that master traders use that will change your trading with your very next stock pick?
Forget about hot stock picks for a moment.
Just focus on one thought right now……….WHAT IF it was really possible to turn my trading around by learning two secrets that master traders use?
Believe it or not it’s really possible to change the profitability of your trading with your very next stock pick, and it has NOTHING to do with positive thinking…….because positive thinking all by itself won’t make you a single cent in the stock market.
That’s right………..if you want to trade better then you need MUCH MORE than just “positive thinking”.
Okay………get ready to be shown the two secrets that master traders use that will change your trading forever.
The biggest mistake that traders make is that they give little thought to where they fight. I’ll take on anyone, anywhere, is the chest pounding edict. They stumble into battles by accidents of geography, time, or chance.
The market you decide to trade should never be decided on a whim or without much serious thought. No wonder so many traders die on the battlefield.
Successful traders that trade for a living are rational people. They are winners because they trade solely for the money, while losers trade because they want to look superior in other peoples eyes or because of the excitement of the game. Trading is not a game, it’s a war.
Any venue that you chose to fight in whether it be a stock, a future, or an option, has to meet two criteria: liquidity and volatility.
Liquidity refers to the average daily volume, compared with that of other vehicles in its group. The higher the volume, the easier it is to get in and out. You can build a profitable position in a thin stock, only to get caught in the door at the exit and suffer slippage trying to take profits.
Volatility is the extent of movement in your vehicle. The more it moves, the greater the trading opportunities.
For example, stocks of many utility companies are very liquid but hard to trade because of low volatility—they tend to stay in narrow price ranges. Many funds like the Rising Rates Fund (rises as interest rates rise) is also like this. Some low-volume, low-volatility stocks may be good investments for your long-term portfolio, but not for trading. Remember that not all markets are good for trading simply because you have a strong opinion on their future direction. They also must have good volume and move well.
I hoped you enjoyed this article. Please feel free to leave your comments below. Thank you and happy improved trading.
Your Trading Coach
(because everyone, even Tiger Woods, needs a coach)
- For ethical purposes, I try not to hold any position in any stock I profile on GuerillaStockTrading.com unless specifically stated in the article. Owner of GuerillaStockTrading.com. Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.