Passion for Trading -- By: Bill Kraft
Copyright 2008, Makin' Hay, Inc., All Rights Reserved
Bill Kraft
Editor |
I am convinced that one of the elements of successful trading is
passion for the activity. I just got back from speaking at Traders
Expo in New York and realize that whenever I attend an event like that
I come back really pumped up about trading all over again. I am happy
to report that my speech was very well attended (standing room only)
and apparently well received since I was mobbed afterwards with
requests about where the attendees could get "Trade Your Way to Wealth" (amazon.com).
Many of the presentations I attended were nothing short of
excellent and I always come away with something valuable. One of the
speakers was a well known trading coach who related many positive
experiences with successful students but who does not trade herself.
One of the attendees asked why she didn't trade herself if she was so
good at it. Her answer was that it was not her passion. Her passion is
helping traders get even better and she is well paid ($7,500 for a two
day private session). Though she is a good trader she just doesn't
enjoy it as much as she enjoys the coaching.
Tenacity and persistence were concepts frequently advanced as
qualities of good traders. In my mind, a trader is unlikely to have
either unless they are also passionate about their trading.
Interestingly, the point was made again, as I have often preached,
that good traders get their own education. They go out and get the
books and do the reading and attend the classes and get the coaching
because they want to learn.
Nearly every speaker advocated the need for a plan and for
discipline in trading. One speaker was even selling the template for a
plan for $120. (I include the ingredients for your own plan in "Trade Your Way to Wealth" at no extra charge, but the point, of course, is
to have a plan). The old saying is: "plan your trade and trade your
plan." Passion to succeed leads the good traders to follow that mantra.
Another exceptional speaker, Dr. Ari Kiev, a psychiatrist,
advanced the importance of setting a goal. Those who set a goal have
a much better chance of achieving success in their trading than those
who don't. I suspect the efforts to attain the goal also serve to
fuel the passion for trading and the passion, in turn, helps achieve
the goal. Pretty nice circle to ride around, I'd say.
In my view, it all begins (and maybe ends well) with
self-education and, without the passion, it seems that no one is
likely to expend the effort necessary to get the education. I suspect
that you, the reader, already do have some passion about trading or
you would not have bothered to read this article in the first place.
My best advice is to follow your passion, whether it be trading or
something else. If you do, your chances of success are great.
On a related subject, I intend to write more over the next weeks
concerning picking stocks and entries and exits. In order to do that,
I expect I will include some articles on at least basic technical
analysis. Technical analysis is not as mystical as some fear and it
does provide a great method to discipline trades and money management
as well as suggest entries and exits.
Good Trading!
Bill Kraft
Success Trading Group -- by the Success Trading Group Team
Our Success Trading service delivers quality trading ideas for the elite investor that has the financial wherewithal and market nimbleness to profit on small moves in a stock's price. Become a member and you will be provided with email and/or PDA alerts intended to provide you with the opportunity to make many, many profitable trades.
Here is a play from the Success Trading Group:
Synovus Financial Corp. (SNV)
Our Success Trading Group continues to tread cautiously. Our style is to be
nimble and take quick gains. Our Success Trading Group members currently
have a position open in Synovus Financial (Ticker: SNV) which we purchased
on Tuesday and we hope to capture a quick gain early next week. If SNV drops
down to the $11.90 area it may be worth a look for new positions.
Have a great weekend and we'll trade next week.
Success Trading Group Team
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Option Trader -- by Bill Kraft
Our Option Trading Service is for conservative traders that understand leverage principles and enjoy the challenge of options trading. We focus on powerful option trading strategies that place volatility and momentum in your favor. And we pride ourselves on always minimizing our losses!
The Option Trader service utilizes standard trading in Puts and Calls as well as strategies using Leaps, Straddles, Credit Spreads, Calendar Spreads, and Naked Puts. But no matter how sophisticated a strategy may be, we ALWAYS know our downside potential on every trade.
Here's a look at a trade Bill is currently working on:
Telefonos de Mexico, S.A.B. de C.V. (TMX)
TMX has been in an uptrending channel since last August.
It just bounced up from a trend support and now may be in position for
a call entry. I generally like to buy in the money calls with a lot of
time and TMX could be such a candidate.
Good Trading!
Bill Kraft
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Trend Trader -- by Bill Kraft
Trend trading as we try to practice it is a form of momentum trading. We prefer to try to capture profit out of the middle of the trend rather than try to catch reversal at bottoms and tops.
Here's a look at a trade Bill is currently working on:
LG.Philips LCD CO., Ltd. (LPL)
LPL looks like it may be completing a reverse head and
shoulders and has bumped up through a down trend line that began back
in November. There may be some consolidation, but LPL seems poised to
move up if the overall market does not become too much of a drag.
Good Trading!
Bill Kraft
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$10 Trader -- by Bill Kraft
We really enjoy trading stocks that are $10 and under. Often they provide the chance to enjoy high percentage gains and, of course, at worst, the risk is limited to what we paid for the stock.
Here's a look at a trade Bill is currently working on:
Himax Technologies, Inc. (HIMX)
The cheaper issues have presented a real challenge lately
and I've pretty much sat on my hands for a while in this category.
Some times it just doesn't make sense to enter trades and since I
trade to make money and not just to trade, I've held off in the $10
and under category. HIMX, however, does have some appeal and may well
be forming a little cup and handle. It was up Friday and even created
a bullish engulfing candlestick. Only the volume makes the Friday move
a little suspect.
Good Trading!
Bill Kraft
Try our Under $10 Trader Real-Time Alert Service!
Dividend Investor -- by the Dividend Investor Team
Our Dividend Investor service focuses solely on the "best of the best" dividend paying stocks. We attempt to buy these stocks for their powerful dividend producing income; and we will also buy these with a purpose to make capital gains as the stock increases in value. Our Dividend Investor service is a perfect fit for an IRA account.
Here is a play from the Dividend Investor Team:
Exxon Mobil Corp. (XOM)
We continue to watch the highest quality dividend-paying stocks. We have
Exxon Mobil (Ticker: XOM) on our radar and looking for an entry point below
$84.
Have a great weekend and we'll trade next week.
Dividend Investor Team
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