Pursuing a Trading Education -- By: Bill Kraft
Copyright 2008, CutLoss, Inc., All Rights Reserved
Bill Kraft
Editor |
As many readers are probably are aware, I am a great believer in
advancing my trading knowledge and advocate ongoing trading education
for anyone who wants to become and remain a successful trader. During
the last week, I had a short dialog with a subscriber on the blog who
adamately takes the position that he is going to learn for himself.
Good for him! That is what I did and that is what most traders must
do. However, the subscriber further explained he wants nothing to do
with books, seminars, coaching, DVDs, or services that are sold. I am
not sure what that means except that he is going to the school of REALLY
hard knocks. I have no idea how much money this person has to risk, but
with an attitude that he can do it without assistance from those who
have gone before, my bet is he won't have it long. It's a little like
deciding to be a doctor, but not be willing to put out the cash and
effort to attend medical school -- potentially hard on the patient --
and in this case, the subscriber is his own patient.
I remember when I first became interested in trading. I at least
bought a book and that piqued my interest which led me to attend a free
"come-on" seminar where I knew I would be solicited to pay for a more
comprehensive seminar. I went to the free seminar fully determined not
to pay for the seminar being sold. Thankfully, I re-thought my decision
and did pay for a two and a half day seminar. I made back the cost of
that seminar within a week using information I had gained at the seminar
and from that time forward never hesitated to pay for my education. It
was far less costly than trying to get everything for free. Though I
speak at events on occasion (usually without pay) I no longer give
seminars so I am trying to sell nothing when I say that the many I
attended have helped me succeed as a trader. Without them, I might
possibly have been out of the trading business years ago.
In my own case, I read every trading book I could get my hands on,
watched umpteen VHS and DVDs, and still attend seminars with some
regularity. I read several trading books a year. In short, I make sure
I devote substantial time each year to enhancing my knowledge. I know
several would-be traders who, like the subscriber, absolutely refuse to
pay for any educational information regarding trading. Not a single one
of them has been successful and most lose their trading money within the
first six months. Education only makes good sense and why shouldn't the
educator be paid? Should you buy a stock, for example, if you don't
know how you might limit or remove risk? Would it be helpful to know a
strategy that will make you money if the market or the stock moves in
either direction, just so long as it moves? Though not currently the
case, would it be helpful to know strategies that provide a nice return
in a flat market? How likely is someone to stumble upon these things as
a new trader unwilling to read a book, go to a class or watch a DVD?
I realize I'm probably preaching to the choir here, but when I see
folks like the subscriber who evidently resents authors or lecturers and
begrudges them payment for passing on their knowledge, I feel a need to
reiterate that successful trading requires work and study, it does not
come from bull sessions with other unsuccessful traders. Serious
trading, in my view, requires a foundation of knowledge first and then
the acquisition of experience. Trading real money before obtaining the
basic knowledge seems like a perfect recipe for failure.
Good Trading!
Bill Kraft
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Here is a play from the Success Trading Group:
MDU Resources Group Inc. (MDU)
Our Success Trading Group members chalked up another winning trade this
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Have a great weekend and we'll trade next week.
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Option Trader -- by Bill Kraft
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Here's a look at a trade Bill is currently working on:
Rambus Inc. (RMBS)
RMBS has been dealing with a support in the $16 range near
where it closed Friday. It managed to break above the 50 day exponential
moving average before retreating to the price support level. It looks
like it may be ready for a bullish play like selling the $15 naked puts
or perhaps buying some long term in the money calls.
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:
MGM Mirage (MGM)
MGM has recently come off a double bottom and is currently
dealing with a resistance level above $35. If it can break through, I
might find this one to be an attractive buy.
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:
BIDZ.com, Inc. (BIDZ)
Even as the markets headed down, I was able to profit with a
7.9% gain in a 9 day trade. BIDZ has also broken through a trend
resistance and may well offer some good re-entry opportunities in the
near future.
Good Trading!
Bill Kraft
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