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Food for Thought from the Sports World -- By: Bill Kraft
Copyright 2009, Makin' Hay, Inc., All Rights Reserved
Bill Kraft
Editor |
Those of us who have grown up and lived in America have been
exposed to many wonderful things. Among them, in my opinion, has been
the opportunity to participate in and watch sports. Many valuable
lessons have been learned and taught on baseball diamonds, football
fields, basketball courts, and boxing rings. Though much of what we
have learned may be transferable to our trading, perhaps,
unfortunately, some of those lessons as embodied in various cliches
are counter-productive.
I believe it was Yogi Berra, the Hall of Fame New York Yankees
catcher who once inspiringly said: "It ain't over until it's over."
Similar sayings like: "It's not over until the fat lady sings" or
"never give up" abound. Parenthetically I should note that the fat
lady usually sings before the game, but that's beside my point. We
have been trained from early childhood to strive to win and to
understand that losing is not a good thing. Leo Deroucher, another
baseball giant, once said: "Show me a good loser and I'll show you an
idiot." Please don't get me wrong, I make no argument that anyone
should strive to lose. I only mean to suggest that some losses in
trading are absolutely inevitable.
If we followed the "it ain't over until it's over" philosophy in
trading, we might just find ourselves committing a cardinal sin of
letting losses run. My point is that we get to decide when it is over
in our trades and sometimes making it be over before losses mount is,
by far, the best approach. All we need to be successful is to trade
in a manner that our winners total more than our losers. We can
achieve that through practice, through attention to smart exits,
through money management, and through entry only when the reward to
risk ratio appears to justify the trade.
"Never give up hope" is another cliche to which we have all been
exposed. In the trading world, it is sometimes callously said that
"hope" rhymes with "dope" and the winner is the one who takes the
early loss rather than hanging on to a losing position with the hope
that it will come back.
Michael Jordan the supreme basketball player said: "I've missed
more than 9000 shots in my career. I've lost almost 300 games.
Twenty-six times I've been trusted to take the game winning shot and
missed. I've fouled over and over and over again in my life. And that
is why I succeed." It is much the same with the successful trader.
She knows there will be losses, but she also knows that patience,
practice, and keeping herself in the game (not necessarily in a single
trade) can yield fabulous rewards over time.
Maybe Vince Lombardi, famed coach of the Green Bay Packers said
it best when he said: "It's not whether you get knocked down, it's
whether you get up."
To those of you who have made such kind comments about my books,
"Smart Investors Money Machine" and "Trade Your Way to Wealth" , my
most sincere thanks and the hope that you have found something
valuable to help you on your financial way.
Good Trading!
Bill Kraft
Success Trading Group -- by Success Trading Team
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Here is a play from the Success Trading Group:
PPG Industries Inc. (PPG)
Our Success Trading Group will be watching closely for entry points next
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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:
Apple Inc. (AAPL)
AAPL has continued its climb. A very bullish play might be
sale of some far out of the money naked puts, like the Apr 160's that
closed Friday at over $4.60 a share bid. If the stock were to reverse
and break nearby recent support, I would then consider buying some in
or at the money puts to set up what looks like it might then be a
potentially good debit spread.
Good Trading!
Bill Kraft
Editor of $10 Trader, Option Trader and Trend Trader
"Trade Your Way to Wealth" by Bill Kraft is an Amazon.com best seller!
"Smart Investors Money Machine" is Bill Kraft's most recent publication.
"Trading for Keeps: Making Money with Low Risk Option Trades" a trading DVD by 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:
Expeditors International of Washington Inc. (EXPD)
This week Trend Trader closed a trade in EXPD with a $1.18
per share gain in just two weeks. The stock continues to deal with the
resistance that was the reason for my exit, but may well show continued
bull side life on a turn up from a retracement or on a break above the
resistance.
Good Trading!
Bill Kraft
Editor of $10 Trader, Option Trader and Trend Trader
"Trade Your Way to Wealth" by Bill Kraft is an Amazon.com best seller!
"Smart Investors Money Machine" is Bill Kraft's most recent publication.
"Trading for Keeps: Making Money with Low Risk Option Trades" a trading DVD by Bill Kraft
Try our Trend Trader Real-Time Alert Service
and Get $50 off our Normal Website Rate!
$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:
Pike Electric Corporation (PIKE)
$10 Trader closed a profitable 16 day trade on PIKE with a
quick gain of 5.4% before commission. It appears as though it may be
setting up for another play and I'd like to get in to try to catch a
fill of the gap that would now constitute about a $3 move.
Good Trading!
Bill Kraft
Editor of $10 Trader, Option Trader and Trend Trader
"Trade Your Way to Wealth" by Bill Kraft is an Amazon.com best seller!
"Smart Investors Money Machine" is Bill Kraft's most recent publication.
"Trading for Keeps: Making Money with Low Risk Option Trades" a trading DVD by Bill Kraft
Try our Under $10 Trader Real-Time Alert Service!
Dividend Trader -- by Dividend Trader Team
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While we titled this service a "trader" service, we also invest in these dividend-paying stocks from time to time for the long-term. We will buy these stocks for their powerful dividend producing income with a purpose to make capital gains as the stock increases in value.
Many of the stocks that we will be "investing" in have had a history of raising their dividends almost every year. Year after year. This can be powerful. Building up your dividend income in a tax deferred account such as an IRA can siginficantly boost your account over the years.
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