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A Secret about Successful Trading -- By: Bill Kraft
Copyright 2010, Makin' Hay, Inc., All Rights Reserved
Bill Kraft
Editor |
Over the years, I have observed a whole lot of traders looking
for the secret that, once revealed, will lead to riches. The search
often seems to be directed to a way to find the perfect candidate or a
"can't miss" strategy known only to some chosen few. I remember a
husband and wife who studied with me back in my seminar days who I
believed were convinced that I was holding some secret back from them.
In fact, one day, the husband got me in private and asked what the
secret really was. I laughed, thinking there was no secret, but now I
know there definitely is a secret that can really help.
As I mentioned in the article last week, I'll be speaking at the
Scottsdale/Phoenix Trading Group next Wednesday, January 20th at 7:00 P.M. In
thinking about my upcoming presentation, I decided I'd talk about the
elements of what I believe is the secret to successful trading. If
you live in the Scottsdale/Phoenix area, I hope you get a chance to
attend.
However, even if you aren't coming to that presentation, there
is no reason why I shouldn't reveal the secret as I perceive it to you
as well. I must caution, however, that there is no guarantee that the
secret will work, but I believe that use of the secret be a piece of
very valuable information. Nevertheless I am sure that many will be
disappointed as I disclose this secret because, like many secrets,
once known it looks obvious and easy.
Secrets often are simply a revelation of something that may be
quite apparent with a little thought anyway. Consider, for example,
the illusions of a magician. Seeing the lady sawed in half may be
astonishing until we are shown how it is done and then it is obvious
and easy though maybe a bit clever in concept.
I know, I know -- enough! What is the secret. For me, the
secret is that the successful trader always returns to basics. She
has a plan for money management, a minimum requirement for potential
reward to risk, an exit strategy, discipline, and study. That's the
secret. In my estimation, those things are critically important to
sustained good trading and are often overlooked, by-passed, or
forgotten in the quest for some non-existent secret holy grail.
That's it. That's my secret. Basics in trading are absolutely
invaluable and are far more important than specific strategies or
algorithmic systems.
I hope you forgive me for the tease about revealing some hidden
secret. I do believe this is an important secret but wonder how many
readers were hoping or anticipating I was going to write something
much different when I wrote that I was going to reveal a secret of
trading.
Incidentally, the Scottsdale/Phoenix Trading Group to whom I'll
be speaking on Wednesday the 20th will meet at The Inn at Pima, 7330
N. Pima Rd., Scottsdale. It would be a good idea to let them know you
are coming and please introduce yourself.
Good Trading!
Bill Kraft
Success Trading Group -- by Success Trading Team
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Here is a play from the Success Trading Group:
Pepsico, Inc. (PEP)
Our Success Trading Group members scored another winning trade this week
when we closed a position in Pepsico, Inc. (Ticker: PEP). We are watching
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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
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Here's a look at a trade Bill is currently working on:
Western Digital Corp. (WDC)
If the market continues to look a little bearish overall,
I'll be looking closely at WDC for a possible put play, particularly
if it falls beneath the 20 day EMA. Currently the Jul 45 puts with a
delta near -.50 are ones I am considering.
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!
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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:
Copano Energy LLC (CPNO)
This MLP is getting ready to pay a $0.575 a share
distribution on February 11th to holders of record on February 1st.
After a strong uptrend, shares have moved sideways over the past few
days and this lull may provide a buying opportunity. I also want to
note that options are available as well in the event I would choose to
write some calls.
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
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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:
Dycom Industries Inc. (DY)
$10 Trader closed a 9 day trade in DY to realize a before
commission gain of 5.47%. The stock has now retraced to near the 20
day EMA and may shortly offer a re-entry.
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!
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