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What's Your Trading Focus? -- By: Bill Kraft
Copyright 2010, Makin' Hay, Inc., All Rights Reserved
Bill Kraft
Editor |
Every once in a while it's probably not a bad idea to take
inventory of our trading related skills. As I began to do so for
myself I also recalled inventories with which various coaching
students came to me and inventories of students at seminars. I am
convinced that what we choose as our focus or focuses in trading can
make or break us. There are many ways to succeed in trading and
certainly many more ways to fail. I suspect that the way we
prioritize the skills in our own inventory ultimately is what makes
the difference.
When I write about a trading skills inventory, I mean those
things skills that we possess that might be included in the "how" of
our trading. Last week, for example, I wrote about a specific type of
order, the limit order, as an illustration of one part of the trader's
inventory. Though not necessarily a complete list and definitely in
no particular order, the following might be included in a trader's
personal skills inventory:
a. knowledge of and ability to use various orders
b. technical knowledge and abilities
c. understanding and using fundamentals
d. utilizing reward to risk potential
e. finding candidates to trade
f. entry decisions and strategies
g. exit strategy
h. devotion to continuing education
i. ability to discipline one's trading
j. money management
k. having a plan in general and for each trade
l. knowledge of and ability to use various strategies
You may be add other skills in your own trading inventory.
Whatever the case, may I suggest you take a few moments and look over
the list above. Perhaps it might be beneficial to see which of those
skills you possess and how you utilize them in your trading. Once you
have considered that, it might be helpful for you to prioritize them
in the order you perceive their importance to successful trading. Once
that list is completed, compare it to a list arranged in the order you
have prioritized these skills in your own actual trading.
Often, the two lists, the one as you see the best prioritization
for success and the other the prioritization you actually have been
using may differ significantly. A change in those priorities could
well make a difference in your trading.
Though subscribers who have read either of my books, "Smart Investors Money Machine" or "Trade Your Way to Wealth" , may already
have an inkling of the order of my list of priorities, I'll discuss
them a bit in next weekend's article.
Good Trading!
Bill Kraft
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AT&T, Inc. (T)
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!
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Here's a look at a trade Bill is currently working on:
Apple Inc. (AAPL)
I often trade options on AAPL and, in fact, currently have
a long open position in some LEAPS calls. This past week, I traded in
and out of a short leg creating and closing that leg to realize before
commission gains of $2.15 a share on Monday and a gain of 85 cents a
share on Friday. As of Friday close, the stock was again moving up
right off a price support. AAPL has been moving in a relatively wide
channel so the current move up may provide a new bullish opportunity.
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.
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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:
WESCO International Inc. (WCC)
WCC has been trending upward since March, and recently
retreated to a trend line formed by drawing a line through the bottom
of candels from the low in mid-August to the recent low at the end of
January. With a bounce Friday, it looks like the stock may be
preparing to return to the trend up.
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:
Midas Inc. (MDS)
After trending up, MDS took a breather, first with a
little retracement and more recently by moving essentially sideways.
On Friday it broke back above the 50 day exponential MA and also it
looks like this one may be setting up to form a bullish cup and handle
although I hasten to add that it has not yet done so. MDS could offer
a couple of potentially attractive entries, first if it stays close to
but above the 50 day and later if it actually completes a cup and
handle that appears as though it might be under construction right now.
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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