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Losers -- By: Bill Kraft
Copyright 2010, Makin' Hay, Inc., All Rights Reserved
Bill Kraft
Editor |
Before launching into this weekend's article I want to thank all of you for the kind outpouring of support following my article last weekend. In addition to offering your support, a number of you suggested I not take personally attacks such as that I had received from Mike and I certainly agree that that is generally good advice. There were three reasons I did take the attack personally and responded to him. First, the false allegations were addressed specifically to me, second, they directly impugned my integrity and honesty, and, third many members may not know my background and that I do trade for my own living. I believe members are entitled to know those things about me so there is no chance they buy into the falsehoods contained in Mike's "contribution" to the blog. In the future I shall try to refrain from responding to attacks unless I believe they might unfairly, unjustly, and dishonestly influence other subscribers. In any event, I am deeply moved and sincerely appreciative of those who took the time to come to my support. Thank you.
Many of the comments on the blog last week suggested that Mike may have written because he had been burned by other services and that it is very difficult to know what services are authored or edited by someone who actually does trade their own money. I believe that is a very valid consideration. It led me to consider some of the factors that lead would-be traders to become losers who are disenchanted with the market and with many of the so-called gurus. When I use the term "loser" in this article, I don't mean loser as a human being, I mean loser in the market. Unfortunately all too many retail traders fall within that category and it may be worth exploring some of the reasons that may have led to that status.
One reason some become disgruntled losers is simply their own laziness. They sit back and attempt to follow trades on some service with real money and then blame others for their own failures. In short, although they put their own money at risk, they are completely unwilling to take any responsibility for their own trades. A losing trade becomes the fault of someone else even when it was they, themselves, who made the play. In my estimation they use what little information they are willing to get inappropriately. They follow blindly and without a thought to gaining knowledge. They are motivated by greed, seeking only the quick buck without regard to learning how to trade.
I have long argued that the appropriate use of a service is to gain knowledge and experience. There is no reason in the world to follow any service or guru by blindly putting your money at risk. One ordinarily pays for a subscription service and that is part of the cost of a trading education. In my view, it should be used in precisely that fashion. When one subscribes to a paid service, it seems to me that the subscription should be used as an educational tool. Start, perhaps, by following the trades as paper trades. See what prompts the "guru" to enter a trade, observe the exit strategy, see how the trades are doing, learn how the trader trades. Only when the subscriber has gained an understanding of what the successful trader is doing should he even begin to consider placing money at risk.
All too often subscription services are offered by people who do not trade their own money. Losers are completely willing to follow the lead of non-traders who offer a service and then are upset when they put their own money at risk and lose. Trading is risky; it is dangerous. Ready, fire, aim is not the way to success. Practice and the acquisition of knowledge is a much more sensible approach. I understand that many folks simply don't have the time to devote to an in depth study of trading and it might just be in their best interests to exercise a little patience. They can still learn, but, perhaps, at a slower pace. It seems to me that approach may work out better than losing at a fast pace.
There are a lot of strategies available in the markets. In my latest book, "Smart Investors Money Machine" , I discuss a variety of ways to add income to one's life. I discuss some ways that require less time and effort and others that definitely require a lot more time, effort, and study. The first step to avoid falling into the loser category is to understand your time limitations, your level of knowledge, and your real interest in learning to trade. Successful trading does require time, study, knowledge, and personal responsibility. Step one to success, I believe, is to understand that each of us is the only one responsible for the trades we make. When we win we can praise ourselves; when we lose we have no right to blame others -- that's what the losers do.
Good Trading!
Bill Kraft
Success Trading Group -- by Success Trading 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 real-time alerts intended to provide you with the opportunity to make many, many profitable trades.
Here is a play from the Success Trading Group:
MDU Resources Group Inc. (MDU)
Our Success Trading Group is actively watching some of our old favorite stocks, such as MDU Resources Group Inc. (Ticker: MDU), for possible trades next week.
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:
iShares COMEX Gold Trust (IAU)
I recently opened a stock position in IAU in my own account
as well as the Trend Trader service. It provides a relatively
inexpensive way to make a play on gold. I am looking at the Jan 2011
$11 calls that were quoted at $1.25 x $1.40 after the Friday close. The
delta was shown as .81 with the strike being $1.12 in the money. I
usually like to buy more time than 4 full months but the next expiration
available is April and there is inadequate open interest in any strike
in April to tempt me.
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 Option Trader Real-Time Alert Service
and Get $50 off our Normal Website Rate!
Achieve returns with us like
16.48% return in 5 days!
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:
FirstEnergy Corp. (FE)
Since May FE has been moving in a channel with the lows
rising in an uptrend. The price has now come up off the channel bottom
and looks to have about $2.40 upside potential to reach resistance which
would achieve a 6.7% move to the top of the current channel. MACD and
DMI have turned positive and stochastics have turned 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
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:
King Pharmaceuticals Inc. (KG)
This relatively heavily traded pharmaceutical (a little over
4 million shares a day) Has been working its way up a trend line since
the June low. It has just bounced up off the 50 day exponential moving
average. I am considering an entry near that 50 day with an exit on a
close below.
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
Our Dividend Trader service focuses solely on the "best of the best" dividend paying stocks. We trade these stocks for short-term gains and we will also buy these stocks for their powerful dividend producing income with a purpose to make capital gains as the stock increases in value.
With these trades we attempt to get in and get out quickly. Once we buy, we immediately set an exit point of 3% above the buy price. We have had great success in the past. In fact, we have put together a string of 61 positions in a row that have hit our 3% target subsequent to the buy alert!
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.
Feel free to sign-up for a free 30-day trial. During such time you can review our Trade Tables and see the type of stocks we are buying. You will also receive in real-time all the new trading and investing alerts we send during your trial period!
Here is a play from the Dividend Trader Team:
Procter & Gamble Co. (PG)
Our Dividend Trader likes Procter & Gamble Company (Ticker: PG) for a new Trade position at its current price. We are watching several stocks and are looking forward to trading next week.
Have a great weekend and we'll trade next week.
Dividend Trader Team
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for a 30-day FREE trial to our Dividend Trader service.
