The Stock Pond

[Geaux Fish]

Paying my tuition in the stock market

I can remember back when I was paying my tuition in the stock market. Than notice there was a very long span where I was not losing money but I was not gaining a lot in the same token. I had to stop and ask myself what’s wrong. I am making good choices and taking profits on more than I lose on. Well yes I was making more positive trades than the losing ones, but was still having trouble pin pointing why was the curve on my money charts so shallow and sort of in a channel. Well I stop trading and went back for around 1 1/2 years. I took all the trade data and plugged into a Microsoft money program. This is when I was able to pin point the problem. This allowed me to go back and click on the high and low points on the chart. I was able to review the data of the trades on the peaks and lows trade by trade.

What were the results; well I was doing a great job at making my entries but was failing to take my profits by holding on to the play to long and by the time I would sell the profit margin was at a minimum.

The moral to this story?

1. Trade with your head and not with your heart.

2. Bite at the market and not let greed over take your destiny.

3. Try to stay relax, have patience you will need it.

4. Learn when to pull the trigger and take the cash, because someone else will.

5. Learn T/A do or die and live by it. The company and directors know the story, forget the story, and remember the chart. You're not smart enough to know how the story will affect price. But the chart already knows when the news coming and where it possibly going. Timing is everything.

6. Sometimes you just cannot win against MM and shorts so learn to go with the flow and not against it.

7. Do not ever hesitate to take a lost verses averaging down. The only thing this is good for is tying up your cash flow for longer periods. So don’t go down with the ship and try to buy your way out. Wrong choice, because you have already chosen to hit bottom.

8. Learn how to fully take advantage of the full swing, gapers and volatility. That’s what you here for to take full advantage of your money. The mine set if you have the 25 k marginal power or even not. Just keep count of your round trips. Why hold, once a peak hits and ride down the re-trace or the pull back. Sell it and buy it back off the bottom of the swing. Chances or it’s not coming back. There is nothing holding you back from doing this. Let the second buy ride if it breaks a new high. Use the 50% rule on your pull back. You want to close above here. If not time to take your profits.

9. Well what does not break a high on the second round why wait for a third. If you going to buy high. Save yourself the disappointment of a sharp pull back. Buy after the resistance breaks and not before.

10. Know your resistance points. Why wait to exit with the crowd when you can exit before them. You have to take the cash before some one takes it for you.

GLTY

GF