Boca_Bobby Basics

[boca_bobby]

I have several scans but rarely use them these days. Instead I do the following:

1.) Create a list of favorite stocks and get to know them very well. Know when they are overbought or oversold and then trade accordingly.

2.) Roam the boards here. Find out what others are trading and ask questions. We have lot's of great traders here and you will discover others that trade like you do. Look for guys willing to teach.... not just puff out their chests full of ego.

3.) Watch a lot of television. I personally have CNBC on all day everyday but that's because I have no life (HAHAHHA). At night I tend to watch FOX News and Bloomberg Asia to see if any news will affect market sentiment. Everyone once in a while you hear about a pick that when you put it on the chart, it just sings to us. I got this type of play for TCK earler in the year and now again for OIH. I may even use another pick RIG tomorrow after some powder clears.

4.) Surf the net for various web sites for info.



I am finding that I don't need to play a trade everyday. A select few that are positioned to move dramatically are the best for us options players. I had to sit for almost 2 weeks here doing homework. But let's remember that this is a job for those of us that do it everyday. We need to stay on top of things so we can take advantage when possible.

Do I miss a lot of winning trades? Yes. Do I have losers? Yes But my job is money management not picking winners! That's right. I manage my money more than concentrate on what to play. We have to minimize our losers and maximize our winners. So even after you find something you like, it's about timing.

Finally, know your own strengths and weaknesses. I'm finding that 3 option plays at any one time are about all I can handle. I have been trying to play more pure stock plays while my options "brew" up some profits. By knowing this known weakness, I can avoid making more mistakes than are necessary.

I hope this helps.