- Missing
out on a trade can really get a trader angry. But, besides getting
angry there are other related psychological issues forming, and
those issues can cause a trader to make some very costly mistakes.
- One of the causes of anger from missing out on a trade is
the ability one has of being able to go back and see how various
trades panned out. This gives you the opportunity to beat yourself
up for not doing what, after the fact, seemed so obvious. One
of the terms used by traders that missed the boat is, "would'of,
should'of, could'of". I've used it and you probably have
to. Learn from mistakes and look for another opportunity.
- It is unusual for someone to buy something and then go back
after the purchase and evaluate all the choices again. Imagine
if you bought a new car and then looked at all the other vehicles
again a week later. Most likely you would find a better deal
or wish you had purchased a different model. We do this routinely
with stocks to evaluate them and so must be exposed to what we
"could of" or "should of" had. Don't let
it eat at you!
- It's extremely important that we realize that seeing the result
of trades we didn't take is part of this business and that no
one is happy when they see that they have missed a great opportunity
or have left a ton of money on the table by selling too soon.
You must accept that this will happen and that it happens to
every trader. You must not let the emotion that it generates
cause you to override good judgment and enter a trade that is
too risky because you are afraid you will miss out. Fear of missing
out can cause bad trades.
- I use the thinking that it is better to not add money
to my account than it is to take too big of a risk and lose a
good chunk of my money. I recommend that you study your emotional
response to "missing out" and come up with a solution
that works for you before you need it.
-
 In the last newsletter
I was talking about what we could expect from the weekly NDX
chart as you see here. As you might recall, or you can go back
and look at the last newsletter, we had a hammer that actually
finished out the week lower as the NDX moved towards the green
line of support. As Princeton's TradeTutor would teach you, a
hammer reversal is most reliable after a long down trend, so
its location here was an iffy place to enter a trade. A green
candle after this hammer would have signaled a confirmation of
a change in trend direction, but as you will see in the next
chart, no green candle occurred.
- This chart
 of May 1, 2002 shows how traders were expecting
a direction change off the green support line. I know this because
we have a green candle after the bounce off the green support
line. Remember that this is a weekly chart. May first is a Wednesday
and for the 3 days this week the last candle has, as of today,
created a new support level. Of course the talk about a 30% chance
of an interest rate hike will most likely send the NDX lower
than the blue support line. If the NDX heads down to the support
created at 1100 I expect to see a very strong bounce off that
1100 mark. Whether a bounce is caused by short covering or a
real buying rally, it is a place where I want to get some money
into a few popular stocks that have moved a lot during previous
bounces. If the NDX breaks the 1100 support mark, I'll be looking
for a quick drop and then a quick turn around to the upside.
Current events play an important role here.
- Here's a beauty.
- While I was stock prospecting today I
happened upon this stock and wanted to share this monthly chart
with you. If you can read a candlestick chart you can figure
this out immediately. This stock debuted at the height of our
crazy bull market which explains the IPO price of $200/share.
Just think, someone felt like he missed out when the price hit
300 and didn't own the stock. I guarantee that someone bought
that stock at $300/share and is still holding it today at $14.
You will always see opportunities you missed out on. Here is
one that you can be happy you missed out buying.
-
-
- There are 2 main reasons why I take the time to publish this newsletter.
The first is to share my knowledge with fellow traders because
I love profitable trading and the second is to introduce people
to Princeton's TradeTutor courses. I put an incredible amount
of time and energy into developing the TradeTutor to educate
traders in our trading room. At less than $1000. it is a bargain
and if you go to Princeton's TradeTutor site you will find a
way to save $100.00. click
here to check it out
 |
- Preventing
just one serious mistake can easily make the TradeTutor worth
more than twice it's price! And save you from serious Emotional
Damage.
|
- We have revised our training
programs to be the latest and greatest and for the first time
ever are making them available to everyone on a set of CD's.
This is the exact same training we offered in our trading room
for $2000+. Here is another plus. We are offering a FREE CD that contains the first lesson from each course.
How many times have you taken a course because it sounded so
good only to discover that it was not even close to what they
said it was? Well, that can't happen with the TradeTutor because
you get to experience how great it is as you learn from 4 Free
lessons.
|
 |
-
- We just added
a way you can save $100 if you act now! Click Here
- If you notice an error in our newsletter, we would
appreciate your letting us know with an email
|
Training Programs will make learning
fast and easy!