- Many new traders find themselves constantly on the wrong side of
the trade, especially during the slower part of the trading day.
How frustrating is this!
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- A typical scenario The stock starts moving up, so you buy in. It
goes up a little more and then turns around and moves down below
where you bought it, so you sell it in a hurry. It continues
down a little after you finally sell it and then it starts back
up again. And so goes the cycle. Day after day the same thing
happens. Sometimes you will get a runner and you hold it too
long. You could of had a point, but it started down, so you sold
it on the way down and gave back most of your profit by the time
it sold.
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- Emotion
- The market is fed by people trading emotionally.
We are all emotional beings, so it takes education and training
to overcome the emotions that cause us to lose. Fear and Greed
are the two emotions that perpetuate the stock market. When the
masses are fearful that prices will continue to decline, they
sell causing further decline. When the masses are invested and
a reasonable profit is on the table, greed causes them to stay
invested until prices decline and then they exit.
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- When is it too late?
- It is usually too late to enter a trade
once you feel comfortable with the fact that you know which direction
it is going. In the chart below, it would be very unusual for
a beginner to be buying stock when the price was dropping at
9:33 am. Most beginners would wait until they feel confident
the price was going up. That point is represented by "probable
buy in". This is called chasing the price. The result here
is probably all too familiar to most beginners.
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- Rules
- When a price is climbing fast, don't chase
it. Wait for a pull back. When you feel like you must get in
the trade, STOP, and think. It will probably reverse and give
you an opportunity to enter at a better price.
- Let the stock price come to you. Use your
knowledge and skill to anticipate where the trend will change
and use limit orders to enter the trade.
- Trade with the market and stock trend.
If you're not sure about how to read trends, you should learn
before you continue trading.
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- At Princeton Daytrading, we use Realtick 7 trading software. Realtick
7 is licensed by Townsend Analytics. We went right to the source
and contracted Townsend Analytics to be our execution firm. Townsend
Analytics is also a major player in Archipelago, the intelligent
routing ECN. When you trade with Princeton Daytrading, your trades
are handled with a highly integrated system designed to work
together in a seamless manner. Learning how to trade requires
a top notch education, skill development, and personal attention.
That is what you can expect at Princeton Daytrading.
- If you notice an error in our newsletter, we would
appreciate your letting us know with an email
- One of our new traders exclaimed - trading without level 2 is
like trading with a blindfold on. How true that is! And having
level 2 is not much help unless you know how to use it effectively.
Our training is so good that we have had people fly into San
Diego from Ohio, Pennsylvania, Texas and even from London, England.
So, rather than losing money on that next lousy trade, invest
it in your education at Princeton
Daytrading where you can develop
your skills as you learn in the most effective and easiest way.
Remember, your money is counting on you!!!
- Education is
the key to success in any endeavor
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Training Programs will make learning
fast and easy!