Monday, March 28, 2011

The Daily Note - Top That!

As traders I think we compete more with ourselves than with other traders. Maybe not at first, but as we become more assured and more experienced with our success. So I realized as I thought to myself: "How do I top that?" coming off one of the best weeks of charts and plays.

The early game that some traders play is to try and outdo one another in quantity, quality in some imaginary contest. This can be good because it allows for emulation which is a good way to learn many things in life; but it is detremental when the competition becomes more important than the trade.

I prefer to look at a good trader to learn from, not to outdo. You can learn a lot by looking at trades through different eyes. Charts allow you to do that. However, if the charts confuse rather than help, ask yourself what you are missing, and then, if still stumped, ask the creator of that chart. Most chartists are willing to share their craft, otherwise, they would not post them for all to see.

By asking yourself what you are learning from the many charts that chartists who post on the web, StockTwits especially, you will soon find ones to follow who will teach you, even if silently. However, if you are looking to be just told without doing your homework, you are really not learning to trade or to read a chart, but only to follow. In other words, you become dependent on someone else telling you what to do and when.

Your willingness to chart your own trades and then compare them to someone else, will help you to become the good trader you are meant to be. I prefer to teach, therefore, I leave a bit of mystery in my charts for that reason. Guiding you by giving clues may help you see the chart with fresh eyes, teach you to find those levels that will break/make the trade, and hopefully encourage you to try to top that on your own.

So, how am I doing?
Happy Trading, Living and Learning

The Daily Pick - DRYS a pre-earnings chart

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