Tuesday, April 3, 2012

The Daily Note - Don't Shoot the Messenger

I am often enough told that it makes some traders feel bad when I post strong or big gains on a call be it in private or public. Yet if I don't post the results what happens to the call? Is it still legitimate or do I have to explain myself later about what happened. I don't know about you but my memory is not photographic. So I like to make note about what and why ergo I have my calls with charts, long and short entries and targets all recorded. Well, then what? Once in a while we have such a great trade running that we have to do more and that's when things become more difficult, because if you as a trader did not enter a posted call and it goes stellar you may feel that you've missed out and I may look like I'm bragging (which I am, of course) but much more than that my intention, really, is to show how a trade can run well and what can be done to take advantage of the charts to our benefit.

You may have missed out on the trade, but if you get hung up on that idea, you will not learn to take advantage of the next opportunity with equal or maybe even better results. There are two things that I recommend traders to do. 1.) if you missed the initial move of a trade pay attention for the possibility of getting in on the next one. 2.) if you feel bad or resentful about missing a trade, look at the reason why you did not enter. It will help give insight into your way of thinking, because if you did not take advantage of one and you are feeling down about it, I can bet dollars to donuts that you have a repeating pattern there.

The most sobering analysis tends to be study. Study of habits of self and of the stock movements. "Studying" a stock chart need not take hours it just takes enough time to look and see what happened after you thought you should do something with a trade. Seen enough times, you may realize a pattern that works and no amount of lecturing will be as good as your own "AHA" moment.

Some traders feel there should be a bell set off by me when the "moment" is right. That, I am thinking is not teaching you anything but to be a follower and my intention is to teach you to sharpen your own eye and develop your own pattern trading to become a confident trader. Independence vs Dependence. So, the next time you see me "brag" about a good call you have a choice you can rejoice with me because you were in on the call, or you can again "shoot the messenger"* and be in the same spot as before.

don't shoot the messenger by Spoons on Grooveshark

Happy Trading, Living and Dancing

* Please take that figuratively and not literally! Literally means "really" or "actually" or "in the strict sense of the word." Don't confuse it with figuratively, which means "in an analogous or metaphorical sense.

The Daily Pick - PCLN a study

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