Focus on one thing and do it well

Gary stressed that we should pick a stock and become intimate with it. You can become wealthy by trading a single stock. He also stated that he was teaching 13 methods of trading and we should pick one or two that we do well. Focused position trading. I see Rookie30 doing very well with intraday trading and wanting to learn big charts. Unless your mentor has advised you to do so, why not just settle in on doing your one thing well. Gary said that trading should be boring, life should be interesting!

Here is a screen shot of my favorite little $7 stock that I trade month after month collecting a nice brick as I go. The green candle is my primary BUY signal and the cyan is my secondary. I will enter trade on which every appears first. The red arrow is my EXIT. In three years, this stock and these signals, have lost money just three times for a 33 to 3 win ratio.

There are other stocks that will work just as well. I used to trade a Canadian trust called PVX in a similar fashion until it was purchased by another company.

Trade Well my Friends

Mtut,
Thanks for the screen shot. Can you explain why you use those particular indicators? Is it just stock specific intimate knowledge or are those particular candle patterns of note? I look for at least a 2.5% move so that I can do Widows & Orphans as ugly as possible to prove 5% per month is doable.

This stock I trade on intimate knowledge. I created a formula based on specific dates that provide entry and exit signals. The yellow dotted lines are close to the monthly date that I expect an entry signal. I trade this stock just once per month and have not calculated the return. It pays a monthly dividend that I can collect if the stock goes against me and I decide to wait it out for the stock to become profitable. The waiting it out method, has in the past, allowed me to trade for long periods of time without a loss. However, I now trade the signals and get out of trade each month.

mtut,
Thanks for the post. I appreciate your comment, and agree with you. The only concern about trading intraday is, if I am not in my office and miss the critical entry point, I could miss the trade, or start chasing. The critical entry point for an intraday trader is by far the most important aspect of trading (my opinion). Also, my rule is, when I am in and out, I am in and out for the day. I know as we approach the Fall/Winter period of trading, I will miss ALOT of "Meat and Potatoes" by exiting before lunch. I am almost never in a trade after lunch. I totally capitalize on the pop up or down after the open. I have gone back to take a look at trades within my stocks during the F/W zone. It appears that most will offer my trade, but not as often as it does in the summer. For example, It appears I will get a pop on Tuesday morning, but before that trend is complete, I will not see another entry point until Friday. I guess this is why trading from the Daily, 233, and 55 are so popular during this period. I will want to sell the wife and kids, if I depend on intrady setups in the F/W.

My point is, I want to trade well, capitalize on the big chunk in the middle, but not be greedy and end up losing my basket again. Last year at this time, I was in recovery and treaded water lightly. The market used me as it "whipping boy" during the previous summer. Every small movement made me flinch, in fear of another strike across the head (sorry about my analogies). I totally hear your point. If my successful style is intraday, then continue to capitalize on what I do best. I guess at the end of the day, it is best to trade twice a week with a small gain and have winners, opposed to trading twice a week and having losers.

I am glad to see that you have found a "Gem" that works for you. I have one that is very similar, but the difference is, my "Gem" is short (no more than 2 hours) and according to the size of the position, can be very profitable-every week.