New Traders....Sniped CF

I have gone through WSB 2-5 about 6 or 7 times and I continue to learn something new each time. I was listening to class 2 as he talked about trendlines, support and resistance, and entry. Man, I am so tired of hearing his voice, but I have memorized much of this information. If you are studying your stocks and it movement, you will be ready to pounce on that opportunity-if you are following the rules.

I have been working on patience, confidence, and fear. Gary has always said, if you are scared, do not trade-period. I made a true sniper trade this morning on CF. I only used a few indicators that sealed the deal. I knew the trade would be fairly quick. I absolutely love sniping! It takes precision, patience, and confidence.

I watched it open and everything was red. That was a good thing because my research showed there would be strength in CF if it is in the red. Remember what the Market Calendar says. It says look for the little pop within the first 10-days. I knew that indicator was going against me, but I had enough indicators going in my direction on the very short term to snipe and get out. I will still be looking for a pop because candles on the broad market are supporting that possibility. What I saw that helped me make the decison to snipe CF.

1.RTT showed on the 1 week that the stock has been down 5 of the last 7 years.
2. Dow, Nas and S and P are all Red
3. After opening, the Dow continued to slowly drop
4. Candles on the 55 showed a clear reversal heading down
5. Good Christmas Cross going down
6. I pulled a little quickly on action but had a good cross going down
7. My Support Line was broken at 205.83.
8. Tuesday is not a bad trading day (The Discipline Trader).

I jumped in at 10:00 and saw a little pop up, but I felt confident it was coming back down and it did. I bought 2 Put contracts at 10:00 and sold at 12:00 for a profit of $200. In the big scheme of things, that is not a lot of money, but when you are only investing $1200, it works well for those who start their accounts with $2500 and never trade over 1/2 of their basket. Rookie Rule is, I always close up shop after a trade (win or lose) and walk away until the next day-unless I am in the Fall/Winter. I will look for AM pops when their is more volume and less volatility.

Thought I would share. I am by no means good at this, so do not think I am trying to be the teacher. I just want to share some things that might help others see things that might have been missed.

Learn how to draw Support, Resistance, and Trendlines. Without that knowledge, it is almost impossible to know where to enter a trade. Some do not need to draw the lines. They have done it long enough to simply know where the areas of support and resistance are. I use the price points as my resistance and support points. I draw trendlines when or if I have enough candles to connect. When the stock reaches a support or resistance price point, I start looking for an entry-if my other indicators are present.

Last thing, If you are not passionately in love with this, you will probably be just ok at trading. For me, I lost, failed at it, almost gave up, but kept fighting. The key is, if you choose to make your own rules or think someone giving you tid bits will make you a successful trader, you will lose your basket as I did. I lost my ENTIRE BASKET ( over $7000). I was sick and I was mad. This experience humbled me. What did I do to change? I stopped listening to my mentor so much. He is a student of GW as well, but he was telling me too much stuff. I had to figure it out myself. Unfortunately, he cut me off! I was like, dang dude, I did not say go silent on me. It was probably the best thing that could have happened to me. I practiced for an entire year. I had to read, listen to Gary, support my knowledge with the charts, and read more. It was a common occurence for me to study, shed a few tears, pray for guidance, and study more. As I stated in a previous post, it just all came together one day. I vowed to help others if I can, but not give them everything. I am getting to a point where as if I am in a room by myself all day, I can trade without the help of someone else. That is pretty cool to me. I also do not cry anymore!

Good Job!

I do not idolize any man, but wow, Gary's literature and teachings are "on spot". The Market Calendar is a very solid indicator. I simply knew the pop would come within the first 10 days. The reason was not important to me. I just wanted to get the pop. What did we have today? Yes, a nice pop that every WSB student who trades should have made money on (paper or real). We knew it would come, but we just had to wait for it to reveal itself. My confidence to trade real money has sky rocketed. Market Calendar! Market Calendar! Market Calendar!

OK- No more posts from me. I am done for at least a week or two......