Keeping it Simple

For new traders, this market is a "Beast". Well, it is also tough for some intermediate traders as well. Many of you know I have been trading real money for only about 5 months. Over a year ago, I went though WSB and started trading 3 months later. Well, I initially built my basket from $2500 to over $7000 in the course of a couple of months. One month later I lost it all. I was spending money from my basket because I knew I could replace it within a couple of trades. Well, when March and April came around, I was wiped off my feet. I had never gone through that zone. I traded as I did the winter. I have two points I want to make. One point about your basket and the other about the current market.

1. I once looked at my basket as money. I now look at my basket as a tool that allows me to make money. The basket is where the life of a trader begins. I do not view it as money. In this business, you simply must have a basket to make money. I do everything in my power to protect my basket. It is my path to financial freedom. I know this sounds simple, but thinking of my basket as money is a big No No for me.

2. This market will make the weak and frail quit and blame everyone for a lack of success. Please understand, this is very hard stuff, but it is so important to keep it simple. Do not over analyze. If you study, read, follow the rules, and pray, you will see clear trades that are profitable. I know one person who does this. He can not handle the volatility. He has stopped reading, doing news plays, writing in his journal, studying materials, etc. He has been defeated! He thought it was going to be easy, but most people can not do this. I know some believe anyone can succeed at this, but nope- not most! At some point, most are broken. My amateur advice is, when you get frustrated, take a break from it for a day or two, read some of a mindset book, ask some of us questions ( I am no pro, but I know enough to be dangerous-lol!), but DO NOT QUIT! I have been there. I was soooo close to quitting, but I refused to "not get it". That THING inside did not let me just quit. As a result, I am doing pretty well with this trading thing. Keep it simple. Keep it simple. Know your expert stocks, understand chart sizes and when to uses specific charts, make sure you understand candles and candle count, understand support and resistance, become aware of volume, understand entry and exit points and how to identify. Develop your rules to trading. I have several of my own that are in consistence with Gary's rules.

Market is a little tough, but if you are watching a couple of stocks very closely, there are still really good trades almost everyday.

Good Information.

Also learn gaps especially in a choppy market. (Investopedia.com has a ton of great info on gaps) regardless of the chart you use learn how gaps react off your chart and with your stock.

Look at BIDU on the daily 10/26 to 10/31...I am sad because although I saw it I did not trade it. I was too busy with other things!! It was a $12.00 move or at least 4-5 grand on an option I missed. It double bottomed today on the daily.

I just read the very, very short pamphlet "7 Chart Patterns That Consistently Make Money". I was a little shocked that the book was so short. Ironically, playing gaps is my next approach to practice. The examples used in the book were very simple and easy to follow. It was a very short and elementary read for me, but I still learned a little something from it. I have 4 other books coming from the booklist. I am "kcking it up a knotch". I am going to read more, study more, and work more on my entry and exit. I also do not know how to set stops!! I know, I should know that, but I watch my trades pretty regulary-especially with real money. I have no idea how those stops, limit orders, etc work. Again, I have concentrated so much on the concrete aspects of trading. I must work more on the artistic aspect of trading as well. I am all science right now.

I bought 2 Dec. 585 Put contracts of AAPL at 3:45 yesterday. I sold this morning at about 10:15ish for a $ 7downslide. I profited $750!!I One of my golden rules is, when I sell, I close up shop for the day (win or lose). I never go back in-unless I am going in at the end of the day, anticipating a morning "pop".

Apple gives me the heeby jeebies because it is so expensive and moves violently, but if you catch it on the right side, you can pick up a load really quickly. Apple has become my expert stock because I trained and diligently studied the stock for over a year. I am familiar with how it moves. Those who are interested in trading AAPL can do well with it, but must know it is manipulated a lot by the heavy weights. Everyone messes with it, so finding consistency in patterns is tough. Quick comments about APPL. It trades up and down very well. Intraday trades work well. It allows really quick and solid profits. When it starts to run, it sprints quickly up or plummets down. The easy thing about AAPL is, once it gets going down strong, the Day Traders and large position holder start to dump it, so buying low and selling lower work well (chunk in the middle). Funny thing is, the heavy weights buy it back within the next couple of days, so I buy high and sell higher (chunk in the middle). On the contrary, when entering a trade with APPL, look for reversal signals. When you see a couple of those, GET OUT! One more thing! When it goes nuts and plummets $20 dollars or skyrocket $20, the following morning might present an opportunity to go for a ride in the opposite direction (Must wait for reveral signals).

AAPL is one that I practice the printing press with. I use the weekly to do this. When I was practicing trading in 2009 I used AAPL and K-mart as SHLD was taking K-mart over. I did very well. Then after K-mart was gone I was lost on what to trade. As I kept looking around I lost all my virtual money. Oh well. I did like the government and just printed me some more!