This weeks 10 for 1000 watch list has a lot of great set ups, This leaves us in a situation a lot of traders would like to be in..Which trade to take and which to pass up. Today I was in the right mind set to do research, not every week will be like that for traders, but it will always be important to push through the negative aspects of doing your research. Research will be the key factor in becoming an average trader and becoming a great trader. It shows up just like
it would show up in a baseball player going to batting practice before a game. In my experience
, the days i slack on the research are the days i am left scrambling looking for set ups. You can also see this in your results each week. Mondays and Tuesdays are usually a very profitable period for myself, and this i lead to the research i spend over the weekend. And as the week progresses, Setup are used up and trade set ups are harder to come by. Maybe this is one reason a lot of traders tend to take Fridays off.
The point is don't skimp on your weekend research and especially your nightly research this we make you a far more successful trader then if you do. Trading is not cut out for everyone, but if you find you self
always looking for the next breakout of next big move then chances are your on the right track and you should stick it out. You will hit bumps in the road, but these will be learning experiences
for then setbacks.
Bottoms...Every day i hear people asking is the bottom in and was this the bottom, especially on CNBC
The so called experts all making there predictions and trying to
call the bottom. The truth is bottoms don't mean anything to us traders. we are going to continue to trade the markets as they set up and when they pullback is no different
then when a bottom is being put in. it really doesn't matter. A trader is concerned about specific stocks and what is moving on a specific day. We look for patterns that we can trade off of. Are we really going to say hey the bottom is in, I am going long, my job is done?
Last week the markets finished on a bullish note, On Thursday I was looking for the markets to close above 877 as this would keep us above the 20ema
something that is required for some technicals to stay bullish, We didn't get it, Instead in the face of the almost limit down sell off
overnight and opening gap down we rallied hard and reversed to close above 877. This was very bullish and set us up for a good chance of a market rally this week.
I am surprised
to see the futures flat this evening and could see it move up overnight.
Over head resistance 905 and 918