Friday, November 20, 2009

failures are life lessons:

this was a bad week for making money, but possibly a good week for learning

 On Friday, I started "seeing" things quite a bit better.  I am basically a swing trader and all the ideas I use that help me successfully negotiate the markets seemed to come together. 

 Using charts with MAs and volume and candlesticks and fundamentals... I made good decisions with NEP, PUDA, SPPI and especially SENEA -- which I entered just as it began to turn around and went to green within 5 days.  Now this is what swing trading is all about.  

 Too often, my failures are due to buying downtrending stocks with no signs of turnaround and then adding as they collapse.  There's just no point in that.  All initial entries should be partial buys with clear stops.  I can add so much to my bottomline by exiting the failures early.  But really -- the trick is -- NOT being in those trades in the first place.  

 If you start with only IDEAL set ups -- then your winners go up dramatically.  Then you can trade them too early or not -- but at least you're dealing with more or less profits instead of losses.

  Charting and annotating the charts has helped almost always.  If you assume a stocks 'needs' to go lower - -than you should never start buying.  Waiting until you're sure it HAS to head higher -- then set stops and go from there.

  I have a lot to think about but I feel like learning always comes from days of frustration... and maybe it shouldn't or doesn't have to.  Learning from successes would be a lot more fun.   So let's think about how to go about improving the win/loss ratio but more importantly, making those losers count a lot less from now on.

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