A massive part of trading success is preparation. Prep work is often overlooked in the grand scheme of what makes you successful.
Too often I speak to new students who are only concerned with entries and exits. I bring this up because entries without a good idea are worthless. The money is in the prep.
The true risk in a trade is in the quality of your idea. As I said yesterday, most traders never learn how to avoid bad ideas. You would be shocked how many traders admit “My plan is good, I just can’t follow it!”
Two examples of preparation are these charts of GS and DKS, Goldman hasn’t moved, it’s stock price is basically trading between $192-200 this year. Boring right? — NO!
Breakouts from these prolonged channels lead to fantastic trades. You MUST place alerts just outside the range so you don’t miss the move. = Prep work.
The chart of DKS shows the stock price got hammered on guidance. Today will most likely be an inside day. Boring right? NO!
The next likely move is lower. Be ready to short sell the stock (as long as it’s trading below the open price on the weekly and daily charts. If the stock price rallies, let it go and wait. Wait for the perfect trade.
I can’t express strongly enough, if you learn to prepare, and you trust your edge, you have what it takes to succeed.
Give yourself a chance and start acting like a pro. That means being ready to earn money. Building a future watch list of “if-then” scenarios is a part of the process.
Dick’s Sporting Goods Stock Shed 11%, But I Don’t Expect a Come-From-Behind Win
What’s the incentive to own flailing Dick’s Sporting Goods (DKS) , which fell 11.2% to close at $34.61 on Tuesday after management issued disappointing forward guidance?
Wouldn’t folks rather own Nike (NKE) or heck, roll the dice on Under Armour (UA) or Lululemon (LULU)? After all, sporting-goods stores haven’t been sporting-good buys for years.
Trading Surge in Oil Options Creates a Whirl of Speculation
Global oil options markets this week were the busiest since November after a flurry of buying from what appeared to be a large producer protecting against a drop in prices.
Trading on Monday was dominated by $60 puts — which give the owner the right to sell oil contracts for the rest of 2019, with a total of 16 million barrels changing hands in June, August and September…
Equity markets stymied by signs of slowdown, Brexit chaos
LONDON (Reuters) – World shares slipped on Wednesday after two days of gains amid mounting concern over world growth and trade, though the British pound rallied half a percent on optimism that lawmakers were set to rule out a no-deal Brexit.
Data continue to reinforce the picture of a slowing world economy. Japan’s machinery orders fell in January at the fastest pace in four months, pushing the Nikkei down more than 1 percent.