Profitable Stock Trading Requires Patience | Stocks to Trade 10-20-15

trading patienceThe dream of trading for a living is alive and well. The only question is can you survive the learning curve?

Stock traders, more specifically day traders, are attracted to the freedom and capitalistic opportunity of unlimited income. The barrier to entry is small. Open a trading account and you are in business for yourself. The sky is the limit.

Because of our natural enthusiasm, we fail to consider it’s challenging to make money trading.

The problem many traders face is they believe they can be a profitable stock trader, with nothing more than a chart and a direct access to the market. Reality is you need experience. To get trading experience you need to trade. This is self-evident. What is not so obvious is the need to preserve capital while you are learning.

When you begin trading, you should not be trying to make a living. You should be learning how to identify high-probability ideas. You should be making a big list of what doesn’t work (loses money).

If you follow this concept, you will get experience. Unfortunately most traders don’t pay attention. You will pay for the experience in time and money and continue to trade for profits instead of learning a skill.

I have witnessed this over-and-over again in my 15 years in the prop trading industry. Most traders begin to ask the correct questions when they have one month left on their “uncle point” before they need to go back to a real job.

Be smart, ask good questions from the start. Ask how to identify great ideas. Then learn how to manage a winning trade. Learn when you should add shares versus when the market is offering little and the correct trade management is to book profits into momentum. We are trading this “book profits” type of market in 2015.

If you follow this mentoring advice you have a shot. If you don’t, the next time I see you my answer will be “Yes, I will have fries with that…”

Leave your questions at the bottom. I would love to help you succeed.

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Leave a Reply 12 comments

bob Reply

real good advice for anyone coming into the market like a gunslinger–Thnx Pete–

    Pete Renzulli Reply

    Thank you Bob.
    A must to learn what not to do and reduce those mistakes so you are around long enough to gain the experience needed to earn money

      Lou Romaniuk Reply

      Amen Pete.

      And once you have a list of what DOESNT WORK….you should also be able to determine what DOES WORK WITH HIGH PROBABILITY. If you are unable to achieve this piece of the puzzle as well… it will be crystal clear YOU DO NOT YET HAVE EDGE.

Rich Arnold Reply

With the Inside candles how do you tell if the stock is going to go up or down. I see red inside days and it goes up and green inside days the stock goes down. Are you looking at the trend of the stock? Thanks, Rich

    Pete Renzulli Reply

    Hey Rich
    Yes. We always should know if we want to be long or short before we consider the entry signal
    Great question
    Pete

      Lou Romaniuk Reply

      Pete– does your site allow for commenting WITH ATTACHMENTS?

        Lou Romaniuk Reply

        I have a great example of what Edge looks like on a chart today…. short and sweet with some annotations… would love to get it to you to post.

    Lou Romaniuk Reply

    Rich… you are asking a loaded question that can’t possibly be answered in a single sentence or two. There are many many factors to consider. Trend obviously is one of them… but CONTEXT is another factor that can make all the difference in the world. Is the inside candle happening on high volume or low volume? What is SPY doing relative to the inside candle of the stock? What is the stock doing relative to its peers/core sector/industry group? What key structural levels seen on higher TFs are nearby…ie… daily moving averages…pivots…breakout/breakdown levels…gaps..etc.

      Lou Romaniuk Reply

      Done Pete. You should have 3 emails…the last one with edited screenshots that do NOT include my account # at top lol

        Lou Romaniuk Reply

        P.S. Forgot to mention in the emails– the additional edge that came from knowing that Transports were in play– for “sector wind at sails” odds.

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