Video | Stock Trading Recap 9-21-15

There are a lot of traders struggling right now.

They don’t have to. You may be one of them.

The culprit is your trading strategy. Do you have one? Is it written down? Can you explain it quickly?  The best traders do one thing very well, and they do it over-and-over. They buy strong stocks and short weak stocks.  They never deviate from this mindset.

Think about this…

Institutions, those who move stocks, don’t switch from long to short the same day. Why would you?

Let me ask a question…

Did you look at the chart of the SPY today and say “I definitely want to…” What did you say? Did you stick to your pre-market idea?

We are trading a tough tape. The bias is not clear for most stocks. This means you should preserve capital and trade selectively.

In today’s stock trading recap, we discuss how to game plan this market and why a mentor who brags is the worst type of teacher.

Video | Stock Trading Recap 9-21-15

Stock Trading Recap 9-21-15

End of Day S&P 500 Map 9.21.15

Stock Trading Recap 9-21-15

The SPY formed a doji candlestick today.

Basically opened and closed at the same price. How many times did you trade both long and short the same stock?

If you did. Stop.

That’s not high-probability trading.

SPY End of Day Chart 9.21.15

Stock Trading Recap 9-21-15

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Leave a Reply 2 comments

Daniel Reply

Hello Pete,
do you mean “How many times did you trade both long and short the same stock?…That’s not high-probability trading.” also for trading commodities or forex?

thanks Daniel

    Pete Renzulli Reply

    Hi Daniel
    yes.
    Trading the same security both long and short is not high probability trading unless…your main trend is a very short time frame.
    This is because it can change frequently so you are technically “trading with the trend” on your main time frame.

    Since I set my trades up on the daily and weekly charts, it would not be high-probability for me to trade both sides with that type of bias.
    Have a great weekend!

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