Friday, October 16, 2009

Secret to Success in Battle and Trading

"Always mystify, mislead, and surprise the enemy, if possible; and when you strike and overcome him, never let up in the pursuit so long as your men have strength to follow; for an army routed, if hotly pursued, becomes panic-stricken, and can then be destroyed by half their number. The other rule is, never fight against heavy odds, if by any possible maneuvering you can hurl your own force on only a part, and that part the weakest part, of your enemy and crush it. Such tactics will win every time, and a small army may thus destroy a large one in detail and repeated victory will make it invincible."

-- T.J. Jackson

Thursday, October 15, 2009

Thursday Day Trading: Crude Oil so close, but NO Cigar

Click on chart for a larger image of the Crude Oil trade considered today.

Here is a perfect example of having an awesome signal, and no followthru at time of the trade. This trade went on later in the day to touch it's trendline, bounce off then go on to target and upper target respectively.

Sometimes, you just can't get a break as a trader seems like, but discipline, patience, and self-control will keep you in the game. Don't get discouraged when in your trading week, that you finish the week in the LOSS column.

This is bound to happen in your trading career. Nothing and I mean nothing goes straight up without coming back down ... following sound money management techniques then the valley will not bring you all the way back down before you start your next ascension!

Good Trading,

David "Tiger" Knight

Wednesday, October 14, 2009

Wednesday Day Trading: It's OK to get out at Breakeven!

Click on chart for a larger image of the eMini S&P (ES) market.

Some days as a trader simply don't work out, and your best trade of the day will be a BREAKEVEN trade. This is the nature of the business that we are in. Although, you can continue to take the best possible trade setups, they simply will not work out in a given trading day.

Today is a perfect example of trading your plan, and the market simply not having any followthru. Should it have went and made you money today?

That really is the wrong attitude to bring to a trading day. What you are trying to accomplish on each and every trading day is to be the best trader that you can be. By remaining DISCISPLINED, PATIENT, and under SELF-Control at all times.

These days do happen when the best trade simply is the breakeven trade, and your remaining trades turn out not to be winners. The key is to stick to your trading plan, work your way through your losing streak. Decrease in account size, if you plan calls for you to do that, and continue to plug away.

If you happen to have a castatropic day that you lose your discipline, etc. Then the best course of action in this case is self preservation. If you blow your trading account out in one trading day, then you will not be ready for the trading day where everything goes right, and makes this day a distant memory.

In summary, my advice is to always stick to your trading plan. Remember the trading rule. Plan Your Trade, and Trade Your Plan in that order. If you have your trading plan down, then the rest will follow. Sure you will have "losing" trading days, but if you remain disciplined during the drawdown period, then this will make you a stronger trader in the days, months, and years ahead.

It has been said that trading is a MARATHON and not a SPRINT. So don't trade one day like a sprint when you should continue to keep your longer term goals in mind. Yes, you will have setbacks, and drawdowns. Get use to it!! Or find another business to go into ... trading has been said to be a zero sum game ...

What makes the difference as traders is the key word DISCIPLINE! Discipline in following your trading plan, and continuing to perservere. Don't give up, and DON'T allow ONE DAY to blow your trading account!

As Annie says, "the sun will come out tomorrow."

Good Trading,

David "Tiger" Knight