You are not your losing trades

"Your losing trades do not diminish you as a person. You are not your losing trades. You are also not your winning trades either. They are simply by-products of the business that you're in."

I was so confident that CCME would continue higher on 1/28/2011. So I bought the stock near the close at $23.00 on 1/27/2011 and held overnight. The stock DID spike higher the next day. However, I was in a sleeping beauty mode and did not get a chance to take profit before the stock came crashing down. Hence, I turned a 1k profit trade into 2k losses. Below is the transaction:

5mins intraday chart:

I opened my platform and saw my account was down -$2,000 on my CCME position. Instead of spending my time crying about it, getting angry, frustrated and thinking about should have wake up early, could have set alarm clock, would have made 1k this morning...etc I clicked the sell button immediately and made a FFFFFUUU Comic then eventually move on looking for my next opportunity. Which leads to my ARAY trade, a nearly +$1,500 trade. Below is the transaction:

5mins intraday chart:

This is what we call accepting the RISK in trading. Unfortunately, I was unable to fully recover my losses of the day, but that's not my point. What was important is that my losing trade did not cause me to lose my self control, confidence, discipline and focus.

Many traders would define their risk(stop loss) and profit potential then place in a trade. However, when things did not turn out the way they wanted to be. Instead of accepting their risk/cutting loss and move on for the next opportunity. They waste their time complaining about the trade then become frustrated, angry, and emotional. Now, not only did they lose money on the trade, they also loss something that is very important to all successful traders, attitude. Believe me, losing your attitude is way worse than losing your money in a trade because that's when you start revenge trading, over trading...etc which leads you into a deeper hole, end up losing more money. So PLEASE!! NEVER, EVER make such mistakes.

Here are my suggestions whenever you encounter a losing trade:

1) Obey our stop loss - Sell it immediately and move on to the next trade.
2) Walk away - go for a walk, watch some TV or go take a dump if you have to.
3) Never add to your losing trade - Adding to a losing position would usually end up in bigger losses.

Good Luck Trading everyone and have a great weekend.

Trading ideas Jan 28, 2011

Alriight Traders.. It's not like I have anything new to say about my setups. Let's just say I LIKE EVERYTHING ABOVE RESISTANCE LINE ON VOLUME FOR A BREAKOUT TRADE. Enjoy! Peace!

QLTY

 AXL

 GRT

 MAS

 OZM

 MNI

 GSIT

 VSH

 KLIC

Trading ideas for Jan 27, 2011

 ISSI

SANM

 BRKS

TIE

WGO

WTI

GRM

Jan 25, 2011 Premarket movers/Trading ideas

Think Probabilities

"There is only one side to the stock market;....not the bull side or the bear side, but the right side" - Jesse Livermore

Listen, I am not talking about a CRASH here. All I am expecting is a reasonable size pullback in the next few weeks.

The chart above are the Major US indices, and as you see they are showing weakness all across the board. The key to be a professional trader is to constantly think in probabilities.

Probabilities is essential to all successful traders who profit from this market consistently. Since I am sensing weakness in the market in the coming week or so, I am more inclined to short some stocks that are already showing weakness or underperformed the market in the past few months. If my projection is correct, which is if the market decided to pull back starting next week. Chances of that this pull back will help pushing these bearish stocks even lower would be high.

What if I am wrong? What if the market decided to charge higher next week due to some amazing earning data/ economic data...etc.? That's OK too, why? Because these undeformed stocks weren't part of the stock market rally in the last few months to begin with and the chances of them rallying with the rest of market are low. Therefore I can easily buy-to-cover my short positions to break-even or get out with a small scratch.

Trading the market is no different than playing a simple Hi - Low Drinking game. When the face card is showing a King, most likely the player would predict the next card to be lower. So please treat trading simple and always THINK PROBABILITIES.

So here are some short setups that are worth considering: BAP DGW MOTR NG RDY XRS

Good Luck and like the most annoying guy on the #Study stream would say. That's it, trade 'em well and make it a good evening.

P.S.  Root for the Steelers and Greenbay tomorrow. (SUPER BOWL XLV)

Premarket mover

THE BEARs STILL.......

OK! This has nothing to do with the CHICAGO BEARS beating the SEAHAWKS last Sunday.

ANYWAY... Back to the stock market. $FFIV plunged 23 percent after the company forecast lower-than-expected revenue for first quarter of 2011 got almost EVERYONE on twitter crying about the market is about to fall apart 2008 Style (BOO... WOO..).  Ask yourself, since WHEN FFIV became the market leader? Since WHEN one day makes a trend of the market? The market has gone up 20+% since September 2010 and you don't think it deserves a pull back? JEZZ (You greedy son of a BULL)

Listen, if market wants to pull back. You have three options: 

    1) Hang on to your LONG positions and cry about it

    2) Stay in cash and wait for dust to settle before going long again

    3) Play some  high probability Short Setups

I personally like #2 the best but for you BEARS fans out there, I got some SHORT setups that you might want to take a look at.

DGW

CLNE

MBLX

WPRT

LOPE

LINC

NDN

JST

YOKU

Trading ideas for Jan 19, 2011

BITA (HT to @kunal00)

 IMGN

AUGT

ICGN

SNTS

HHWW

PUDA

VRS