Friday, March 22, 2013

Back in the Market

I'm getting back into the stock market. I've made a couple trades with great profits but more importantly I feel a lot more disciplined. Having thousands of dollars on the line don't seem to effect me emotionally like it used to in the past.

I've been working on fine tuning my criteria for selecting stocks that I think will have big moves at the opening bell. The only thing I'm concerned about is where to get out of the stock once I've made the buy. I'll be going over a bunch of scenarios on paper to figure out what I should be doing when the price moves in certain ways. I think this will help solidify in my mind what I should do. When these scenarios do present themselves I'm hoping I'll be able to act rationally and execute the plan.

Another thing I've noticed is my patience. I seem to be a lot more patient when it comes to trading. I've spent about a week in the market and only made one trade. I was patiently waiting for that particular setup and it paid off nicely. I think one of my big mistakes in the past was over-trading. I was so excited about trading stocks I constantly wanted to do it and that mentality cost me money. Now I seem to be more focused on only trading stocks that my methodology/system produces because I know the potential. At the same time I'm well aware that these setups will also produce losers, it's simply part of the game, so cutting these losers asap is also going to be vital to my long term success.

I'll be blogging my thoughts and reflections on trades, results, discipline, risk management, etc. There might not be a ton of activity here simply because I won't be trading just any old stock. I'll be patiently waiting for my setup. Ultimately me entry and buying decision of a stock is determined by how fast it moves at the open. Does it have enough juice to carry me?

This is the beginning of everything.

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