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December 3, 2006
In this
week's free newsletter, we'll compare a common trading myth with the reality of
successful trading:
Being Right vs.
Making Money.
There's a HUGE misconception out
there regarding successful trading. Most people think it's about predicting the
market twists and turns with great accuracy. After all, if you know what the
market is going to do then you're likely to knock the cover off the ball.
Right??
Nope.
Let's think about this. What
is the goal of trading stocks? MAKE MONEY. That's it.
Make a plan, execute your trades, make your money.
Those are the 3 simple steps that
Bandit Trading is all about. It
isn't about being right all the time, and it certainly is NOT about having a crystal
ball to predict the future!
My trading experience has provided
me with some market "feel," and that does play a role from time to time
in my trading.
Occasionally I do nail a market call (like last Thursday night's mention that the
NAZ could turn south in a hurry), but by far the majority of my trading gains
come from just managing positions properly.
Take this week for example.
Here at
TheStockBandit.com, we closed out 6 positions on the week and walked away with a
nice 4.33% Net Profit. Not bad, especially considering the NAZ was
down almost 2% (eat your heart out buy-and-HOPE investors)!
Here's a look at the 6 trades we
closed out this past week, and you can see we were actually wrong
more often than we were right last week, and we still made money! But
remember, that is what can happen when you manage trades properly.
|
Symbol |
Long/Short |
Bought |
Sold |
%
Change |
| CCRT |
Long |
$37.85 |
$36.80 |
-2.77% |
| VLO |
Short |
$53.10 |
$51.90 |
-2.26% |
| VSE |
Long |
$23.00 |
$25.70 |
11.74% |
| OSK |
Short |
$48.10 |
$47.25 |
-1.77% |
| MNST |
Long |
$43.85 |
$42.80 |
-2.39% |
| IIG |
Long |
$22.40 |
$22.80 |
1.79% |
| |
|
|
|
|
| TOTAL |
|
|
|
4.33% |
How did you fare for the week?
There are a LOT of services out
there to point you toward great entries but leave you hanging when it comes to
showing you the exits for trades. Entries are only half the battle
(IF that). You need a plan for getting out.
Put it this way, when you get your hand caught in
the cookie jar, you don't want to lose an arm! A little slap on the back
of your hand
is much better, because you know you'll soon have another opportunity to get back in
there. Successful trading is exactly the same way.
Here at TheStockBandit.com, we take
small losses when we're wrong because we're going to be right at times too.
Booking bigger gains than losses allows us to much more than make up for the
small losing trades we'll inevitably encounter.
Yes, I like to trade off the cleanest
chart
patterns in the market, and I look high and low to find them
nightly. BUT, that doesn't
make me money. Managing my trades properly is what brings in the green (and
KEEPS it in my account).
Come trade with us and
see how we manage trades. If you're not a better trader at the end of your
free trial, simply cancel and walk away. But if you're like so many others
who have discovered lately what we're all about, you'll stick around and be glad
you found us, knowing that your membership has value far beyond a few good
nightly picks!
Begin your
Free Trial
now and learn to manage your trades like a winner!
TAKE THE FREE TRIAL!
Jeff White
President, The Stock Bandit, Inc.
www.TheStockBandit.com
The Stock Bandit, Inc. - 17460 IH-35 N. #160, PMB 240 - Schertz, TX 78154
Copyright 2004 -2008 The Stock Bandit, Inc. All Rights Reserved
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