I had many heros growing up, but nobody resonated quite like MJ did for me. Born in IN, basketball was a religion for myself as it was for many. MJ and the Bulls were on fire during my high school years and I vividly remember going to practice thinking of how important all of those early mornings and evening drills were for game day.
Today, the market is no different for me, I seem to do the most important part of my strategy after all the hustle has gone away. The best advice I can give to any new trader starting out is to study charts as much as humanely possible. Then do it a bit more. One of my trading heros, Modern Rock, says this so well and why it is so important:
Part of my daily routine is to go through my favorite stocks and analyze their current action. If they are in a range, I’ll set alarms for moves out of the range either direction. This enables me to stay out of trouble while the stock is simply churning but also not miss opportunities. One of my challenges early in my trading career as well as occasionally these days is over trading. I find this is a simple way for me to get out of the weeds and only be alerted when a real opportunity is in play.
X is a perfect example of this from yesterday (4/13). This is a stock I play fairly frequently as it trends to move with the market direction and has a nice ATR (average trading range).
Here is the drill down on the daily and the trade that I took for a large W for the day:
All it takes is one of these a day, it truly is amazing. Study, study, study and then WAIT. These types of plays are all over the market, you just have to wait for them. While I have no doubt X may fall more and may even gap down on Monday, my objective will be to wait and play a potential bounce and then the fade back, as this stock continues it downtrend.