The One Stock Trading Method

Large cap tech stocks carried the load again. Our sector rotation system has never been more on point than yesterday.

With the market internals flailing up and down, the big, obvious energy candlesticks in #AMD #NVDA #GOOGL #AMZN and #BIDU made it “easy” to find ideas yesterday as the three-majors showed heavy bearish price action.

The #SPY ETF traded into five hours of melted candles to begin the day. But our daily watchlist once again proved why it’s planning, not a lucky market that gets you paid.

If you missed yesterday’s training on how to find winning stocks, be sure to read the article. I give you three ways to keep your capital working.

Which brings up a good coaching question. When you’re learning to trade, learning to avoid blowing up your account, learning to make some profits… What stocks should you trade? And how many stocks should you watch?

And finally, how many positions should you have at once?

When I began trading in April of 2000 we were only allowed to watch one stock the first 30 days. We were taught to know everything about that stock. We were taught to learn the ‘personality’ of how that stock traded.

If it was slow, we learned patience. If it was active and trending, we learned to make money. We knew that stock like the back of our hand.

The key lesson was “is it in play?

In play means there is money to be made. It means there is an edge. Someone with deep pockets has attention on the stock and backed that interest with supply or demand.

It was a disciplined way to trade, but we learned when a stock was worth trading.

Think about your last ten trades. Can you say you had an edge, or simply an entry setup?

Sadly most focus on money without knowing their edge. It’s why so many people “strategy hop.” They fail to actually learn WHY the system works. They only want the result.

That might work for losing ten pounds, but in trading you need conviction. You can’t hesitate or doubt. Or you will never have conviction.

And conviction is what leads to allowing your edge to do the work.

Give yourself a chance to learn. It’s good long term ROI in your skills.

Focus on a few market leaders. Learn them, Get paid. Then expand the list when you’re ready.

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