The Quarterback Trading Method

When I began trading in 2000, I was like a rabid dog excited to get involved.

Every stock looked good in my eyes. Anything that moved was a reason to get some shares. Even if I knew it wasn’t the best idea, I’d “justify it” with less shares.

Eventually I found out a bad trade with less shares is still a bad trade.

Professional quarterbacks have a system known as “the progression.”

When they leave the huddle they have a best play, the next best play, and an “I’ll settle for that play.” The last one is known as a check-down play.

The check-down play is the one I’d like to discuss, and how it relates to your trading.

Being excited about trading is a good thing. But when it comes to getting paid it can ruin your trading account.

Too often we justify a check-down trade simply because the stock is volatile, or in the news, or maybe for the first time in a while it’s bullish. Possibly the start of a reversal.

But these are the trades holding you back.

We get predictably paid when we take trades with predictable results. Sounds obvious but not always executed.

So before you place your next trade, ask yourself:

“Is this the BEST idea I have?”

Or simply any idea?

Picking a top or bottom are the top mistakes.

You’ll be amazed that this one simple question can turn a break-even trader into a big winner. Practically instantly.

Many smart traders can’t figure out what they’re missing. More often than not, it’s better stock selection.