In my inaugural episode of #AskPaulAnything, I talk about the the difficulty of stock trading exit strategy and how to simply the process, risk management, a fantastic intraday trade, deliberate trading practice for both newbie and experienced traders, how I use VWAP and more.
If you honestly don't learn at least one thing in this 14 minute episode, I will do 100 pushups!
Join me live for the second episode of #AskPaulAnything Sunday, November 13th at 5pm Pacific. Join here (and subscribe): https://youtu.be/q2g4ni9UaPc
Have no fear of perfection, you will never reach it - Salvador Dali
As swing traders we all know that a market pullback is our friend. If we go back and look at any market index chart, we will see that the best time to enter the market was on a pullback after and extended run.
Take a look at this short one minute video that illustrates the power of doing nothing more than entering pullbacks in the S&P 500. In the past year, entering on a deep pullback was profitable 7 out of 8 times. That win rate is hard to beat.
Watch this 2 minute video showing the power of entering on market pullbacks.
So intellectually we know the right thing to do. Entering on pullbacks is a slam dunk trade. So why don't we do it more often?
It all goes back to the mental game. Fear is quite possibly the most powerful emotion. Fear stifles us and leads to indecisiveness and bad decisions. To be a successful winning trader, you must overcome fear.
How do we overcome this fear?
Here are 4 methods for overcoming the fear of buying dips:
1. Trade small. Make sure you are risking an amount that won't cause you pain if you take a small loss. This way, even if you take a loss on the trade, it's no big deal.
2. Trust your methodology. You have done the research. You know that historically the way to make money in the market is buying dips.
3. Shut off social media and CNBC. Becoming a stock news junkie is a guaranteed method for increasing your fear levels.
Conquer your fear, buy on dips and become a profitable trader.
It's that simple.
If you would like to learn more about how I trade, receive my nightly focus list with market analysis,setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.
Shorting the stock market is never easy. However, the market often gives us clues that increase the probability of a successful trade. Two weeks ago we talked about those clues.
Since then the market made an attempt at remounting the 50 day moving average. If SPY had held those levels, the short setup would have been invalidated and we would be back to holding a bullish bias. I did not let go of my short since the market is showing underlying weakness and the remount was far from explosive.
Today we got the failure of that remount with a huge down move. Over in the Trade Report we are still holding our short position with our target at the 200 day moving average.
This two minute video goes over the SPY short trade.
If you would like to learn more about how I trade, receive my nightly focus list with market analysis,setups and trade alerts, sign up for a 14 day free trial at BullsonWallStreet.com.
Here is the video podcast from last night's report. I'm still working out the kinks and video quality is not as good as I'd like. However, audio is fine and it gives a detailed analysis of my game plan for the coming days.
Any comments or feedback on the video would be greatly appreciated.
Last night I included my first video in the Trade Report. I'm still working on the video quality, but it will still give you a good idea of my game plan for the coming days.
Last night I created a video highlighting a few of my trades (MA, AAPL, GOOG, NOV). I had problems uploading, so the post is a little late. I have already taken profits in the NOV short.
Yesterday's trades: As noted in yesterday's video, I went into the week with my bear hat on. I don't trust this market. Price action has been horrid of late. It's not just the distribution days, but the nature of the subsequent consolidation. Every attempt at a bounce has been met by quick profit taking.
That's why today's opening strength was so appealing to me, both for profit taking and to initiate shorts. There was no underlying strength by way of volume and breadth, which lead me to believe their would be no upward momentum.
I sold my remaining 300 shares of MA at $187.55 (entry at $181.04) for a $1953 gain (+3.6%).
I exited my TOL short late in the day. On the 14th I went short 200 shares at $22.44 and 300 at $21.46 on the 13th. I covered today at $18.22 for a $1812 gain (+18.1%).
A bounce in the housing sector would likely to again short TOL or other builders. MA is setting up again for a bounce, as it closed around $181.
I bought 600 shares of QID at $40.26. In the video analysis, I stated I would enter in the $38-40 range, but today's open was too good to pass up.
I went short 500 shares of NOV at $69.44. This is a classic reaction back up the breakout bar. The stock closed at $66.91 and my target is in the $63-64 range.
I went short 300 shares of AAPL at $176.08 later in the day. The stock had climbed above $176 early in the day, pulled back and mounted this level in the afternoon. I went short when the bulls failed to hold the high, on the break of the morning high. The small position size reflects the fact that this stock will likely enjoy a big bounce if the market stabilizes.
