Some Tips for Trading in This Market. Annnd A watch List
Nov 17, 2008 Small Cap Stock Picks
Ahhhhhh another demented week in the market behind us of tainted economic news, Volatile market sessions of unpredictability with 800 point single day swings in the Dow, and intraday charts looking bullish one minute and completely bearish the next. The trading warzone that we’re engulfed in continues to place heavy pressure on ones ability to stay disciplined and keep a clear head in a time of turmoil. I continue to remain extremely cautious with the trades i make in the market as uncertainty remains high. I am not in dire need to make massive amounts of money in a time like this. There will be plenty of opportunities in the market to make money but trying to force trades to make money will lead to your failure. My main goal is to not lose in the stock market, and i would suggest this to be your main goal as well.
The majority have suffered this year such as hedge funds being down for around the 6th month in a row. Warren Buffets empire has lost over $10billion in value this year. All the while our Black Service portfolio is up around 119% on the year making it one of the best years ever here at ttt.net since i started this website in early 2006, even with this chaos over the past several months. So we’ve banked heavily this year. Now we should focus on keeping these gains as well. Don’t wage heavily on risky positions “hoping” to get lucky and dig your self out of a hole. Many a time when traders lose big, they bet big again trying to get themselves out of this stuper…. most often ending in failure. People let their emotions take over and don’t think rationally. This is why most traders don’t win in the long run. Think of it this way. Lets set up a scenario.
You fall into a ditch. In this ditch you have the tools to get yourself out of it. You see a shovel in which you can carve out a stair like path way to the top. Yet this is gonna take some time and hardwork. Maybe even a lot longer than it took to fall into this ditch. But this is a safe route to take and you can likely succeed. And then next to it you see something really exciting. Its shiny, its high tech, its a friggin rocket fueled jet pack that you could use to get out of this ditch in no time. Yet in small print theres a warning label that says “with use of this shiny thing, there is a high probability of death”. Now surprisingly theres a lot of idiots out there that would choose the jet pack.. I even used it once years ago and i almost killed myself! Yet this was when i was brand new to the market.. ignorant, undisciplined, and was entranced by the “fantasy” of coming out alive after using a jet pack. The jet pack is not the answer to your problems. If your in a sticky situation in the market currently and you want to fix it. Don’t be irrational and try to make some risky bets hoping that it goes your way to make up for your losses. Because if you lose that gamble you’re going to be way worse off then you are now. And even if you do win, you’re picking up bad habits that will eventually lead to your failure in the long wrong.
Stay calm, stay disciplined, stick to your game plan, diversify, cut your losses, and trade defensively.
over and out.
-fous
P.s. almost forgot the watch list for some stocks we should be watching for some potential trades on Monday 
pft
optr
frd
hig
fonr
AHII
CRBC
ARWR
STEM
ASTM
ABG
Tags: hedge funds
