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Monday, October 16, 2017

Monday October 16th Thoughts

I haven't made much progress with trading in the last few weeks honestly. My attendance to the market has been ho-hum as my sleep has not been much. I find myself sleeping in while Stacey wakes up and trades the open. I wake up to see what has developed and feel a sense that with the volatility I have seen play out in the morning, that I could have profited to some degree on it.

I haven't been doing my work in the markets really. I have started watching video lessons regularly the past few days, but I have not been really looking into the news of a stock or the SEC filings either to check the financial side of the companies.

I'm a bit divided on this as part of me feels like if I am just going to trade the price action, the stock is going to go up or down, breakout out or hold support, either way... and I will react to the price correctly or not. If I keep my losses small and hold enough winners long enough it will take care of itself.

The other part of me feels that reading the filings and understanding the bigger picture of these companies would tell me which are more likely to do what, and give me the best odds on which stocks to pull the trigger on anyhow. That really requires a critical thinking process that I have not been applying. It's all kinda confusing really, because Tim Sykes seems to be approaching these stocks very simply in his watchlist and at the end of the day it's about price action and volume.

I feel like I have understood how simple it is for a long time now, yet I am ironically getting sucked into the complexities of it simply because so much material is out there to divulge in. Distracted by all the available perspectives and nuances. At the end of the day the mass of people either want to buy a stock or sell it.

It's my job to understand where a stock is in relation to others desires to continue to support an idea or leave it for a different idea.

On another note, in spite of all Stacey's studying and note taking, it seems she is missing out on some things as well. Today she had two trades with entries that seemed to be chasing, and she held them all day as an "Experiment". To me it was just holding and hoping. Perhaps we will simply be different traders and she will be successful in a different way than I will be, who knows. She said that those trades were still within her risk levels, so I can understand that a bit more, however to me I think if it's supposed to be a volatile stock it needs to prove itself by doing what you thought it would do. If it's not, you spend a lot of time wasted in it while other stocks are proving themselves. I think it's more efficient to just move on. I understand wanting to be patient, but perhaps patience is best applied when a stock is moving your way instead of sideways or against you?