I am getting unloaded and have some time to get this out, which I am thankful for, as I've been meaning to for a few days now.
So, there's been an interesting thing taking place within me, and I've been watching and noticing it. I am open to being wrong about this, but it seems to me that what has genuinely taken place since I've been trying to trade stocks these past few months, is that I have fallen under some certain impressions. I think I am realizing that I may be waking up from them.
I don't know an eloquent way to say it, so I'll just be blunt. I think I've made trading far more complex and difficult than it really is, because-and only because, I paid what I felt was a lot of money for something. Back in April (I think) when I purchased Tim's Pennystocking Silver subscription for $1,000 (and immediately felt buyers remorse) it sparked a mental shift in me. This mental shift blinded me from the simplicity of trading concepts that I have learned over the years, and through his How to make Millions DVD. I suddenly wanted to get my moneys worth out of this purchase and became anxiously obsessed over watching and recording every video so I had all the content available to me after my subscription was over. Another way things shifted for me, was that I was now a part of the chat room and trade alerts. While I understood well enough that trade alerts are not to be followed and only used to show the reasoning behind Tim's trades, I found thought the chatroom would help me. What I found is that there is just so much noise, it's actually distracting from trading. Yes, there are people who alert stocks that are breaking out or setting up, but you know what? I find that I am and prefer to be (Because you need to be) self sufficient.
Why do I need people calling out stocks when I have a scanner that can find them for me? Yes, I will miss some things, like pumps or whatever, but what feels good to me is trading the biggest volume/% movers on the day that show up on everyones scanner. I don't need people to tell me in a chat room what I am already following. To speak more on the noise in the room, people are calling out trades and huge wins and all that, but the reality is, who the hell knows if that's real or fake, and even if someone makes an awesome trade, are they consistently profitable? It's far too easy to read a stream of all these great trades that strangers made and feel like you're missing out or incapable. My instincts tell me that the vast majority of those callouts are sloppy trades that people got lucky on. It's all just a waste, and certainly not worth the $1,000 per year to me.
So where am I noticing I am at recently? I find myself simplifying again and having seen benefits for it. I have to say something that has been gnawing at the back of my brain since diving in to SEC filings and all that: "Tim Gritanni, Tim's best performing student, barely even knew the news that was causing these stocks to move. He was literally trading the chart patterns alone. I found a huge dissonance within myself while trying to dig deep and make things work with information. Yes, information is important because there may be crucial details that may be red flags for not holding a stock overnight or something like that, but at the end of the day setups either work or they don't and you either have a reactive plan for what the chart does, or you don't.
I am not knocking the reading up on things and gathering information, but what I can say is that limiting that has actually helped me more consistently show up for the markets and opportunities. I was trying way too hard and spending way too much time forming ideas/plans about stocks based on news and filings, only to have the stock not react at all and be dead the next day.
I am finding what works best for me is simply finding the stocks that are moving, have volume, and have a good reaction to a catalyst that makes sense to me, coupled with waiting for the chart to setup and give me a good risk to reward opportunity to strike. It's basically my age old approach with forex trading, except then I didn't wait for proper catalysts or understand a lot of the things I do now.
The strange thing (for lack of better phrasing) is that Tim is constantly saying "You have to study your ass off to make it!". Then he also say's "Don't be a slave to the markets because the point of trading is freedom to have the life you want."... Anyhow, these are just my current thoughts that have been gathering over basically, several months.
On a side note, I recorded my first like trading session today and I think I'd like to routinely do that. Here you go.
https://www.youtube.com/watch?v=4t1vS8Tqem0
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