Trade to Win

Posted by Tyler Bollhorn - StockScores

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perspectives header weekly


In This Week’s Issue:

– Stockscores’ Market Minutes Video – How to Profit from Market Corrections
– Stockscores Trader Training – Trade to Win
– Stock Features of the Week – Sit on Hands

Stockscores Market Minutes Video – How to Profit from Market Corrections
Market corrections present huge opportunities for profit, both in the volatility as the market goes down but also in the inevitable bounce back that occurs after they have their course. This week, Tyler discusses some of the vehicles he uses to trade corrections.Click Here to Watch To get instant updates when I upload a new video, subscribe to the Stockscores Youtube Channel.

Trader Training – Trade to Win
Do you invest to win or to avoid losing? The latter has been infamous in great sporting breakdowns. Teams from any sport who played to defend their lead and avoid losing have so often given back their margin of victory, granting them membership status to the Chokers Hall of Fame, that hallowed institution of which Greg Norman is President.

Their emotional attachment to money puts many traders on the defensive, casting their trading decisions to avoid losses. If visualization lends to the achievement of results, then this negative form of myopia certainly leads to long term failure.

Are you afraid of losing money in the market? Do you find yourself making decisions to exit a stock on a minor pull back because you are worried you will watch the profit evaporate? Do you delay entering a position until the market has moved up significantly so that your entry decision is proven correct? 

If so, you are normal. Unfortunately, being normal is a sure way to be a loser in the stock market.

Here are some ways to combat fear and put a focus on making money instead of avoiding losses:

1. Have a plan – writing down your rules for entry and exit gives you something to check your emotional decision making against. Without a written plan you have nothing to guide you through dangerous emotional moments.

2. Don’t take too much risk – the more risk you take on a trade, the more you will feel fear. If you risk less money than you are willing to lose you will make better decisions.

3. Don’t judge your success one trade at a time – in trading, you can be better than your last trade. Losing money is part of trading so judge your performance over at least 10 trades.

4. Plan your losses – before you enter the trade, plan the point that you will exit at a loss. If the stock gets there, take the loss and move on.

5. Trade quality – make sure that you trade stocks that fit the criteria of a proven strategy. If you don’t believe in what you are doing you will go on the defensive and be a loser even before you enter a trade.

6. Think like a winner – be positive, aspire to be great and don’t accept anything less than beating the market. It is you against every other trader, destroy your competition.

7. Trade your plan – when you have a few losses in a row it is easy to start breaking rules and try to trade your way out of pain. When this happens, go back to your plan or stop trading until the emotion subsides.

The current market is one best avoided unless you are a short term, active trader able to watch the market closely through the day. For the active trader, this is a great market because there is lots of price volatility and emotion. For any other trading style, the whipsaws up and down are hard to trade and can lead to losses that come with the uncertainty.

Watch the Oil market closely as it is the most important factor driving the overall market right now. If Oil can break its downward trend there should be a quick rally back, even if it is only short lived. 


This is not an investment advisory, and should not be used to make investment decisions. Information in Stockscores Perspectives is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The writers and editors of Perspectives may have positions in the stocks discussed above and may trade in the stocks mentioned. Don’t consider buying or selling any stock without conducting your own due diligence.