5 Things You Need to be a Successful Trader
Stockscores Foundation for the week ending July 13, 2020
In this week's issue:
In This Week’s Issue:
I have not been sending the weekly newsletter out every week but I always do the weekly Stockscores video on YouTube so make sure you subscribe to the channel and turn on the notifications bell so you get an email update as soon as I upload a new video.
- Stockscores Market Minutes Video – How to Analyze a Stock Chart
- Stockscores Trader Training – 5 Things You Need to be a Successful Trader
- Stockscores Feature Strategy – Abnormal Breaks
Stockscores Market Minutes –
One of the most important basics of stock market investing is the ability to read stock charts. This week, I take you through the 7 components of chart pattern reading and apply them to the chart of Tesla ($TSLA). Using these same skills, we look at the overall markets, the day trade of the week and a Stockscores Market Scan in search of trading opportunities.
Click here to watch this week's video
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Commentary of the Week – 5 Things You Need to be a Successful Trader
Indicators, tools, processes, strategy rules, risk management techniques – these are all critical components of trading success. Yet, a person can have all these external things and still fail as a trader. Why? They are missing the parts that come from within that have a major effect on profitability. Here are five things you need to bring to the venture of trading if you want to be successful:
Trading is simple, but it is not easy. It takes hard work to learn. It takes a lot of time to develop rules, processes and tools. Once you get it figured out, it does not have to take a lot of your time to make the trades but if you don’t do the hard work, you will never be successful.
To highlight this fact, if I tell you I made $10,000 in a day working from home, it sounds like a nice lifestyle. If I showed you the hundreds of hours (maybe even more than 1000) fine tuning and testing the rules I put in to being able to get that performance, you would realize how much hard work goes in to trading success. It is not easy.
Learning to trade is more about learning how to bounce back from failure. Humans are wired to lose in the stock market because we approach trading decisions with our emotions involved. This means that you will face failure until you can overcome being human. How many times can you get up after being kicked in the head by the market? Most don’t succeed because the market beats them until they give up.
Good traders approach the market with a method that is their own. Yes, they can be taught the approach by someone else but failing to understand every rule and why it exists will not work. Learning how to trade from me or any other qualified trading teacher can save you a lot of time and money, but it is important to approach trading with an independent mind. Rely on me to learn but rely on yourself when you are trading.
Optimism has a significant effect on success. While many of us think that once we get successful, we will be happy. Those who are happy first often find success much faster.
Complaining about the market, being pessimistic about the potential to make a living trading stocks, being angry after a bad day trading – all these things are destructive to trading success. Sit in front of your trading computer with a smile on your face and optimism in your heart.
Bill Gates and Warren Buffet were once asked what the most important determinant of success was. Both answered the question the same – Focus.
It is difficult to succeed in trading if you are trying to do other things at the same time. It will take focus to learn how to trade and focus when you are trading. Our minds are not powerful enough to multi-task with something as complex as trading.
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Ran the Abnormal Breaks Market Scan on Monday and assessed the daily and weekly charts for breaks from predictive chart patterns. Below is one of the names that I like:
ONCS is breaking out from a lengthy sideways trading range with strong volume and not much resistance until $6. Support at $1.80.
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