The Mindset for Investing and Trading Successfully
Stockscores Foundation for the week ending September 18, 2023
In this week's issue:
In This Week’s Issue:
- Upcoming Events – October
- Market Outlook – Energy and Cannabis Going Higher
- This Week’s Market Minutes video – Is This the Best Indicator for Stock Trading?
- Trader Training – The Mindset for Investing and Trading Successfully
- Strategy – Penny Stocks with a Big Crowd
Upcoming Events – October
Would you like to learn how to manage your retirement savings better? Ever thought about being a part or full time stock trader? Our October Events will take a deeper dive into how the Stockscores approach to investing and trading can bring you profits in the stock market. Free to attend, live so you can ask Tyler questions and every registrant will receive a free electronic copy of Tyler’s book, The Mindless Investor.
Go here to learn more.
Market Outlook –
The sellers are in control of most of the stock market and September is shaping up to be the weak month that it usually is. The consolation is that stocks usually bottom out in October and move up until the Summer so this weakness should provide bargains into the end of the year. There is strength in Energy and Cannabis stocks. I can find something to trade every day as there is always a hot story that can attract a crowd. It is key to favor the abnormal activity that I discuss in this week’s Market Minutes video, see below.
This Week’s Market Minutes video – Is This the Best Indicator for Stock Trading?
For finding highly profitable trades, there is one indicator that I keep coming back to because it works so well. This week, I show what that is and how well it found 5 of the hottest stocks from last week. I then show my market analysis for the week and why we should be concerned about lower prices next week. Finally, a look at the day trade of the week on AWIN.
Click here to watch this week’s video
Trader Education – The Mindset for Investing and Trading Successfully
Want to know how to consistently do well in the stock market? Let me give you an outline for the mindset you must have.
First, understand that the stock market is not fair. Some people get better information than others. They have an advantage.
Second, use this lack of fairness to your advantage. When people with better information act in the market, they leave a trail for the rest of us to follow. If you want to find stocks that have a better potential to move up significantly, don’t listen to what the media says. Don’t listen to what people say. Look only at what people are doing with their money.
When a stock suddenly shows strong buyer interest with stronger than normal volume, take notice. These are the characteristics of Alpha stocks and trading Alpha stocks is how you beat the market. They lead the pack.
Learn how to read a stock chart. If you don’t know how yet, sign up for my webinars in October, links above. Watch the free videos on the Stockscores YouTube channel. It is not hard, but it does take practice. You have to know the basics of chart reading because not every stock that shows abnormal price and volume activity is worth buying. Only those that make abnormal moves from a predictive pattern are worth considering. I can teach you how to read chart patterns.
Realize that even the best analysis on the stocks that have the most standout chart pattern breaks does not guarantee success. Trading is a numbers game. Some trades will work, some will work really well and others will be losers. What matters is how you do over 10 trades, not just one. This requires an appreciation for Expected Value. Don’t know what that is? I will teach you that to you in October.
Since you will not be right on every trade, you must be good at losing. You must know when to take a loss and have the discipline to take that loss when the market proves you wrong. Good losers do well in the market because their losses don’t outweigh their winners.
You must always be learning and evolving. The market has always been about human fear and greed but the ways to take advantage of it change over time. After 30 years of trading, I am still always looking for ways to be better. We have to be one step ahead of the crowd.
Finally, if you want to be successful in the market, focus on yourself. Emotional control, discipline, focus, determination and optimism are the characteristics of most good investors and traders. Whether you succeed or fail is entirely in your control, you just have to take the time to understand how the market really works and how to take advantage of it.
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This week, I used the Stockscores Market Scan to search for stocks making an abnormal price gain with abnormal volume, up at least 3% and trading at least 500 times. That revealed 29 stocks, here are two that I think have good potential:
TTOO started to behave abnormally in August, pulled back for the past three weeks and then broke the pullback today with very strong volume. It is a low priced, volatile stocks which means a position size should be smaller. Support at $0.23.
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CYBN is another low priced stock that made strong gains on very abnormal volume today. Support at $0.29.
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