Stockscores Free Weekly Newsletter

The last few weeks of the quarter are often quieter for the stock market with lighter trading volumes. Earnings announcements generate action in the market and change the energy of traders so expect a pick up in the “energy” around the second week of April. In the meantime, traders should focus on sectors that come alive (like Cannabis did a week ago) or the small cap stock that suddenly comes alive with abnormal volume and a high number of trades. The trend is up so be patient with winners and cut losers when they break down through support.

This Week’s Market Minutes video – You Must Know this Stock Trading Signal

Most strong stock price trends start with the same important signal. This week, I show you what you can use to make more profitable trades. Then, I provide my analysis on stocks, commodities, bonds and the currencies before the trade of the week on ACB and CGC.

Click Here to Watch

https://youtu.be/6zWadNYtAjA

Commentary - Trading Goals are Meaningless

Investors and Traders will often set goals. Make $1000 a day, earn 20% return in the year, avoid big losses.

These are meaningless.

They are obvious; everyone wants to do these sorts of things. However, most people will not achieve because having the goal is not enough. Instead, you have to have the systems in place to find success.

Does a golfer who states that their goal is to win the tournament win because they made the goal? Of course not; every golfer in every tournament has the same goal but there is only one winner. The one who wins performs better than the rest.

Performing better means more practice, better analysis, stronger mental preparation, a higher level of determination and any other factor that contributes to success. Goal setters dream, winners make it happen.

So, whether you are an investor or trader, you need to focus on the process. Do you have a strategy that works? Do you have tools that give you an edge? Have you practiced enough? Is there a system in place to identify and execute good trades? Do you have the support of someone who can help keep you on track? Are you determined to succeed? Can you overcome your emotional self?

These are simple things to say but harder to execute. They take more than lip service and goals. They take targeted action.

I find it is best to break down the goal into parts that can be delivered on. Here is how it might look for a person who wants to make $1000 a day by day trading the stock market.

I have a day trading strategy that can earn 4 times reward for risk (RR) per day. Some days will be more, some will be less, but an average RR of 4 per day is reasonable. This strategy is well tested and I believe in it. This strategy has specific rules for entry, exit, position sizing and process to identify trades.
Risk $250 per trade and averaging 4RR per day will mean $1000 a day in profit on average
Establish a gradual process of increasing risk to get to the goal. Start with $0 of capital and simply make practice trades to earn an average 4RR a day. Then use real capital, with a $50 risk tolerance per trade and achieve a consistent average of $200 a day. Once that is achieved, increase the risk to $100 a trade. Achieve success and then raise it to $200 a trade in risk. Step by step, always making capital preservation the number one priority.
Have sufficient capital to hold enough positions to achieve 4RR a day
Expect to have some losers and limit the size of the losses by selling when the trade breaks support
Allow winners to win by letting profits run until there is an exit signal
Use tools and a process to find trades in time to take advantage of them
Have the focus to repeat the strategy consistently
Constantly analyze the results to ensure the strategy continues to work and to identify failings in the execution of the strategy. What good trades did I miss? What invalid trades did I take? What were the problems in my execution?

Goals are easy and pretty obvious. It is the plan for achieving the goal, and then the purposeful action taken to get that is important. Stop dreaming and start doing.

Here are a few stocks that came alive today that are worth watching for trades in the near term. Ideally, buying upside breaks of pullbacks, as long as these stocks are in upward trends, is the best way to play them. If they fail to hold the upward trend, forget about them.

1. MNY
MNY came alive today with strong volume after being a hot stock in February. Ideally, I would like to see the stock quiet down and then make a break higher on the 15 minute chart.

2. NKLA
NKLA has been trending lower for months but many electric car companies caught some buying interest today. Increased volume for this stock and good gains, breaking a downward trend line. Wait for a pullback and then break of the pullback on the 15 minute chart.

3. IREN
IREN broke a downward trend 3 days ago, then pulled back for two days. Starting moving up again today.

4. HUT
The Crypto miners came alive today, HUT is one of them that broke a downward trend on the 15 minute chart and broke the daily downward trend three days ago. Watch for the next wave of buyers coming in.

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References

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Disclaimer
This is not an investment advisory, and should not be used to make investment decisions. Information in Stockscores Foundation 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 this newsletter 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.

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Trading Goals Are Meaningless - Stockscores Perspectives for Mar 25 2024