The 5 Simple Ways to be a Better Stock Trader
Stockscores Foundation for the week ending March 3, 2025
In this week's issue:
In This Week’s Issue:
- Upcoming Events – March Webinar Series
- Market Outlook – Trump Tariffs Scaring Buyers
- This Week’s Market Minutes video – Stock Market Crash or Buying Opportunity
- Trader Training – The 5 Simple Ways to be a Better Stock Trader
- Strategy – Patience
Upcoming Events – March Webinar Series
- My Effective Way to Analyze Any Stock in Seconds
- Creating Wealth – How to Invest in the Stock Market Successfully
- Winning Trading Strategies, Day and Swing Trading for Part of Full Time Income
- How Stockscores Tools and Education Can Help You Make Stock Market Profits
CLICK HERE TO REGISTER https://www.stockscores.com/trader-training/upcoming-events/
Market Outlook – Trump Tariffs Scaring Buyers
While the market has known of the Tariff threat since Trump became President, it has become more real over the past week as they are set to go into effect on Tuesday. While the tariffs do not effect most industries, they do affect investor psychology and making buyers sit on their hands through the uncertainty. Markets usually do well in the Spring but the markets need to see a reduction in the conflict to bring confidence back. Be cautious with stocks in general and focus on trading Alpha stocks, those trading with abnormal price and volume activity.
This Week’s Market Minutes Video – Stock Market Crash or Buying Opportunity
Some significant losses in the stock market have many wondering of a stock market crash is starting. Is it time to get out of the market or is this a buying opportunity. I look at the markets and three market leaders, TSLA, AAPL and NVDA to get a sense of what will happen next for stocks. Plus, my normal analysis of the stock, commodity, currency and bond markets and the trade of the week on ORGO.
CLICK HERE TO WATCH ON YOUTUBE
https://youtu.be/tH0WeGWgW9E
Commentary – The 5 Simple Ways to be a Better Stock Trader
Over 30 years of trading, thousands of trades, and tens of thousands of hours analyzing stock charts might lead you to believe I rely on complex and sophisticated analysis. Surprisingly, the truth is quite the opposite. I’ve found that the simplest strategies often work best. Here’s a breakdown of the basics that guide my trading approach:
1. Focus on Abnormal Activity
To beat the market, you must trade Alpha stocks—stocks that come alive with abnormal price and volume activity while maintaining strong liquidity. The goal is to find stocks that are just starting to attract attention but haven’t yet become widely known. This early discovery is where significant opportunities lie.
2. Practice Good Risk Management
Successful trading involves accepting that losses are part of the process. The key is to avoid big losses by managing risk effectively. This means sizing your positions according to your risk tolerance and setting predetermined exit points where the market will have proven you wrong. The discipline to stick to these stop-loss levels is crucial.
3. Be Patient with Winners
Since every trader will take some losses, winners must generate enough profit to cover those losses and more. Avoid selling a winning trade too early just because it feels good or out of fear that gains will evaporate. Instead, employ a solid exit strategy, holding on to winners as long as they continue to trend higher. Remember, uptrends often start slowly and end abruptly, so patience during early momentum is essential.
4. Ignore the Noise
I never rely on news, stock tips, or advice from others. What matters is not what people say but what they do with their money. If a stock is declining, there’s a reason—regardless of the narrative. Focus on stocks with buying strength and market optimism, not those dominated by sellers.
5. Avoid FOMO (Fear of Missing Out)
FOMO is a primary reason many traders fail. It’s critical not to chase stocks that are showing rapid gains. Instead, focus on buying stocks that break from low volatility or those pulling back within a long-term uptrend. Chasing parabolic moves is a recipe for disappointment.
Learn More: Free Webinar Series
These concepts are best understood visually. Join me for a free week of webinars where I’ll demonstrate how to apply these strategies effectively in real-world trading scenarios.
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With recent weakness, I think it is best to sit in cash and wait for the market to settle down and return to optimism. Good opportunities will come soon.
