Trading Lesson of the Week

• March 9, 2025
• IWM | SPY

In This Week’s Issue:

• Upcoming Events – March Webinar Series
• Market Outlook – Uncertainty Makes Buyers Cautious
• This Week’s Market Minutes video – This is WHY Stock Market Prices are Falling (and when it will end)
• Trader Training – 10 Priorities for Trading Success
• Strategy – The Oversold Bounce

Upcoming Events – March Webinar Series

This four-part educational series will make you a better stock market investor and trader. Learn to analyze stocks quickly, what the key elements are of a profitable market strategy and how I use powerful tools to uncover the stocks that can beat the market. These webinars are all free and everyone who attends will receive an electronic copy of my book, The Mindless Investor.

• The Effective Way to Analyze Any Stock in Seconds
  • Tues. March 25 6:00 PM PT
• Creating Wealth – How to Invest in the Stock Market Successfully
  • Wed. Mar 26 6:00 PM PT
• Winning Trading Strategies, Day and Swing Trading for Part of Full Time Income
  • Thurs. Mar 27 6:00 PM PT
• How Stockscores Tools and Education Can Help You Make Stock Market Profits
  • Saturday March 29 9:00 AM PT

CLICK HERE TO REGISTER https://www.stockscores.com/trader-training/upcoming-events/

Market Outlook – Uncertainty Makes Buyers Cautious

The uncertainty of tariffs and trade wars has investors unwilling to step in front of the downward trending market train. As long as the trend is down, stocks showing strength make only very short term moves, tradeable for day trades but not much longer. As long as the market is in a steep downward trend, sit in cash or make very short term trades. The market will bounce back soon and the best opportunities come from the reversal

This Week’s Market Minutes Video – This is WHY Stock Market Prices are Falling (and when it will end)

Stocks continued to crash lower this week, when will it end? In this video, I discuss the real cause of the weakness and what needs to happen for stocks to start to recover. Plus, I provide my analysis of the overall markets and the trade of the week on BTOG.

CLICK HERE TO WATCH THIS WEEK'S VIDEO ON YOUTUBE

https://youtu.be/llnJMrlQGAE

Commentary – 10 Priorities for Trading Success

Here’s a list of key priorities that I believe are crucial for becoming a successful stock trader:

1. Find Alpha: Look for stocks that move based on their own unique story, less correlated to the broader market. These Alpha stocks are defined by unusual price and volume activity, which attracts attention and emotion. This emotional surge disrupts market efficiency, creating profitable opportunities.
2. Master Yourself: The stock market often exploits our emotional attachment to money, which clouds our judgment and leads to poor decisions. To succeed, you must learn to control your emotions and avoid letting them drive your trading decisions.
3. Trade with Positive Expected Value: Your strategy should be grounded in logical, testable rules that consistently produce profits across different market conditions. Your strategy should tilt the odds in your favor, not against you. Without that edge, you're just gambling.
4. Define Your Process: A great strategy is only effective if you have a clear, efficient process to find and act on opportunities before they slip away. It's not just about picking the right stock—it's about timing your entry and exit. Without a solid process, even the best strategy will fail.
5. Maintain Optimism: Your mindset shapes your results. A positive outlook helps you navigate tough times and stay focused on success. Optimism doesn’t mean being reckless—it’s about staying motivated and disciplined rather than chasing quick, risky gains.
6. Work Hard: While trading itself can be straightforward once you’ve defined your strategy and controlled your emotions, reaching that point takes significant effort. Many traders fail because they don’t put in the necessary work, discipline, and perseverance to get there.
7. Stay Focused: The market can shift quickly, and if you’re not paying attention, you can miss out on opportunities or watch a solid trade turn into a loss. When you’re in a trade, stay fully engaged.
8. Have a Plan: A well-thought-out, tested plan is your safeguard against emotional decision-making. Your plan should be clear and concise enough that even a computer could follow it. The moment you leave room for subjective judgment, you risk making emotional, irrational decisions.
9. Gain an Edge: In the competitive world of trading, you need an edge to succeed. This could come from superior information, a better strategy, advanced technology, or stronger emotional discipline. Whatever gives you an advantage over others can make all the difference.
10. Trade Smart: Ultimately, success in trading comes down to how well you can combine strategy, discipline, and emotional control. Keep learning, stay focused, and trade with purpose.