Expand Your Trading--Try This

Strong selling hit the market again today, as we saw another distribution day for the Nasdaq.  The market continues to struggle.  Trading is difficult on both the long and the short side.  In times like this, sometimes it’s best to wait for a little more clarity before aggressively putting money to work.

Last night I was looking at some new trading ideas and I had the kind of moment I have every once in a while.

I’ve been in this trading game for nearly 10 years now.  I’ve studied countless techniques and strategies over that time.  I’ve read hundreds of books.  I’ve written hundreds of articles.  I recently published a system.  I spend most of my waking hours either trading or thinking about trading.  After all this time and effort, you’d think I’d know most of what there is to know.  I don’t.  Not even close.  Every once in a while, normally when I’m trying to learn something new or looking to buy a new book, I become overwhelmed with the realization of all the stuff I don’t know.  The more I learn, the more I understand how much I still need to learn.

I don’t believe there is one single book, course, seminar, or other type of training that someone can absorb, put to practice, and be set for life.  Good traders will always be looking for a new, better, and different way to do things.  They’ll spend their life looking for better techniques, formulas, indicators, and entry and exit rules.  Hopefully they’ll make some good money while they’re searching for these answers.

If you feel you’ve learned everything you need to know about the methods you use, then it may be time to learn some new methods.  Here’s a quick list of topics you can explore to expand your trading –

Day trading, swing trading, growth investing, value investing, system trading, fibonacci analysis, technical analysis, fundamental analysis, quantitative analysis, spread trading, candlestick charting, market timing, elliot wave, futures, options, portfolio management, risk analysis It’s never ending.  It will take a lifetime to master.  If you work hard at it, each year you will say to yourself, “How did I ever make money two years ago without knowing all I’ve learned since?” 

The fact that it will take a lifetime to master is important to remember.  Don’t panic if you get overwhelmed when you realize just how much you don’t know.  Decide what your next area of interest is, explore it, and remember, no matter how you trade, the most important factor in making money is properly managing your risk.

Index Action

Technology got hit pretty hard today and it’s not looking any better after the bell.  After bouncing near or through their 50-day moving averages yesterday, most areas of the market failed to follow through.  Take a look at SPX, SML, and MID as examples.  While things don’t look good in most areas currently, I am not seeing any groups that I would characterize as “oversold”.  I’d wait for a better edge to appear one way or the other before betting on the indices.  With the volatility the market is beginning to experience, it shouldn’t be too long before a playable edge appears.

Good trading,

Rob

P.S. My Hanna ETF Money Flow System has begun shipping!  All orders should be received shortly.  If you’d like more information on the system, click here.