20s tomorrow, page-26

Colorado

First thing first, please don't worry about whether the overall market is up, down, sideways, in Australia, US, Peru, China or Zimbabwe, people will tell you its highly relevant, but I will tell you when speccie trading, and even more so in an explorer, which I assume you are doing here, you are trading the stock you are in YES, not the FTSE, DOW or any other acronym, so dont stress about the market.

There are many markets within the markets.

In fact, I can show you that minnow stocks have better days overall when the DOW is down, so go figure and take that rot out of your consciousness forever, it will only distract your game.

Do you follow sport?

Ill assume you do.

Lets say Tennis.

The commentators are there before the game as they are about to see Federer beat some low ranked 300 player.

The audience rocks up, knowing the Fed will flog the muppet over the other side of the net, so no rush with excitement for the audience, but all the same nice to be there.

The market tells you to back Federer,and he will be the short priced favourite.

So no point backing him as he will be too short to bother making any money on.

Why risk $1 to make 5c right?

Well, What the odds haven't told you is Federers been on the gas for 2 days straight, had no sleep, flight got held up, has a sore back, the stringer brought the wrong weighted strings for his racquets,, and he hates playing in August.

He ate some fish shite this morning that has given him breathing difficulties and he is so dehydrated from chucking up he prob wont last 2 sets, never lone win.

So knowing this knowledge what do we do?

*****Please keep in your mind right now what your thoughts are about backing Federer now!!!

Those exact thoughts will help you with trading.

The 300+ guy is 50/1, we have to get on him, its easy money right?

No its not.

Dont get fooled by me, who am I , you don't know me.

You assume that what I heard back court is true about Federer, so we should rush and back the other bloke, but that would be a mistake.

You see, what I overheard out the back of the court re Federer actually happened 3 weeks ago, so I have my info wrong.

So we could have risked $1 on the 300+ guy at 50/1 to win $50 or lose $1

OR

We could have backed Federer at $1.05 to win .05c, still its a 5% return.

So luckily you didnt listen to my nonsense, and you actually got $1.20 odds as Federers price blew out before the game.

Why did it blow out?

Some large punter was standing next to me when I was telling you the story about Federer being sick and loaded up with $1m on the $50/1 guy, bringing his odds into $30/1 and blowing Fed out to $1.20.

So this gave you a 20% return instead of 5%.

Now, the short term trading market is something like the above, money in, money out, chinese whispers, spruikers of price going up, price going down, next best thing, worst thing to buy now.

All you need to do is have a plan and research.

You currently have no plan whatsoever as your asking should you sell on open and you're also relying upon the overall market to dictate what you should do next.

Please have a plan and stick to it, if you get it working, maybe don't use that plan again.

Set a stoploss, that way you limit how much you can lose.

If you don't know what one is, find out.

I could go on for days, but thats a good start, don't believe all you hear, shares rarely keep dropping or rarely keep going north, so buy as it goes up, sell as it goes down.

You can't buy at the exact low or sell at the exact high, its hard to ever do, but don't buy TON at 50/60/70c when its coming off a base of 10c, buy at 20c, lighten your load at 30c and sell rest into 40c, for example.

So long as you have a plan.

Friday I bought at 33 and 34, sold at 37, I had a plan.

Had stoploss at 31, it got hit during Fridays trade, but had second stoploss at 29c, so kept 75% of holdings and make some profit.

Plan.

Bought at 53, sold at 56c, had a plan.

Stoploss at 51c and 49c, plan to sell at 56 and 58c, never hit 58c in that period, best I could do was 56c, so be it, great, mae profit, had a plan.

Have a plan.

Cant stress this enough.















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