≈ Pay attention to it.≈
All great trades first start out as an idea. These ideas can formulate at your desk, amongst two friends talking, in an online class, while scanning through charts or while one is taking a shower. Ideas are somewhat sporadic in nature as they seldom can be forced and can arrive in the least expected situations. Regardless of their origination point, whatever success you enjoy in trading will be the result of an idea.
Some ideas are very straight forward. You see a great area of support on a chart and you immediately think “that would be a great bull-put spread.” Or you see a stock breaking out of a resistance area and immediately think “directional bullish play.” Other trading ideas can originate from general thinking about trading. You are at the grocery store, in the shower, or other place and think “you know I believe X is going to happen” and start formulating a plan based on your current market thesis.
You can’t have a good trading idea unless you put the time into thinking about trading and looking at charts. The more you live trading the more these ideas will come to you. The more you think about trading the more experience you will gain and the quicker you will reach your end destination.
Simple task this week Tackle Traders. Spend more time thinking about trade ideas and don’t be surprised if more winning trades come dancing in your direction.
Chart of the Day
APPLE (AAPL)
Many stocks last week got caught up in the volatility at the end of the week and pulled back to major moving averages or back within ranges. Above is a chart of Apple (AAPL) which started to breakout of its range but like many, many stocks pulled back on Thursday and Friday. Finding stocks that were in previously bullish patterns but pulled back could provide great opportunities if the market rebounds or at a minimum trades sideways after Thursday’s and Friday’s selloff.
Video of the Day
Use Google Calendar to build your Daily Trading Routine
Learn to use Google Calendar to build your Daily Trading Routine and become more efficient with your schedule.
Today’s Lineup
ENVIRONMENTAL HEDGING
Planning and Planting
We are walking in into this week with a little bit of turbulence behind us, as last week closed with a nice pull-back. Thursday and Friday sold off nicely. To be honest, I was a little bit surprised with Friday’s move but hey, bring it on!! Volatility is always welcomed by options sellers. Now you are probably wondering: is this another bullish retracement and the market will keep rolling this week, or is it finally the change on the direction that we’ve all been waiting for so long now.
Coaches Lounge 11am EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30pm EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Market Recap 4:30pm EST
The Market Recap is designed to give you a quick overview of the day that was. While brief, this report is designed to cover all of the major events that drove the markets that day and help you plan for the trading day ahead.
