Trading Miners, Stock Indices, and Momentum

The Entry Points

Traders trade. And it is a very tough business, which requires hard work, consistency, and mental toughness. Just showing up every single day with a positive, winning attitude, and being prepared, is a huge part of winning. How many people talk about this part of the business? No one, but they certainly will talk about their great systems, methods, DVDs, books, websites, etc.

All over the internet people talk about markets, yet most of the time they are analyzing things in a rear view mirror. And they aren’t trading, just telling others what to do. But how can you tell others what to do, if you’re not even doing it yourself? It’s not logical. But for some reason people are willing to fork over a lot of money to the gurus, who will then tell them (the forkers) what to do in markets, yet the gurus aren’t even trading (themselves). And why don’t the gurus trade? Because they know they can’t make money in markets, so they need people to give them money for their advice which they (the gurus) know they can’t make money with. So why are people willing hand over lots and lots of money for advice which the gurus themselves won’t use? Maybe because someone sounds really smart, or is always on CNBC, or gets called ‘brilliant’ by other people who don’t know how to trade either. It’s completely illogical, but that’s what the investment world is all about – a lot of totally incompetent people out looking to scam and get rich based on their incompetence.

So in the meantime, markets move around and create trading opportunities, but we need to be ready for these opportunities mentally, psychologically, financially – we need to be prepared in several different ways. Markets are always changing into different trends, technical situations, support/resistance zones – and there’s momentum trades, reaction buys, absorption, etc. There is not even remotely any right way to do this, but staying tough and viewing this as a blue collar job is very helpful in any situation. Right now we are in the summer doldrums, and for the last few weeks my view is to not “press” too much now, because the great opportunities just aren’t there on a consistent basis.

Please click on image below:

Here at our website we are continuing to try and show that a small account should not be a deterrent to trading, and having confidence in your ability to do well. Nor should having another job or commitments during the day deter someone either. At this time I am spending a lot of time working on this website, and also trading – meaning missing opportunities or the better price points/times. And I’m trading with the smaller account mindset, as far as position-sizing, PDT rules, etc. Until today’s DRYS daytrade, my last daytrade was on 7/27 with QLD. (Please click here or the image above for the broker confirms.) So that’s 2 daytrades in 4 days, 5 overnight or longer trades, which should be quite doable for many people. And except for DRYS today, all of the instruments were basically “mainstream” – all leveraged ETFs. But the funny thing, DRYS is by far the most leveraged, and zero margin is required for that movement. The overall profit for all the trades is $1329, DRYS is the biggest trade at $847, the losers are small in comparison, and there certainly is no wild, flailing about in and out trading going on. There is virtually no one, except for the true “floortrader” types, who can win at that game. I see people on the internet doing videos with that type of trading, and it’s very unlikely they’re going to be around a long time. DRYS was the only momentum trade – those types of trades are not working very well these days, so I’m avoiding them, and am not that great working with momentum trades anyway. The fact that those trades aren’t working well is one reason for exiting the trade in DRYS as a daytrade. The other 6 trades are all about anticipating a turn in the market, which are certainly my favorites. In any event, we all need many tools in our arsenal, as there are many types of market types, and many types of setups.

 

 

 

 

 

 

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About traderscott 547 Articles
Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.

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