Remember! There Is No Crying In Baseball And There Is No Whining In Day Trading!
Traders, you have to stay positive! If you are thinking of entering into the "day trading business", make sure to check any negative attitude you may have at the door.
Day trading is tough enough even for the most optimistic people, but, I for the life of me, don't know what some people are thinking of when they enter into trading (or any "trade" for that matter) with negative thinking.
I see it all the time.
We offer a free two-week trial membership, and so many people come into the room with a predetermined mind set that is so negative that I don't know how they can function in life itself, let alone in investing in or trading the stock markets.
The ones with negative mind sets rarely last very long.
Trading is no different than anything else you do; you have to have the proper attitude and stay positive.
There are thousands of books on the power of positive thinking, so I'll not go there.
But when it comes to trading specifically, there are a few things to think about.
The first thing to get ingrained in your mind is to forget about the indices! It really does not matter if the Dow Jones Averages or the NASDAQ index is up 200 or down 200.
Oh sure, you have to pay some attention to the index just so you know what you may expect as far as what the overall "tone" of the market.
But there is no such thing as an up day or a down day based on the Dow or the NASDAQ as far as a Day Trader is concerned.
There is only profit and loss.
No matter whether the markets are going up, down or sideways, there are always stocks to trade both directions! That's important to remember.
A lot of stocks you will be trading are going to be driven by news specific to the individual stocks.
That news is going to play a more important role in where the stock is going than the over all market itself.
The Dow can be off 200 points but if news breaks that XYZ stock just discovered a new and exciting treatment of cancer, that stock is more than likely going to move up regardless of what the Dow is doing, even if it is a Dow component.
Trading down markets can actually be quite lucrative.
The obvious way to play down markets is to "go with the flow" as they say, and look for stocks to short.
Shorting stocks, contrary to some beliefs, is not a negative or anti-American thing.
Those that think so need to readjust their thinking.
Shorters have been around since before the meeting under that Buttonwood tree that gave birth to the New York Stock Exchange.
(See: "What Does A Buttonwood Tree Have To Do With the New York Stock Exchange" at this source).
On the other hand, most traders and investors do not short stocks.
They are looking for stocks to trade to the upside.
If and when good news hits an individual stock in a down market, it is likely to attract a lot more interest.
Depending on what stock it is and how good the news is, it may even give a boost to the entire market.
Too many traders let bad news put them into negative frame of mind.
I know it is difficult to do, but you have to be able to shake off the negative and focus on the positive.
I see it all the time where there is bad news for specific stocks or stocks overall, and it sets off an avalanche of negative thinking.
For instance, way back when Enron, WorldCom and others came unwound, New York Attorney General Spitzer was out trying to dig up dirt on every company on Wall Street.
So many traders fell into the mode of "well, they are all crooks" or "every stock is a scam" or "every analyst is a liar".
They were coming up with conspiracy theories one after another and wallowing around in all sorts of crazy stuff, all of it extremely negative in general.
When a stock moved against them, they would simply apply one of the above excuses and whine about it No one is going to be successful trading with this mind set.
Another thing I see traders doing it listening to CNBC, Bloomberg or some market guru.
All of sudden there is any number of critics making negative remarks about the commentator or reporter or the guru! Whining about what was said and who said what serves no positive purpose whatsoever.
Talk about hanging the messenger! Jimmy Dugan (played by Tom Hanks ) said in the movie, A League Of Their Own, "Are you crying? Are you crying? ARE YOU CRYING? There's no crying...
there's no crying in baseball.
" And...
there is no whining in day trading! You have to stay focused, and you have to stay positive.
I don't care how negative the news is.
If the market hasn't taught us anything, it has shown us time and again that it has an uncanny ability to sooner or later shake off bad news and go on.
As a day trader or an investor you have to be able to do the same thing, and stay positive! Happy trading! No permission is needed to reproduce an unedited copy of this article as long the About The Author tag is left in tact and hot links included.
Questions and comments can be sent to floyd@TraderAide.
com.
Day trading is tough enough even for the most optimistic people, but, I for the life of me, don't know what some people are thinking of when they enter into trading (or any "trade" for that matter) with negative thinking.
I see it all the time.
We offer a free two-week trial membership, and so many people come into the room with a predetermined mind set that is so negative that I don't know how they can function in life itself, let alone in investing in or trading the stock markets.
The ones with negative mind sets rarely last very long.
Trading is no different than anything else you do; you have to have the proper attitude and stay positive.
There are thousands of books on the power of positive thinking, so I'll not go there.
But when it comes to trading specifically, there are a few things to think about.
The first thing to get ingrained in your mind is to forget about the indices! It really does not matter if the Dow Jones Averages or the NASDAQ index is up 200 or down 200.
Oh sure, you have to pay some attention to the index just so you know what you may expect as far as what the overall "tone" of the market.
But there is no such thing as an up day or a down day based on the Dow or the NASDAQ as far as a Day Trader is concerned.
There is only profit and loss.
No matter whether the markets are going up, down or sideways, there are always stocks to trade both directions! That's important to remember.
A lot of stocks you will be trading are going to be driven by news specific to the individual stocks.
That news is going to play a more important role in where the stock is going than the over all market itself.
The Dow can be off 200 points but if news breaks that XYZ stock just discovered a new and exciting treatment of cancer, that stock is more than likely going to move up regardless of what the Dow is doing, even if it is a Dow component.
Trading down markets can actually be quite lucrative.
The obvious way to play down markets is to "go with the flow" as they say, and look for stocks to short.
Shorting stocks, contrary to some beliefs, is not a negative or anti-American thing.
Those that think so need to readjust their thinking.
Shorters have been around since before the meeting under that Buttonwood tree that gave birth to the New York Stock Exchange.
(See: "What Does A Buttonwood Tree Have To Do With the New York Stock Exchange" at this source).
On the other hand, most traders and investors do not short stocks.
They are looking for stocks to trade to the upside.
If and when good news hits an individual stock in a down market, it is likely to attract a lot more interest.
Depending on what stock it is and how good the news is, it may even give a boost to the entire market.
Too many traders let bad news put them into negative frame of mind.
I know it is difficult to do, but you have to be able to shake off the negative and focus on the positive.
I see it all the time where there is bad news for specific stocks or stocks overall, and it sets off an avalanche of negative thinking.
For instance, way back when Enron, WorldCom and others came unwound, New York Attorney General Spitzer was out trying to dig up dirt on every company on Wall Street.
So many traders fell into the mode of "well, they are all crooks" or "every stock is a scam" or "every analyst is a liar".
They were coming up with conspiracy theories one after another and wallowing around in all sorts of crazy stuff, all of it extremely negative in general.
When a stock moved against them, they would simply apply one of the above excuses and whine about it No one is going to be successful trading with this mind set.
Another thing I see traders doing it listening to CNBC, Bloomberg or some market guru.
All of sudden there is any number of critics making negative remarks about the commentator or reporter or the guru! Whining about what was said and who said what serves no positive purpose whatsoever.
Talk about hanging the messenger! Jimmy Dugan (played by Tom Hanks ) said in the movie, A League Of Their Own, "Are you crying? Are you crying? ARE YOU CRYING? There's no crying...
there's no crying in baseball.
" And...
there is no whining in day trading! You have to stay focused, and you have to stay positive.
I don't care how negative the news is.
If the market hasn't taught us anything, it has shown us time and again that it has an uncanny ability to sooner or later shake off bad news and go on.
As a day trader or an investor you have to be able to do the same thing, and stay positive! Happy trading! No permission is needed to reproduce an unedited copy of this article as long the About The Author tag is left in tact and hot links included.
Questions and comments can be sent to floyd@TraderAide.
com.
