|Yesterday I identified that the bank names, both investment banks and regional banks had upside potential based on solid technical formations and I was able to buy a number of them for solid gains. My best point gainer was GS for $4 as I entered pre-market and held for the entire day. |
I was speaking to a student late in the day going over some of his trades and we discussed the GS trade which he was amazed that I was in for the whole day. He works at a prop firm and most of his peers are heavy scalpers.What I focus on teaching is that it is the quality of the trade and the quality of your setups that are most important, especially when starting out. Young traders look at the law of large numbers and confuse that with taking every trade they see but most traders that do this just churn up their account and spend a fortune in commissions.
Figure out what setups work best for you and when it is working build up into big positions, let your losers stay small.Sometimes I trade very little in the day because my setups are not there and some days are more active but I want to be in business for the long run and making sure I understand my perfect setup and the best way to trade ithat setup is paramount to any traders success. Go for quality and do not get sucked into the undiscipline traders around you as they churn away.
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