How do you decide when
not to trade?
When trading, there's actually
three positions.
You can go long,
and this means that
you're betting on a market that is going
up. You can go short
and this means that
you're betting on a market that is going
down, and yes,
you can bet on a falling market.
And the third position that you can
have is no position.
Especially when you're new
to trading. I see this all
the time. Somebody attends one of
my boot camps
or one of the advanced trainings
and says, "OK,
I got it and I really want
to trade." And I can totally
relate.
I mean, in the very beginning of my trading
career... Of course,
trading is exciting.
And I had this little voice in my head that
said,
"if you don't trade,
you don't make any money."
Well...
And this is when I realized,
well, if I don't trade,
I also don't lose
any money.
It is very important that you're
picky with your trades.
Let me give you an example.
Let's say that you're in the mood for ice
cream
and let's say that you are walking
to the 7-Eleven at the corner,
right?
And you're talking to the guy
and say: you know what I'm in the mood
for some chocolate ice cream,
and now the guy says: well,
sorry. All we have is
vanilla
or strawberry.
So, what do you do?
And this is where some people might
say, you know what?
Vanilla is good enough.
If you only have a few choices,
you might compromise.
Now, on the other hand,
think about this: if you want to have an ice
cream and you walk into Baskin
Robbins... How many flavors do they have?
Who knows it? How many flavors does Baskin
Robbins have? Is it 32
or something like this? An insane amount.
You walk into this store
and now you say, you know what?
I want to have some chocolate ice
cream.
And the guy behind the counter says,
"Well, sure. No problem!
What would you like to have?
Would you like to have some Belgian chocolate?
Would you like to have some milk chocolate?
What do you like to have some dark chocolate?
Would you like some chocolate
with chocolate chip chunks in there?
Or one of my favorites: Rocky
Road! You know Rocky Road?
It's so good. It has these chocolate swirls
in there and the marshmallows...
Anyhow. Now
you can pick the very,
very best one.
And this is why I personally
like to get from my software,
the Power X Analyzer 2-8
trades every day.
And then I'm picking the very best one.
Now, today,
let me just look it up here really quick.
Today, I got 1,
2, 3,
4, 5,
6...
6 trades were suggested to me
today by the software.
It says you know what this might be good
trades,
but then I'm really,
really picky, and honestly,
I didn't like any of these picks,
and this is why I decided not
to trade this morning.
And you see,
this is where it's really
important.
If you're new to trading to
realize trading is a marathon,
not a sprint.
You don't have to take
a trade every day.
The most important thing is that you have
rules for yourself
that define what trades
you're taking. So,
for example,
for me,
in addition to having certain
performance numbers that I want to see,
and I'm happy to share those
with you. As an example,
I will not take a trade
if I don't have the
opportunity to make at least
60% per year
and often, I'm looking for trades where I can make
80 to 90 percent a year.
I also want to take trades where
for every dollar
that I lose,
I can make $3,
right?
So, these are some of
my criteria that
I like to look for.
So, and the software shows me
the trades that meet my criteria,
but then there's two other criteria
that I'm looking for. First of all,
I want to make sure that the
stock is nicely trending,
and I call this "trendability",
and I also to want to make sure
that this stock is not "gappy".
That it doesn't have a lot of gaps.
And if you would like to learn more about
this go to mytradingroutine.com.
This where I show you exactly...
There's a 35-minute video on this
website that shows you exactly how
I do this, or you might actually
join us at one of our upcoming
boot camps because we are going
to cities almost every week.
So, this weekend,
for example,
we'll be in California.
I'll personally be there teaching
a bootcamp. Now,
I'm not teaching every single bootcamp,
but this weekend,
I do.
So, if you would like to know the next
date it is at bootcamp.rockwelltrading.com.
It's free.
It's usually from 10 o'clock in the morning
until 4 o'clock in the afternoon
where I show you exactly how we do it.
But anyhow, when not to trade...
Make sure that you're picky.
Don't compromise when it comes to
trading because you can compromise
when it comes to ice cream,
but trust me,
when it comes to trading,
when you compromise, this
is when you usually take a trade that is not
as good as you want it to be.
And that is usually the losing
trade. So,
keep this in mind.
When not to trade,
there's always three positions.
Going long,
betting on a rising market,
going short,
betting on a falling market,
and not being in a position
and it is a conscious choice.
And I made this choice of not
taking any trades yesterday
and today.
Now, I've been trading for a long time,
so I don't have the itch that
I have to trade.
Now, I'm looking forward to looking
at my stock picks tonight
and if I see something that I like,
I'll place a trade tonight
and trade tomorrow.
If not, no worries.
It's only Wednesday as I'm
recording this here for you.
I don't have to take
every single day.
Does this help you in your trading?
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All right.
I hope that you enjoyed watching this
show as much as I enjoyed
making it for you.
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this helpful,
please,
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Have a great rest of the night
and I'll talk to you very soon.
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