Thursday, April 23, 2009

So, what's your bread and butter.

If you are a sports fan, you probably know how some pitchers have their 'pitch' - a slider, fast ball, whatever. Something they know they are extremely good at, and they can always come back to it and get batters out on a regular basis. Same concept in football - a team has a few 'signature' plays (except for the Detroit Lions of course) that they can use during a game, like a screen, a sweep, etc. It's their 'bread and butter'.

Trading is no different. Every trader should have a few 'signature' trades (at least one) that they can use at least once a day (for day traders). These can be something as sophisticated as MA Xovers, RSI/Stoch signals, or as simple as support/resistance plays. You know you can always count on making a living with these trades. You've studied, analyzed, backtested, tweaked, re-analyzed them until they gave you an excellent winning percentage. You use these on a regular basis and feel extremely confident taking these trades. These are YOUR bread and butter.

Jason Raznick was mentioning on StockTwits earlier today about how he learned over this last week to take fewer trades and only trade the ones that he had 'superior confidence' in. In other words, his bread and butter. Upsidetrader has his 5/20 trade, which I am sure is one of many - although I do not know what that particular trade is. So does alphatrends, Fari Hamzei, and many other great traders on StockTwits. The point is: find YOUR 'bread and butter'. Become REALLY good at it and use it over and over. You will notice something very interesting as well - you will start to hone in on the 'intuition' part of trading and find yourself anticipating signals and trades. This comes with practice, repetition, constant learning, hard work, and years of experience.

Today I took some nice gains from my 'bread and butter' basket. I was able to go long SDS several times today for 50c and $1 scalps. There were quite a few earnings releases after hours, including MSFT, AMZN, NFLX, SPWRA among others. Tomorrow should shape up to be another very interesting day.

Good luck with your trading.

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