How to End Stock Picking Frustration

May 21st, 2014 | By | Category: Dna Program, Trader Development, Trading Lesson
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Even the best traders have their bad days (or weeks or months). Sometimes the frustration can be maddening. It’s not a question of talent – as previous trading success bears this out. It’s just that sometimes, things just stop working and you need some fresh ideas – and when you go to the well, it comes up dry.

Successful traders continue trading as they know there will be better trades ahead.

How do they ‘know?” They know this because their process and preparation is something they take pride in and is something they can always fall back on.

Why Stock Selection Is the Key to Your Trading Success

Plan the trade. Trade the plan. It’s a little hackneyed and cliched, but it works. Being in the right stocks is an integral part of your trading success as these opportunities tend to offer the best risk to reward.

Experienced traders understand that while some technical setups appear similar, they may not always trade in the the same way. One man’s breakout trade can be another’s fade. Understanding the true catalysts behind the move is essential to successful trading.

We focus on Stocks In Play. These are the stocks that are most likely to offer the best risk to reward and the greatest opportunity to make consistent gains. Trading goes beyond mere chart reading . . . you need to recognize and understand the meaning and significance behind the patterns.

How to Build Arguments for a Stock In Play

Buying or selling a stock in play should be the culmination of a well thought out plan, made easier through a thoroughly practiced regimen, and the result of a deliberative process.

Visualize each trade with an eye to the Big Picture of the market . . . then drill down into the subtlety, nuance and minutiae of the trade.

Dig deep and try to find as many reasons as possible as to why a stock should act in a certain way. Attack and question your premises. Defend your argument. Thoroughly test each trading hypotheses as if your (financial) life depended on the outcome of the trades (over time, they might). Go beyond surface proof. Momentum from the last half hour or a moving average cross-over is not nearly enough to go on.

Every day I prepare for Stocks In Play. This process allows me to have an edge with my favorite setups. Does yours? (or do you even have a process?) We can help – please let us show you how.

Register Today

On May 28th, SMBU will be presenting a new webinar titled “Why Some Traders Almost Always Make Money.” It should be very informative and productive. We encourage you to join us by registering HERE. (Seating is limited and available on a first come, first serve basis)

We look forward to seeing you there – and thanks.


Click here to register today.


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1. SMB TRAINING is NOT a Broker Dealer. SMB Training engages in trader education and training. SMB TRAINING offers a number of products and services, both electronical (over the internet through and in person. SMB TRAINING also offers web-based, interactive training courses on demand.

2. The seminars given by SMB TRAINING are for educational purposes only. This information neither is, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities. You shall be fully responsible for any investment decision you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.

3. This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by SMB TRAINING or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.

4. SMB Training and SMB Capital Management, LLC are separate but affiliated companies.

5. No relevant positions

6. Please note: Hypothetical computer simulated performance results are believed to be accurately presented. However, they are not guaranteed as to accuracy or completeness and are subject to change without any notice. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Since, also, the trades have not actually been executed; the results may have been under or over compensated for the impact, if any, of certain market factors such as liquidity, slippage and commissions. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any portfolio will, or is likely to achieve profits or losses similar to those shown. All investments and trades carry risks.

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