A sick, pretty well-known trading author walks into a Clearwater Beach breakfast treasure, hacking cough, in need of a shave and tan, with flipflops, shorts and a black penguin polo. Over scrambled egg whites and honey wheat toast he listens to another market veteran share his market wisdom. Almost eerily it is like listening to himself talk, with then some new bursts of brilliant insights from this other market veteran. Breakfast and learning. Save the relentless cold and the way too healthy breakfast what could be more fun than this?

The trading author wonders if this other veteran understands just how remarkable some of his trader training observations are and if his he can stop coughing for long enough to show his appreciation for these new ideas. Here is just one of the trading lessons shared from that other market veteran at that hotbed of trading talk 🙂 Maggie Mae’s.

Find stocks that are the least competitive when you start trading. Look for stocks with fresh news, Stocks In Play, and then watch the levels develop on Day 1. Do not bang around with the big boys on Day 1, as you are not yet good enough to compete with them yet. Then look for 2nd and 3rd and 4th Day Plays when these levels developed from Day 1 are breached.

Pounce in the direction of the breach.  Think about it.  All the pros will be banging in and out of stocks on Day 1 after new news. Real levels will certainly develop on Day 1. But if you are a Newb maybe that Day 1 is too hard for you. So wait for Day 2 or Day 3 or Day 4 to trade these Stocks In Play. Big moves will still be available.  But the moves will be slower and easier for you to trade.

Start making money in these easier plays.  Build your skill.  Gain some experience.  And then start expanding your PlayBook with Stocks In Play on Day 1.

If you are a new trader should you find the least competitive stocks?

Mike Bellafiore

Author, One Good Trade