Now computers have made day trading impossible and the monster day is a thing of the past – almost.
The biggest difference between then and now is timing. In the 90’s, timing meant just staying in your seat from 9:30AM to 4PM.
Now, timing means, NOT trading when the market is in a holding pattern and then being ready to pounce as opportunities present themselves.
By being patient and waiting for the right time to strike, you can trade less and have power profits. When this trader waited, it often paid massive dividends. As an easy example, let’s take a look at AAPL.
AAPL was in a holding pattern at 120 for months before rocketing to 145. By implying paying a small premium and buying at 121 or 122, you could have been met with instant gratification.
Worried about that premium? Just to keep it relative, the premium you pay on any GOLD purchase is way more than the extra $1 or $2 in AAPL.
The difference between discipline and emption is the difference between success and failure in the market. Learn all my trading rules here.
Emotionally, I was convinced Gamestop would go the way of Blockbuster and become extinct. I began shorting it at 40 and suffered miserably for 6 months as it hovered there. As it moved to 45, I could no longer stomach it and closed the trade at a loss.
A year later, once GME broke below 40, it dropped by 50%. Instead of having a loser, it could have been a massive winner if I just waited for the level to break.
Listen carefully, we are in the midst of over an 8-year Bull Market. The Dow has gone from 6,000 to over 20,000. At one point, there will be a correction and the payoff will be extreme.
The key is waiting for the correction to begin before trying to anticipate the top. I’m getting ready now.If we break out higher I’m there and if the market corrects, I will be ready to take advantage.
If you want to get ready, start here. Then you will be able to form your plan and start moving forward.
P.S. There’s only one book I’ve read 5x and this is it.
Adam Mesh is CEO and Founder of The Adam Mesh Trading Group. For the past 18 years he has coached thousands of students to all levels of success in trading. He is also creator of the revolutionary Full Contact Trading.