A Few Trading Lessons
I recently had the opportunity to hear Scott O'Neil speak to a group of stock traders and investors. Scott is the President of MarketSmith and one of the sharpest portfolio managers in the business. Over the 2-hour talk, he covered many topics. Here are a few lessons that should serve as great reminders to all traders. 1) Entry point is critical. Scott described his entries as "laser focused." You should enter a position when it [...]
Stay Focused on the Leaders
I haven't updated my blog in a while because I have been neck deep trading this market. Back on Sunday, August 19th, I sent the following email to the people who attended my seminar earlier this year. Rather than typing up a new blog post, I simply copied and pasted the email because my stance hasn't changed since I wrote it 3 weeks ago: Dear Seminar Attendees, I hope all is well. My last email [...]
Wait for Bases to Properly Form
For you technical traders out there, in the following video I discuss waiting for a proper base to form and avoiding "later-stage" bases. Enjoy the video and good luck trading! Follow me on Twitter @jfahmy Follow me on StockTwits @jfahmy
Confidence is Everything!
From all the reading I've done, amazing people I've talked to, and my own life observations, I've come to the conclusion that: Confidence is everything! No matter what you do in life, you have to believe in yourself and maintain a strong state of mind...especially if you're a stock trader. Stock trading might be one of the toughest professions out there. I don't mean just making some money in a good market, I'm talking about CONSISTENTLY profiting [...]
Can You Learn About Someone Through Twitter?
About a year ago, Howard Lindzon (the StockTwits CEO) appeared on CNBC. The reporter asked him: "Can you learn about someone through their tweets?" Howard responded: "Of course!" The reporter completely disagreed and said: "If a person has no picture, a random Twitter handle (such as @stocktrader####), and is completely anonymous...how can you discover ANYTHING about that person?" The reporter had clearly never used Twitter. I am going to paraphrase Howard's response because I completely [...]
A Few Comments About Corrections
1) My number one trading rule is: PROTECT YOUR CAPITAL. Always think defense first. If you don't protect your money, you'll have nothing to trade with when a new rally begins. 2) Just as important is PROTECTING CONFIDENCE. Too many traders get killed and chopped to death during corrections. Unfortunately, when the new uptrend begins, they have little confidence and can't "pull the trigger." In other words, they hesitate, take smaller-than-normal positions, or even worse...they pass on [...]