Trade Like A Pro Philosophy
A traders philosophy of trading is what guides most everything about the learning and trading process. Knowing what you believe is important, so that you draw upon information and resources that will fit into your way of thinking.
Trade Like A Pro's philosophy is presented below (in part), so that you will better understand if this website fits your own philosophy.
The most efficient use of investment capital is to trade in actively trending stocks.
A trader should enter as early as possible at the beginning of a new trend, and let profits run until the trend gives signs of ending. Trend trades must be actively managed, first by protecting capital, and later by taking profits or adding to a winning position.
The biggest returns come by investing in the strongest trending stocks in the strongest industries of the economy.
Trade Like A Pro uses a growth investing strategy. Stocks are chosen which represent companies that are experiencing a period of high growth in earnings and sales. These are often newer companies with a new product or service that is coming into high demand. The companies may be unfamiliar because they have not yet become household names.
Market timing is an integral part of timing a stock timing.
Profits are more easily captured when trading in the direction the trend of the general market.
The safest time to trade from the long side is when the market is trending up. The safest time to trade from the short side is when the market is trending down.
Sometimes the best trading decision is to not trade.
When the risk is high, it is not time to buy. Pros look for periods of opportunity in the market, and then they look to take advantage. If the opportunities are unclear or high risk, it is usually best to stand aside until the market conditions change. If new positions are entered, the amount of capital and risk taken should both be reduced.
The book of technical analysis does not contain chapters on opinion, media hype, or pundit predictions.
The more a trader can objectify and quantify technical analysis, the better the chance of seeing real opportunity and not being swayed by emotions and mental blocks. Pros have a plan that they follow with discipline, and they generally want to exclude all external influences that will distract them from their plan.
If you can't manage risk, it doesn't matter how much you know about trading.
Pros are great risk managers. The game is largely won by how losing trades are managed. Pros take small losses and let their profits run the course of the trend. How they manage a trade is more important than what they trade.