Thursday, January 1, 2009

BOTD's Top 10 STOCK TRADING TIPS for 2009

 START WITH A PLAN! 
~ position size
~ entry point
~ stop-loss
~ profit point(s)
~ trade stocks you follow




  STRICT STOP LOSSES! 
~ losers are inevitable 
~ keep losses small
~ don't 2nd guess or over think.
~ SELL it and move on. 


ANTICIPATE EVENT OUTCOMES!
~ know what's coming. 
~ Weekly Economic Data
~ FED meetings & earnings reports
~ consider market reactions
~ have a game plan for either 
~ play the earnings game


 STAY TECHNICALLY ALERT! 
~ watch recent highs and lows
~ follow moving averages
~ know specific retracement levels
~ Fibonacci / Diponacci ?
~ end of month, options expiration
~ holidays and market hours
~ Go with the FLOW.


HEDGE DURING UNCERTAINTY!
~ know your enemy(s)
~ have a "pair" in mind before
~ be quick in and out
~ not losing money is a win!
~ don't over hedge, downsize instead.  


WATCH OTHER MARKETS! 
~ major currencies: dollar, yen, etc 
~ commodities: gold,sugar,wheat,etc 
~ bond yields
~ overseas markets
~ Wife at the Super Market. 


 PROTECT PROFITS! 
~  lock in 5% - 10% moves
~ use trailing stops
~ don't be afraid to reduce size
~ NO "playing with the house's money"
~ it's yours! ... keep what you've made.




HAVE FUN! 
~ keep it simple
~ enjoy yourself
~ eat right/drink water
~ slow down 
~ remember to BREATHE! 

STAY FLEXIBLE! 
~ use emotion as "a tell" 
~ change directions frequently
~ pay commissions, not losers. 
~ keep sufficient margin available
~ cut losses, keep gains!

 USE YOUR RESOURCES! 
~ Research, Research, Research
~ make watchlists & back test ideas 
~ join communities: StockTwits.com
~ read trader blogs: MarketRoll.com


 "What you focus on, you find in 09" 

23 comments:

RICK said...

cool post. Happy New year! I'm ready to make big money with BOTD in 2009!!!!

BUY ON THE DIP said...

thanks RICK.

ohhhh 9! ... time to shine!

Kidd Jones said...

STRICT STOP LOSSES!
~ losers are inevitable
~ keep losses small
~ don't 2nd guess or over think.
~ SELL it and move on.


what percentage of a loss do you sell at?

BUY ON THE DIP said...

depends. right?

3%, 5%, 8% or 10% sometimes.

right below a pivot point, retracement level, etc..

maybe at the $1 or $2 mark, say for a $22 stock.

just pick something that makes sense for that specific trade. set it, know it. use it. Shazam! LOL.

Vlada, Czech Republic said...

Thanks for goods post.

The best summary for "trader's life" which I saw for this year.

Vlada

Mark Aggerbeck said...

How long are you holding PBR when you say full extension?

Mark Aggerbeck said...

Just started paying attention to daily trading in mid October. Realized total gains of 16% doing short term trades since then. I am trying to refine my skills and save on fees. What are the primary tools you use for charting, trading, screening stocks, finding good buys, keeping expenses down? I am using etrade and commissions hurt (-3% on my gain). Following stock twits. But I have a day job I need to pay attention to!

Historically have been a Benjamin Graham devotee using buy and hold. Short tem is definately more fun and exciting. Age 58. I have definately found my post retirement hobby (5 years down the road)! Maybe I can accelerate the retirement with more success.

Anonymous said...

AMZN !!!!

Anon said...

Good post BOTD.

What's your take and position on JRCC?

Anonymous said...

FAZ NEW 52 WEEK low

BUY ON THE DIP said...

JRCC we are off, had to add ANR calls as a hedge.

the move:

short something, buy jan calls against it.

"calls of confidence"

the short won't expire. in time the dow will hit 5000-6000.

win in the short term, win in the long term. GO TEAM!

BUY ON THE DIP said...

buying more FAZ when WFC hits $35.

the end.

Anon said...

I am off JRCC too. But I shorted much later and at a higher price than you.

BUY ON THE DIP said...

thinking about COF puts, waiting for COF over $35.

Anon said...

BOTD, That's a good tip. COF down and up - swing seems to be the trend.

30 Jan puts at the Opening on Monday!

DMK said...

BOTD, whats the plan w/ FAZ??

Anonymous said...

STOP asking BOTD about FAZ.

He just said, "buying more FAZ when WFC hits $35. the end."

He's been saying that for a month. WTF else do you need!! LOL.

Anonymous said...

everyone who followed botd is down 30% in faz 55, plus all the other short like srs, putsetc.

so i think they are some what worried

they just want to hear from botd from time time

BUY ON THE DIP said...

.... market turns on the "O" top.

Obama Inauguration Day.

Jan 20th, ✌ ☮☮ 9

Johnny O said...

Mark Aggerbeck...
Check SogoTrade.com. I've been trading on it for a couple months, first 100 trades free, then just $3 a pop. The platform is pretty good, portfolio & trading-wise, but I'd recommend not closing your e-trade account, keep a couple dollars in it so you have the streaming quotes of your watch list. They'll be offering option trades soon too, from what they told me they'll be low cost too... for now I use sogo to go long and short and e-trade for options trades.

kevin said...

@buyothedip,

Buying $ery on the dip tomorrow morning :)

kevin said...

time to get longERY at 33.33$

BUY ON THE DIP said...

ANR calls, HK calls, PBR!

AMZN calls, AAPL calls.

GREEN GREEN GREEN!