I was guilty last week of listening to the rhetoric regarding what the indexes were doing. I found myself adjusting my trading plan too much, instead of just focusing on the stock (and industry for the stock) that I was prepping to trade. Some of my trade executions were too sloppy and my Trading Journal review on Saturday led me to draw that conclusion.
On Monday this week, I elected to “stealth” trade. I stayed focused on my stock setups and did not have any real “inputs” on (like twitter, TV, etc). My “experiment” netted me several fascinating results, a few that were unexpected:
1. I had to fight the desire to monitor twitter looking for information. It has become a habit for me, so clearly I find value there. This was expected. I have to continue to improve how I manage my twitter account, as done everyone.
2. I paid no attention to what the indexes were doing – just focused on each stock setup, and the industry information for that stock. I thought that I was doing a good job with this already, but I felt like I needed more improvement. RED day, GREEN day, who cares. Trade What You See.
3. I got more reading done on Monday, felt more caught up with things. This was expected.
4. My exits on trades were MUCH smoother. This improve was unexpected.
5. I did less charting, ran no scans. I focused on the work that I did during the weekend and kept my setup list nice and tight.
One more comment. I work out frequently at a Lifetime Fitness facility. This facility has several swimming areas and I utilize them every chance I get. Recently I grew a brain and bought some goggles for the lap pool. Amazing how clearer one can see with the right tool.
Trade what you see – just be sure that you can in fact see clearly.