For each of us, it is easy to understand what we think about a lot of things – no one is short on an opinion most of the time. However, in the arena of stock trading I have found it prudent to turn this part off in my brain as much as possible. Trading what I see – versus trading what I think – is an integral part of my approach.
This approach requires an additional key aspect in order to have success with a trade – being able to change your mind quickly, turn on a dime, etc. This is absolutely critical.
An example for this week is my trading in VFC (VF Corp). I have posted a few charts on Chart.ly this week, but here is a current 5 minute chart that I am trading from today:
I may have a Bearish bias toward the stock, and certainly traded such to start the year, but that bias has to be set aside when viewing this chart. Understanding when your view is simply wrong and making a quick adjustment is something each trader must do – and something that has to be continually worked on.
Trade ’em well.