Last week, I shared a trade taken in the Extended Learning Track (XLT) on July 16th. The XLT is our graduate online trading program. The purpose of the article was to point out how important it is to keep trading simple. I received some important questions regarding that trade so I thought I would share all the details of what made that trade work. Not to add complexity but instead, to dive into the psychology of what made that and many of our trades work. Always remember, not all trades are going to be profitable but that is part of trading and that’s ok. Let’s begin…
Understand a simple truth, most retail traders and investors are not very successful when speculating in markets. Short term traders especially tend to lose money over all. Institutions/market makers tend to do very well overall when it comes to short term trading. So, if you’re a consistent losing retail trader, it’s likely because your thinking and trading like one.
For a while, we have been willing buyers at fresh demand levels in the XLT as the trend is up and price has not reached fresh supply as of the time this trade was taken. Let’s take another look at this buying opportunity in the NASDAQ and get inside the mind of an XLT trader.
Notice the blue line on the… Continue Reading
