Coaching Call Week 5

This week Rob reviewed both chapters 4 & 5 with me. Chapter 4 is on trends, chart reading, and Moving Averages, whereas chapter 5 is on Stochastics & MACD. One point Rob drove home with me is that secondary technical indicators, such as Stochastic & MACD are used for confirmation of our position on a stock, not as a deciding factor. Something like evidence to support your position, but that your stance on a given stock is based on the current chart, looking for trends and support & resistance.

Today, for some unknown reason, we had trouble with NetMeeting so he was unable to connect to share my desktop like we have done in previous sessions. Perhaps my cable Internet provider was having trouble or something.

While we were working on getting NetMeeting to work, I managed to ask a question I should have asked earlier. I asked Rob about why, in his opinion, do 85% of traders quit within 6 months of trading? This was something he informed me of on our very first introductory call (see: Coaching and Catches). His answer was that most lack the discipline to improve and make it as a trader. I drilled into that statement a little for a clarification about what is meant by being a disciplined trader. In essence: maintaining a watchlist, waiting for the best opportunity to make the trade, and managing the trade. I can see how this isn't the easiest thing. For those of you who think this is "easy money" well... think again. You can't just do this as a hobby or casually. It requires a lot of time, effort & concentration.

After a review of the chapters we looked through some of the stocks that I have in my Hotlist and the position I currently have open on a Paper Trade. I was a little embarrassed for the position I currently have open on a paper trade. Although the trend looks good, it's volatile, cheap and trades thinner than normally preferred. Has the feel of an amateur trade. It's not something I'll repeat in the future, especially given that it's a bullish trade on a decently trending stock, but with the market bearish. I may be being to hard on myself though, but I don't plan to trade something like this again in the future, paper or otherwise. I'm learning, so mistakes are inevitable. This trade may work out, however I'll consider it luck more than skill if so.

Next week we'll be reviewing Chapter 7 and I'm to continue maintaining my hotwatch list, watchlist in general and to continue to paper trade.