That’s the number of trading days in a calendar year…
…and we’re about through with the first half of it.
So far I can’t complain…
(My PnL flashed $300K+ in profits just a few days ago… I’d like to close above it before the quarter is over. Want to trade with me in the second half of the year? Click here to find out more)
Now, despite my success in the first half of the year, I only traded four out of the first six months.
And that’s the thing…
Win…lose…or… draw…trading can take a toll on you.
To eliminate the stress, you must:
– Take care of yourself mentally and physically
– Prepare, Study, and Review
That said, every morning, I’m charged up from my cup of coffee and ready to attack the day. And while there are thousands of stocks tradeable each day, I have them narrowed down to a few, which I send out to clients of my Freedom Trader service.
However, even with that, there will be moments when your trades simply don’t work. Maybe the market conditions and those trades that you saw working are losing their steam…
But maybe, all you need to do is make a few adjustments.
That’s what I did recently to break out of a trading slump. And I’d like to share with you what I did in more detail.
How to Readjust Your Trading
Keep your eye on the ball.
It’s something we’ve all heard before… when baseball players take their eye and head off the ball and just focus on hitting a home run, chances are they’re going to strike out.
Because they get distracted by the feeling they get after the home run.
For example, according to an Ohio State University study, a batter who has a 90 MPH pitch coming at them will see it get to the plate in 400 ms… since the batter takes around 180 ms to swing… they have just over ⅕ of a second to make a decision about when and where they should swing.
They actually found that players actually track the ball as its coming at them…
… and there’s really no room for error if you’re trying to hit the ball.
So what’s this got to do with trading?
Well, have you ever looked at a stock… bought shares, thinking… This thing is going to be a massive runner, I’m going to sell when I’m up 50%+… only to see the stock up 10 – 20%… then go against you?
If that’s happened to you, don’t beat yourself up… all you need to do is readjust your approach.
By focusing on just hitting base hits and not home runs… when you do that, maybe you’ll be able to hit a home run in the future, without even thinking about it.
Let me show you…
Focus on the Charts and Price Action
If you don’t know, my trades involve chart patterns… and I’ve actually developed a new approach – what I call the Horizon line – to consistently spot winners.
You’re probably wondering, Jason, what’s the Horizon line and how can it help with my trading?
Well, you can learn more about it here, as I reveal what it is you need to know to spot winning trades like this one $1,200 winner in Novabay Pharmaceuticals (NBY).
With this trade, I actually had to readjust my trading plan because the chart was telling me this stock could pull back.
You see, I thought this stock could run all the way another 20% from where I sold shares… in other words, I thought this stock was going to be a home run.
You’re probably wondering, Jason, how did you actually see this trade and hit it?
Well, I focused on my pattern.
Check out this chart below…
To you, this might just look like a wild stock that you might not trade.
To myself and Freedom traders, there’s a clear area to buy and sell this stock… and it’s all just from one line.
Now, if you look at the chart above, I’ll give you a hint where that line is… and it’s right in the rectangular area.
Basically, I spotted the Horizon line to time the trade… and with that one line, I knew where to enter the stock, stop out, and measure the move to take profits.
Once I saw the stock approaching that line… I put it into a watchlist and sent it out to clients.
As you can see (second symbol from the bottom), I actually was watching the Horizon line closely, once I saw that price action… I bought shares of the stock.
Now, there was some price action I was able to spot that told me this stock was losing steam… and I alerted clients about my sell and $1,200 profit. Well… just by using that one line, I was able to readjust my trading plan (I thought this was going to be a home run trade)… and took a base hit…
… if you look back at the chart from earlier, I think I made the right move selling at $2.01, as the stock closed at $1.82 yesterday.