What do you do on slow trading days - do you have adjustment game plan?
Some days the stock market just does offer many good opportunities. If your used to trading small caps and they are not in favor no matter how good the stock it it won't make you money. Some days they just can't stop coming your way. Same goes with poker, some days the cards are hot and some days the cards are cold.
On the days when the market is cold or the cards are, how do you respond?
Do you respond by getting bored or frustrated? Do you start trading anything and hunting for trades and do you playing trash hands like Ace 3 🤣?
MOJO ProTraders NEVER do that - That would be the worst strategy possible! MOJO never responds with an emotional reaction. Sit back, relax and let the trades and hands come to you! If you let your frustration get a hold of you, you are going to lose your equity and compound losses and in poker lose your chip stack very fast!
Some days, you log into the MOJO Day Trading Room and everything hits! There are plenty of opportunities for HEINZ Trades, Green Giant Plays and Lemon Squeeze Plays. The MOJO Team does not trade with the intention of making big scores. While we do occasionally hit big scores, we are all about consistent profits. For a $5,000 account with trading leverage $200 to $500 profit per day over the course of a month is $4000 = 100% profit per month. Don't get greedy that's great money and a nice, steady income! You can’t force big scores in poker or big trades without putting yourself in the way of massive risk and variance.
Just as some days are full of positive expectation trade opportunities, there are also days where not much is happening in the market. For example, this past week the markets have slowed down as the DOW soars each day to a new record high now at 21,900.
So how do you respond on slow days? You have to learn the value of not trading. Remember, trading is a marathon, not a sprint. Some days, the best strategy is to patiently wait for opportunities to present themselves. If you see a certain trade play you like setup - for MOJO that is called the Heinz Trade Play , by all means, take advantage of it, but if you don’t see anything, don’t trade. Remain patient. Let the market come to you. There is always tomorrow, and you can’t lose money by not trading.
Look at this way, if you own a restaurant and it is a slow Tuesday night, do you still have the cooks making food like it is a jam packed Friday night? Of course not! Why? Because you would be wasting tons of food, and in turn, wasting! You would be forcing your cooks to produce meals that will be going straight into the garbage because there is nobody there to buy it!
That is what happens to traders who force trades on slow days in the market. They are raising with trash hands in poker with bad cards because they are bored. They are chefs cooking a steak dinner when there are no customers.
The MOJO Day Trading Team is full of ProTraders who understand this principle and that is why they are able to experience long term success with their day trading businesses.
I was wearing my Bitcoin or Die Mining shirt and my waitress did not know what Bitcoin was. Oh boy...now there’s a decent likelihood that many of the people who stumble upon this article don’t even know what bitcoin is or Bitcoin Miners.
How Bitcoin Mining Works
Where do bitcoins come from? With paper money, a government decides when to print and distribute money.
Bitcoin doesn't have a central government.
With Bitcoin, miners use special software to solve math problems and are issued a certain number of bitcoins in exchange.
This provides a smart way to issue the currency and also creates an incentive for more people to mine.
Bitcoin is Secure
Bitcoin miners help keep the Bitcoin network secure by approving transactions. Mining is an important and integral part of Bitcoin that ensures fairness while keeping the Bitcoin network stable, safe and secure.
Bitcoin Mining Hardware Comparison
Currently, based on (1) price per hash and (2) electrical efficiency the best Bitcoin miner options are:
Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place.
Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.
What is the Blockchain?
Bitcoin mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.
The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins.
This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.
Bitcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.
What is Proof of Work?
A proof of work is a piece of data which was difficult (costly, time-consuming) to produce so as to satisfy certain requirements. It must be trivial to check whether data satisfies said requirements.
Producing a proof of work can be a random process with low probability, so that a lot of trial and error is required on average before a valid proof of work is generated. Bitcoin uses the Hashcash proof of work.
What is Bitcoin Mining Difficulty?
The Computationally-Difficult Problem
Bitcoin mining a block is difficult because the SHA-256 hash of a block's header must be lower than or equal to the target in order for the block to be accepted by the network.
This problem can be simplified for explanation purposes: The hash of a block must start with a certain number of zeros. The probability of calculating a hash that starts with many zeros is very low, therefore many attempts must be made. In order to generate a new hash each round, a nonce is incremented. See Proof of work for more information.
The Bitcoin Network Difficulty Metric
The Bitcoin mining network difficulty is the measure of how difficult it is to find a new block compared to the easiest it can ever be. It is recalculated every 2016 blocks to a value such that the previous 2016 blocks would have been generated in exactly two weeks had everyone been mining at this difficulty. This will yield, on average, one block every ten minutes.
As more miners join, the rate of block creation will go up. As the rate of block generation goes up, the difficulty rises to compensate which will push the rate of block creation back down. Any blocks released by malicious miners that do not meet the required difficulty target will simply be rejected by everyone on the network and thus will be worthless.
The Block Reward
When a block is discovered, the discoverer may award themselves a certain number of bitcoins, which is agreed-upon by everyone in the network. Currently this bounty is 25 bitcoins; this value will halve every 210,000 blocks.
Additionally, the miner is awarded the fees paid by users sending transactions. The fee is an incentive for the miner to include the transaction in their block. In the future, as the number of new bitcoins miners are allowed to create in each block dwindles, the fees will make up a much more important percentage of mining income.
Journaling is the Seminal Act to Become a Great Stock Trader
By ProTrader Alpha
Journaling a task so simple is shunned by so many; a forgotten, avoided activity that separate the great from not-so-great traders.
So why don’t you journal and learn?
Don’t have time?
Don’t know how?
Keep it all in your head and don’t need to write it down?
Afraid to tally the score and see the facts about your trading?
All are poor excuses. Most professionals journal. Chefs, CEOs, golfers, fishermen, and football players are examples of professionals who journal.
Why do they journal?
Simply to learn and to get better.
So why don’t you journal?
THE NEW TRADING FOR A LIVING
One of the best books on Trading is ‘The New Trading for A Living’ by Dr. Alexander Elder (Wiley Trading Series: ISBN 978-1-118-44392-7).
Dr. Elder, a famous professional trader and best-selling author dedicates a chapter to how to maintain a Trade Journal. He refers to the Trade Journal as “diary entries [that] serve as your “extra-cranial memory, a tool for building the structure for success.”
He proclaims three key benefits from journaling. First, immediately after you start a journal you will have a greater sense of “order and structure”. You will be capturing the conditions surrounding your trades. Second, with time you will have the history and basis to see trends. Third, your learning curve will begin and accelerate, probably at an exponential rate, with your study and review of the trades. A key point made by Dr. Elder is “keeping a detailed trade record feels burdensome – but that’s what serious traders do.”
THE DISCIPLINED TRADER: DEVELOPING WINNING ATTITUDES
Mark Douglas wrote the book titled “The Disciplined Trader: Developing Winning Attitudes” (New York Institute of Finance: ISBN 0-13-215757-8). Douglas’ focus is on the mental part of the trading game and how to develop a winning mental model. He proclaims there are formidable psychological barriers to become a successful trader. My favorite passage in the book is:
“If you don’t know what you did to win the last time, you obviously don’t know what to do to keep from losing this time. The end result is intense anxiety, frustration, confusion, and fear. You feel out of control, experiencing a sense of powerlessness as you are swept along by the ensuing events and wondering what is the market going to do to you today.”
Douglas emphasizes the importance to monitor yourself and develop self-discipline. Journaling your trades will increase your self-awareness and is a critical self-discipline.
KEEPING A JOURNAL WILL CHANGE YOUR LIFE
Keeping a journal can change your life according to Andrew LaCivita who is an award wining author and inspirational speaker. LaCivita is driven to helping people and corporations realize their full potential. His YouTube video titled ‘Keeping a Journal That Will Change Your Life’ discusses how he keeps a journal and his personal daily questions to keep him aligned to his goals. While LaCivita’s wisdom is more career based, his strategy of daily introspection and learning can be easily applied to the business of stock and option trading.
I started journaling one year ago and it has dramatically changed my trading…for the better. I tried journaling before, short periods of attempting to track my trades. A spreadsheet here, a trade log there, but nothing regimented, everlasting, and truly honest. Nothing that forced me to capture my reasons and conditions for the trade. Nothing to capture lessons learned from a bad trade. Nothing to enable me to learn.
Why did my past attempts fail?
Because I was lazy and afraid. I didn’t want to put forth the effort. Afraid that I would discover I wasn’t good at trading. Afraid that someone might see my journal. But primarily afraid I would document failure.
Who wants to document their own failure?
One bad trading habit that journaling helped me stop was pre-market trading. I found myself chasing hot stocks in the pre-market and about 50% of the time I would see the stock quickly rise and then decline below my entry price in the 30 to 45 minutes before the market opened, often falling further after the market opened. So, I entered a good trade that quickly became a bad trade.
By journaling I recognized several pre-market conditions that I should avoid and some conditions to capitalize on.
First, since I was journaling my trades I was able to look back at every pre-market trade and determine patterns.
For example, hot stocks tend to rise on press releases and earnings during the pre-market from 6 am (CT) to about 7:30/8:00 am. Then those stocks decline between 8:00 am and 8:30 am and often decline further after market opened at 8:30 am. So, I wrote a ground rule not to trade pre-market.
Even though I had the new ground rule I made a few more pre-market trades without a high consistency of profits. I would chastise myself, in writing, in my trade journal, harshly asking myself why did I just trade pre-market when I just established a trading rule not to trade pre-market.
But there were conditions when pre-market trading was profitable. Reviewing my pre-market trades I established some enhanced and restrictive pre-market trading rules based on volume, price, and time of day.
A key aspect of my learning and now one of my critical trading rules is the necessity to take quick profits. Through my journaling and learning from journaling I corrected a bad habit and then tailored a set of trading rules that have produced consistent pre-market trading success. I would have never accomplished my rule based pre-market system without journaling.
Here are my take-aways to consider:
Start – No more excuses! Begin today; the journal doesn’t have to be perfect. Don’t let the desire for perfection be the enemy of initiating the proven success tool of journaling.
Be Honest – Don’t just capture the trade, your broker does that for you. Truly document the environment of the trade, why you made the trade, and most importantly what did you learn from the trade.
Review – Review your journal on a regular basis. For some that might be daily…Others might benefit from weekly review. Establish a routine to read about your lessons learned and apply those lessons to future trading.
Feel Good – Take pride and celebrate your journaling success.
Journaling is the seminal act to become a great stock and option trader. So why don’t you learn to journal and journal to learn?
Hard work and effort does get recognized. I came in 10th place out of 50 Day Trading Blogs is pretty cool.
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