Thanks for your patience! It feels good to post again after that rather lengthy break. Here’s a few thoughts on the importance of taking breaks:
What is the most important factor impacting one’s trading performance? You. Everything else is just noise. Put another way, your ‘state of mind’ is something you have to pay attention to. Is your trading going well? Are you in a flow state of mind? Are you nervous, going through an emotional roller coaster? Do you fear missing out only to be paralyzed once you entered a trade and second guessing your every decision? I could go on for hours but I guess it is pretty obvious what my point is. All of the above mentioned are indicators something with your trading is going wrong.
Sometimes there is not much you can do. That’s when the time has come to take a break. I know lots of people have trouble taking some time off because they feel like they are wasting precious time and they might miss out on some great moves. Some even confound taking long breaks with being lazy. As a matter of fact taking breaks as a trader is paramount. Less is often more.
Going to cash and pushing the reset button every now and then is the best way to get back in control. No matter what field you are in, in the long run being rested and balanced usually yields the best results. Talking about ‘the long run’: Trading is a marathon, not a sprint.
On to the markets:
- Rare Earth Elements: Huge thrusting move. It will take some time to see if this is sustainable and further price gains are to be expected. Watching how the bull flag with MCP – Molycorp resolves will give us clues on what to expect next. Rare Earth Sector Overview Chart.
- Agriculture: The whole sector is starting to gain momentum. I will probably add an Agriculture Index Chart to my public list at some point in time. Agriculture Sector Overview Chart.
- Lithium: One stock that zoomed up today was WLC.V – Western Lithium USA. Overhead resistance is a concern but nonetheless this could be the start of a mid-term move to the upside. Let’s watch what happens. LIT – Lithium ETF.
- Uranium: Still very early in the game. Somehow it feels like the whole sector is gathering strength for a decent move to the upside. Odds for a cyclical Uranium bull market to develop in the not too distant future look decent. The charts will tell. Clues to watch for: 1. If high potential stocks like KIV.V can make new all time highs that would be very bullish. Strong stocks without significant overhead resistance like KIV.V – Kivalliq Energy are very likely to be the first movers and lead the way. 2. Like the rare earth sector in May 2009 I would expect some of the uranium stocks to print gaps to the upside on huge volume. That would signal the start of a new powerful trend to the upside. Let’s see if it happens. 3. A successful test of the weekly MA 30 trending to the upside. Right now the trend strength of the MA 30 is not significant enough. If you buy now you are getting stuff cheaper (in case you are right about predicting the future price development of Uranium) but strong momentum is not on your side. Uranium Stocks Trading Entry Thoughts.
A few changes to my public list tonight will also be related to the Sector Overview Charts. A few examples are:
- AMBO – Ambow Education Holding. AMBO is an IPO that is part of the China Education Theme. Stock will be added to the China Education Overview Chart.
- PCC.TO – Plutonic Power Corp. Although it is a Run-Of-River hydro project it is part of the clean energy theme. So I decided to add the stock to the Geothermal Sector Overview Chart.
If you let the market make you feel high or low, you will lose money. – Alexander Elder
My public list with all my charts can be viewed here:
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID2791469
Buenas noches!
{ 3 trackbacks }
Comments on this entry are closed.