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Brett Grendahl's  Instablog

Brett Grendahl
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  • The Onslaught of Information
    So, here I am, late at night doing my ritualistic scanning of the day's price action, reading the news headlines, following my Twitter feed, checking LinkedIn, Facebook, etc. and thinking, "will I ever get caught up?"

    Do you have that same thought?  Who doesn't these days?

    The velocity of information coming at us is relentless and ever-increasing.  This is especially true regarding the markets.  This high velocity does not necessarily improve our knowledge on how to successfully trade stocks.  In fact, it probably only impairs it!

    Take me for example, I am typically only truly watching 10-20 stocks for a potential trade in the coming days.  Just scanning charts and news to generate and filter this list on a daily basis is a big enough task alone.

    Add to that the need to keep up to date with the changing price action and news events and this task only gets harder.

    Then, you add in YOUR changing thoughts and emotions before, during and after a trade and you really end up with one complicated puzzle that starts over every single day!

    So, how do you deal with this velocity of information in a way that keeps your own velocity of knowledge in front?  

    The answer is you have to have your own construct in how you filter this information from coming at you, sorting out what is "potentially" actionable and what should be discarded, and then managing the critical information that you need "top of mind" before and during a trade. 

    When you focus attention on this personal construct you feel a lot better and also make better decisions.

    I liken it to when I get my email inbox down to just a few emails in there.  I sure feel a lot better and can make faster and more effective decisions as new emails come in everyday.


    Disclosure: No stocks mentioned.
    Mar 25 12:24 AM | Link | Comment!
  • Being Nimble with a Stop Loss
    Do you have mixed thoughts when you set your stop loss orders?  I know I do!

    The battle is keeping the loss small if the trade goes against you but also keeping your order out of the "normal" chop in the price action.

    Just last week, I pulled out my standing stop loss orders on my long positions on SEED and RMBS, even though the price action breakdown looked like it might pick up steam.

    Why?

    Well, my gut told me this was a move, in both stocks, to find support and the uptrends will continue.

    So far, so good!  The price action in each did push lower than my original stop orders and has now moved back higher.  The best part is, I am still in these positions!

    No one said stock trading was easy and proper setting of stop loss orders is definitely one of the most challenging parts.  Don't you agree?

     

    Disclosure: Long SEED and RMBS
    Tags: SEED, RMBS, stop loss
    Mar 23 11:46 PM | Link | Comment!
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