And the game continues…

So how did you do in the second week of our four-week “learn to trade this market with your eyes wide-open” experiment?

If you followed my advice of buying the names I handed you on their dips, then selling at their highs — I know you did mah-valous — positively mah-va-lous 🙂

But if you let those nasty emotions of greed or panic take over — you probably got screwed.

You’ll learn…. hopefully…

The market really is pretty simple to conquer when you don’t freak-out when a stock you have a position in takes a dive. Because if you’ve done your honest-to-God due diligence on it — which should be the only reason you should be in a stock to begin with — then you should be positively beaming anytime you have the opportunity to buy even more shares at a lesser price — when you know in short-time your stock is going to be treading higher.

Cost leveraging is the name of the game, babies!

By the same token, never let greed enter the equation. If you own something and it treads higher — take your damn profits — as you only make a profit when you actually sell a position.

It’s really that simple.

Don’t let fear that it could go even higher keep you from taking some profits now.

There are no guarantees.

If your due diligence tells you it may go higher — then still take a quarter or a third of your position off the table to insure your profit-taking — and if it treads higher later — take some more.

Got it?

As I’ve said before — and, yes, I read your emails that some don’t agree with me on this stance — but Gordon Geko was wrong — Greed is not good.

Cold hard cash in the pocket is good.

Trust me — I’ve seen this game played for a long time — and those like me who keep taking little profits here and there and keep cost leveraging into a new position every time there’s a dip — do much-much-much-much better than those who keep waiting for “the big one” and hope and pray their stock is going to go from $10 to $100.

Enjoy the dream — I prefer reality.

While I had planned this weekend to talk about lots of opportunities for some very nice short-trade profit-taking last week in CAEI, BJ Services, CROX, Apple and CAT — I can tell by your emails that a lot of you are now starting to at least get the stomach and momentum for checking your positions at least a couple of times a day.

That makes me very happy.

Because knowledge truly is power.

And as you get more used to checking your positions, it will motivate you more and more to do harder due diligence on your positions, and you’ll then be more apt to start making the trades when the trading is good.

Trust me — before I take a position in a stock, I know about every single inch of that company’s balance sheet, the concerns of the analysts tracking it, and the same about all its competitors before I part with a single dollar.

I don’t like risks or gambling — I like investing with a boatload of knowledge with my eyes wide open.

You should, too.

A few of you are really coming along nicely.

In response to your concerns about Friday afternoon in the market — no worries — the market hit a brick wall about noon on Friday, and even the best traders on the street walked away.

Okay, for those in my live chat tonight — fasten your seatbelts — we’ve got the best of the best taking part tonight — so take notes!

Get in early, as we’re capping this chat at 1,000.

On a sidenote: I keep getting a lot of emails asking why I won’t allow posts in this forum. For the millionth time, the reason is because this is a free forum. I don’t get paid for this. I don’t even bother with Google ad sense on it. This is just to lay down the basics of how to trade. I barely find the time to write these 3-minute blogs, so there’s no way I could deal with trying to monitor all the hypers and hackers who try to infiltrate this site — and I don’t want many of the novices here to get taken by any scammers. But I do try to read as many of your comments as I can, even though I don’t allow them to post. As far as the occasional post you will see on the entry, those are done by people who access this site through my EAM blog. Though most post in the main forum on EAM, occasionally a few of them will respond to something here.

Just remember the usual disclaimer: Don’t base any of your investment decisions on anything you read here. Do your own due diligence, or at least enough research to pick the right professional to do it for you.

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