Smart Trader, Smart Rules and Smart Results

As my first official entry on the topic of trading I wanted to do a little explaining. I have no intention of being exhaustive in this entry, but I want readers to understand a little more about me and my style. I think the first thing that needs to be explained is the name of this blog. A "Smart Bomb" is a very destructive weapon in the world of firepower, but I live in the world of trading. So I guess you could say that a "Trading Smart Bomb" is a metaphor for a trader who is strategic, accurate, effective and most importantly can hit the target. The amazing thing is not what happens when the bomb hits its target... It is the amount of planning, cooperation and discipline that it takes to get in a position to drop the bomb in the first place. I could go on for hours but lets just say that I consider trading a lot like combat. So then, a smart trader has smart rules, smart habits and smart routines. Do all this and you get "smart" results.

If you have not guessed by now I was born in 1973 hence the "73"

As far as rules go lets keep it simple for now. I certainly didn't create the guidelines I am about to present, but any trader who has been around the block a few times can tell you that being a great trader is not about reinventing the wheel. The governing principles of my trading are time tested and proven to be vital to staying in the game not to mention making money. Here are 5 rules you can't break for long (and still make money) any more than you can disprove the law of gravity without breaking your neck.

1. Trade with the TREND- Trade what you see on the graph not what you wish you saw.
2. Size your position appropriately
3. NEVER add to a looser. NEVER! NEVER! NEVER!
4. Take 100% responsibility for your trades, and trust your own judgment. Don't expect to trade like me. Only I can do that, and only you can trade like you.
5. Don't argue with the market. If you are shown a loss- take it and be glad it wasn't bigger. The winning trades are out there but you cant get in them if you are too stubborn to change your posture. The market is never wrong.

If this list is confusing you are in denial and probably need to stop trading for a while. I will elaborate in much greater detail as time goes on, but for now let those 5 rules be a foundation.

* * * NEXT WEEK * * *

I am in a holding pattern for Monday. I don't have any reservation about taking new trades but I don't see myself entering anything until later in the week when I can see what kind of confirmation I get on this bullish long term trend we have enjoyed since things turned up last summer. Now if things do pop to the upside... Here are some stocks that I think are ready to bounce off support or break resistance.

IFF-EV-COH-AMG-MLHR DAVE-URBN-ADSK-ATHR FTEK-ABM-PVH-VTIV-COL

If the market stays flat going into Monday and Tuesday I don’t expect a lot of buy signals from these picks. Either way I think they are all fit for adding to a watch list. Good Trading