The market has been insane with so many stock plays out there since the election…
As I said recently, it’s bound to get even crazier now that December is here and January is around the corner.
Whether I’m giving you the hot sectors to watch, like quantum computing and drones…
Or getting my Daily Income Trader members ready for the trading day ahead as I do daily during my Premarket Prep webinar…
My main goal is always to prepare my subscribers and readers for what’s ahead.
Like I always say, your main objective in trading is to survive today so you can come back to trade again tomorrow.
This way, you can build your account as safely as possible and eventually take advantage of bigger opportunities as your capital grows.
With all that said, it’s never a bad time to refresh what you already know or learn something new so you can be as successful as possible.
So today, let’s talk about three trading habits you should develop to master your trading…
Trading success often can be as simple as focusing on the right habits and cutting out the wrong ones.
After years of being in the game and mentoring countless students, I’ve narrowed down three habits you should adopt and three things you should avoid.
Table of Contents
Habit #1: Focus on the Current Hot Sector(s):
Markets are constantly evolving, and there’s always something driving momentum.
Whether it’s quantum computing or drones, staying on top of the news and running your scans will keep you aware of what’s hot.
Sectors that are surging create sympathy plays, where smaller stocks in the same or a related space start running because of the sector leader’s momentum.
What to avoid?
Last year’s big sector. Don’t get caught chasing trends that have long since fizzled out.
The market is fickle and doesn’t care if you think something that was cool last year is still in play…
If a sector is truly heating up again, you’ll know if you run your scans and are reading the news.
Habit #2: Trade Liquid Stocks
Successful traders focus on liquid stocks—those with at least a million shares traded daily (and usually much more).
Why?
Because liquidity is what determines if you can get in and out of your positions easily.
What to avoid?
Thinly traded stocks.
If a stock is illiquid, you’re in for a challenge getting someone to buy your shares once the stock starts moving against you. Illiquidity can wipe out your account if you’re not careful.
And don’t be tempted by an attractive chart pattern.
Yes, charts are very important to what we do, but even the best-looking one means nothing if you get trapped in a position you can’t get out of because of low volume.
You can’t stick to the two habits I described above without a great trading platform. I’m talking about one that features stock screening, technical indicators, charting, and more.
My top pick is StocksToTrade and I use it every day.
And right now, you can get two weeks of both the STT platform and our news service, Breaking News Chat, for $17.
Grab your 14-day StocksToTrade + Breaking News Chat trial today for only $17!
Habit #3: Pay Yourself First
And finally…
You should treat trading like a skilled trade. That is, you should do what electricians, plumbers, or any skilled craftsperson does…
They focus on their discipline and pay themselves first.
So, whether your goal is to pay down debt, fund a vacation, or build savings, regularly withdraw profits from your trading account.
What to Avoid?
Letting greed push you into bigger trades before you’re ready.
Far too often, I see traders put the cart before the horse. They get a few wins, become overconfident, and start increasing their position sizes before they’ve proven consistency.
And then one bad trade wipes out months, or even years, of hard work.
Avoid this by treating trading as a second job to supplement your income. You can still reinvest those profits but pay yourself too.
My Final Thoughts…
If the habits I presented above are new to you, start forming them now so you’ll be prepared for the sea of trading opportunities we’ll face this month, in January, and beyond…
And if you’re familiar with these habits, use this article as a refresher and keep following them!
For more advice and strategies, join our StocksToTrade community.
We have tons of free live webinars.
They run all day and offer trading tips and tricks, info on our Oracle trading system, and other valuable training.
And for additional trading mentorship, stock ideas, and more, join my StocksToTrade Advisory service.
Every STT Advisory member gets a monthly newsletter with a list of my top picks, three weekly videos with my watchlists, bonus reports, and more.
Sign up for StocksToTrade Advisory right here!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade