Are you focused on what matters in the market right now?
Remember, our goal as traders isn’t to find some undiscovered stock destined to skyrocket eventually…
That just gets you into a position in a stock that goes nowhere for months. Maybe it never does anything.
Our goal is to take advantage of big, obvious moves. We just want to ride some of the momentum and move on.
We don’t marry the stock and we don’t get emotional over any news.
How can you do that when the world seems upside down sometimes? It all comes down to focus…
Today I’ll give you my tips to help you focus and show you what a little focus can do for your account…
Are You Focused On The Right Stocks?
Knowing what to focus on is as simple as reviewing what’s working in the market each day.
Review your trades but also look at the market as a whole and see what you might’ve missed.
What are the headlines everyone’s talking about?
Are all the big gainers in the same sector or related?
Once you start to see the big picture, then you can narrow your focus.
Put the odds in your favor. Which stocks have the best probability of running?
I told you which sectors I’m focusing on yesterday…
And once you know which sector to focus on, you can narrow your focus on a few stocks.
Here’s how I did that yesterday morning…
Selecting Hot Stocks
We had a few stocks moving in premarket…
A lot of traders in Pre-Market Prep and my morning SteadyTrade webinar liked SMX (Security Matters) Public Limited Company (NASDAQ: SMX).
I admit it had a beautiful premarket chart — it’s exactly what we look for daily.
But SMX is a tech company that has its hands in all kinds of businesses. And the news moving it yesterday was a gold headline.
That’s why I said to wait for midday or afternoon because the stock isn’t in a hot sector.
That turned out to be the right call…
SMX failed at the open and went down all day.
SMX chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
But if you focused on stocks in the hot sector, you could’ve found a winner…
I’m focused on security stocks, defense, and oil and gas stocks … And yesterday SuperCom Ltd. (NASDAQ: SPCB), an Israeli security company, was gapping up in premarket.
So even though the chart wasn’t as nice as SMX’s — I went with this hot sector stock as my number one watch.
Because it had a higher probability of running due to the highly emotional catalyst that’s taken over macro headlines.
Here’s what I said in my morning webinar and my trade plan sent to subscribers…
9:04 AM
$SPCB
Israeli security play, and low float and GREAT volume, be sure to watch today’s Pre Market Prep, good discussion of focusing on the hot sector and especially the “EMOTIONAL” hot sector, is it impossible for anything outside of cyber security, defense, oil and gas to run? No, but you need to learn to focus.
Signal: $0.76
Stop: $0.65
Goal: $0.99 even $1+ if it breaks on volume
My plan played out beautifully in the first hour of the market opening. But if you were aggressive, SPCB even reached my $1+ goal.
SPCB chart: 1-day, 5-minute candle — courtesy of StocksToTrade.com
The difference between SPCB’s upside move and SMX’s failure comes down to one factor — a hot sector.
It doesn’t matter if SMX had news and SPCB didn’t. The macro news headlines and the hot sector are what matter…
Are there other stocks out there that can move? Absolutely.
But as traders, we trade emotions — fear and greed. Those create volatility…
And we have a seriously emotional catalyst right now. It can make people feel out of control or in the pits about what’s going on in the world.
But you can be scared to trade the moves or you can focus on what you can control — how you react…
If you’re not in the market — now is the time.
Join a live training session to see what you’re missing and why now is the best time to put your money to work for you.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade