- As traders who buy the selling and sell the buying, we see the current strength in the stock market as an opportunity to ring the register, rather than to become over-eager about initiating new trades.
- In fact, believe it or not, but PowerRatings traders are more likely to spend their time analyzing potential short candidates trading below their 200-day moving averages than they are to look for instances to chase runaway, overbought markets trading above their 200-day moving average.
- But what moments like this really mean for PowerRatings traders – beyond taking profits in high PowerRatings stocks that were purchased on pullback – is patience.
- These are the classic symptoms of overtrading and while overtrading can get any trader into trouble, overtrading is a particular bane of high probability traders – in large part because high probability requires patience in order to work Patience may not be fun, but it is a key to profits where high probability trading is concerned.
Full-text here: PowerRatings Profit-Taking and Patience