Day trading and investing

Is serious business, lets face it you are dealing with your money. In some cases your life's savings. It can be the source of an emotional roller coaster. For some it is no laughing matter, for me laughter is one of the most essential ingredients for my success and my own sanity. Without laughter, I would have probably lost my sanity a long time ago. If you follow me you know that I refer to stocks as people or objects that I express being able to have influence on with my words. Clearly this is not the case, my words have no impact on a stocks price whatsoever. The only thing that impacts a stock price is buyers and sellers and the stocks direction in price is based upon which side there are more of. I do and say the things I say because I like to entertain myself while watching a computer screen all day looking for potential plays. By no means do I try minimize or make light of how important what I am doing every single day is to me and my future.

It is critical to have a game plan to know why you are in a trade. To know where your exit strategy is and what type of trade or investment it is. This means that if you took a day trade and it goes against you or violates your stop it does NOT become a swing trade. If you are in a swing trade and it violates your stop it does NOT become a long term hold! It does not become a stock that you think can't go any lower and add to dollar cost average.

UNLESS you planned on it being a long term investment in the first place. So let me give you an example. I like $MGM its a long term hold for me. I have bought and sold it a few times always holding a core position. I bought some @ 13 sold some @ 15 bought it again at 14.20 sold some @ 16 and now looking to buy it again if it breaks over its 5 year price resistance with authority next week at around 16.80. They report earnings on Tuesday and I anticipate it to be a good quarter. However, if by chance the quarter is already priced into the shares I will be looking to add on a drop in price and it wont be on the first day. I will wait for the price to settle, find some resistance, a base and then I will add. This is ONLY if the report is strong and its clear to me that MGM's worst days are behind it. If the quarter is a disaster and they guide lower for the remaining of the year I will get out of my entire position. I am comfortable holding a core position in $MGM its a premiere name with an improving balance sheet and strong management. I am not concerned that they will be going out of business any time soon. I like the growth story ahead of them and feel there is a real value proposition there.
This is very different from the day trades I take in names like $STXS or whatever the latest popper is where I am riding the momentum for the day and I get out after I make a few bucks. Now that doesn't mean I won't hold a few shares for the lotto play. I will and have done so, but if I really don't know much about the company, I know that @ the first sign of trouble I am bailing on my position. Primarily because it was only meant to be a day trade. Not until I do some research, really learn about the company and create a thesis for a potential investment will it be considered for a long term hold.

When I am trading throughout the day I am having fun win or lose because I have a plan and my first priority is to make sure I don't take myself to seriously. Ever hear the saying "In time this too shall pass"
 Its easy to get caught up in the moment, to let your emotions get the best of you, but just think of all the things you have been through in your life. All the challenges and obstacles you have encountered that at the time seemed overwhelming or devastating. Look back on them now and ask yourself if you would have viewed things differently, if you took time to laugh and if you had a plan would they still have been so difficult to overcome? The challenges and obstacles that are placed in our lives path are there to make us stronger, smarter and test our fortitude. So if I take a trade that I am wrong on or I have a little losing streak I walk away or stop trading, take a breather, call a friend share a laugh, send out a funny tweet get my head clear review my plan and get back in the game.
If I ever stop laughing and having fun in my new career, that will be the day my new career is no longer my career.  

Have a great day all I will have this weeks video watch list up tomorrow morning !