Categorized | In the Markets

The Mental Side Of Trading: Taking A Break From All Your Worriesï¾…

Making your way in the world today,
Takes every thing you’ve got.
Taking a break from all your worries,
Sure would help a lot…
Theme song from Cheers

The first step to curing an addiction is to admit that you have a problem.  Ok, I admit it…I am addicted to the market.  I obsess over it.  I crave information. 

But those readers that have purchased the K.I.S.S. Investing Program know how I talk about taking a break from the market.  Stepping back and clearing the mind is critical so that you don’t get burnt out.

Well over the last nine days, I was practicing what I preach.  I took a much needed break.  The first one in two years.  I mentioned in my Unplugged article a few weeks ago that I was going to Canada to visit my wife’s family.  I was really looking forward to it, and I wasn’t disappointed.  I was able to play golf, see the Maliseet Reservation, visit with family, and go for a few boat rides up the Tobique River.

My wife’s aunt and uncle live right on the river and each morning I awoke to one of the most beautiful views I have ever seen.  The sun coming up on the incredibly calm (and cold) water was breathtaking.

Perhaps the most beautiful part for me was that their home is so remote that I was unable to get neither high-speed internet nor a cell signal.  Remember, I am an addict and if the temptation is there, I am going to get my fix.  Uncle Stewart even blocked CNBC from the satellite while I was there.

INTERNAL ENDORSEMENT

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So while I was on sabbatical what was going on with the K.I.S.S. Investing Program?  Because I was able to leave strict instructions with my colleagues, K.I.S.S. subscribers were not without instructions.  In fact, subscribers were able to take two profitable closeouts last week.  On one trade, they closed the first third of the trade at a 50 percent gain.  And that was in just three market days.

On the second closeout, subscribers were able to lock-in gains of over 250 percent on the final third of a call position on Gilead Sciences.  The overall gain was over 150 percent.

So while I was clearing my head in the clean air and waters of Canada, K.I.S.S. subscribers were knocking down two big winners.

The best part is yet to come.  I have been trading now for over 20 years, and my previous experiences with coming back after a vacation have been wonderful.  I actually went back and tracked my trading results after a vacation and almost all of my most profitable periods came right after a vacation.  So hold on to your hats K.I.S.S. subscribers, if history repeats itself, we are in for a nice ride over the next few months.

Good luck and good trading,
Rick

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This post was written by:

Rick Pendergraft

Rick Pendergraft - who has written 131 investment articles on Investors Daily Edge.


Inspired by his high school economics teacher, Rick Pendergraft fell in love with the markets at an early age. He entered his first investing competition at 17, and opened his first brokerage account before he finished college. At the age of 23, on the third options trade he had ever placed, Rick turned $1,800 into $22,000 in less than a week, when the company he bought became the target of a takeover. He admits it was a stroke of luck, but it was a memorable education as to the leverage that options can provide. After a ten year career in banking, Rick decided to pursue trading full-time. To get his foot in the door, he started out in the sales department at Schaeffer’s Investment Research. It was not long before his talent was recognized and he was invited to apprentice under Bernie Schaeffer, one of the top options traders in the world. Rick thrived in his new position and twice received the award for “Top Trader.” Rick has developed a loyal following of readers who are grateful for his timely warnings and profitable advice. He is widely recognized as a market expert and has been frequently quoted by Reuters, BusinessWeek, Forbes, USA Today, the New York Times, and the Washington Post. Rick’s primary focus is on identifying short and intermediate term rising and falling trends in the major market sectors. His analysis is based on technical factors along with indicators of market sentiment Rick is currently the Editor-in-Chief of The Velocity Strategy. He lives near Delray Beach, FL with his wife and three children.


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