Market Direction Week of October 1, 2012

Market Direction:  BULLISH                   alert issued 08/09/2012

This past week demonstrated some weakness in the market with the SP 500 suffering it's largest weekly decline since June of this year. The Dow and the Nasdaq also saw pullbacks. However, Monday begins a new quarter and the first week of the new quarter will be extremely busy with an abundance of economic data to be released that may rekindle the fire in the market and drive it higher. Conversely,  we may see a deluge of negative data that may push the market off the cliff. While we still maintain a bullish posture, $tockMarketDirection reiterates that all followers/bloggers should consider taking some profits off the table at this time and for the money left on the table, we would suggest tightening stops.

Economic reports this week include: FOMC minutes released (10/3), initial claims and factory orders (10/4), and non-farm payroll and unemployment rates (10/5).

As a courtesy to our blogger/followers, $tockMarketDirection would like to provide a few tips:

1. ALWAYS trade with a plan, which should be done BEFORE you enter a trade. Know why you are entering the trade, where you will take profits and where you will place your stop loss. These decisions must be made prior to entering the trade and not while you are in the trade. 
2. Its not enough to plan your trade...you HAVE TO trade your plan. 
3. The trend is your friend. Follow the trend and you stack the odds in your favor. Here at $tockMarketDirection, we realize the importance of trend and it is why our emphasis is on market direction.
4. Never risk more than 2% of your trading capital on one trade, no matter how certain you are it will work out. The market does not care how certain you are about your analysis  because she will do what she is going to do in spite of it and if she turns against you, you want to be able to trade another day. Rule #1: Preserve your capital. Rule #2: See rule #1. 
5. Let your winners run, but take profits at your predetermined profit target outlined in your trading plan. Remember, pigs get fat, but hogs get slaughtered. 
6. Cut your losses short and DO NOT throw more money after a losing trade.
7.  Learn proper positioning and money management strategies.  
8. Continue to monitor $tockMarketDirection.com weekly and periodically for updates.  Share the site with fellow investors, friends and relatives. Our market commentary and directional calls will keep you on the right side of the market, which is imperative to making money in the market.
9. Specialize, don't generalize. Learn 1-3 core strategies that you master in your trading. There is a reason why experts in a field usually make more than generalist. A surgeon makes more money than a family practitioner because they are experts in one area. We want to be surgeons carving profits from the market on a consistent basis.
10. Investing is not just investing in the market, it is also about investing in yourself. Keep reading, learning and practicing your trading skills. Trading is not a destination, it is a process of continuous growth and development. So invest in yourself, it is the one investment that will always pay dividends and provide a solid return on invested capital.

$tockMarketDirection maintains a Bullish Posture. We encourage followers to monitor positions closely, exercise proper money management strategies and to monitor $tockMarketDirection for ALERTS that we may issue advising of a change in our current bearish posture. Cha-ching.