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.I had sixty or sev-to go down.enty names, and took twenty percent of them off.I took off the onesBarry compares it to golf."Let's say it's an eighteen-hole round ofthat traded the least, had the least P&L, were the least liquid, andgolf, and you have one bad hole or bogey.Do you keep focusing onweren't producing.Of the names I took off, one stock traded sixteenthe bad shot? No, you take one shot at a time.If you adopt a bad atti-dollars higher three days later.It was the worst thing I ever did.I nevertude and become defensive, it will only ruin the rest of your game."want to look at another one like that again.It takes a long time, some-Of course, it takes awareness, experience, and a long time to applytimes, to accumulate these names.I don't believe in taking them off ir-these ideas experientially to your trading.What does the super-traderrationally for no reason."do? According to Sandy, "You look at particular sectors and see whichRic points out that his group aims "to sell our weakest names be-are outperforming.The market could be up 140, and drug stocks arecause we probably shouldn't be in them at that point in time.Butdown.Why are they down? Is the market taking cyclicals or growththere's no hard-and-fast rule that works in every situation.stocks? Usually the flow of the money is not directed at the entire mar-"We may be losing an opportunity while we're generating an in-ket.Even on good days, certain stocks are getting hurt.So, you cancreasing loss over time," he adds."It's not really a rule.It's seeing howplay both sides of the market and do well."the need to feel like you're doing well fools you into doing things thatSandy adds, "You need to weigh the strength of the market againstaren't necessarily profitable."the sectors.If it is a strong day, and you see a weak sector, you may notRic concludes, "The worst thing you can do when you're strugglingwant to short it because it's a strong market.If it's a weak market whereis to try to make a profit to balance your loss.When it's two o'clock inthe AD [number of advances/number of declines] is lousy while thethe afternoon, you're down that day, and you start putting things onDow is up, the S&P stocks are undcrperforming, and the NASDAQ isjust for the sake of putting things on, that's not smart."down, these are signs of deterioration in the market.You may want tostart moving toward weak sectors."You should short stocks that are down and buy stocks that are up,Winning as a Phenomenon over Timebecause that's where the money is going and you want to follow themoney.You will see it when all of a sudden a stock starts to trade downIn gambling, where each event is independent of previous events, it isbecause of some weakness in a group.It depends on your time frame.possible to predict the probability of an event occurring.In the stockIf you are a short-term trader it's all well and good to know that drugmarket, however, where present events are linked to many other eventsstocks are cheap, but if they are selling them off today, how does thatand probability theory doesn't apply, it's necessary to find that informa-help you? You have to align your trading technique with your view-tion edge, and to learn market mastery by mastering yourself.This ispoint.If you are a day trader, you can't have a long-term perspective."the essence of the "Trading to Win" approach to master your auto-Sandy continues, "You can get shorts off; wait until the marketmatic defensive responses to the uncertainty of the market in order tostarts to turn.There is enough time to catch the next wave.You don'tfind ways to improve your decision making.The purpose is to increasehave to be there at the bottom.Fifty percent of the time you can beyour power over factors that affect your trading, and to maximize yourwrong and still make money, depending on how you manage yourcreative strategies.This is especially important in light of the stressfullosses.If you keep your losses small and let your profits run, you can re-nature of the market.ally make money." 136 TRADI NG TO WI NBasic Trading Principles 13713.Pay attention to research and try to get confirmation from theFourteen Ways to Be ainformation you review.1.Look for best idea.Wait until a stock turns or buy it up three-14.Keep in mind that humility is helpful, too, especially in a mar-eighths or sell it down, but wait for the tape action.ket that is changing and where you have to admit that what2.Be careful to watch the downside, and don't fight things.you knew before and what you did before might not work to-3.Chill out.Make your daily number.Avoid getting frustrated.day.Remember that you don't have a lock on die market.4.Be in control of your competitive streak and don't overpresswhen you are long.5.When you are losing, go back to basics.6.Stay focused on what you need to do to produce your results.7.Have the discipline to stick to your goals.Don't get too bigand lose money and then chase after bigger amounts ofmoney with an uncontrolled and undeveloped strategy.Setyourself up to make money and don't take an unlimited riskof the market failing and your positions crushing you.8.Do self-monitoring.Have an awareness of mistakes and a will-ingness to admit mistakes and face the associated pain.9.When your ideas don't work, don't be too quick to get out ofthem.Take a step back and evaluate your position.If you'redown an eighth or a quarter, don't get scared and shaken out
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