My Morning Trading Routine for Success with Stocks

PainlessTrader of https://StockStartegyCircle.com

In this episode of the podcast, I take you through my morning routine as a trader and investor, sharing insights into my thought process and the tools I use to navigate the stock market.

I start by checking the Zero Hedge website, where I scan headlines for any significant overnight developments. While Zero Hedge often presents a bearish outlook, I clarify that I don't subscribe to a permanent bearish perspective. Instead, I believe in holding stocks as a hedge against currency collapse, emphasizing that profitable and growing companies are likely to survive economic turmoil, much like historical examples from Weimar Germany.

Next, I transition to my own platform, Stock Strategy Circle, to check for any messages or maintenance tasks. After that, I open TradingView, which I have set up across four screens, although I explain that a single screen is sufficient for most users. I focus on ETFs like SPY, DIA, and QQQ to gauge market activity rather than just the indexes themselves. I discuss the importance of clean charts and my preference for using volume profiles to identify support and resistance levels.

As I analyze the market, I express my belief that we are on the brink of a significant bull market driven by government spending, countering the narrative of an impending collapse. I highlight the importance of growth stocks, particularly in the current technology-heavy market, and explain how I use the Vanguard Total Stock Market Index (VTI) to assess overall market conditions.

I then log into my trading account, where I sort my holdings by profit and loss, focusing first on any positions that are losing money. I explain my risk management strategy, which involves limiting my risk to 1-2% of my account size per position. I detail how I adjust my position sizes based on market volatility, ensuring that I only risk a predetermined amount on each trade.

Throughout the episode, I provide examples of specific stocks in my portfolio, discussing their performance and my rationale for holding or selling them. I also touch on the importance of dividends and how they can offset trading fees.

Finally, I walk through my watchlist, explaining how I identify potential trades based on market leaders and consolidation patterns. I emphasize the significance of low float stocks for maximizing returns and share my methodology for quickly assessing stocks to determine potential entry points.

In conclusion, I reiterate that the hardest part of investing is deciding where to allocate funds among thousands of available stocks. I hope listeners gain valuable insights into my trading routine and the principles that guide my investment decisions. Thank you for joining me, and I look forward to sharing more in future episodes!

00:00:00 - Introduction to Daily Routine
00:00:11 - Exploring Zero Hedge
00:00:32 - Perspective on Market Collapse
00:01:15 - Stock Market Resilience
00:01:25 - Checking Stock Strategy Circle
00:01:46 - Using TradingView for Market Analysis
00:02:06 - Market Overview with ETFs
00:03:11 - Analyzing SPY, DIA, and QQQ
00:04:15 - Bull Market Predictions
00:05:06 - Growth Stocks and VONG
00:06:31 - Understanding VTI and Market Trends
00:07:23 - Trading Methodology and Risk Management
00:08:30 - Account Management and Trade Alerts
00:09:01 - Evaluating Positions and Losses
00:10:06 - Position Sizing and Volatility
00:12:05 - Reviewing Additional Positions
00:13:07 - Using ETFs for Dividend Income
00:14:01 - Final Position Review
00:14:43 - Watch List Creation and Criteria
00:18:36 - Sorting Stocks by Float
00:19:39 - Identifying Potential Breakouts
00:21:12 - Quick Stock Review Process
00:24:42 - Conclusion and Summary of Routine

"Zero Hedge is an interesting website. It's mostly bearish. All they talk about is how everything is going to collapse." - 00:00:22

"I do think we're headed for a collapse, but that is actually why I hold stocks, because it's going to be the currency that's going to collapse." - 00:00:32

"It's better to own a portion of something rather than absolute nothing." - 00:01:15

"I like to have clean charts. I am a big fan of the volume profile." - 00:03:00

"When you hear people say that the stock market is in a bubble and that these stocks are overvalued, that depends on what you're valuing them against." - 00:04:25

"The stock market doesn't have anything to do with the economy. That's all myths. It's all baloney." - 00:15:58

"I don't invest in stocks. I buy stocks as they go up. I sell them when they show weakness." - 00:08:08

"You want to set your position size so that your dollar risk fits the stock." - 00:09:45

"Stocks that have low floats... tend to be the ones that give you the highest return the fastest." - 00:19:18

"The hardest part about investing is figuring out from the thousands of stocks that are available at any one time period where is the best place to put your money." - 00:24:42