Why would I even compare the tools of a trader with the tools found in a man's garage? It may be because even I can see the parallel in the saying, “you need the right tools for the job.” You wouldn't fix a leaky sink with a band-saw and you wouldn't enter a trade simply because you heard about a company on the news. You need the right tools for the job! Let's examine the traders' garage...
-You need a garage where you can shut the door and do your work.
Don't let the external world influence what you do in your garage. You can use the garage to get have a little time for yourself. Listening to news stories and breaking headlines can provide as a distraction rather then a trading tool. Many stories are planted in the news by traders to influence the direction of a market. Of course headlines regarding the supply of a commodity, earnings news and other fundamental analysis may have a slight impact on the market, but a TRADERS SHOULD ALWAYS LISTEN TO THE MARKET. Don't cut yourself off from the news completely, but go into your trading garage, shut the door, and do you thing. If MarketClub members would like to monitor their news they can use their News Portfolio (traders will see the latest headlines on their homepage).
-You should work on multiple projects in your garage.
In your garage you should be rebuilding a carburetor, building a table, and painting old furniture. You should also have an array of tools to work on these various projects. Painting supplies, wood saws and wrenches will all be needed if you will be working on very different types of projects. It sounds like too many tasks at a time, but DIVERSIFICATION IS KEY, and tools will be needed to succeed in multiple tasks. A trader should always have their hands working on multiple non-correlating markets at one time. You will need tools to search for potential trades in the equities, futures and forex markets. By sticking only with stocks for example, a trader is leaving themselves
vulnerable if stocks were to take a big hit. By diversifying trades, the risk is reduced as their interests are better balanced. MarketClub members have two tools that can help them seek potential trades in the equities, futures and forex markets. The Recent Trade Triangle tool will allow traders to identify trend changes on a monthly, weekly and daily basis in all markets. The Smart Scan can also help traders find preferential charting patterns for equities, futures and forex markets helping you find an array of trades to balance your portfolio.
-Filter your garage projects... what can I do that is worth my time and what is a lack luster task?
You can spend hours in your garage working on various things. However, when a project is complete what was worth your time and effort and what was not. So you want to put stylish tires on your car, but the oil also needs to be changed. In the long run what project is going to get that car from point A to point B. You need to filter your projects as much as you should FILTER YOUR TRADES. Is the time and effort you put into a trade going to pay off in the end... will the return be worth it? It is important that a trader try to catch those big moves and not a few pennies here and there. By filtering your trades you can identify what trades are ready to break and which are moving back and forth in a small trading range. MarketClub member can use two tools to identify the significant potential markets. We suggest that members use two different time periods to identify that the trends are in corresponding direction. We then suggest that members use the Trend Analysis Score to verify trend strength and help suggest if a position should be entered or if a market is too weak to waste time on.
-You should always have an emergency cut-off button for your tools.
Have you ever not seen an emergency cut-off button on power tools? It is so important for your safety to have a big red button that you can press to prevent huge losses. There is no difference with trading. You should always have an emergency STOP LOSS PLACEMENT to prevent financial misfortunes. It is important that a trader have a point where they are removed from a market in the event of a bad decision or crazy market move. MarketClub members can use the technical analysis studies on the Java Charting Applet to determine stop loss placements. A study like the Parabolic SAR can help traders identify where to place that emergency cut-off button. Also the chart analysis score can help traders decide whether to tighten their stop losses for more dangerous situation or give the stop loss a little slack for less volatile markets.
-Keep a stack of how-to books or instructional videos for help when working on projects
When you get into a tight spot where you can't remember how to build something or can't think up the steps of a project, you should be able to consult a manual or how-to book for assistance. MarketClub members have library of trading resources to help them built a trading plan, practice money management or apply a technical analysis studies. Trade School is a resource that will help traders create a plan, understand components of various projects, set emergency cut-off stops, etc.
Ok, so maybe this comparison is a stretch... but the saying applies to traders just the same, “you need the right tools for the job,” and MarketClub can help! Also see Adam's video - 10 Lessons For Traders
To check out all of MarketClub's tools visit... What You Get