Pristine Quote: "Whether you believe you can do a thing or not, you are right." - Henry Ford

A Doctor After Junior College....

There is a saying regarding happiness. "Happiness is not a destination, it is a journey". People who have come to realize this often have a different outlook or view on life. A similar thought process must be applied to trading. Learning to trade is a journey that never really ends. There is not a magic moment in time in which you have arrived and can relax. There may come a time when you feel relaxed; there may come a time when you make money for the week, month, or year. However, trading is an evolving process. It is one of education and discipline. A far cry from how most people treat trading.

What about a Doctor at junior college? It is just an analogy that comes to mind. I don't know of anyone in the world that would let a Doctor perform an operation on any part of their body after taking only 2 years of pre-med classes at a junior college. Doctors must go through 4 years of college, 4 years of medical school, and then a residency for 1-3 years. At no point after 4 years of college does someone give the 'student' a knife and tell him to operate. Not even after medical school. Yet people feel competent to handle the their life savings in the market after reading one book.

Education is key and a necessary part of success. However we have seen many times it is not enough. Discipline, persistence, and a plan to get you to your final goal are key. There is a quote by Calvin Coolidge that is so relevant to trading I wouldn't be surprised if Calvin dabbled in the markets way back then. "Nothing in this world can take the place of persistence. Talent will not; nothing is more common than unsuccessful people with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan 'press on' has solved and always will solve the problems of the human race".

The market is operated by some of the best minds out there. Make sure you are not going to a gunfight with only a dull knife.

By Paul Lange, Senior Pristine Certified Trainer (PCT), Certified Pristine Mentor, Head Moderator of the Pristine Method Trading Room, Member of the Pristine Research Team, and a Trader Coach.

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Short-term Plays

Chart Courtesy of Mastertrader.com FOX: Price 28.03. Chart Set-up: Pristine Buy Set-up (PBS). FOX resumed its daily uptrend in August and is now pulling back to a strong minor support (mS) area, the prior highs in June, July, and August. It closed yesterday with a Bottoming Tail (BT) and a Bullish Changing of the Guard (+COG), in the Pristine Buy Zone (PBZ). Tip: The PBZ is the area between the Rising 20-Period Moving Average (r20ma) and the Rising 40-Period Moving Average (r40ma). Strategy: We will look to buy FOX over $28.12 with a protective stop under $27.80. We will look for a move of $.80-$1.20. MEDIUM RISK.		Chart Courtesy of Mastertrader.com CNLG: Price 5.18. Chart Set-up: Pristine Buy Set-up (PBS). CNLG ignited a new stage 2 at the beginning of September when it reversed its downtrend with a pro gap and follow through. We now have a pullback to a support area, the recent gap fill. It closed yesterday with a Bullish Changing of the Guard (+COG), at the Rising 20-Period Moving Average (r20ma). Strategy: We will look to buy CNLG over $5.50 with a protective stop under $4.75. We will look for a move of $1.25-$1.80. MEDIUM RISK.
Chart Courtesy of Mastertrader.com PLMO: Price 32.24. Chart Set-up: Failed Pattern. Fridays PDT highlighted PLMO as a possible short as a continuation Pristine Sell Set-up (PSS). While that play never hit, the bullish move that resulted traded over the stop of the PSS. This created a failed pattern. Tip: Failed Patterns can result in dramatic moves as traders and investors expectations are ruined. Besides the bulls buying the stock, there are often shorts who are forced to cover their positions, adding to the buying. Strategy: We will look to buy PLMO over $32.48 with a protective stop under $30.55. We will look for a move of $3.00-$4.00. MEDIUM TO HIGH RISK.		Chart Courtesy of Mastertrader.com ANDW: Price 12.93. Chart Set-up: Pristine Breakout (PBO). ANDW is in an uptrend on the daily charts and is consolidating sideways after a bullish move off a Bullish Wide Range Bar (+WRB). It is showing a bullish green bar above most of the consolidation. Strategy: We will look to buy ANDW over $13.00 with a protective stop under $12.15. We will look for a move of $1.00-$1.50. MEDIUM RISK.
More Stocks To Watch Longs STTS, CCL, FRX Shorts IACI, S

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