Trading is like a sport. You’ve gotta practice if you want to win titles.
And if you don’t practice your game by studying the markets — you could end up like the 90% of traders who FAIL.
I’m a huge basketball fan … My favorite team is the San Antonio Spurs.
The Spurs have won a staggering five NBA championships. Why? Because they put as much effort into their training as they do playing their games.
For every hour the Spurs are playing a regular-season game, they’re practicing dozens of hours to prepare.
This is exactly how I approach my trading — by spending countless hours studying when the market’s closed.
And today I want to urge YOU to do the same.
I know studying isn’t as fun as trading. I might sound like your parents telling you to eat your vegetables. You may not want to do it, but you know it’s good for you.
Bottom line: Winners do the hard work that losers aren’t willing to do.
Now, you might be asking yourself — how and what should you study? What are the best ways to prepare away from your battle station, outside of active trading hours?
First, you’ll need excellent trading software. I recently opened an account with the broker TradeZero, and I’m loving it. TradeZero is known for being geared toward short sellers, so it’s right up my alley. The best part is, you can get 3 months FREE right now by clicking this link!
Now that your software’s loaded up, let’s break down three easy study tips I utilize every single weekend…
Study Tip #1: Build Your Watchlist
As many of you know, I send a weekly watchlist out to my students every Monday morning.
While I’m happy to help point Evolvers toward setups that intrigue me, my watchlist can’t replace one that you build on your own.
REMEMBER: I can’t tell you what (or how) to trade. You must trade the setups that work for you.
So, with your two days off, take some time to build a watchlist for next week.
Keep it short and simple — reserve your weekly watchlist for the best setups only.
That way, if one of the stocks you’re watching starts to make a big move on Monday … you won’t have to go searching through a massive list of tickers.
Instead, your five-star setup will be right there — waiting for you to pull the trigger.
Study Tip #2: Identify Key Price Levels
If you read my watchlists or watch my webinars, you’ve probably noticed that I always talk about the importance of key price levels.
This is because key price levels have helped me more than any other technical indicator throughout my trading career.
I use these levels as goalposts for my trading as they tend to map out areas of support and resistance.
If a stock regularly bounces at a certain price on the way down — that’s support.
If a stock gets continually rejected at a certain price on the way up — that’s resistance.
After 10+ years of experience in the stock market, I’ve noticed another consistent trend around key price levels … They tend to correspond with big round numbers.
Traders have a psychological sensitivity to round numbers like $10, $50, $100, $500, etc.
Time and time again, you’ll see stocks bounce (or fail) near these critical levels. This isn’t a coincidence — it’s psychological resistance.
Bottom line: If you can get a grasp of how to identify key price levels, you’ll give yourself a superpower in the stock market.
Study Tip #3: Form Your Trading Plan
All of the studying in the world will be entirely useless if you don’t form a solid plan for every possible outcome in your trades.
After all, the stock market is like life — wildly unpredictable.
You could be exactly right on a trade thesis only for some shocking headline to completely shake market sentiment out of nowhere and ruin your entire play.
Bottom line: You MUST take the opportunity you have over the weekend to form a solid trading plan for the coming week.
What will you do if your options contracts open down 50%? Will you cut your losses immediately (I hope so) — or hold a little while longer?
What if they open up over 100%?! Will you sell them all right away — or keep some contracts on the table for a potential home run?
These are the types of questions I constantly ask myself. And so should you.
Planning my trades carefully has helped me reach the level I’m at today — and allowed me to put over $3.5 million in the bank.
When the market’s closed over the weekend, it’s the perfect time to study, study, STUDY!
If you aren’t studying hard, there’s another trader out there who is — and that trader’s ready to beat you.
Be like the Spurs. Practice as hard as you can off the court so you can crush the competition on game day.