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The StockTwits® Edge: 40 Actionable Trade Set-Ups from Real Market Pros by Ivaylo Ivanhoff, Howard Lindzon, Philip Pearlman

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CHAPTER 16

Breakout from a Tight Base

chessNwine, @chessNwine

The thing I admire about chessNwine is his calm and rational decision-making ability, even when a trade is not going his way. He just seems to do the right thing, the smart thing. It's no surprise he is a successful poker and chess player. It makes perfect sense.

If you personalize losses, you can't trade.

—Bruce Kovner

IT IS LIKE A CHESS STRATEGY

After the 9/11 attacks, I was glued to the television set watching nonstop news coverage. I came across CNBC. Up until that point, I could not differentiate between a livestock and a common stock. I saw the commentators asking guests whether they planned to sell or buy stocks when the markets were scheduled to reopen after 9/11. I was fascinated by the conversation. I intuitively thought that there would be a sharp, fear-based sell-off, which would be a great buying opportunity. I realized that I had no knowledge of how the stock market game worked, so I thought it was probably too obvious to think that. However, I enjoyed the mental stimulation, and it reminded me of a chess strategy.

After that point, I started to educate myself about stocks and investing. Whenever I went to the bookstore, I wandered over to the investing and personal finance section. I started watching CNBC more and I regularly read the Wall Street Journal. In essence, I incorporated the stock market into my daily routine.

Reading Confessions of a Street Addict by Jim Cramer (Simon & Schuster, 2002) ...

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