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I submit that the successful day trader would profit well to adopt a casino mentality. What do successful day traders and casinos have in common?

As a day trader, what if you were the casino - that is, on the winning profiting side.

I submit that the successful day trader would profit well to pass a rallying point mentality. At first glance, this sounds reckless and nothing more than a gambling prejudice - but it’s not. Why? cause everyone knows that it’s the casinos that profit and take in all the money on a consistent basis. And, of course, the patrons end up losing even following abridgement winning streaks.

If you want to profit in the market, ask yourself this question:

1. What do successful day traders and casinos have in common?

As a day trader, what if you were the flat - that is, on the winning profiting side. You could expect to profit consistently. You would be unperturbed by an occasional drawdown (like the casinos when someone hits the jackpot), cause you know that you potentially will make it back and more.*

This is what successful day traders and casinos have in common; they both have a winning system that for certain puts the odds in their favor. The more they “play” or stick with the profit system of their choice, the more likely a positive outcome. It’s only a matter of time, cause the odds are in their favor.*

By thinking like the dance hall and not the hapless gambler, getting on the right side of the table, putting the odds in your favor, and working the system, the day trader can tap into the same phenomena that goodly Las Vegas and run away with a killer profit.*

Someone who reads the blog sent me this email:

Hi Geoff,

My question for you is about the recent market correction. I know you might not be comfortable talking about any stocks you bought, but I'd love to hear anything you can say about how you approached Mr. Market's most recent mood swing; what kind of actions did you take? Did you stick to pre-researched stocks on a watch list or did you go into overdrive with researching new businesses? I guess my question is mostly about mindset and preparedness. How do you prepare for this, and what does your thought process look like while it's happening?

Thanks,
Mike

I answered Mike’s question over at GuruFocus.

In my article, I talk about 12 stocks I’d consider buying:

1. Omnicom (OMC)

2. Regis (RGS)

3. Fair Isaac (FICO)

4. Moody’s (MCO)

5. Dun & Bradstreet (DNB)

6. Birner Dental (BDMS)

7. VCA Antech (WOOF)

8. Prestige Brands (PBH)

9. Carnival (CCL)

10. Dreamworks (DWA)

11. Nintendo (NTDOY)

12. CEC Entertainment (CEC)

Talk to Geoff About Stocks He’d Consider Buying

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