After such a rapid fall, one of the more productive things a trader can do is to start creating a list of stocks to trade in the future. I have been spending my time doing just that and while it is easy for me to relay to people the need to create such a list, it has become clear to me that never have I given any guidance into what one looks for after the carnage.

During a time of market chaos, like we have been experiencing this past week, it is very easy for a trader’s emotions to sway with the ticks, keeping them from remaining objective and rationale. For example, while it is fun to be pepped up, as was my goal with last night’s Tape Talk, we can’t fall into the trap of backing up our pep with our hard earned capital compounding the problems. On the other hand, while the environment definitely seems dire, we must avoid the belief that never again will we be able to make money in the markets.

Now that we have had a good bit of pain the question becomes, what do we do now? If you are reading this today, chances are you haven’t yet thrown in the towel and while you may have experienced a few lumps, I am hoping that you are still in a position to recover and move forward.