I – Improve yourself daily.

Have you ever heard a disclaimer something like this?

“Past results are not indicative of future success.  Your results may vary.”

Traders and investors change their plans all the time.  Why?  Because even though someone has been in the market for years or even decades they will tell you that the market is always changing.

The market may follow history to some extent but it never does it precisely the same way or at the same time.  Many traders get too wrapped up in what the market, a particular stock, the government, and even what they themselves have done in the past and they forget to look toward the future.

It doesn’t matter what you are doing.  If you are constantly looking behind yourself then an accident will happen in front of you.  You’ll probably be part of that accident.

Making a habit of trying to improving yourself everyday will assure that you are not antiquated before your career is over.  When things change you’ll already be ahead of the game by knowing what needs to be changed and very possibly knowing how to change it.

Successful people from all walks of life will tell you that this technique of habitually improving yourself is paramount to success in your chosen profession.  This includes every aspect of our lives.

Whether you want to improve your performance as a husband, a wife, a corporate CEO, or a stock trader, trying daily to improve can pay off in many ways.  You may not succeed every day, but just try.  In whatever aspect of your life you want to improve you will succeed in the long term and that is priceless.

As a technician and with a desire to trade a longer timeframe I noted that the first natural downside 30-min entry point in more than a week has just materialized.  If you wait for the confirmation then 2:00 Eastern time will be it.

Just a note to those watching the market.

Patrick

A hearty round of applause.  The “net cause” of this is the same reason I’m a proponent of a “Fair Tax”; government gone wild.  Please, Senator Dodd, be a hero and stop trying to federalize everything.

(Editor’s note:  If Congress makes things too complicated then maybe the public will just give up, go away, and let Congress and the President do what they want.  Is that right?  You tell me!)

Memo to Senator Dodd: Financial Reform Need Not Be Complicated — Seeking Alpha

I have a relatively dry sense of humor, or so I’m told.  This rant is riddled with it.  I only wished that I had written it. 

As always, there is a fair amount of truth to all humor.  That is what makes this post so important. 

Enjoy, learn.  But do it after trading hours.  You won’t regret it.

Four Basic Qualities of Great Technical Indicators & The "Stochastics Default Club" | zero hedge

I’ve been telling everyone about this vehicle.  Seats two and it’s suppose to get 200 mpg and another 100 via plug-in and solar.   I usually just give them the link to Aptera.com.  Today I found that engadet has an “everything Aptera via engadget”.  Still, It’s interesting to go to Aptera. com to learn more about the car.  Crazy, cool car!

Aptera — Engadget

S – Start off Slow
Great traders don’t usually start off trading massive accounts on a everyday basis.  They don’t  start off using complicated trading strategies or techniques, and they don’t start off trading the first day they are ready to trade.  Sometimes great traders don’t even start off good.

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Great traders aren’t great from day one no matter what anyone wants to tell you.   They aren’t using complicated strategies or techniques.  Great traders start slowly.  They plan every trade and they trade small amounts until they can do that without emotion and with consistent success.  Then, based on what they learn through experience, they grow into trading larger dollar amounts, trading more frequently, and using more complicated techniques and strategies.

Starting off slowly and steadily allows them to stay in the market until their accounts have grown along with their skills and they start making larger and larger  profits on a regular basis.  It minimizes uncertainty.

Whether you’re a long-term trader or a newbie thinking about getting into the stock market, if you want to bullet-proof your trading career then you want to start slow or slow down when faced with uncertainty and proceed with caution.   It allows your to stay in the game.
Great traders don’t usually start off trading massive accounts on a everyday basis.  They don’t  start off using complicated trading strategies or techniques, and they don’t start off trading the first day they are ready to trade.  Sometimes great traders don’t even start off good.

Great traders aren’t great from day one no matter what anyone wants to tell you.   They aren’t using complicated strategies or techniques.  Great traders start slowly.  They plan every trade and they trade small amounts until they can do that without emotion and with consistent success.  Then, based on what they learn through experience, they grow into trading larger dollar amounts, trading more frequently, and using more complicated techniques and strategies.

Starting off slowly and steadily allows them to stay in the market until their accounts have grown along with their skills and they start making larger and larger  profits on a regular basis.  It minimizes uncertainty.

Whether you’re a long-term trader or a newbie thinking about getting into the stock market, if you want to bullet-proof your trading career then you want to start slow or slow down when faced with uncertainty and proceed with caution.   It allows your to stay in the game.

No matter how tempting it is violating your trading rules is never a good idea. This reminder came to me as an example to me when I violated my own trading rules a couple of times over the last two days.

The very first violation cost my portfolio $5K plus. The second made a measly $50. I immediately considered violating my rules another time but I remembered the adage, “Patience is a virtue”, and so stopped myself.

I’ll get around to revisiting this episode of trading later but for now let this serve as a reminder, “Never violate your own stock trading rules.”

I haven’t seen one of these about stock trading but it’ll probably happen if it hasn’t happened already.   Thanks to The Red Tape Chronicles for getting the message out.

‘Fakeosphere’ latest Web trap for consumers – The Red Tape Chronicles – msnbc.com

What matters for the beginning stock trader or investor is staying in the game.

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We don’t do that by stomping around in the dark.  We do that by utilizing a specific and detailed trading plan.

We list our strategies and techniques we are going to use.  We also detail our money management.  Then we put that plan into action and follow it unerringly.  Or we try.

What is the the largest obstacle  standing in our way?  It is ourselves!  We talk to ourselves every day, all day, and what we say is how we respond to external forces.  Often this conversation is very emotional and confusing.  This is a negative for trading success.  There is no place for emotions in successful stock trading.

In an effort to combat these emotions and to negate their effects I always tell people  that they can use a script.

For the beginning trader the only thing that matters isn’t maximizing profit, following complicated trading strategies flawlessly, or knowing the difference between a strangle and a straddle.  The only thing that matters is staying in the game.

So, what is someone that knows this suppose to do to begin learning the process of trading for profit?  Concentrate on SIMPLE Trading.

save

Since my self-induced weekend portfolio disaster I was looking for another entry into the market on the 30-min chart. That came at 12:16pm today when the 5-min chart and the 30-min chart agreed.

As long as my position doesn’t go negative I’m going to stay with my 43 Nov Put for the day at least. I actually had sold the same put at close on Friday with the thought that you never hold a short-term position over the weekend. So buying back that position was a natural. I got it for $2.02 after Friday’s $2.30 sell. Can’t count it but it was the right thing to do.

Remember, the rule is “Protect Principal First”. Currently my position is up 22 cents but was up as much as 38 cents. I mention this because sticking with the 30-min chart will give me plenty of time to sell at a profit even if it won’t be at a high.