Wednesday, March 31, 2010

The Daily Note - Time To Grow

When I started writing this blog, I knew that I wanted to incorporate writing about life with trading because in my opinion it's impossible to separate the two. Some people think that one can leave their job at the "office" and leave their "living" at home, or that they can separate out their daily events from influencing their outlook on the markets. Personality influences trading as does life, and living. If it did not, all of us would find it easy to hit buy/sell buttons all day long, without emotion. Would victory be as sweet if we did? Would the losses be as wrenching? And would we learn from them as much?

It's true that you may be in denial, and if so, learning from bad/good trades would not penetrate very easily, but I believe that with each punch, you are bound to chip away at any obstacle and take steps to grow. How much you learn and how fast you learn it, totally depends on you and your "teacher". Whether doing reading, taking seminars or learning from a mentor the importance is knowing which method works best for you. Engaging in all methods is a good way to find out what you area missing, or what you may have missed.

Another good idea is to discuss your day and your trades with people also doing the same work. Being with a group assists in seeing, thinking and grounding provided ego does not interfere. If you can be open minded, it is one of the best ways to learn especially if you surround yourself with traders more experienced than you. It avoids boredom and creates more interesting challenges to propel your learning.

Growth never comes without overcoming resistance; but you know that just from studying charts.. right?

Happy Trading, Living and Dancing

Today's BlogPick: RIMM .... SUBSCRIBE to receive the members PlayList

Earnings day may keep RIMM in a very tight range for most of the day but patience may pay. Suggest being in cash by end of day before announcement as RIMM tends to get volatile at announcement.

Copyright DayTrading with Anni 2010

Tuesday, March 30, 2010

The Daily Note - An Apple in My Eye

I read many stories during the day and many a comments and it struck me that AAPL has become the new GOOG. Lately there's a never ending stream of stories and chats about them which virtually replaced the same never ending stream about GOOG. So what in the world can I write about? There is so much written about Apple, (AAPL) surely I don't have anything new to add.

What strikes me however is the thought that as GOOG went, so can AAPL. I don't mean technically or politically but as in rising price; seeing the way AAPL took off this past month. The new darling "of anything news is good news" much like GOOG used to be, I'm merely observing.

The investing world was certainly sitting on pins and needles while Steve Jobs' health was in question; once it became obvious that the man would not go away anytime soon and in addition he had the same capacity of genius he had before, traders, investors, collectors and fans all boosted AAPL as if showing approval and congratulations as well as relief. It's continuing rise to stardom makes it the current darling of the super stock world. Can AAPL rise to the heights of GOOG?

It looks like it could presently, and the hunger is great, but for the market heights it may be even be a steady possibility. with the current valuation on the high side being $300. Currently, there is much excitement over the new i-phone being released in June and the i-Pad's arrival in April, that it reminds me of the new commercial of shiny hair reflection in the eye, which blinds the receiver. So, with the warning that apples do fall from the tree, here is to the AAPL in your eye.

As I said, there's not much new that others have not already said about AAPL.

Happy Trading, Living and Dancing

Dedicated to a friend, nyctrader611. Together we plotted and picked a few apples off the tree.

Today's BlogPick is obvious: AAPL .. click here to SUBSCRIBE

Copyright DayTrading with Anni 2010


Sunday, March 28, 2010

The Daily Note - The Next Tax

It's already written in the recently passed Health Care Bill that capital gains will be subject to Medicare tax. Are you surprised? Not if you read it or listened to those who did, but then if you think it will end there, think again.

But there is more afoot to punish those who wish to make profits by moving the markets. Some call for as high as an 80% short term capital gains tax. Yet seriously it is the idea, not the amount, which should be fought.

As the government is looking for more tax revenue, they will be attaching their tentacles to any entity that is out of favor with the public. They will also make sure that the public will continue to view the people associated with those entities as greedy and rich, or causing some sort of health harm, therefore deserving of punishment. With such targeting, the people, as against smokers, will rise to make sure that their "rights" will not be harmed.

Many people think it was Wall St. that caused the economic collapse, and many have written to support the claim without much depth to the matter. The purpose is to enrage those that believe that the only way to make things "right" is by taxing the activity which causes the harm. In other words, the likes of those doing Wall St. business should be made to pay for the losses others suffer in the markets. Of course, the government is very willing to help them along with the campaign in the name of "fairness" since it results in more money for the general fund and more control over lives.

Taxes are such "equalizers" aren't they? Did you really think it would stop with the Cigarette Tax?

Happy Trading, Living and Dancing

Today's BlogPick: POT .... For The PlayList SUBSCRIBE

Copyright DayTrading with Anni 2010

Friday, March 26, 2010

The Daily Note - Down Time

You don't realize how much you miss tools until they're gone. No matter which one that you use daily to do your work, when it is gone, you have to scramble to fix or replace it.

I have been fortunate to have all my tools available at all times, with the exception of a couple of computer or isp glitches; when fixed my tools were still intact. Unfortunately right now that does not seem to be the case all due to what looks like an unfortunate entry of a couple of characters which rendered my Screencast files inaccessible. I hope this will be fixed but as of now, I am unable to use it for saving, uploading or posting links to what I see.

I know there are other systems available which do a good job, but I have found none of them as easy, fast or comprehensive as by TechSmith so I miss this one terribly important tool for my daily work right now. The last file I uploaded was about PCLN which was for a watch on Friday on the 5 minute chart. I can only hope it will be fixed soon.

On to better things: It has been a very exciting week which I am certain my subscribers along with my viewers could take advantage of at least in part. It has not been since July - December 2007 that I last recall such opportunities for stellar performances. 30point days don't come that often with such ease and as of today we had 3 days in the last 3 weeks with such returns. I don't know how long it can last. This stellar rise is now crowning off a year's rise in the markets and I'm not sure that I am being prophetic by using such a term as "crowning" but I cannot find another one that would be as descriptive.

Today, PCLN's rise is case in point, sometimes I see a possibility and call it but when it doesn't play out on the day, I still keep it on the boards to watch and today it took off and hit target soon after open. Okay, nice to have it happen, but what happened from the target price, is to what I am referring in this article, where it gained another 12 points 7 of which it gave back at the end of the day. So that is my fair and final warning sans crystal ball.

Happy Trading, Living and Dancing

P.S. re Seems now I have partial access as my blog is back posting my library, but I do not have direct access yet to post new charts.

Today's BlogPick VNO SUBSCRIBE to the The Daily PlayList Yesterday's Result +30 Points

The Chart above is posted after the original posting of this article. Once was accessable again at 09:25 am eastern

Copyright DayTrading with Anni 2010

Thursday, March 25, 2010

The Daily Note - It's My Parade

I have some quotes posted on the sidebar of this blog that sometimes apply to the way I view the markets. Some I've written as they were born out of observations, today I'm sharing one that applies:

"When everyone joins the parade, it's time to become a spectator."

There are several situations and conditions where this applies. Sometimes, depending on the mood.

There are days when I don't want to join what everyone else is doing. It is usually when I get bored with the same old set of conditions or I feel like going on a scavenger hunt, looking for a rare gem.

At times I think of it when I observe some equities that are constantly being traded the same way. I do not like to be in the fray of that. Call me adventurous but I prefer to find my own ins/outs although it may not be the most precise.

The question often comes about when to take profits during a run; to which the answer is, "when everyone joins the parade". When you see a thick candle, shooting high, it means traders are piling, when it becomes a thin wick, it means too many people are on board and the boat is threatening to capsize. Of course the timing can be difficult, which is why it's good to watch the volume yet as the stakes get better it becomes more nerve wrecking, that is when I recommend stepping back and skimming. Go ahead, take some off, it will relieve your anxiety knowing that you have banked some profit, and now you can watch the parade.

Imagine seeing a run on the bank, it usually means people wanting to take all of their money out, and you may be glad that you took some of your money out before the stampede. Of course some stampede is good, because it drives the momentum for a better exit price, the idea is however to take some off for comfort, the rest can be left to accumulate and ride with the wave further.

The same saying also applies when you have missed an entry and you watch the run; temptation what it is, you may be tempted to chase, but become a spectator instead and watch the parade, it'll teach you and no one will be allowed to rain on your parade.

Happy Trading, Living and Dancing

Today's BlogPick: GOOG .... For The PlayList SUBSCRIBE

Copyright DayTrading with Anni 2010

Wednesday, March 24, 2010

The Daily Note - Technical Skeptical

I did some fun charts last night. RIMM and GOOG revealed their 3D patterns to me. I've never before noticed how that can happen. First I noticed it on RIMM how the parallel lines worked on the same angles. Just copy click. WoW I thought, 3D. (OK maybe my son invaded my thoughts to see things that way. Digital artists do that stuff and he's working on a new demo reel). Anyway, RIMM looks like it has places to go. As does GOOG.

I really like physics and geometry, yet, I am skeptical about all this technical utopia I am witnessing on the charts. I was only a new technician in '99 so I don't recall patterns. I was happy to know what candlestick meant, other than what I lit on the dining room table. I need to forget about air pockets on this flight and just enjoy the highs, but I prefer to be the pilot to my destination, so keeping that in mind I also need to heed my skepticism.

How long can we stay aloft? Helium, natural gas or methane? I have no clue; I was a horrible chemist, but if I recollect correctly, all three can be exploded, given a lit match. I keep remembering lessons taught over and over and over again.. trust 2 things when trading: your gut and your charts and if they don't match, don't trade.

Just know that in 3D or 2D charts are your guide. If you don't trust one, it's hard to trust the other and you must learn to trust your charts and act on your gut together.

Happy Trading Living and Dancing

Today's BlogPick: GOOG .... For The PlayList SUBSCRIBE

Copyright DayTrading with Anni 2010

Tuesday, March 23, 2010

The Daily Note - Let Me Escape

Just keep on trading I tell myself. You know that the change will take some time and you can trade because the market won't really reflect what is happening. It can't. It's impossible until the day when the shut down and shut out occurs.

Wall Street is being regulated as I write this. The plan is in the works. I don't know the details, I doubt if anyone other than the witches do. It will probably be unchallenged because most people have already been indoctrinated with the notion that all that ails us is directly the fault of the greedy Wall Street people and companies. Unfortunately most believe it, because education has seen to it, and too many people do not have an ounce of understanding about how free markets work.

There is some rumors floating out there but not much, and the news will focus mainly on the immigration fix because according to this administration, everything needs fixing and fixing fast. Immigration is a bigger power keg so it will be the next banner on the news media while the Wall St. regulation slips through without a whimper.

The taxation of each trading transaction. It is already a part of the Health Care bill, but the regulations will make it more secure. Also in that wonderful HCR bill is the Medicare tax on all capital gains. Including your home.

I'm getting depressed so , more on taxes later; I need to escape!

Happy Trading, Living and Dancing

Today's BlogPick: NFLX a way to escape.... For The PlayList SUBSCRIBE

Copyright Day Trading With Anni 2010

Monday, March 22, 2010

The Daily Note - Live and Let Die

I wonder how many dreams were smashed yesterday? How many people will have to pay for the dreams of a few? What the world learned for 75 years and thought finally at an end, gets reborn with hunger for new victims to teach that means to an end will come to their end.

At least four years of taxation, rationalization and continued eradication of what was promised, and in the end will be totally unrecognizable as the original. Most will forget by then what it was to be, even if they would read the unknown number of mind-numbing pages. Yet, a "health care" it will be. But you dare not ask whose health will it be that they deem to be saved and who will be let to die. Why you ask?

First do the math, you'll find that the money you follow is your own and it will lead your loved ones to the grave. The "baby boomers" come of age and start "collecting" from a bankrupt Social Security system and a bankrupt medicare system which they supported since 1968; add the fact that we still have and will have a high number of unemployed who are not going to contribute much to the coffers of either Social Security nor Medicare. What choices will there be left? Will they save or let die your parents, grandparents, or "too ill to saved" children or friends. All in order to save money; how much are you willing to pay for their private (black market) health care as the public option will be refused?

As I said, do the math, look at the timing then and only then, follow the money; only this time, start at the top not in the middle. Quit blaming Wall St., the Companies, or the rich, and finally, quit letting your Washington politicians off the hook.

Your guess is as good as mine as to how all this will effect the markets
Happy Trading, Living and Dancing

Today's BlogPick: GOLD .... For The PlayList SUBSCRIBE

Copyright Day Trading with Anni 2010

Friday, March 19, 2010

The Daily Note - The Unpredictable/Predictable OPEX Day

I seem to recall that somewhere in my fuzzy brain there is a file drawer with all the discarded op ex trading days. I think it's marked with "DO NOT TRADE" or "WASTE of TIME" . Obviously I have not learned the lesson well enough yet, because I keep trying and at the end of the day I wonder why I did, yet again. It is an exercise in watching paint dry, grass grow, all in the actual knowledge, again a faint reminder, that all is over within the first hour or so, and the rest is just flat line activity.

So then, the predictable part for me on OPEX day is that the opening minutes lasting about 30 minutes to an hour, consist of inflation to find a range/direction, the next hour or so is deflation, to settle into the range and the rest of the day is a flat.

Very seldom is there any real discovery of actual market direction, it is all about market control. A predetermined desire of where most of option trades will price for maximum profit. Since I am not an options whizz, and I'm still learning, I cannot say really how or where it is determined so to me, that is unpredictable. What is also in play is that there is other news which could effect the market more readily were it not for OPEX, therefore, the Monday following OPEX becomes more unpredictable.

It is not to say there is no trades that are profitable, but I did learn to put my expectations in a tighter range.

Happy Trading, Living and Dancing

Today's BlogPick: AMZN .... For The PlayList SUBSCRIBE

Copyright Day Trading with Anni 2010

Thursday, March 18, 2010

The Daily Note - Matters Practical

Let's start with a definition:

prac·ti·cal: consisting of, involving, or resulting from practice or action: a practical application of a rule.

In trading, as in everything else, there are rules and one must follow them in order to be good. Or to be practicing this trade, one must be practical. The repetitive motion of trading is required in order to recognize patterns. Like anything we have to learn, initially, the repetition or the practice of the action will result in actions that follow those rules.

Traders who think they can skip that part and go right into action without practice are putting their new found occupation in jeopardy because then they do not : adapt or design their own trading rules for actual use; which is another definition of practical.

Knowing that in the end, success is the goal, skipping the practice and learning mode of trading will deprive the trader of being: mindful of the results, advantages or disadvantages of the action or procedure they use; which again is part of being practical.

In other words, emotion tends to rule when one is not matter-of-fact; yep, another definition of the same.

So the lesson to remember is that in order to be: inclined toward or fitted for actual work or useful activity, (you guessed it) practice should be welcomed rather than shunned.

Happy Trading, Living and Dancing

Today's BlogPick: AMZN .... For The PlayList SUBSCRIBE

Copyright Day Trading with Anni 2010

Wednesday, March 17, 2010

The Daily Note - Today, Everyone's Green

Today is St. Patrick's Day and as they say, today everyone's Irish. If you ever been friends with the Irish, I don't have to explain. If you haven't, find out.

There is something contageous in their attitude and it's not from the drinking. They joke, they laugh and they can tell a tale like not one else. Happy with simplicity in living and with a jovial outlook about all aspects of life. The way they can take something bad and look at it from the bright side, with a blessing always ready on their lips. Maybe that's why they have such good fortune.

So trade like you're Irish today, and may the luck o'the Irish will smile down own you.

Here is my Irish blessing for you:

May you work like you don't need the money,
Love like you've never been hurt, and
Dance like no one is watching.

Happy St.Patrick's Day

Today's BlogPick: WYNN .... For The PlayList SUBSCRIBE

Copyright Day Trading with Anni 2010

Tuesday, March 16, 2010

The Daily Note - Forgive Us Our Sins

Why is it that CEOs and board members getting paid per contract and receiving bonuses are bad for earning too much and the Presidents their Cabinets, Congressional members getting paid and receiving perks in the same millions are not? Why is it that the spending of ones private dollars is scrutinized by all the media with endless private affair reporting but the spending of the public dollars is not?

Why is it okay that Public officials can splurge on parties, booze, private Air Force Jet rides, family outings across the globe and the like without accountability, but we hate the CEO who holds a toga party on the Isle of Capri, or spends public dollars in Vegas? Which all leads to: Why is it that we forgive our elected officials for spending our money greedily and foolishly, yet we don't forgive our investment banker for doing the same?

Trust is not the issue here, because supposedly we trust them both with our affairs and our safety; and if anyone thinks it has to do with closeness, that too is proven incorrect because most people really don't keep a close eye on their investments just like they don't keep a close eye on their tax dollars.

Often we use forgiving phrases that refer to our elected officials as being human, yet condemn the officials of banks as evil for the same acts. Perhaps it's because we have given up on what we cannot control: the politicians; but then why do we think we can control the CEOs?

I submit to you that what we forgive in ourselves is what we are ready to forgive in others and what we can't forgive in ourselves is what we see in others to hate. Therefore...,

Those of us who forgive our officials for being frivolous with tax revenues and greedy for more, may need to check how freely we are willing to spend other peoples money and how we hate to lose our own.

Happy Trading Living and Dancing

Today's BlogPick: BIDU .... For The PlayList SUBSCRIBE

Copyright Day Trading with Anni 2010

Monday, March 15, 2010

The Daily Note - Too Big to Fail?

Is Greece too big to fail and Iceland not? Just wondering, who is going to decide? Is it going to be the same politicians that decided who to save (GS) and who to dump (LEH)? or GM vs Toyota? Will it be with the same "sage" reasoning with which they carved up Europe after WWI to spawn WWII?

If bailing out worked, we would have solved the hunger problem, the education problem, the housing problem, not to mention the unemployment problem long ago, all wars and poverty would have been by now old history, for we'd be living in eternal peaceful bliss, all equally rich, and equally supported. We've certainly have spent enough on all of those in the last 50 years alone. I am not speaking of emergency needs. I am speaking to and about long term dependence which is what we are spawning daily.

But on a deeper level, really, not one entity is too big to fail. If there were such a thing, Dinosaurs would still roam the earth. Yes, tongue in cheek, yet if you think about it, without failure we'd learn nothing or learn much more slowly what works and what does not. Yes, people died learning which plants were edible and which not. babies fail to walk until they learn not to fall down and as we witnessed ten years ago, failure to take heed, brought overvalued stocks crashing down around our inflated heads.

The question is: Is failure the lesson or is failure the demise of who or what we are; and if we are not allowed to fail, how do we know the answer?

Happy Trading, Living and Dancing

Today's BlogPick: WYNN .... For The PlayList SUBSCRIBE

copyright Day Trading with Anni 2010

Friday, March 12, 2010

The Daily Note - The Missing Note & The DJIA

No, not the link, just the note. The Daily Note that is, for those of you who have faithfully come to my site for the daily. A technical problem decided to plague me today and of course they are never timely. I did manage to get out my PlayList to members, just minutes before the bell and much later than usual. The rest had to wait; including my trading. However....

I am noting that the markets were in a pause mode too and mostly sideways, being Friday, it can be expected and being that we had a nice run to retest the DJIA high before the last pullback, it was expected.

Going forward, with the Health Care bill looming on the horizon, I am just as glad to take it easy and rather not hold anything over the weekend. Monday trading will give us clues to the next step and I will let the week unfold as usual

In the meantime, have a great weekend, and enjoy the found note below

Happy Trading, Living and Dancing

The BlogPick : a look at the DJIA For Member's PlayList SUBSCRIBE

Copyright Day Trading with Anni 2010

Thursday, March 11, 2010

The Daily Note - Look Out For Your Outlook!

We're optimists; as traders we have to be. I think the pessimists die young. Even the person doing their worst is an optimist; an optimist in their own ideas, but that does not necessarily mean the good.

Optimism is a belief; a belief that all will turn out well. Of course the meaning of "well" is defined by the optimist. So your see, your optimism may not be very optimistic for me. Yet what is interesting about optimism, is that it breeds more optimism. The attitude itself is creative and attracts the positive. Oops, again, here I mean the personal positive which you define and which breeds more of the same.

So I guess what I am saying is that you are your own breeder of good for yourself even if it means bad for someone else. And I guess I am also saying that a pessimist is optimistic about their pessimistic outlook. Therefore, it breeds more pessimism.

I could take this thought to many places and write an optimistic argument for each but here I am writing about trading so, I shall hold my thoughts to that.

Do you ever examine your outlook about trading and your belief in the trades you follow and enter? Whatever they may be, you are breeding more of it for yourself and it reflects in the results of your trades. entering too quickly, exiting too fast, chasing, holding back or just doing nothing, are the clues about your outlook. So, here is the pay dirt: don't blame it or try to change it, use it instead to your advantage, and then, have a nice day.

Happy Trading, Living and Dancing

Today's BlogPick : FSLR The PlayList SUBSCRIBE

Copyright Day Trading with Anni 2010

Wednesday, March 10, 2010

The Daily Note - A Moment in Time

When do you pull the trigger? It only takes a moment in time to do it, yet one thinks on that moment perhaps far too long. Yes, even a moment can be far too long. You've seen the set up, the breakout and the takeoff and you know to enter, you've been waiting and then it's too late. It's called a momentum play and it is more in the moment than any other play you can choose.

The best ones are the ones where you are ready for the moment. In order to be ready, you have to be prepared. If you are expecting a breakout, set up an entry to trigger near the max where you would enter, not the minimum, because the minimum can skip you by and you actually have a better advantage with the momentum picking you up and carrying you without a pullback or bounce.

Another way is to wait for the pullback or bounce. Watch for the opportunity after a stall and reverse. These are often more rewarding because the run can pick up exuberance from traders who, along with you, missed the initial opportunity and with the added players who got out too quickly the wave maybe stronger than the first one.

Of course the next moment in time is your exit. It needs equal attention and it's one that is dictated by the strength of the motion, the stalls and your stops. Never, ever forget your stops, because surely then you'll have a moment in time... lost.

Happy Trading, Living and Dancing

Today's BlogPick: FSLR - for Member PlayList SUBSCRIBE

Copyright Day Trading with Anni 2010

Tuesday, March 9, 2010

The Daily Note - The Follow Through

"Wipe on", "Wipe off" remember those instructions by Pat Morita in "Karate Kid"? Remember it for trading. The exercise for a good trade is to keep your mind's dexterity alive from one day to the next. What happens one day may be wiped off the next in part or in total. Seldom does it continue to rise or drop without a pullback or an advance. It is a test of strength for the direction.

As in physics, when the direction is weak, the test will fail; when it is strong it will accelerate. It is the recognition of failure or strength that will give you an advantage in trading. Pull trigger to stop or pull trigger to add to position.

Consider the thought as you watch the movements today. Make a note about where you would add or stop based on the stock movements in the previous period, and keep practicing to improve your skill to follow through.

Happy Trading, Living and Dancing

Today's BlogPick: VNO continued - Member PlayList SUBSCRIBE

Copyright Day Trading with Anni 2010

Monday, March 8, 2010

The Daily Note - Mood Swings

There are times when I get out of the mood for trading. Don't you? I question myself mostly on those days, not so much about whether it is something I want to do but, more about what I see that gets me into the mood of not wishing to partake in trading.

More often than not, it's when the tables turn and I am not at one with what I see. The continuing unexpected market moves upward are very much at odds with what I see. Intellectually it is challenging to accept what "is" when obvious manipulation is going on around us.

So then what, you may ask, do you do? Do you just stay with the feeling, let it set you aside or do you rise above it? Perhaps rising above is not the right expression or direction. It is more like the Chinese expression of learning to bend; to be like the reed and not be a tree. Laying it aside a while, or, perhaps there is another way of leaning.

There is absolutely nothing wrong with taking some time away from and off trading when one cannot go along with what is. There is also nothing wrong with training yourself for a shorter trade. The comfort zone being challenged with a longer stay is what I notice more. So the acceptance of what "is" becomes easier when being at odds lasts a shorter time. Try it next time when your think things should be down yet they are going up.. or visa-versa. Rather than watch an opportunity go without your participation, enter it for a taste and make it a winner day anyway, allowing for the mood swing. It is by no accident that our mood changes with a winning trade, allowing us to accept what "is" more easily.

Happy Trading, Living and Dancing

Today's BlogPick: VNO

Copyright Day Trading with Anni 2010

Friday, March 5, 2010

The Daily Note - Capitalism Denied

Think about it; we are deluged with the idea that the rich, the corporations, the wall street greedy and the those that "have" are at fault for all that ails America. In other words, Capitalism is the culprit. You might as well say those who wish to run a business because after all, that is capitalism: the desire to make better for ourselves. This country would not have prospered if that truly meant "greedy".

Yet I hear it daily from people oft just repeating what they hear and taking it on as their mantra. The very same people often who have worked and made well in this country. It is the new slogan, and it makes me mad for one reason. When I ask what would work instead, most do not have an answer. Correct that, most don't have a clue. These people are not dumb, they just don't think.... for themselves. If it was for bad intentions, I would not be as angry, but for the reason that it's because they think media to be more intelligent.

The campaign happened over time and took many years, but it's effect is no less dangerous. The venom with which many now talk about company leaders makes one cringe. Many educators have driven the anti-capitalist agenda for years. What is even more surprising is when I hear it from business owners who do not recognize that they are capitalists themselves until it's defined for them, which is this:

cap·i·tal·ism   [kap-i-tl-iz-uhm] Show IPA
an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, esp. as contrasted to cooperatively or state-owned means of wealth.

The real clue in the above and the one thing that should make people pause who hate capitalism for being "greedy" and having the "power" to rule is: "as contrasted to state-owned means of wealth."

Wealth will always rule. If you recognize that fact, the rest ought to be a little bit easier. The question becomes then whether you wish to have wealth centralized or dispersed.

Capitalism allows for the dispersion of wealth because it is owned by the many who started and own the businesses, most of whom have vastly different agendas. Contrast that with centralized wealth, one that is with one government, with one agenda.

If you define greedy as being the ones with the ability to rule via wealth, then you better look to your government. The one that has been collecting your taxes for decades and spending it according to their terms and then wanting more, often without consideration or service. A government that wishes to look benevolent by the promise of wealth dispensation is the greediest because that is total control. And as you hear your fellow citizens cry out "we want our fair share" think of them as people who have been denied knowing how to capitalize on their own talents and therefore denied their own wealth.

Happy Trading, Living and Dancing

The BlogPick : WYNN

Copyright Day Trading with Anni 2010

Thursday, March 4, 2010

The Daily Note - Postponed Prosperity

Prosperity postponed. That is the reality about current events. Yes, it has been that way for a couple of years, but what is different this time is the relentless new additions of regulations which continue to erode all chances for a recovery as we have known it with the curtailing of freedoms for the pursuit of it.

To list a few, there are almost daily talks and some action about regulating in some way or another the financial industry; banks, brokers and traders alike. Wall Street has been demonized enough that the discussions on the subject is being pursued with barely a mention in the news. Just the 10% rule to restrict the shorting of stocks is enough to assure that the markets will not truly reflect traders' sentiments. Add to it, the curtailment of trading activities via increased taxation on capital gains, as well as the increasing popularity and lack of understanding about transaction taxation.

Certainly there has not been much coverage on the issue in the mainstream; and what it is not realized is that it will radically reduce trading activity in the markets if enacted. We can argue at length about the pros and cons of the increased participation of "amateurs". What we all have to remember is that the "amateurs" who trade are most likely not collecting public funds to survive and are themselves potential future employers as a result of their entrepreneurial actions.

Yet that is just one pixel of the picture. The gross lack of understanding of what motivates people to become productive is the biggest reason why we are not on the road to recovery. People have to see the possibilities for self reliance in order to really forge forth and create. It is that which is first killed by all totalitarian governments which ultimately sets them on the road to failure and increasing insistence to tax and regulate. Even if innocently, once the production of the people is suppressed, the need for rules increases. It's like slavery and suppression ultimately leads to it.

Suppression wears many disguises, not the least of which is telling people how much others are at fault of their misery. By believing that, we postpone our hope for prosperity because we believe others to be the ones who make us fail therefore we don't recognize that we are the ones who make ourselves succeed.

Here's a meditation for prosperity; remember one's prosperity can never infringe on another, because it's infinite. Totalitarians always think of it as finite and point to the have not's. But true helpers will always share and uplift others not by handouts but by example.

Happy Trading, Living and Dancing

The BlogPick: BIDU

Copyright Day Trading with Anni 2010

Wednesday, March 3, 2010

The Daily Note - The Coming Storm

Perhaps better title would be "Eye of the Storm" but I don't expect calm waters with what is going to be proposed and discussed in DC over the next few days. I do not think of the issue as insignificant for traders; and I feel it will be only one of the significant steps which is making change in the way we will trade or live going forward.

President Obama makes daily speeches, but today's speech will reach into each pocketbook if Congress continues carrying out the agenda regardless of people's wishes.

Any bill being passed by Congress regarding the American people's Health Care management will have a huge impact on the economy soon and far into the future. Already taxation is being revved up for it although most Americans are uninformed of the fact. The payout to the people will not even become reality for a number of years, and by the time it starts, trillions of dollars will be already committed unto the "beneficiaries", and it will still not cover everyone. There may be even less accounting about where the money is being kept and spent as there is currently collected and paid out for Medicare, which all agree is wrought with fraud. So the amount of dollars that will be collected in the next 5-7 years prior to any payout may not even be "there" if Congress handles it as they do the Social Security funds.

Yet all this is supposed to bring security and guarantee for health to the population; so, for traders and investors the question becomes, which companies will deliver the most for investment dollars. I am not great at this kind of analysis, although I could take a couple of stabs just because I know a little about socialist states.

Insurance companies, most will suffer, the anointed ones will benefit. Competition among them will be less, not more, profits will be less as the government will collect more. Drug companies, will receive less dollars, research will be more scarce and not even pursued as much because government will nix a lot of expensive drugs off their approved list. Less Medical equipment will be purchased with less dollars being available for hospitals and medical clinics. Student enrollment into medical fields will drop as their incomes eventually will be controlled by government. Patients will no longer come to America as the medical advances will recede and become more like the rest of the world.

In short, medical dollars as the USA has known it will dry up. I will not compare other Social Medicine systems to what will eventually develop in the USA because it's really impossible to predict. But be assured it will not be as great as what we have enjoyed, just by the sheer changes in service choices which will have to be reduced and eliminated for the "good of all". I know that under such systems, black markets thrive and people will learn to tip prior to receiving service, and continue to tip to be assured of service. We will all have to learn the ins and outs of bureaucratic mazes lining palms as we go, for a favor. Am I describing an extreme change? I can only hope not.

So the moral of it all? Stay healthy and don't get old.

Happy Trading, Living and Dancing

The BlogPick :

Copyright Day Trading with Anni 2010

Tuesday, March 2, 2010

The Daily Note - Believing in Possibilities

When one really thinks about it, we have endless possibilities in life. In fact, what is really true is that "At any one moment, we have more possibilities than we have ability to act upon" written by an unknown author.

I submit that everyday we have that very fact illustrated perfectly in our trading world, just looking at our watch lists. The problem is that if we really grasp that idea, we can also get overwhelmed at the thought. Although yesterday was the perfect time to not worry about the pick we may have acted upon from the lists, we know that the possibilities are not guaranteed to end in the way we wish. But it's still true that we always have unimaginable number of choices within every moment of our lives. We, as our limited self, are the ones that fret over the outcomes and put on the negative or positive tilt about them.

The idea is to recognize the truth in the statement, yet separate ourselves from it so it will not become overwhelming. Knowing and accepting that we will not always make perfect choices is really the key here. Knowing and accepting that our possibilities will not be limited as a result should give us consolation.

Traders need to learn to recognize this truth and have it etched in our consciousness well. The saying that there are always more trades is very true, but only if we allow for the possibility.

A tune by Patrick O'Hearn from "Between Two Worlds"

Happy Trading, Living and Dancing

March 1st was an exceptional day for possibilities of the Member's PlayList BIDU, PCLN and the BlogPick of the day, MA for a high total of 23 points. You can subscribe to the daily member's picks by clicking on the "Subscribe" tab.

Todays BlockPick: FSLR it has not partaken in the positive moves of the market, but may have bottomed in the last week, if only for a little while

Copyright Day Trading with Anni 2010

Monday, March 1, 2010

The Daily Note - Green Shoots

Green shoots emerging everywhere brings ones mind to springtime. It's been warming up and along with the shoots emerging it seems so is optimism. I'm not sure how well structured it is, because optimism comes naturally in springtime, it's part of our makeup to look forward to the earth thawing and welcoming new growth.

Whether the new growth will grow strong roots is yet to be determined. Many new fledgling plants die in a late freeze. Some also point out accurately, that this optimism in the markets started earlier than spring and was even forced, propped up and manufactured. It may be yet there are signs that the bears are receding into the woods, having been exposed and smarting. It is also said that when most pick up the banner of optimism, it's a sure sign of reversal.

Yes, it's springtime, when storms are still brewing ready to freeze early plants and sunshine breaks through the clouds warming the earth, encouraging those green shoots to grow everywhere. I think people warm faster to optimism than they cool to pessimism, even when faced with the worst of conditions. It is why humans survive the worst disasters be it man made or natural.

Yet, the real danger for traders is in taking sides. Believing in the optimism theory that the green shoots are forecasters of nothing but upside, they may get gutted by the bear. Believing that early optimism is a setup for a late freeze, they may get gored by the bull. Traders need to watch the skies daily for signs of storms and count the survivors for clues about freeze or a thaw, and still need to be weary about the promises made by/to those who may have a bigger agenda in play, if we are to avoid being buried in sudden change in the weather.

Happy Trading, Living and Dancing

The BlogList Play: MA

Copyright Day Trading with Anni 2010