Thursday, October 28, 2010

The Daily Note - The Madness

There comes a time when you know what you are doing is part madness, but are unable to stop. The answer to why is what has plagued many but knowing the answer does not necessarily lead to the act of change. Why again? Why indeed!

The answer: "Better the known evil than the unknown good" has long been used and it is totally accurate. It is why so many hold on to losing trades with hope rather than cut loss, do a flip for a more likely gain. But there are other reasons why people hold on: it's familiar. The known gives "comfort" the unfamiliar is mysterious it's comfort, not guaranteed. It's been reported that people who are relieved of pain after having suffered long with it, have trouble functioning and sleeping without it.

But knowing it, again, does not assist in changing the habit and it's why we keep electing and re-electing people into political office even if we know that they do a terrible job for us and waste our resources. Some who know of their habit, admit to it, others deny it and come up with false reasoning for their choice.

Hence the madness continues, unbroken with perhaps a tiny fracture here and there when sanity shines through only to go into hiding again, when we seek the comfort of familiarity once again.

It takes more than just positive reinforcement to make a change for our good. It also takes consistent reward but most of all it needs assurance. Assurance is faith based because it 's not a guarantee. Assurance is what we discover within us and upon seeking, receive from others when going through changes.

In life as in trading, you must recognize patterns and rid yourself of destructive ones lest they become your comfort zone of madness. For trading, it is good to make a list of habits you have and put them in one of two categories:one negative the other positive. Then filter each trade you have made with that list and see where the madness takes over in your trading style.

Then, seek assistance to change it. In today's world it's not really difficult to find. There are very good blogs, and books. More directly there is the StockTwits and Twitter communities where like people can find each other in need and support. And finally there are trading rooms and coaches where traders are very supportive of each other. I am proud to say that members in my room fit this category very well.

The pattern of madness breaks when we realize that we are all seeking the same thing: we all seek to become better at trading, living and dancing. So come and join us today for a step or two around the dance floor, offering good music and good trades without madness.

Happy Trading, Living and Dancing

The Daily Pick - VRTX

©DayTrading with Anni 2010 All Rights Reserved

Tuesday, October 26, 2010

The Daily Note - Wild Hot Trading Days

With cooler weather, storms and rain, what am I thinking? Well another day of earnings will bring on some change as to how wild we'll see. But since expectations are for the good side of profits, I wonder if there will really be surprises.

Is it all for the good, for real or for the setup? We keep ignoring facts influencing far more than those current upgraded earnings. When expectations were so low not so long ago, anything plus is an up. Profits, real profits come from growth and not cutbacks and it's something not really addressed. Real profits come from growth not from inflation. Another items which seems not to be addressed. Real profits come from private enterprise, not from government supplied enterprise. Just one more of that troubling thought but perhaps I am old fashioned, after all, we keep ignoring government takeover of free markets and private companies happening everyday.

Happy Trading, Living and Dancing

The Daily Pick - BWLD

©DayTrading with Anni 2010 All Rights Reserved

Monday, October 25, 2010

The Daily Note - Wind of Change

There are days when I feel that setups are difficult; when I question direction and when I wonder how far is far enough, how high is high enough.

Today is one of those Mondays when I'm not too eager to sink my teeth into much, perhaps overly cautious, and I look at it perhaps with a different filter; the filter of reality, I hope. I follow my inner guidance while trading and I will again today. It does not mean I will step aside only that I may be more in harmony with both.

There is another cause for my lack of enthusiasm related only in timing; because I am reminded that it is when least expected that the biggest turn of events happen. My life changed forever at a young age at one of those events and the anniversary thereof was just this past weekend. It was not to be my last experience of great change, but it is to this day the most profound. One that changed not only my environment but shaped my view of the world.

I was not alone in that experience, as it happened to thousands of us; 250 thousand to be more exact but each of us experienced it differently of that I'm sure. It's much like in trading each one of us experience the markets differently from day to day, hour by hour, minute by minute; what may be a buy for you may be my sell to you, yet we all expect certain outcomes largely based upon our calculated approach and action.

I was certain that the end result of my experience those years ago would last my lifetime until recent times and events made me realize that the events of that long ago are encroaching on a new land and may repeat history on a people far less suspecting. Just as in trading, market direction may be too grim or too enthusiastic, yet many new to the game may not heed its warning and having no experience may come to realize early, some later and some too late that the winds of change have yet again brought us to a day of reckoning.

Happy Trading, Living and Dancing

The Daily Pick - None
©DayTrading with Anni 2010 All Rights Reserved

Friday, October 22, 2010

The Daily Note - An Earnings Trade or Two $BIDU?

It's difficult to imagine sometimes when or where a stock will take you on a journey of possibilities. I found that to be true with BIDU having traded it for a few years, I at times thought it crazy especially in it's IPO days. Ever mistrustful of "wonder" stocks as this was, I mostly stayed away until it was just too difficult to ignore. Then came the downturn and a hard lesson for stops once again burned into my brain.

The drop was severe the shorts made us winners but the calculation of where it would end was the challenge, my last bottom calculation was somewhere around 93 but it finally ceased to drop at 100.50. Since then, BIDU hardly glanced back with a run that is seldom seen, up to current highs. The highs which I have questioned in recent days/weeks but after yesterday's earnings have to recalculate once again.

One thing for certain, you do not bet against a trend and you bail fast if you do. This climber is like an invasive strong vine that clings to house and home walls if need be, and twines around anything in it's way of growth. How high is high? Jack and the Beanstalk comes to mind, but your guess is as good as mine. Watch the video below for earnings trade and future thoughts.

Happy Trading, Living and Dancing

The Daily Pick - BIDU

©DayTrading with Anni 2010 All Rights Reserved

Tuesday, October 19, 2010

The Daily Note - An $AAPL A Day

Apple earnings gave a mixed bag.. are there any rotten apples in there? I don't think there are as many as there are blind believers in the AAPL theory.

If you watch AAPL being twitted about, written about, talked about and stalked, it is no wonder that most get persuaded easily to jump on the bandwagon. I don't really blame them, since AAPL has produced some nice gains for people who have, but enough already! It's time for AAPL to rest; until next earnings.

Happy Trading, Living and Dancing

The Daily Pick - Trade it like you see it AAPL earnings:

©DayTrading with Anni 2010 All Rights Reserved

Wednesday, October 13, 2010

The Daily Note - At the Fair

Sometimes we enjoy ourselves at an activity so much that we forget when or why we started. The doing itself is addictive and a motivator. You know what I mean. Those times when you wish the party did not have to end. Like a party where the music and fun goes on and the dancing doesn't stop until you realize you're dancing alone. The markets can be like that but instead of feeling embarrassed about your lack of savvy, you are left embarrassed and perhaps penniless because of your lack of attention.

That is why I advocate peeling profits. You cannot time the markets and you may not make the most, but you will be left with profits when the market turns and often without much warning takes you out of the game.

I don't know how high it will go but the markets are heady now. It's like being at the county fair. You may see higher from he ferris wheel but will you know when the wheel turns to take you down? Taking part in the games, rides, food all combine for a heady day, add a little too much fun and too much sun and you forget about the little pony you wanted to buy. If you are not careful the fair will end, the rides shut down, the ponies will be all gone and you'll be left with only a headache and a queasiness in the tummy.

Happy Trading,Living, and Dancing

The Daily Pick - DJIA ES_F NQ_F

Whatch a live analysis about DJIA ES_F NQ_F by me on

©DayTrading with Anni 2010 All Rights Reserved

Monday, October 11, 2010

The Daily Note - Week for Discovery

Yes there is a feeling of discovery this week, not just from a historical perspective but also from a new energy that seems to be entering the markets and the feeling in the world. I just spent a day watching how awesome the Universe is with miracles being performed every moment and truly we never know when the next discovery will come out of this total chaotic soup. Remember that there is an order to everything, including when we tap into the next greatest discovery.

A discovery which becomes known throughout the world, is thought of by millions within the same time frame. The reason is need, the calling from the spirit for a solution and what is right for the time, will not be denied. Columbus set out to find India via a different route, not to find new land. He set forth in the spirit of trying to find a solution not to prove the world as round necessarily.

The only problem with discovery is that not everyone realizes its significance; whether its in the context of a day, like a breakout stock, or context of a people who occupied this land not realizing they were to become the first occupants of the greatest experiment in Government known to mankind. Imagine if they knew then or even had an inkling about it back in 1620 perhaps they were its first supporters like the first turning of a moving average, it barely made a blip on their consciousness as they were leaving oppression behind seeking freedom in a new land.

Much like in trading, when we are intensely involved in following a pattern, we may not immediately see that it has already changed direction, because we anticipate the continuance of where it's been. The best time to study the stars is when you're stuck. Not astrology but astronomy; as you gaze up into the universe infinite possibilities reveal themselves into your consciousness and while you're full of that wonder, take a fresh look at the charts.

Happy Trading, Living and Dancing

The Daily Pick - INTC

©DayTrading with Anni 2010 All Rights Reserved

Friday, October 8, 2010

The Daily Note - Lost Innocence

There is a great song by Esther O'Connor "Lost Innocence" that makes for a perfect study for traders.

Most start this business of trading in all innocence, wide eyed to all great possibilities until the day comes when we come to know that not every trade is easy nor is every day, and markets can betray us like a lover. How we handle that "lost innocence" can make or break our future as a trader.

"What you can never ever replace is written on your face"
Were you surprised by that unexpected loss? Were you prepared for its possibility?
"When they ask you where you're going and you no longer know"
Was a possible loss planned in your strategy? If not, you will feel lost, not knowing what to do.
"When the way ahead is changed in a twinkling of a night"
Always plan for a loss with a stop so a major loss is avoided. Once planned think of what possible trades you can do in its stead if it happens.
"And all that you rely on is gone out of sight"
Your original strategy did not work and now you can do plan B if you have one. You can flip the trade if it's strongly against you, or recalculate for a better entry.

"Loss of innocence there's a time when losing wins, When it makes no sense"
Yes, trades can happen just that way and we have to face the fact that we can't know everything; realize we can't control everything. But you'll turn each loss into a win if you commit to keep studying and learning from them. Rather than a deer caught in headlights, the loss is a great lesson for your next plan, so look at it as a win and include it into your next trade.

"And nothing is the way you choose."
We cannot have everything the way we choose. Life would be boring and beautiful songs about it would not be written. So, celebrate your "Loss of innocence" each time it happens because in trading, as in life, "When at the end is where you begin".

Happy Trading, Living and Dancing

The Daily Pick - BIDU

©DayTrading with Anni 2010 All Rights Reserved

Monday, October 4, 2010

Speaking of Taxes, Part VI - What's Next?

What can possibly be next? Another earnings season, elections, terror travel warnings, Holiday hiring, are all coming into season but before we rush to that, let's consider that the run up of last month needs first to be digested, or that, for better or worse, October is a month for planning.

Profits to be taken, losses to be shed. Tax planning is important for a trader and investor both. Especially since this year may mark the last for the most favorable capital gains tax we've had in decades and regardless of the type of trader or investor you may be, it's important to start finalizing your tax strategy. Planning for the event starts at filing of the last return and gets adjusted during the year; but if you have not started, it's important to at least have a grasp of your standing and get familiar with the pros and cons of your choices. You have until the end of December to carry out the plan.

This is also the last year of the zero capital gains tax if your income is low enough. It has been in effect for the last 3 years, but usually, regardless of income, minimum capital gains tax applies and this tax may not be kept going forward. In addition, I am not totally convinced that low tax rates and the previous tax cuts will carry on, although it would be wise to continue them. Politicians have their own agenda and lame duck or not, they usually decide on tax cuts and raises somewhere around Christmas Holidays when they also sneak in their pay raises. Most tax payers don't pay attention then. Maybe this year will be different, but different for who, one cannot guess, and perhaps you cannot gamble on the chance or the change.

Happy Trading, Living and Dancing

The Daily Pick - APA

©DayTrading with Anni 2010 All Rights Reserved