Saturday, July 28, 2012

The Daily Note - Trader's $STUDY Friday IV

*****Sometimes no matter how or what we do, it's perplexing that we cannot execute a trade the way we have planned. When it happens, first examine your planning then examine your attitude. If you have prepared well for your trades and still it is difficult for you do trade well, it's a good idea to observe your thought patterns next.

A notebook then becomes essential, even if it is in the form of post-it notes. As you observe each thought, jot it down. Important also to jot down time of day, and market conditions at the time of your thought. Soon enough you'll observe a pattern. Remember that your thought pattern is unique to you, although many may identify with what your are feeling/thinking, still they cannot identify with your solar plexus (your gut)and that is why each trader is unique and cannot truly follow anyone else. Honor your uniqueness and you will become the best trader you can be.

"Feeling Good" Whenever you sit down to trade, resolve yourself to feeling good. No one can change your mood except you. Surround yourself with what makes you feel good, let go of things that don't.

"Come Fly with Me" When a trade is flying your way, be sure to keep head below clouds and feet on the ground. Make sure your alerts and stops are set and keep your targets in mind.

"Always On My Mind" Appreciate the trade you are in, not the one someone else is bragging about. There are always temptations around you for another trade, but focus on the one you have. The best chance for success is in the trade you're in, not the trade you're not.

"Fever" When a Stock is hot, it may be too hot to handle. Know what you can trade, know what you can do and you will never go astray by temptation.

"Lost" When you are lost in a trade and can't read the writing on the wall, ask for help. You are not alone! Take time to find those who will help you learn and boost you when you are down.(Moi!:)

"Quando, Quando, Quando" If you have to question "when?" You need to study the chart some more for your answer. The question of "when" is usually answered by the pattern of the chart. It's a lot like reading the stars, which were and can still be used for navigation.

"All of Me" It may be tempting, but don't put all your funds in one trade. This may be old news to many, but some still may need reminders and new traders may not realize how fast this can happen.

"Marie" Crying out the stock's name is useless & likely in desperation; otherwise it would be "yes, Yes, YES!!" Come on, do I have to expand my explanation on this one? LOL

"Save the Last Dance for Me" Forget it, a trade will never save the last dance for anyone. Learn to know when to dance & when to let go. You're deluding yourself if you think a stock will wait for you. Be ready for the last "dance" whenever it may come.

"Home" Keep reminding yourself why you are trading & go home with profits. This may be obvious, yet so many times we need to reminders to remember. Stick up a post-it!

Today's featured artist is Michael Bublé, a Canadian born Jazz singer who prayed nightly to become a singer in his teen years. But he did more than that. According you his first manager, "Bublé would do every gig imaginable, including talent shows, conventions, cruise ships, malls, hotel lounges, bars, clubs, corporate gigs, musical revues, singing telegrams, and even the occasional singing Santa Claus gig". So, remember it takes more than prayers to become the best you can be: you have to apply yourself to what to want.

For Once in My Life by Michael Bublé on Grooveshark

Happy Trading, Living and Dancing and
Be Free, Be Alive, Be Happy

©DayTrading with Anni 2012 All Rights Reserved

Friday, July 27, 2012

The Daily Note - Trader's $Study Friday III

Action during earnings season always emphasizes our trading flaws and allows us to inspect what elements we may be missing in order to execute better trades. Our observations also get challenged and opportunity to sharpen our chart reading skills presents itself.

Start by observing the the chart and follow the trades throughout the day prior to and after market announcement. Then, observe how the stock reacts to earnings announcement. The next day see how both previous and earnings charts compare and observe the buying/selling interest volume. All these give you clues what the following days will do.

The digestion of earnings always has an initial reaction, a follow-up reaction and a continuation. Once you learn to observe these on the charts, it will help you find the direction for your next trade.

Happy Trading, Living and Dancing

The Daily Pick - TBA
©DayTrading with Anni 2011 All Rights Reserved

Tuesday, July 24, 2012

The Daily Note - AAPL Earnings Thoughts

AAPL was holding up most of this market for the last quarter in my opinion and I was saying it on some of my outlook reports on YouTube. I also used to say, and got often hammered for it, that Steve Jobs was a marketing genius and the one who was behind AAPL's success as a result. A few times I also mentioned that all kings of mountains eventually have to crumble just because they stick out to be competition targets.. RIMM was mentioned by me as an example among others, like Nokia, Motorola. But, alas, some people kept thinking I was nuts or worse. I, on the other hand, thought that many were blind to the cultism that AAPL products became, which drove much of its sales. AAPL and Steve Jobs were both thought of in the same breath, therefore I wrote some articles about the possibility of more difficult times ahead if and when Steve Jobs moved on.

I never took away from the fact that AAPL was a good product and that their product filled many needs, but in some things I'm a realist and not a romantic. Inventors and inventions in entrepreneur hands tend to make my vision realistic. There are many people out there with a better wheel perhaps or need for no wheel pretty soon, and that is when the future becomes the past. Horse buggies too had their day in the sun.

Now, today, we had an earnings miss, with outlook down, which dropped AAPL 40+ points from day's high. I'm not gloating, it happens that way and kings don't get toppled easily, so I'm not saying it's over by a long shot. Still we all have to remember that Steve Jobs' marketing genius is no longer in play, and Tim Cook still has some proving to do to satisfy not only the cultists but the shoppers who are now looking for more bang for the $buck as the economy falters ever lower with USA being still the last best hope.

Which also reminds me that we need to remember this is an election year. Part of the agenda is to make it worse before better, if the economy looks really bad now and the rescue comes, all will breathe a sigh of relief? Buy into the "hope & change" again? Look to the king and kingpin Bernanke to make sure that by election time we can be "green at any cost" and AAPL will rise again.

Cool Change by Little River Band on Grooveshark

Happy Trading, Living and Dancing

The Daily Pick - AAPL
©DayTrading with Anni 2011 All Rights Reserved

Friday, July 20, 2012

The Daily Note - Trader's $STUDY Friday II

Welcome to the second week of Trader's Study Friday where we continue to examine the do's, don'ts, trippin' points and places in the world of trading. In general, the mechanical and psychological journey of trading.

Today I'm featuring Gerry Rafferty the Scottish singer, songwriter with a soft voice, powerful messages, yet easy melodies. A type of teacher who you may not mind reminding you about things you have forgotten. He had a spirit and a soul that marched to a different drummer when it came to the music business. He did not like fame and he wanted to be respected for his music and creativity. He received both. His second solo album, City to City, toppled the Saturday Night Fever soundtrack in the US, July 1978.

"Baker Street" Is Wall Street your Baker Street? Used to be easy but now you're crying? Never assume that Wall St. is "easy street". Find your way to a class or a book to learn and to keep on learning.

"The Way That You Do It" Charts have a way to tell you when you got a trade right or wrong. A way to leave you with no doubt. It can help you stay in a trade and show you when to leave it. Reason to believe that everything can be. They come on strong

"Night Owl" Do you stay awake at nights worried about your positions? "You've seen it all and before and like a fool you come back for more" Sound familiar? Don't get lost in dreams with shadows, use your nights to study and prepare for the next day, not for worry. If you prepare, surprises won't keep you up at night. Otherwise you will only repeat what you have done in the past.

"Can I have My Money Back" Practice your trading methods, strategies, style first on paper. There is no way to get your money back in trading once gone, and preservation of capital is of utmost importance.

"Get It Right Next Time" Resolve to learn from trading mistakes and to do it right the next time and keep your resolution! If you do not bounce back from a bad trade you will continue to spiral downward in spirit and method. Keep studying and learning; the light will eventually become brighter.

"Don't Give Up On Me" Don't give up on yourself. Not every idea, strategy or trade will work in your favor. Recognize & love your mistakes. It's important to keep a positive attitude. Know that it took a long time for each and every trader to become a success and admit that you will not be the first to feel that the market is against you.

"Take the Money and Run" When at first you succeed, this is the tempting way to go. Develop your own strategy to keep your trade going for best gains. Study your exits at least as much as you study your entries.

"Change of Heart" Nothing wrong with a changing your mind when trading. Market rhythms change and so should you along with them. Often traders hang on even when writing's on the wall to be dragged down with the trade. Not surrendering a bad trade is what makes most traders fail.

"It's Easy to Talk" and harder to do, but don't marry your trades. They'll break your heart every time and may even kill your ability to trade. Always remember there is another day and time you can meet again :)

"Home & Dry" Is how you will find yourself when you follow your plan and do everything just right. When you do, study it too. Especially because it was the "perfect" plan. Learn from what is you did right as well as what you did wrong.

Remember that we all struggle with our chosen lifestyle, and it takes courage and perseverance to keep on going when we love the life we have chosen.

The Right Moment - 1982 by Gerry Rafferty on Grooveshark
Happy Trading, Living and Dancing
The Daily Pick - TBA ©DayTrading with Anni 2012 All Rights Reserved

Thursday, July 19, 2012

The Daily Note - Earnings Plays

*****Not everyone can work the action on earnings plays. It takes extra hard determination, steel will along with total commitment to stick to what you see and keep the rules. It can also bring gain and loss with equal speed in the same split second.

Trades on earnings are just too quick to enter as the announcement is released. Most people play it as pure reaction and don't plan their plays, but I say you have to let it unfold to your plan. As the announcements are released, wild fluctuations can happen and deciding your trade at that time becomes emotional as well as nearly impossible. Trading becomes fast and momentum furious. So as you quickly try and catch a trade you may end up missing the action at best or far worse, getting a fill that is way off. The execution is important.

My Earnings Play list is planned before announcement and allow for a possible hit long or short without triggering the opposite play. Targets are planned according to possibilities and not dreams. In other words, I have a price target set up as well as an entry target. The idea is to not shoot the stars or the moon but to find a realistic target price, set it up and let it play out. Then be sure to manage the out well, based on what you already determined prior to the action.

Like in all trading styles this too takes practice. Learning to set up the entry and exit is the best friend you can have which is part of the preparation. Then, once the trade is entered, it is important to say in the moment because it's where you have most control. Stay in control of your emotions, and your targets; know what you want, don't let that target fluctuate. You are allowed to change your mind and take a lesser target on your list, but allow for the play to continue and use the lesser target for your stop. Just know that the more you control your trade the more satisfied you'll be with the outcome.

Night Air by Jamie Woon on Grooveshark
Happy Trading, Living and Dancing

The Daily Pick - Earnings Plays ©DayTrading with Anni 2012 All Rights Reserved

Saturday, July 14, 2012

The Daily Note - Trader's $STUDY Friday

On Friday the 13th, I debuted a new study series for traders, where each point is set to music and individually posted on StockTwits/Twitter. I plan to feature study points each Friday afternoon in the same way, then post an extended version on this blog. Most points will be random, some may follow a theme but all are aimed at helping you become a better trader.

Some people learn better by reading, others by seeing or listening. I am a listener/seeing type so for me music association is helpful and I hope you find these points usable in your daily practice of trading. So, below is the expanded version of each point posted Friday, but first about the music.

Friday, I featured a very successful debut album by Boston, named "Boston", which was released July of 1976. It has been certified to be the 2nd best debut album so far, with 17x platinum sales by 2003. According to, all eight of the songs on the album still receive regular airplay across the country. I know we all wish that our trades were as successful, but that is what we work on daily when we sit at our desk trading.

So Let's review some of the most basic steps which successful traders practice. Each point is set a title on the album, so you can listen as you learn. Be sure to use "open in new tab" for the links to play each cut so you won't lose this page or copy and paste the links directly on a new tab. Alternatively you can listen to the entire album posted below. Anyway you listen, or not, I hope you enjoy this learning journey: a posse ad esse (from the possible to the actual.

"More Than a Feeling" A successful trader is doing this work because of passion not because of need. Need is a feeling that will take you down, passion will drive you on. More Than a Feeling ♫

"Peace of Mind" While trading always use "STOPS". It helps keep your peace of mind. It is important to be the most relaxed when trading. If you don't like your stop loss, you are not trading correctly. ♫

"Foreplay/Long Time" Always take your time ~ keep on chasing that dream but not the markets. Markets will always be there ready for you to trade, so it's not important to catch each trade and if you use hindsight, you will miss the next one too. ♫

"Rock and Roll Band" Takes a lot of practice on the way to "riches" ~ never worry about things you're missing. Be patient with yourself and don't hurry to "get there". If you focus on what you're missing you are not learning. ~ ♫

"Smokin'" Fast and furious trades are rare, when you get 'em keep dancing with them. In other words, successful traders know that not all trades will be record breakers but when one happens, they know how to ride the wave. ♫

"Hitch A Ride" When trades seem to freeze, it's time to trade the other side (yes, it's the same album). Markets can change quickly and we all find this the hardest to accept sometimes. It's like the flip side of the record (old fashioned term, when records had an A and B side. OK there's no flip side on a CD, so think of a coin then) ♫

"Something About You" If you get a "feeling", check it out. Your gut or instinct can be your best guide. Trading is mostly gut not brain and although many may disagree, it's why women are considered better traders. ♫

"Let Me Take You Home Tonight" Take your profits home, DayTraders(withAnni) always do ;). Yes, day traders cash out each night if they are true day traders but no matter what kind of trader you are, profit is your ultimate goal, so learn to cash it in before giving it all back. ♫

You've been listening to the debut album of Boston, released July 1976, here is the entire album:
Boston (Entire Album) by Boston on Grooveshark

Happy Trading, Living and Dancing

The Daily Pick NDX

©DayTrading with Anni 2012 All Rights Reserved

Tuesday, July 3, 2012

The Daily Note - Born on the 4th of July

What does that have to do with trading? Nothing, I must confess, but give me some time and I'll figure it out. I often quip that I had to be born on this day in order for my family to be allowed into the US of A but other than that, it has no useful purpose except to bring attention to myself, which I am doing shamelessly today.

I'm sure it's not news to you that I'm not the only person to be born on this day of USA's birth, but I may be the only one you can casually know as an immigrant (via parents) and the only one you may also know who is a very ardent supporter of the U.S. Constitution as it was written. I put the caveat "as it was written" only because there is a growing number of people who would either like to scrap or rewrite it into a un-recognizable document.

There is also a growing number of people, I noticed, who are increasingly outspoken about how the alteration will in effect kill the only successful experiment in real freedom of choice. I am happy to see it, because for many years I thought it was only those who knew how the "other" side lives, who knew the dangerous path this country has taken.

I will not lecture you here as to why, I only ask that you, who really want to know of what I speak, read the Declaration of Independence out loud to the group you are with on the 4th of July. Some of your listeners may have never heard it. Also I ask that you read and study the U.S. Constitution and appreciate its simplicity before you vote again.

It is in the simple rule of law that we realize most of our achievements as individuals. It is in the simple where we can be less ruled and allowed to have more choice. If it takes a 1000 pages to make a law, it is an insult to our intelligence and it means that it is not the same for all; in other words, it restricts and we don't have to read it to know.

It's the simple fact that the founders of this country debated, often agonized over words in order to write those simple phrases that are the most simple of laws in that small pamphlet called the "U.S. Constitution". It took them years to write it, yet that small pamphlet of laws allowed this country to be the most advanced and the most desired place to live in on this planet, even to this day. Congress would do much better if they remembered that simple fact and practiced the same.

I try to live by the words that I write and my trading strategy is very much the same. Simple rules for better choices creates my freedom to travel, study and enjoy life.

Made In America by Toby Keith on Grooveshark Happy Trading, Living and Dancing

The Daily Pick - Happy Birthday USA & ME

©DayTrading with Anni 2011 All Rights Reserved

Sunday, July 1, 2012

The Daily Note - Avoiding Self

To me, the reasons why we avoid ourselves is very mysterious until we realize that since birth we've been relying on others how to do, live or enjoy this life. Every day since birth we've been told how, what, or where we need to look to be sure we're doing things well. School only reinforces relying on the outside view and often derides those who look within. All advertising and even entertainment programs now, such as television, motion pictures, magazines remind us daily that "experts" have the answer for everything, thereby diminishing or even killing our sense for self-reliance. And I haven't even mentioned what governments do to lead us to dependence by constantly reminding us that without them, we would not have jobs or our health, and we'd be without roads, energy or even our senses if you listen to them the way they tell it.

School systems including colleges and universities are the second biggest sellers of dependence. Many believe that no one can get educated without them. It is their constant message, especially when coupled with "Everyone MUST have a college degree". Less and less people step outside of the fray to question all this expertise because it has been part of the curriculum of the schools system for at least 3 generations, and we all know it only takes that long to change a society. Don't we?

I am not saying to discard all institutions but in order to keep our own individual creativity and sense of independence we must limit their power over us. It was not the intent of the founders of this country that we be ruled by them but for us to rule ourselves. It is ironic that those perpetuating the notion that the US Constitution is a "living" document are the ones that wish to dominate us more than to let us live within our own means.

In order to wake up your independence, you have to quit avoiding yourself. Quit thinking that others know more about you, and honestly get to know yourself in a non-dependent way. Discover what you can do for yourself. You will see that as you grow more independent so you will help others do the same. It's not a handout, it's a way of life. It's not a dependence it's a way to become free. To awaken your spirit of independence and for you to realize that you're being encouraged to give it up each and every hour of your life, I suggest you go out and watch a bird fly. Who is paving it's way? Who is telling it which way to fly, where to build it's nest and what to eat to stay healthy and alive? Finally ask who is teaching it how to live? I suggest we know the answers well from within us, once we learn to listen to ourselves and not to the commercials, propaganda, or even the "expert" studies.

We all need to cooperate to have something removed as well as to have something added to our lives by outsiders. We all cooperate with those willing to tell us what to do when we become uncaring, lethargic, lazy about ourselves; all leading to giving power to those who are more than willing to indoctrinate us. I don't doubt for a minute that it's not with good intention for the most part, but think about what those good intentions are really taking away from you.

If I tell you that the market, sector or a stock is going to go up or down and tell you to buy or sell according to my reasoning, how do you know what my agenda is with that recommendation? It could be my best intention for all or am I trying to manipulate a large audience to a like or contrary position so I can take advantage of the resultant price rise or drop? I don't delude myself that I could, but we all know that we have to be leery of analysts and brokers. Yet, why are we not equally leery when it comes to large money managers like the Fed, the Congress, the IMF, ECB, or the likes of  George Soros telling us what to do and how to manage our monetary lives. Why is it that we hang on every word they say and allow them to "rule" the markets with reports that they correct over and over again? Much like the "expert" health officials who tell us one year how much coffee is good for us, then change it to a negative the following year for the same quantity.

It's not easy to untangle ourselves from the daily spin unless we become aware of it and train ourselves to have alarms go off when we hear it. Then, in our aware state, we can begin to question what we hear and, if we know ourselves, learn to listen or dismiss all or part of the information. It is thus, with trial and error that we develop ourselves. It is thus that we learn to trust and stop avoiding our "self" in order to become our own ruler of our destiny and become the best that we can be, which, using our own analysis, only we know.

It all gives a new meaning to "Trade what you know" .

B.B. King by To Know You Is To Love You on Grooveshark
Happy Trading, Living and Dancing

The Daily Pick - NDX ©DayTrading with Anni 2012 All Rights Reserved