Saturday, August 25, 2012

The Daily Note - Trader's $STUDY VII

*****I've been watching the DJIA for the past few months and featuring the outlook on youtube, StockTwits and on this blog.

"Can't You Hear Me Knocking" Start the day with a Stones tune cover by Santana & Weiland, to help $DJIA push through resistance. Finally accomplished stage one this last week, but still in a difficult zone.

"I Ain't Superstitious" Hard not to be superstitious when in this business. I bet many not admitting that they are. If you are, there is no harm is keeping a lucky charm, but if you trade according to the stars and not the charts, you will be taken on a ride.

"Sunshine of My Love" Ponder why it is that traders feel more loved and are more in love when markets go positive. When you're in love, you love the world because good mood generates good outlook. So when you're in the positive of a trade all things tend to look more sunny.

"Little Wing" Santana & Joe Cocker Remember that when you have focus, you'll be riding your trades like flying on the wind. Caution because you can feel indestructible and the willingness to give grows. But the feeling is worth it, just keep your head on and keep your goals in focus.

"Dance The Night Away" - Santana & Pat Monahan Remember all that matters is love and laughter. Happy Trading, Living and Dancing! ~ "Dance The Night Away" - Santana & Pat Monahan

Today's featured artist needs no introduction I'm sure. He's the pioneer of rock-latin-jazz fusion which took me by the storm along with everyone else. Today you are listening to the songs on his album of "The Greatest Guitar Classics of All Time" on which he collaborates with contemporary singers to recreate them. Hope you rock out and enjoy it as much as I do. This body stays in motion while Carlos Santana plays. Don't let your love continue sleeping, remember to uphold your love and your world will become better.

While My Guitar Gently Weeps by Santana Featuring India.Arie & Yo-Yo Ma on Grooveshark

Happy Trading, Living and Dancing
©DayTrading with Anni 2011 All Rights Reserved

Thursday, August 16, 2012

The Daily Note - Traders as Drivers & Riders*

*****Which one are you? Have you noticed that when you drive, you remember the way better than when you are a passenger? When driving, we get a better feel for the road, when we are passengers we tend to see the scenery of the driver's choosing but cannot necessarily retrace the route we were on.

What we remember depends on how we approach the route; one as driver the other as rider. (no backseat talk here)

Every time we hit our desk for a trading day with the attitude that we are just one person and we have no say or influence over what goes on in the world, we basically take on the role of a rider. Therefore the trade we choose to enter is under someone else's control, and we may not know the destination. We view the scenery, worry about the speed try to give directions and hope to get to our reward. Hmm not very confident is it? It's like you have the gas pedal and someone else you don't know has the wheel. No wonder there are crashes. The reward is that we get to cheer or blame the driver for the outcome.

On the other hand if we hit our desk with an attitude that we are responsible for ourselves and what we do makes a difference in the world and in our lives, we become drivers. Therefore when we choose to enter a trade we know we are in control of the direction, timing, entry, and exit. When we are drivers we have total control of the pedals and wheel and tend to steer ourselves toward a destination. We stop and go and make corrections as we need to and know that our choices make a difference in the outcome. The reward is that we have to take credit for the outcome, be it positive or negative.

In other words, every time we play the rider we allow someone else the steer our way; but when we play the driver we make the choices of our way. Both can be scary and both can be rewarding. We make the decision as to which we wish to be at any given moment of our lives and knowing which we prefer is one of the steps toward developing our trading strategy. So, look yourself in the mirror after a trading day and see which one you chose for that day, then analyze your trades accordingly. You may be surprised at what you discover about your style.

Maybe you're more a rider as you start your day and become a driver as you gain more confidence. Maybe you, like me, prefer to take the wheel right away. Maybe you do one or the other depending on your mood or the day. Regardless of which you are, knowing your tendencies will help you in the trades you take or make and the next time you sit ready for a trading day to begin, you can clearly decide which you wish to be.

Riders On The Storm by Creed on Grooveshark

Happy Trading, Living and Dancing

*Some content originally published on 11/16/2007 under title "Drivers & Riders"

The Daily Pick - $DJIA

©DayTrading with Anni 2007-2012 All Rights Reserved

Friday, August 10, 2012

The Daily Note - Trader's $STUDY VI

***** This weeks Trader's Study theme is discipline. It is only one aspect of trading but it's an important one because without keeping to the rules of your trading your success will most likely suffer. When your success drops and you examine the reasons, be sure to examine your discipline along with the rest of the reasons. Keeping to the trade as planned is one thing but keeping your rules for stops is where discipline is tested and broken most often.

"Start of Something Good" Remember that for a trader, each day has potential. Each day can bring is a start and each day can finish with something good.

"Outta My Head" If you can't get trading out of your head, you may be addicted to trading. This is for real. Be sure to let yourself live. Part of discipline is to allow yourself time to live outside this work. You need to keep sharp, healthy and happy in order to be successful at any profession.

"Crashed" Are you heading for a crash? Keeping your rules for stops is the single most important factor in keeping yourself from crashing. So if you trade without discipline, you may find yourself crashed.

"Breakdown" A breakdown may be necessary before recovery is possible. Yes, unfortunately, we all go through period of failure just like the markets or a stock. When it happens, use it as opportunity to refresh your strategy and/or plan.

"There and Back Again" Trading is a process and it will take you "There and Back Again" before you find a steady path.

"Open Up Your Eyes" There is a life after failure. Recovery takes time and discipline, but first you need to open your eyes to the fact.

"Who's They?" Develop and follow your own self, then know who you are following and why.

"Learn My Lesson" Developing discipline will keep you from repeating lessons.

"No Surprise" Once you're on the path of disciplined trading you will find it's the easier way.

"Spaceship" Find a trading circle to help keep your discipline. They are out there.

Today's featured artist is Chris Daughtry, who's band is "Daughtry". Chris was the surprise elimination of American Idol Season 5 but his seeming failure turned into gold with the realease of his first album which became the fastest selling rock album debut. Shows what discipline and determination can do despite seeming lack of popularity.

Photograph by Santana Feat. Chris Daughtry on Grooveshark

Happy Trading, Living and Dancing
The Daily Pick - $DJIA

©DayTrading with Anni 2011 All Rights Reserved

Wednesday, August 8, 2012

The Daily Note - $PCLN - Anatomy of an Earnings Play

*****Yesterday was the earnings play of the decade if not the century. $PCLN the darling leader of all traveling stocks lost over 100 points from the close, post announcement, when the company's outlook failed to forecast expected profits. Did anyone know it would happen? Maybe some knew, there were rumors of a miss, but as history shows it was never a good gamble to believe the rumors especially with high flying stocks, and $PCLN is one of them for sure.

Thus I made the call with history in mind, always looking for a wide enough entry range so a whip action will not effect the main move. The 665 entry short was based on support level likely not to cause whip, and vice versa for the long. Targets are picked for likely reverses. True too is that my eye saw a possible 625 -600 also, which I was thinking a bit ridiculous. Of course it now reminds me, once again, to always pay attention to that inner "eye".

The call itself is not as remarkable as the move or, more accurately, the reaction to the news that followed. All targets were taken out early and it almost looked as if a reverse would take hold, but then more selling took over and once 625 hit and 600 neared, the panic set in; driving down the stock to a 100 point loss on the day and then lower to almost 565. the 100 point call gain was missed by 37 cents; unlike I've ever seen before. I watched it with awe, because true to my earnings play rules, I was out at target. Entry again would have only proved that I was with the panic which is always risky business and I don't advocate repeat earnings plays. Best to be happy with the gains one gets. Satisfaction is when I hit my target, not in the butchery.

Clearly the selling was panic driven but also it has history in that all the high flyers have dropped substantially from their heights and not recovering with ease, so in that it may have been justified selling for those who have been in since the beginning of the year when I first called long on it on my SwingList in January. True also is that the call has long fulfilled itself peaking at 774.96 and $PCLN has already dropped more than 100 points and hit 600 once before. So there should be no big surprise at the current level due to a disappointing report. In fact as I mentioned, the 600 should have been expected; I was just not expecting it in one swoop.

What's next? Well it's as we traded it today. There are further drops possible as are support levels. Faith tends to drop along with big drops in prices, therefore selling from top is likely, and reverse plays risky after the first day. Today we played a long from 575-577 to as high as 584 at market open, then waited for the possible short at 565 which began in the afternoon with a slow and steady push down from the 570 (when watching the 15 minute chart) that could not recover making the 565 entry more likely for success as the pressure increased.

This type of trading is not for everyone, but one thing for sure, even small holdings can deliver good gains, and bad losses too. Therefore, know and study what you do and always: Trade them well and carefully!

Laws Of Gravity by Rubik on Grooveshark

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

The Daily Pick - Revisited $PCLN
©DayTrading with Anni 2012 All Rights Reserved

Friday, August 3, 2012

The Daily Note - Trader's $STUDY Friday V

*****How are you prepared technically? I'm not speaking of TA I'm speaking of knowing your platform, your computer, your charting software. Each of those will influence your plans, setup and execution of trades. It encompasses hardware as well as software. Can your equipment handle the memory required, the broadband and the number of monitors needed to be able to trade well? Make no joke about it, if you cannot find or execute the information fast, you are gambling with your profits.

Your desktop is your office; your communication center, your marketing tool and your store. Not unlike any other business, just much more compact, and your profits depend on how well you are able to handle it all. Your computer and communication ability is the extension of your brain, the more familiar you are with all the technical aspects, the easier you will be able to handle your business. So don't underestimate the importance of having good equipment maintained in good condition and then a backup equally available in an instant in case one fails, as machines often do.

"Bums Rush" Know how your platform operates so you don't get the bums rush entering/exiting your trades. You don't have the time nor can you afford to fumble about for the buttons you need for trading.

"Too Much Trouble" When it comes to trade entries does your platform allow you to keep it simple? If you have to take too many steps to set up and enter a trade, it's too much trouble.

"As Long As the Price is Right" The commission you pay makes a big difference in your ability to trade. Does your broker like your money better than you? Negotiate.

"Cheque Book" Be sure you're account is well funded for the type of trading you like to do. Important if you want to stay out of trouble. Margin calls can kill trading ability and profits.

"You Shouldn't Call the Doctor" Don't trade if you can't afford to pay. Always know the risks you are taking.

"Sugar Shaker" "Can't see no chicken sittin' on a pigeon's egg" love that line in the song. Strive to go for the best performer/trader that you can. Analyze which stock you're holding in a sector.

"Roxette" You took the time to study and make a list, so keep it up. Make sure you know what your watchlist is doing everyday, it will give you the best opportunities for profit.

"I'm a Hog for You Baby" You won't lose out if you take profits but you'll get slaughtered if you don't. Many traders dream about taking profits but don't actually do it even when knowing the danger. The fear of missing out is stronger than the fear of loss.

"Shotgun" Keep your targets on alert and take profits when you hit them. This is so very important it's what keeps you in profits and not get slaughtered as above.

"Nothing Like It" Make enjoying life as one of your goals. Take time away from your equipment, platform and the pursuit of profits; you may find that there is "Nothing Like It".

Today's British pub-rock featured band, Dr. Feelgood, hailed from the early 1970s. They became popular with their distinctive British R&B sound. Their high energy style is no longer performed with the original band members but they continue to have worldwide popularity at live events.

Milk And Alcohol by Dr Feelgood on Grooveshark

Happy Trading, Living and Dancing
Be Alive, Be Happy, Be Free
©DayTrading with Anni 2012 All Rights Reserved