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
Anni



The Daily Pick - INTC


©DayTrading with Anni 2010 All Rights Reserved

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
Anni


The Daily Pick - BIDU

©DayTrading with Anni 2010 All Rights Reserved

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
Anni



The Daily Pick - APA

©DayTrading with Anni 2010 All Rights Reserved