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 Wikipedia.org, 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 blip.fm 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 ♫ blip.fm/~1c1vu2

"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. ♫ blip.fm/~1c1vy2

"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. ♫ blip.fm/~1c1w4e

"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. ~ ♫ blip.fm/~1c1wbc

"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. ♫ blip.fm/~1c1wg2

"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) ♫ blip.fm/~1c1wir

"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. ♫ blip.fm/~1c1wq3

"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. ♫ blip.fm/~1c1wui

You've been listening to the debut album of Boston, released July 1976, here is the entire album:


Happy Trading, Living and Dancing
Anni

The Daily Pick NDX

©DayTrading with Anni 2012 All Rights Reserved

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.

Happy Trading, Living and Dancing
Anni

The Daily Pick - Happy Birthday USA & ME

©DayTrading with Anni 2011 All Rights Reserved

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" .


Happy Trading, Living and Dancing
Anni


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