***** 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.
Happy Trading, Living and Dancing
Anni
The Daily Pick - $DJIA
©DayTrading with Anni 2011 All Rights Reserved
Friday, August 10, 2012
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!
Happy Trading, Living and Dancing Be Loving, Be Happy, Be Free Anni The Daily Pick - Revisited $PCLN ©DayTrading with Anni 2012 All Rights Reserved
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!
Happy Trading, Living and Dancing Be Loving, Be Happy, Be Free Anni 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.
Happy Trading, Living and Dancing Be Alive, Be Happy, Be Free Anni ©DayTrading with Anni 2012 All Rights Reserved
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.
Happy Trading, Living and Dancing Be Alive, Be Happy, Be Free Anni ©DayTrading with Anni 2012 All Rights Reserved
Subscribe to:
Posts (Atom)