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*****Perhaps traders could use a lesson from Arthur Ashe, winner of 3 Grand Slam tennis titles, who said: "Start where you are. Use what you have. Do what you can. " A great philosophy to live by and could be motto for everyone and not just traders.
Many traders get into this business and start trading with the thought that it will be an easy road to wealth; a way to make up what they have perhaps not done before, like saving for the future. Many of get into this business thinking that we have no other option due to loss of job or ability to work; and I'm sure that many start trading out of sheer boredom, having no other hobbies, as I also think that many people become traders because of their love of the "game". It makes no difference why we start the journey the important part is that we keep our wits about us. Reasons make no difference about the results but the approach does. Those who get into trading thinking that it's fast money will burn out faster than those who get into trading with caution, but no one will be saved without the practice of the above motto.
First, we have to start with where we are; which really applies to getting to know your tools and how you need to use them in order to have good trading execution and results. There are people who've done this before you, so take lessons, read, and get a mentor or coach if you need it, because, your intelligence is a tool.
Second, we have to use what we have; which means no borrowed money and no money that is needed to keep up our standard of living. Only we can control our own debt ceiling.
Third, do what you can. Meaning apply yourself and what you learned, and practice it. We need to constantly keep up with the exercise of trading. We cannot slouch off or get comfortable and expect to get back in with the same knowledge as we left. Learning is constant so keep constantly learning.
Markets change from day to day and if we apply this motto daily, we will more likely stay with our plan and not over-trade or extend ourselves to the point of high expectations and low return.
Happy Trading, Living and Dancing
Anni
The Weekly Outlook- $SPX $NDX $DJIA
©DayTrading with Anni 2007 - 2013 All Rights Reserved
Sunday, October 27, 2013
Tuesday, October 22, 2013
The Daily Note - Icahn, You Can ~ $NFLX ~ Riding on Icahn's Coattails
Tweet *****Warning! I'm going to say it like it is! I always have said it like I see it, but today the gloves come off.. well just a bit. No apologies. I see the streams full of Icahn bashing for cashin' . Come on traders! Can one of you say you'd hold through $389 when you bought at $58? Many of you would cash at $389 buying at $358. I bet you many did.
The point that this is the free markets. Unforgiving real life free markets. It's not your Mammy or Dada holding your hand free markets, although many of you think you'll be safe if only the government would put in more regulations. Regulations make markets more volatile or haven't you seen history? More on that later.
So Icahn sold much of his shares in $NFLX, my my, you forgot perhaps that his money helped make the company also that you could invest in yourself at much lower share base? That's how it works. Someone takes the "bigbucks" chance that a company will do well. We ride their coattails. Media hypes it by announcing about the "bigbucks" investors and their views. We chase it.
The burning question for you is, how much homework did you do before you chased it, trashed or cheered it? We can trade along the direction of the market as we see fit and trade against it as we see fit. If we pick the wrong way, we suffer the consequences. If we don't do our homework and only believe someone else about the direction, we suffer the consequences.
On my blog you can still see my bullish calls throughout 2010-2011 all the way up the previous high on $NFLX. I kept talking and instructing about the clouds on the charts until the last one dispersed and the drop was inevitable. The drop was unforgiving as you can see it in history, which shows how much traders chase direction. (Not bragging, just bringing you up to day in case you missed it.). I also spoke of the loyal subscribers of $NFLX, including me, and how people just don't change those habits unless they are forced.
When Icahn bought $NFLX at $58 many still said it was going to $3.00 or worse. The question becomes did traders ride on Icahn's coattails this year? Of course they did because it was a huge investment and it started the current move back up. At the same time I doubt that it was what made it go ballistic, that "blame" lies with the traders who chased it.
So the question is not how Icahn may have screwed investors. The question is more like did the investors and/or their advisers keep track and manage their money well? In truly free markets, investors of all sizes have a right to make money as they have a right to preserve it also, without needing permission. Of course today with all the regulations, that's not totally the case. We have "permission" to trade the markets depending on certain rules for our "protection", but nevertheless, it's traders like us who move the markets, lucky for investors and us.
The bottom line is that traders drive stocks up by chasing and traders drive stocks down by chasing also. If you can't admit that to yourself than get out of the markets.
Happy Trading, Living and Dancing,
Anni
The Daily Pick - $NFLX
©DayTrading with Anni 2007 - 2013 All Rights Reserved
The point that this is the free markets. Unforgiving real life free markets. It's not your Mammy or Dada holding your hand free markets, although many of you think you'll be safe if only the government would put in more regulations. Regulations make markets more volatile or haven't you seen history? More on that later.
So Icahn sold much of his shares in $NFLX, my my, you forgot perhaps that his money helped make the company also that you could invest in yourself at much lower share base? That's how it works. Someone takes the "bigbucks" chance that a company will do well. We ride their coattails. Media hypes it by announcing about the "bigbucks" investors and their views. We chase it.
The burning question for you is, how much homework did you do before you chased it, trashed or cheered it? We can trade along the direction of the market as we see fit and trade against it as we see fit. If we pick the wrong way, we suffer the consequences. If we don't do our homework and only believe someone else about the direction, we suffer the consequences.
On my blog you can still see my bullish calls throughout 2010-2011 all the way up the previous high on $NFLX. I kept talking and instructing about the clouds on the charts until the last one dispersed and the drop was inevitable. The drop was unforgiving as you can see it in history, which shows how much traders chase direction. (Not bragging, just bringing you up to day in case you missed it.). I also spoke of the loyal subscribers of $NFLX, including me, and how people just don't change those habits unless they are forced.
When Icahn bought $NFLX at $58 many still said it was going to $3.00 or worse. The question becomes did traders ride on Icahn's coattails this year? Of course they did because it was a huge investment and it started the current move back up. At the same time I doubt that it was what made it go ballistic, that "blame" lies with the traders who chased it.
So the question is not how Icahn may have screwed investors. The question is more like did the investors and/or their advisers keep track and manage their money well? In truly free markets, investors of all sizes have a right to make money as they have a right to preserve it also, without needing permission. Of course today with all the regulations, that's not totally the case. We have "permission" to trade the markets depending on certain rules for our "protection", but nevertheless, it's traders like us who move the markets, lucky for investors and us.
The bottom line is that traders drive stocks up by chasing and traders drive stocks down by chasing also. If you can't admit that to yourself than get out of the markets.
Happy Trading, Living and Dancing,
Anni
The Daily Pick - $NFLX
©DayTrading with Anni 2007 - 2013 All Rights Reserved
Monday, October 21, 2013
The Daily Note - 'Tis the Season $AAPL $AMZN $CMG $BIDU $LNKD $NFLX $PCLN
Tweet *****'Tis the 4th quarter earnings season of course, which is like Halloween, Thanksgiving and Christmas all rolled into one.
It's Halloween when we let other people scare us about it. Because in trading as in life: Caution is a friend, Fear is an enemy. Unfortunately a lot a traders/investors don't do enough homework which means that they have to trust someone else's opinion more than they trust themselves. This includes the broker/ advisors whom we pay and follow. Even if we don't follow markets daily we should know what our money is doing so a monthly checkup will keep monsters away and educate us as well as our broker.
It's Thanksgiving when we know we're on the right side of the trade, and our investments are doing well. It's when we also have trusted our targets for profit taking and manage our stops wisely. On a draw-down, you'll be thanking your diligence; on a breakout you'll be doing the same because if we know what we're looking for, surprises will be the positive kind and we all know that, no matter how much work we do, often this job can seem thankless.
It's Christmas when we have earnings that surprise with "beat the street" gifts like $GOOG, $CMG last week and $NFLX today with monster breakout gains that leave us in wonder and thank our lucky star. We earned it!
Come to think of it, if we all do our homework, we could enjoy these "holidays" four times a year, not just one.
Happy Spooking, Thanking & Prancing
Anni
The Daily Pick - $AAPL $AMZN $CMG $BIDU $LNKD $NFLX $PCLN
©DayTrading with Anni 2007 - 2013 All Rights Reserved
It's Halloween when we let other people scare us about it. Because in trading as in life: Caution is a friend, Fear is an enemy. Unfortunately a lot a traders/investors don't do enough homework which means that they have to trust someone else's opinion more than they trust themselves. This includes the broker/ advisors whom we pay and follow. Even if we don't follow markets daily we should know what our money is doing so a monthly checkup will keep monsters away and educate us as well as our broker.
It's Thanksgiving when we know we're on the right side of the trade, and our investments are doing well. It's when we also have trusted our targets for profit taking and manage our stops wisely. On a draw-down, you'll be thanking your diligence; on a breakout you'll be doing the same because if we know what we're looking for, surprises will be the positive kind and we all know that, no matter how much work we do, often this job can seem thankless.
It's Christmas when we have earnings that surprise with "beat the street" gifts like $GOOG, $CMG last week and $NFLX today with monster breakout gains that leave us in wonder and thank our lucky star. We earned it!
Come to think of it, if we all do our homework, we could enjoy these "holidays" four times a year, not just one.
Happy Spooking, Thanking & Prancing
Anni
The Daily Pick - $AAPL $AMZN $CMG $BIDU $LNKD $NFLX $PCLN
©DayTrading with Anni 2007 - 2013 All Rights Reserved
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