Friday, February 29, 2008

OVTI- Took a Small Hit

There was really no reason for me to trade this. It's just been so long since I've been consistent with my trading but the market is telling me to stay out so I have been. I guess today I wanted to trade for the hell of it, and well, I lost money because of wanting to do that.


Not a big loss. It's small. I got in at 15.94 which I knew was going to be close to the top I was looking for an exit of about 16.20 or so. My stop was down at 15.70 which the price would jump down there then jump back up so I didn't put in a hard stop limit because I didn't want to be falsely exited out while it kept moving.


I bailed out at 15.83 because I had to go the bathroom sooooo bad but I wasn't confident enough in the trade to let it keep running. So I made an executive decision and bailed out while I could. Now that I'm back. It looks like it hit my target of about 16.20 (the black arrow) after it took a little dip which I didn't want to go through. I was wanting it to keep moving after I got in, lol like most people.


SO, the loss wasn't big. I got out way ahead of my stop, took a small, really dumb loss I guess you could call it. February is definitely a hard and bad month for me. Which would explain the very light trading going on here.


ovti trade chart

Wednesday, February 27, 2008

eBook Cover Design

Wanted to make a quick post and see if anyone out there is interested in a custom cover design for any of the following:


Book cover

DVD cover

CD cover

E-Zine cover

Box covers

Binder cover


Entrecard members would be able to pay with credits. How many credits would you pay to have a custom design? Would you even be interested in something like this? Do you know anyone who would? All comments will be great.


Just curious. I'd appreciate it if you could leave a comment below. Thanks!

The Power of Setting Goals

Setting goals gives you the ability to see the light at the end of the tunnel and provides you with short term motivation to get to that light.


All the way from Professional level athletes to successful business men to entrepreneurs get to that point by setting goals. When you have a clear vision in site it's easy to see what you need to do to get to that clear destination. Coming across distractions and obstacles are also clearly seen and avoided because it's not in your best interest to go that route in order to get to your destination.


How to Set Goals and Accomplish Them

  • Get a pen and paper and write down exactly what you want in precise detail (most people can't even get past this stage)
  • Brainstorm about what you need to do to get there
    • Break the goal down by year, month, week, day, etc. so you can "eat the elephant one bite at a time"image
  • Bring in any outside help you might need to accomplish the goal (friends, family, mentors, etc.)
  • Take Action and start chipping away at your goal one day at a time


Going through the entire process and working through a goal can be extremely rewarding and will boost your confidence to the point where you can conquer the world! Anything you want to do, can be achieved. You need a plan, tactics, and the ability to waste no time in taking action


  • The Goal

I setup a short term goal for myself this past weekend. Last summer I weighed 180 lbs at 9% body fat which at the time I wasn't impressed with. I was going to the gym on a daily basis and still didn't like what I saw. Looking back now I was easily in the best shape of my life. Now, I'm 205 at 22% body fat and I attribute a lot of that to me focusing 150% of my attention to learning to trade stocks. Plus, there were other factors as well. I have two herniated discs back from the summer of '05 due to a lifting injury, and I did a lot of moving from house to house which killed my motivation to keep going to the gym.


  • Goal Breakdown

By June 6th (a few days before my 21st B-Day) I want to be back down to 185 at 10% BF. So I got my spreadsheet open and broke it down by weekly milestones. I'll be weighing myself every Friday morning. I need to lose 1.3 lbs a week which isn't too aggressive but will definitely require work. I'm also keeping track of how long it takes me to run to my destination which is quite rough. There's a lot of slow and steady inclines and declines on the way there. Then when I get there I run 2 sets of stairs which run down the side of a cliff (76 steps, I counted, lol). Round trip I believe is about 1.25 miles


  • Strategy to Accomplish

So, I knew my goal, I know what I needed to shoot for. How do I do it? I'm going to bump up my running from a once a week or so to 5 days a week. I'm also going to watch very careful what I eat. Which I thought would be hard because I can eat anything and everything, haha but just the simple fact that I have a hard copy goal that's clear and attainable in the back of my mind is really pushing me to stick to the plan.


I was actually amazed at how well I was doing by not eating any garbage food and walking right by it considering my sweet tooth is horrible! I hate it and had such a hard time getting rid of it. But now I think I can easily get over it thanks to my clear goals. I can see the light at the end of the tunnel!

DARA- Now this is a Trade

DARA was one of the stocks on my watch list today but I closed it out because of the extremely wide spread and it was jumping around back and forth at the open so I closed it out.


Just brought it back up and it was up around 34% so I got in. I liked the movement and the volume and I entered at 5.50 My stop was 15 cents below my entry at 5.35 and you can see that by the long black bar that's slightly crooked lol.


Immediately jumped up nice and high and pulled back but still higher than where I got in. Let it ride for a few minutes and bailed at 6 mainly because I was more than happy with the gain and because I still have a freakin' hard time letting my winners run. I don't know why... I need to figure something out.


Overall, I'm stoked about this trade. Mostly because it's been a while since I've pulled a nice gain like this. I was thinking yesterday how long do I need to go before I put on a trade? Because it seemed like forever. Well, I had a couple beauties in front of me and I'm stoked about that.


dara trade chart

ERES- Better Than a Loss

Traded ERES this morning. It was none of the stocks I was watching but I saw it move and move in a straight line and jumped in at 11.88 which I knew was going to be pretty lat in the game but I thought I could squeeze some cash out.


I let ERES run for few minutes and 12.20-12.25 was a key range I thought because it was the price level where the stock has hit twice before and declined. Like a double top kind of thing back in Oct. and Dec.


So I see it running up to that level and it seems to be hovering like I thought it might. Although it never decided to decline but that was after I sold out. I got out at 12.17 because the bid immediately dropped from 12.20 to 12.17 as I was just hitting the send button. So I got screwed on that part and I got screwed on me not wanting to stick it out and let it run.


My stop was 25 cents from entry which would be at 11.65 Low enough to stay out of the fluff but not too far where I'd take a big hit.


All in all. It was good that I followed my initial game plan but I shouldn't of sold a stock that was moving straight up lol.


eres trade chart

Tuesday, February 26, 2008

How to Trade Stocks to Ensure Long Term Survivability and Profitability

Tools to Trade Stocks Successfully to Guarantee Long Term Survival and Minimal Loss with Professional Discipline


  • There is absolutely zero satisfaction in making huge money trading stocks, only to see hard earned gains evaporate in a couple days. Each morning it's a battle to fight for a paycheck yet still finishing the evening tattered and torn


  • The morning comes along where the market quickly saps profits and takes it all  in a matter of days or even minutes! Can I really trade successfully? Why do I do this? Why can't I keep what I make? What am I doing wrong?



Sound familiar? I've gone through that experience. I'm an amateur trader as well and I've dedicated the last 32 weeks to learning how to trade and doing what's required to be profitable. During that time I've created products that was essential to ensure long term survivability to stay in the game longer while still trading actively to learn this profession.


The Stock Traders Elite Success Kit, is that creation. It's an advanced spreadsheet that represents all details of past performance on many different levels. A Position Sizing Calculator to tell me exactly how many shares I need to buy for my trade to ensure minimal loss as well as maximum upside. Lastly, I put together a 6 page mini book with jam packed information for the amateur trader required for the mind set of a professional.




Position Sizing Calculator Software MSRP: $24.99

  • Buy the Perfect amount of Shares for all stocks
  • Minimize Losses
  • Maximize Profitability
  • See exactly where to get out of a stock when it goes against you
  • See exactly what you'll lose before you trade!
  • Eliminate guessing about where to sell
  • Ability to see your game plan before executing a trade!
  • Like to Scale out of a stock? Know exactly where those multiple sell points are based on % Increase
  • Eliminate being fearful of trading! 
  • Eliminate the hesitation before Pulling the Trigger!
  • Eliminate the yelling before stocks keep falling and falling!
ebook cover copy final



Advanced Spreadsheet MSRP: $34.99

  • Able to see all bits of trading performance
  • Go back and see where past mistakes are
  • Profit from past performance patterns
  • See what capital is being used
  • Track your Gains and Losses
  • See a visual representation of capital in an Equity Curve
  • Eliminate guess work about past trading performance
  • Tax Season is done Easier and Quicker
  • Determine if a strategy is Profitable over the long run
  • See how much money can be made over any amount of Days
  • See exactly how much an account is profitable
  • Become disciplined in trading
  • Replicate Professional Traders
  • Determine if long term survivability can be accomplished
  • Eliminate past weaknesses for maximum profitability
  • Quickly see what works and what fails in a strategy




Secret Success Notes MSRP: $49.99

  • Replicate professional traders in a fraction of the time
  • Dramatically reduce the learning curve for becoming a profitable trader
  • Quickly read highlighted key parts
  • Skim through 6 pages of Goldmine Information
  • Eliminate need to read through 40 books
  • Read Cherry Picked information from professional traders
  • Zero Fluff information
  • Go back and re read over and over crucial information on the comfort of a couch or cozy bed
  • See what days are more profitable than others





  • This entire package should be easily selling for over $100 but I'm selling it for only $9.99 I'm trying to give back what I've learned during my 8 months of research. I'm selling 50 packages of the Stock Traders Elite Success Kit on a Small Supply.


Once the 50 have been sold, that's it, no more!


I personally take advantage of all these products on a daily basis and understand the value these products have. That's why I'm selling a Small Supply. Buyers of this Small package offering will also receive an Amazing Bonus.




The Advanced Spreadsheet comes with a Stock Prediction Formula MSRP $79.99.

  • Easily Predict the days Highs and Lows of all stocks!
  • Eliminate guessing where the breakout will be
  • See the breakout price the day before
  • Access to a Key Tip for Traders on how to employ the Predicted Highs and Lows for Huge Profit!
  • Predict as many stocks as you want
  • Build a strategy around this Formula
  • Same formula taught by Larry Williams the Professional Futures Trader!




This is the Stock Traders Elite Success Kit.

  • Position Sizing Calculator Software MSRP 24.99
  • Advanced Spreadsheet MSRP 34.99
  • Secret Success Notes MSRP $49.99
  • and the Stock Prediction Formula MSRP $79.99


All for $9.99 This is an absolute steal! Hold off on hesitating and letting this Insane Deal run right by you! Similar to trading, see an opportunity, it's going to get get devoured!



  • These products will work to improve profitability and long term survivability and I'm offering a 180 DAY Money Back Guarantee! I personally guarantee that a slight bit of effort is put into these products, it'll easily create a more consistently profitable trader over the course of any adventure.




21 Orders Left! Buy Now and be on the way to Long Term Success. There's nothing to Lose!

Free Digital Delivery! IMMEDIATELY Receive the Stock Traders Elite Success Kit before leaving PayPal




Monday, February 25, 2008

NCI- Small Loss, Move On

Took a small hit with NCI. I lowered my position size by about 40% so now my upside profit potential will be a lot lower, but more importantly my downside potential is lowered in terms of dollars. I figure I'll be having a lot more losers now mainly because my Jan gains might of been just because of a good month. I haven't had those amazing trades for Feb at all. In fact I pretty much lost all my Jan gains in the second week of Feb. But those losses were from me putting on way too big of a position and not selling when I could, but when I was forced too.


NCI had a few things going for it that I liked. It had a huge blast on Friday but the only thing that drove it were earnings. Nothing special. There was actually a headline out saying it was overbought. Maybe the dip at the open were people selling but it took off after that. Unfortunately I was in the rest room when It ran up, came back and I bought in at 15.80


Next candle started out significantly lower and it didn't even attempt to inch it's way higher. It fell down to about 1.65 which I wasn't too worried about and then it started falling below 1.60 and that was a problem. I didn't have any indicators telling me to sell but a monetary loss told me to sell. I got out at 1.58


Not a big loss, actually very reasonable. We'll see what tomorrow brings.


nci trade chart

Sunday, February 24, 2008

Two Kinds of Knowledge

Very simple. There are two kinds of knowledge that can be acquired. One is General knowledge which is derived from schooling/college, etc. The other is Specialized knowledge that's acquired from learning a very specific skill.


General Knowledge, know matter how much of it you have or how much schooling you've been too really does very little for you in the long run as far as financial abundance. College Professors make very little money, yet they are considered very very educated human beings. They have learned a great deal of all around knowledge or know a lot about a particular subject.


Why is that?

They specialize in the teaching of knowledge, but they don't teach you how to use that knowledge. The idea is, "ok, here you go. I've taught you what I know, go make it happen" How do I make it happen? What do I do? All I know is what I've been told about what I need to know, I don't know how to use what I know.


Simply being educated will not produce financial results. You can be an Einstein but if you don't know how to organize your knowledge and direct it to a definite ultimate goal, you'll be floundering.


I'm sure back in elementary or even H.S. and College you'll see "Knowledge is Power" That's such bull crap I want to puke. Knowledge is not power.


  • Knowledge = Potential Power
  • Knowledge + Action = Power


Yet, no one will teach you anything about how to put things into Action. Institutions fail to teach students how to organize their knowledge and build a plan towards a definite goal. The missing link to creating Power and Financial freedom is putting your acquired knowledge into action and striving non stop towards a concrete end.


An educated man is not someone who has a huge amount of knowledge but one who has developed parts of his mind to the point where he may acquire anything he wants or it's equivalent without violating the rights of others.

The Daffodil Principle

When I finished reading this story it reminded me of something. How do you eat an elephant?....One Bite at a Time.

Several times my daughter, Julie, had telephoned to say, "Mom, you must come see the daffodils before they are over." I wanted to go, but it was a two-hour drive from my place by the beach to her lakeside mountain home. 

"I will come next Tuesday," I promised, a little reluctantly, on her third call. The next Tuesday dawned cold and rainy. Still, I had promised, and so I got in the car and began the long, tedious drive. 

When I finally walked into Julie's house and hugged and greeted my grandchildren, I said, "Forget the daffodils, Julie! The road is invisible in the clouds and fog, and there is nothing in the world except you and the children that I want to see bad enough to drive another inch!" 

My daughter smiled calmly, "We drive in this all the time, Mom." 

"Well, you won't get me back on the road until it clears and then I'm heading straight for home!" I said, rather emphatically. 

"Gee, Mom, I was hoping you'd take me over to the garage to pick up my car," Julie said with a forlorn look in her eyes. 

"How far will we have to drive?" 

Smiling she answered, "Just a few blocks, I'll drive ... I'm used to this." 

After several minutes on the cold, foggy road, I had to ask "Where are we going? This isn't the way to the garage!" 

"We're going to the garage the long way," Julie smiled, "by way of the daffodils."  

"Julie," I said sternly, "please turn around." 

"It's all right, Mom, I promise, you will never forgive yourself if you miss this experience." 

After about twenty minutes we turned onto a small gravel road and I saw a small church. On the far side of the church I saw a hand-lettered sign ... 

"Daffodil Garden"

We got out of the car and each took a child's hand, and I followed Julie down the path. As we turned a corner of the path, and I looked up and gasped. 

Before me lay the most glorious sight. It looked as though someone had taken a great vat of gold and poured it down over the mountain peak and slopes. The flowers were planted in majestic, swirling patterns, great ribbons and swaths of deep orange, white, lemon yellow, salmon pink, saffron, and butter yellow. Each different-colored variety was planted as a group so that it swirled and flowed like its own river with its own unique hue. 

Five acres of the most beautiful flowers I had ever seen! 

"Who planted all these?" I asked Julie. 

"It's just one woman," Julie answered, "She lives on the property. That's her home," and she imagepointed to a well-kept A-frame house that looked small and modest in the midst of all that glory.

We walked up to the house and on the little patio we saw a poster ... 

Answers to the Questions I Know You Are Asking 

50,000 bulbs
one at a time
by one woman
2 hands, 2 feet
and very little brain
Began in 1958 

There it was ... "The Daffodil Principle" 

For me that moment was a life-changing experience. I thought of this woman whom I had never met, who, more than thirty-five years before, had begun - one bulb at a time - to bring her vision of beauty and joy to an obscure mountain top. 

Still, this unknown, old woman had forever changed the world in which she lived. She had created something of magnificent beauty, and inspiration. 

The principle her daffodil garden taught is one of the greatest principles of celebration: 

  • learning to move toward our goals and desires one step at a time, (often just one baby-step at a time) 
  • learning to love the doing, 
  • learning to use the accumulation of time 

When we multiply tiny pieces of time with small increments of daily effort, we too will find we can accomplish magnificent things. We can change the world. 

"It makes me sad in a way," I admitted to Julie, "What might I have accomplished if I had thought of a wonderful goal thirty-five years ago and had worked away at it 'one bulb at a time' through all those years. Just think what I might have been able to achieve!" 

My daughter summed up the message of the day in her direct way, "Start tomorrow, Mom," she said, "It's so pointless to think of the lost hours of our yesterdays. The way to make learning a lesson a celebration instead of a cause for regret is to only ask ... " 

"How can I put this to use today?" 


Jaroldeen Asplund Edwards, Author

Thursday, February 21, 2008

COINW- What a Roller Coaster!

Man, after that trade, I had to go for a run. I just got back running a bunch of stairs over looking a huge cliff here in Newport. I run there a lot to reflect on my goals and what I'm doing.


Well, I got entered COINW at 6.62 It immediately started declining and at one point I was down about 15% I think. When that happened I basically said "screw it" and didn't really care anymore what happened. Then the QQQQ's started declining pretty rapidly and I that just reinforced me not caring.


Right after the price started stalling and not moving anymore, it slowly inched it's way higher and all of a sudden I see an order for 15k shares come in and that started driving the price straight up. Of course, the moment I see a profit I take it and I sold at 6.77


My exit strategy for taking profit is simple but I have a hard time following it. When the bottom of the most recent candle gaps up above the 7 EMA, take profits.


In retrospect I got out way too early. It ended up shooting to around 7.50 but I'm happy I didn't end the day down huge, lol.


coinw trade chart 3

Wednesday, February 20, 2008

The Holy Grail of Trading

Do you want to make money from the markets? Consistently? I'd suggest forgetting everything you know about the market. The more you know about the stock market the worse off you are. The majority of people when they first start out trading think it's necessary to know everything about it because the market seems so complex. The markets are complex only if you make them out to be. Trading is actually very simple but what makes it so hard is human nature, not the market.



Lack of confidence, second guessing, fear of losing money, being greedy and selling when you can, not when you're forced too all are human emotions and those qualities are the image reasons it's so hard to trade. It's not the market, it's you. The holy grail of trading is inside you, not in some technical indicator, a newsletter or some book. Understanding why people make the decisions they do under pressure and being able to read emotion from a chart, is one step closer to the only thing you really need to know. Emotion and perception about what people believe the prices should be are the driving forces of the market.



I'm telling you, technical indicators all pretty much same. It's the same regurgitated bull crap derived from volume and price. It only tells you where the price has been, none of them tell you where it will end up. If an indicator did tell you where the price is going to end up, exactly and all the time, that indicator won't work very long because everyone will jump on the bandwagon and destroy that particular indicator because everyone is expecting the same thing. At that point it'll be a great contrarian indicator.



Plus, the more technical garbage you have on your chart, the more likely paralysis by analysis will spring up while you're debating whetherimage to sell or buy. You have so much going on you start second guessing yourself because one indicator might be conflicting with another. Soon enough, you sit there doing nothing while the stock is declining. Having a game plan before entering a trade is so crucial because it prevents what I just mentioned. The game plan you create will include: when to get in, when to get out if it goes against you, when to get out if you goes in your favor. Knowing these before hand, I guarantee will take the fear and psychological load off you while in the middle of a trade.


Trading is about probabilities, the odds of something happening with the provided information. Creating a strategy you develop yourself or buying one if you have the discipline to follow it are ways to help push the odds in your favor. But, the hard part is following the strategy exactly. Following directions seems to be something people don't know how to do. Someone willimage buy a strategy, put on a few trades and they all end up being losers's so they completely scrap that strategy and find one that works. WRONG! You can't have 100% winners, it just doesn't work like that. You will have losers. Any strategy that doesn't produce losers, I'd be very afraid of. 


Another emotional barrier you need to get past is admitting your wrong while you're in the moment of a losing trade. This is something I have trouble with sometimes. Why? Because I think the stock will go back up. Horrible...the fact that the stock is declining is more than enough reason to sell it for the loss you have and move on. When you buy a stock, I'm sure you're expecting it to move in your favor. Why would you hold on to it if it's not doing what you intended it to do? Stocks will go against you, it's the nature of the beast. Again, why is this so hard to do? Emotion. We get so wrapped up in wanting to make money now that we won't sell it and hope it goes back up so we can say we "won".


Trading is something of an art. It's not something you can go to school for, learn and then start making money right after school. It takes time, a lot of patience, and passion to keep you driven to understand the language of the market. Which is why I think the market is similar to reading music.



To a musician, he/she can read the musical notes and tell if this is a master piece or work done by a 5th grader (not knocking any genius 5th graders or anything  but I'm sure you get my point). To the untrained and undisciplined person, that sheet of music looks like a bunch of mumbled up squiggly garbage. But anyone can learn to read music. Same idea apply's to trading. An uninformed person looking at a chart has no idea what's going on and wonders how anyone can consistently make money at this. But the to trader who understands emotion and can relate that idea with the chart of a particular stock, he can read whether he'll buy it or sell it or even walk away from the trade. He can read the probabilities and decide whether to pounce or not.


It's about only putting on trades where the probabilities are slanted in your favor. Trade these setups over and over, while cutting any losses that might result from a good trade turning into a loser, and taking profits that result from your trade, is the holy grail to trading. Keeping it simple is the best way to go.




Below are a few books that I've read and highly recommend everyone to read to help them on their journey. Go to amazon and read the reviews.

Non Trading Books

Tuesday, February 19, 2008

If You Think You Can

If you think you are beaten, you are

If you think you dare not, you don't

If you like to win, but think you can't

It is almost certain you won't


For out in the world we find,

Success begins with a fellows will,

It's all in a state of mind


If you think you are outclassed, you are

You've got to think high to rise

You've got to be sure of yourself,

before you ever win a prize

Life's battles don't always go,

to the stronger or faster man,


But soon or late the man who wins


I have this poem taped up on the side of my monitor and I read it when I feel down and bummed out. It puts perspective back into my vision. Unfortunately, I don't know who it's by. I found it in a book I read a long time ago.

Monday, February 18, 2008

Brilliant Hope

Dreams will never fade

And our destiny is never truly made

And even when the nigh is brisk with frost

There is no reason to ever be afraid

Because trust can never be lost

Never give up...if all seems gone

...And see that which we truly love

Forever stand tall and strong...

Real truth comes from within our hearts

Knowing our passions can never fall apart

We quietly reflect on all time

Wishing for everything to unwind

It's can change on a dime

And when we least expect to touch the sky

We do so in the blink of an eye

The ship of self can float adrift

Can the fate of this man ever shift?

Drifting from shore with broken rope

The whole of soul feels lost and missed

But in the end, there's only brilliant hope.


By Joppa JaMocha

Sunday, February 17, 2008

Seven Mistakes All Novice Traders Make and How to Correct Them


Lack of Knowledge and No Plan

It amazes us that some people expect to trade the stock market successfully without any effort. Yet if they want to take up golf, for example, they will happily take some lessons or at least read a book before heading out onto the course.

The stock market is not the place for the ill informed. But learning what you need is straightforward - you just need someone to show you the way.

The opposite extreme of this is those traders who spend their life looking for the Holy Grail of trading! Been there, done that!

The truth is, there is no Holy Grail. But the good news is that you don't need it. 



Unrealistic Expectations

Many novice traders expect to make a billion dollars by next Thursday. Or they start to write out their resignation letter before they have even placed their first trade!

Now, don't get us wrong. The stock market can be a great way to replace your current income and for creating wealth but it does require time. Not a lot, but some.

So don't tell your boss where to put his job, just yet!

Other beginners think that trading can be 100% accurate all the time. Of course this is unrealistic. But the best thing is that with some methods you only need to get 50-60% of your trades "right" to be successful and highly profitable.



Listening to Others image

When traders first start out they often feel like they know nothing and that everyone else has the answers. So they listen to all the news reports and so called "experts" and get totally confused.

And they take "tips" from their buddy, who got it from some cab driver…



Getting in the Way

By this we mean letting your ego or your emotions get in the way of doing what you know you need to do.

When you first start to trade it is very difficult to control your emotions. Fear and greed can be overwhelming. Lack of discipline; lack of patience and over confidence are just some of the other problems that we all face.

It is critical you understand how to control this side of trading. There is also one other key that almost no one seems to talk about. But more on this another time!



Poor Money Management

It never ceases to amaze us how many traders don't understand the critical nature of money management and the related area of risk management.

This is a critical aspect of trading. If you don't get this right you not only won't be successful, you won't survive!

Fortunately, it is not complex to address and the simple steps we can show you will ensure that you don't "blow up" and that you get to keep your profits.



Only Trading Market in One Direction

Most new traders only learn how to trade a rising market. And very few traders know really good strategies for trading in a falling market.

If you don't learn to trade "both" sides of the market, you are drastically limiting the number of trades you can take. And this limits the amount of money you can make.




Most traders new to trading feel they have to be in the market all the time to make any real money. And they see trading opportunities when they're not even there (we've been there too).

Trade Well and the $$ Will Flow!

Thanks to

Friday, February 15, 2008

IDMI- Great Way to End the Week

To tell you the truth I was not going to trade this and was not expecting trading at all. But something about IDMI drew me to it and I got up this morning to see how it was. First candle it fell then the next one brought on the buyers and it took off.

I jumped in at 2.40 which for a couple minutes thought I pulled another dumb trade because it fell to around 2.28. Next candle started inching its' way back to 2.40 and once it did it shot right by.

I unloaded some at 2.50 and I let it run until I saw the gap between the bottom of the current candle and my seven EMA. I saw the gap and sold the rest at 2.58

Somewhat pleased. I do not want to get too excited but I am happy I finished this horrible week on a good note. Even if I did not end the week profitable, the damage is a little less dramatic.

idmi trade chart 4

Thursday, February 14, 2008

Two Kinds of Fear

There's one root emotion that drives the market with two outcomes. It's either Fear of losing money, or Fear of missing out on money. Now, greed, one might say, is an emotion that drives the market as well, which it is. But at the root of Greed, lies Fear.

During my first few months as a new trader, I developed an extreme fear of losing money. That idea is what's kept me in the game so long, especially as a new trader. I'd always cut my losses immediately because I didn't like losing money. Doing that has prevented huge losses and at the same time it's also prevented me from being in a stock that rebounded.


I started following a strategy that I believed in and at the same time had the patience to follow that strategy. Once I became consistently profitable, I started developing a fear of missing out on money. At that point, I lost respect for the market and it let me know.


Having the patience and discipline to follow a specific pattern that you trade is one step needed. But the kind of fear you have determines where you go. Having a healthy fear of the market is natural and should not be lost in your mind. When I started becoming very profitable in Jan and started losing my fear of the market, I got my bottom handed to me twice.


I feel I've developed the discipline to trade highly favorable trades but at the same time I need to regain my fear of the markets. I need to know that the market is the boss and if I lose respect for the market I'll fall apart. Regaining my fear of losing money is what I need to get back.


Combining a healthy fear of the market with the discipline and patience to trade your game plan I think is the next step for me to take and is also a winning combination of long term success. I'll probably miss out on a lot of money that I could of made by getting out a little early, but the idea of trying to extract every cent out of a stock, every time you trade, is very unlikely. I'm not here to pick tops and bottoms. I want the bulk of the move and be happy.

Wednesday, February 13, 2008

Never Give Up

Completely randomly I came across a web site run now through stumble upon. The site has a compiled list of famous quotes from people throughout history about their views on quitting.

Lincoln, Einstein, Ford and many more. I read them all and it's given me a bit of hope to keep on keeping on.


  • "Ever tried. Ever failed. No matter. Try Again. Fail again. Fail better."
    ~ Samuel Beckett
  • "Our greatest glory is not in never falling but in rising every time we fall."
    ~ Confucius
  • "Only those who dare to fail greatly can achieve greatly."
    ~ Robert F. Kennedy


Full list here:

SPAB- Jan Gains Gone

*sigh* I don't know if I can really do this. I just lost all my Jan gains in 2 days. I know what my problem was, way too big of a position size.


SPAB opened at 1.90 and I jumped in at 2.00 The bid and ask were pretty damn wide and so the offer hit 2.24 and I had more in my account to cover my last 2 days losses and then some. But, that all quickly went away and it made since because the daily pivot point was right at 2.25 It hit the price twice and basically fell.


Freakin' market orders...I put in limit orders on the way down but nothing was getting filled so I said screw it and started putting in market orders and got filled at absolute horrible prices. On top of that I kept getting partial fills so I was charged a huge amount of commission just to get out.


I'm at a point where I feel like saying fuck it and just getting some job to work at for the rest of my life.


Well.. it's not that bad I guess. I'm still technically up 2% for the year so it's not like I blew out my account or anything. But all that work I put into Jan and now it's completely gone. My self control got tested, twice, and I failed both tests. I guess this is why I'm still a rookie.



Tuesday, February 12, 2008

CTUM- I think I'm going to cry

Where do I begin. I picked CTUM last night for a possible run in the AM. It moved extremely slowly so I moved on and decided not to trade it.


I come back later and it's up 22% I buy some shares at 1.50 when I see it spike. Well, It falls all the way down and what do I do? I get out at the bottom and sell all my shares at 1.63 I lost a gigantic amount of money on this trade. I don't know. I'm pissed but more in shock right now.


I'm starting to fall apart a little emotionally. I was up 12% for Jan as a whole and now my account is down to 8% as a whole. Biggest loss of my life.


For some reason I don't feel too worried, maybe it's denial or maybe it's because I know I can get it back. I just need to take some time and get my head on straight.



Monday, February 11, 2008

Thoughts on Exit Strategy

I was very quick to sell earlier out of VSCI. Again, in retrospect it was a beautiful winner. I bailed early because I saw the gap between my EMA and the price. I shouldn't be too quick to get out.


What that should of told me was, "hey, pay attention now because it might be time to sell". Instead, it was more like "oh crap, get out right now!"


Because of my impulse reaction to get out immediately, I gave up a loss that was higher than what my average loss is -plus I left a lot of money on the table. I've been doing fairly well with my discipline in regards to staying away from non performing stocks. image


Whether I should give a little more leeway with the stocks I trade when they decline a little is something I'm debating. If I do come across a loser that keeps falling, I don't want to be stuck holding the hot potato.


I like my exit strategy but I think it would be a lot more effective in executing when the price has had a relatively long run instead of executing the strategy when it presents itself right after I get in.


We can also look at my entry. Was my entry really a good place to get in? I probably could of waited another candle or so to see how it unfolds but at the time I liked what it was doing. Saw an opportunity and took it. Unfortunately, my short term exit strategy isn't quite defined. What do I do when I enter a stock and it declines after I get in? At the time I thought it was wise to admit defeat and get out.


I don't know if I'm subconsciously trying to justify my mistake or if there is something I can really do to better myself in the future. I know I can't add every little detail from every trade to make the ultimate strategy which is something I seem to be doing.


This was one of those trades that got me by the balls and I didn't know how to handle it. I bailed in fear of losing more capital which I thought was a wise move. I need to protect my capital with everything I can because without it I can't trade.


In the end, I think what I need to do is just be aware when my exit strategy does present itself right after I get in. Don't be so quick to get out but be on the ball in case I do need to get out. At the same time, after I've had a nice run and my exit strategy does present itself after a profit has been accumulated, a wise move would be to exit. Exit based on my strategy with a profit.


After Thoughts:

My strategy isn't fool proof. It's not perfect and that's something I need to grasp. There will be times when I execute everything flawlessly and I don't come out on top. It's the nature of the beast.


I know I'll come out on top in the end. My discipline is what's keeping my profitable and I feel I've been honing in on those skills this year. We'll see what the market brings for tomorrow.

VSCI- Hit a Snag

Only stock that started to move nicely in my watch list. Retrospect it looks like I got in pretty close to the end of the upward move with an entry of 3.75


Next candle had me a bit worried because there was a lot of volume coming up but the stock wasn't making any new highs. It stopped dead in it's tracks at 3.75 and didn't want to budge anymore. The 3rd candle is when I decided to get out. Reason being is because what it showed me is my exit strategy. My exit strategy is when the bottom of the most recent candle starts to run away from my 7 EMA tells me it's a good time to get out. I decided to get out at 3.65


The gap between the bottom of the candle and the moving average seems to create a vacuum and the price want's to fall back down to fill that gap (touch the EMA) before it'll take off again, or fall lower.


I didn't think twice about selling when my exit strategy was shown to me. I felt extremely calm when I sold even though I took a bigger loss than average. Looking back at the chart it seems to be slightly rebounding off that EMA. Seems fairly obvious now the volume was extremely light on the selling part of the chart and volume is heavily picking up on the buying side. What's done is done.


vsci trade chart 1

Saturday, February 9, 2008

Trade Log Spreadsheet

My spreadsheet that I've personally developed and use on a daily basis. I thought it might help some people out considering how many people have downloaded my Calculator and my Success Notes.

The Basics:

  • Win/Loss Percentage
  • Average Gain/Loss in Dollar amounts and Percentage amounts
  • Profit Per Share
  • Percentage Gain/Loss of account as a whole
  • Net profit
  • And a lot more

Advanced Analysis:

  • R Multiple for each trade
  • Expectancy
  • Profit Factor
  • Equity Curve Chart
  • Potential Profit per trade
  • Potential Percentage gain per X amount of days (you can specify the time period)

I've spent a huge amount of time coming up with formulas to calculate this data. I'm constantly going over my stats to see where I'm at, where I'd like to be, what I need to do to get there based on how I'm performing, etc.

The boxes in Orange represent data fields that can be altered/entered in by the user. Everything else is automatically calculated and doesn't need to be touched. If you need any help with certain fields or don't know what a box means, leave me a comment and I'll help you out. The data that is currently in the spreadsheet is data I've made up as an example.

Help Files for the Spreadsheet:

Download here:

I hope you enjoy my spreadsheet. I find a lot of joy and feel good when I share what I've created with people. Happy trading.


trade log

Thursday, February 7, 2008

NSR- Nice Bounce

Saw NSR last night when it was down 25% or so during the day. Read a couple article headlines basically saying it was an over reaction on the sellers part. I put it in my watch list and wanted to see if I could get a bounce in the morning, and I did.


Retrospect, I did hesitate to get in. I let it move without me because a Pivot Point was approaching and I didn't know if it'd reverse at that price especially with the way the market is now or if it'd blow by. It did blow by and at at that point I put in my order and got filled at a price of 22.53


I let it keep running because the offer kept rising and the bid would soon follow. Even though it did fall back a little bit the offer immediately kept jumping. Then we hit resistance which we rocketed by. I was too slow to sell some shares so I didn't and finally sold all of them at 23.10


Man, just looked at the chart right now. It's up around 23.60 Left a lot on the table, something I seem to do a lot. There's wasn't really any reason to sell. I should wait until I see a blue candle develop before I get out. What I did was buy strong and sell even stronger with no weakness in sight. I should probably wait until some real weakness develops.


Either way, I'm happy with the gain.

nsr trade chart

Wednesday, February 6, 2008

Sidelines- Off Topic (Drawings)

Not putting on any trades today. Markets seem to be either stalling or failing.


I've been looking at a lot of art recently mostly on (love that site) and decided to put some of my drawings on my blog. Spice things up a little bit.


I usually draw on days like this one where I'm not active in the markets and/or I put on a losing trade, lol. It's a good tension releaser I use along with going on a nice jog around my neighborhood sometimes.










(my sis, haha)



This one was done with a regular #2 pencil, lots of rubbing, and one of those rubber eraser things. The rest were done with the same techniques except I used a B4 pencil only. I don't really know how to integrate different kinds of light and dark grade pencils into a drawing so I just use one and make it work.

Tuesday, February 5, 2008

IDMI- Easy Money

Man, this kind of trade probably won't happen again for a while. Once I sold out on my first trade with IDMI I had to put on another position when I saw the stock was up 130% from when I bailed out. I got in again at 2.65 and let it ride until 2.95


I think I made around 9 or 10% on this second trade but my position size was 1/4 of what the first one was. The profit was 2.5 times my first one so this was an efficient use of capital, lol.


The gap on the chart was when I closed the chart and took it out of my watch list. I added it back in to see what IDMI was doing and that's when I saw the huge jump and got in right away.


idmi trade chart 2

IDMI Late Trade

Wasn't planning on trading but I was watching IDMI for a couple hours and finally decided, screw it, I'm going trade this. Got in at 2.05 ran up after I got in which is always a good sign. Sold some at 2.11 Fell back down and started making lower highs but higher lows. I don't like those kind of patterns. I sold the rest at 2.08 Not a big gain or anything but good enough for a 30 second trade.



Sidelines- Once Again

Markets are horrible for long positions. I woke up 15 minutes before the opening bell and the ISM data somehow got leaked and the Dow fell hard along with the other indexes. I saw one stock I liked last night and it performed badly to no surprise.


Not much else going on for me. I'll see what the market brings after hours today.

Monday, February 4, 2008

Sidelines- Being Patient

Had a few stocks I was watching this morning looking to see if I could get a morning pop out of any of them. None of them performed and they all were in free fall mode along with the market as a whole.


Q's SPY and IWM are all falling still as I'm writing this. Looks like I'll be sitting out. I'm not too surprised because the TRIN closed Friday at 0.72 I believe. I need a number more around 2 or 3. I was looking forward to APWR but it fell right away. So, I'll have to sit this one out and see what the market brings me after hours today to pick through.



Quote of the Day:
Behavior is a mirror in which every one displays his own image.
--Johann Wolfgang Von Goethe

Sunday, February 3, 2008


Saturday, February 2, 2008

January Performance Stats

I'll just post some quick stats for how I fared for the month of January.


Total Trades: 11

Profitable Trades: 7

Win Probability: 63%

Average W/L Profit Ratio: 1.57

Average % Gain per trade: 7.24%

Average % Loss per trade: 3.07%

Average % Gain of Total Capital per trade: 1.68%

Average % Loss of Total Capital per trade: 1.74%


Total Gain for January: 11.46%


When I take a loss it seems that my entire account takes a slightly bigger hit than what my winners can make. I need to be a lot more aware about cutting my losses and get that percentage down. Ideally, I'd like my average loss of my entire account to be more around 1% not 1.7%


My frequency of winners seems to be what's keeping me afloat. For the month of February not trading loser stocks and sticking to the high probability winners is going to be the key theme.


I was a little hesitant about posting these stats because I don't want these numbers to get to my head and think I can keep pulling these numbers without trying. I'll have to buckle down even more, be more disciplined, focus on my goals and stay on the ball when it comes to objectively identifying my setups. I posted these stats so I can have a digital copy of my performance so I can come back in and track my progress.

Friday, February 1, 2008

Sidelines- No Action

Quote of the Day:
Discovery consists of seeing what everybody has seen and thinking what nobody has thought.
--Albert Szent–Gyorgyi de Nagyraolt of my watch list stocks did anything I thought would be great for a trade. CHCI shot up huge on the first candle, I think 20% or so and then died. Couldn't maintain those levels and seems to be stuck at 1.20 and now falling.


TARR touched 1.53 and fell like a rock. I quickly got rid of that one and moved to EXPO. Which was the only one making higher lows, but it out of all those candles moving, it only had a 2% rise. Potential gain was not even close to how much I was going to put on the line. I bailed on this one also.


Unfortunately, nothing worked out for me on these trades. However, I've been profitable every week so far of Jan. and up very nicely for the month. I need to maintain this discipline next week and for the month of February. One week at a time.


Patience. Don't lose money. We're here to make it, not lose it.