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.

DSX, Nice Execution

I've been following a pretty tight criteria for picking my stocks I made about a week ago and what's even better is I've had the discipline to stick to that criteria and it's paying off, more ways than one.

 

Got in on DSX at 30.86 just before it broke through resistance as it looked like it would. It was showing a small ascending triangle. I started unloading my shares pretty fast as it blew by resistance and started raising my stop after I unloaded. Stock kept rallying and what I was impressed with is that when the Q's started to make that first dip DSX held it's ground and went neutral by showing us some Doji's. I'd like seeing that, left for a few minutes and came back and saw it was up around 32. At that point I started trailing my stop pretty tightly. I knew I was going to get stopped out at 31.75 which I did and then I'd see it rally again lol. It's funny how those guys will try and wipe out everyone they can before they take off again. It's cut throat out there...

 

I've been very happy with my performance lately. I like the fact that I'm staying discipline and sticking to my guns, however I'll still need to tweak how I trail my stop but I'm happy overall.

 

SMRT Great Execution, Again

Didn't see too many stocks in the morning that fit my criteria so I went to see what SMRT was doing. It setup exactly the same way it did on Friday so I took it immediately.

 

Got in at 7.07, I kind of figured it would pullback like it did, but I didn't know when. I unloaded the first 25% once I hit a 1% gain. The second lot I bailed a little early not quite a 2% gain but I didn't like how it was hitting resistance on weak volume so I unloaded the second 25% slightly early. From there I broke even by raising my stop to my entry price and trailed it as the price kept increasing. Volume looked great, momentum was solid and going in the path of least resistance. I did however, sell my last 50% at 7.27 I didn't like how the momentum was declining pretty fast and there wasn't much volume but selling. I guess it was more of an impulse trade and I was getting bored lol.

 

Now I know why pro's say that good trading should be boring. I was bored as well and actually got pissed as the price was increasing because I knew I'd be sitting longer waiting to sell at my target. What's been keeping me in is I've been listening to a lot of music. I might even just start surfing the web and read some tech articles as the stock is doing its thing, and stick to my guns (stop's) no matter what.

 

SMRT Perfect Execution

Had an amazing trade today with SMRT. Right after I went short at the open and realized it was wrong. I sat back and looked for a strong stock going against the crowd, and I found one.

 

Got in at 6.51 Stock increased 1% and I unloaded 25% of my shares at 6.58 at that same time I cut my risk in half by raising my stop from 6.40 to 6.45. Stock rallied another 1% and unloaded an additional 25% of my shares at 6.65 At this point I raised my stop to break even to give myself a risk free environment to work with.

 

I let the rest of the shares ride while trailing my stop behind it. For every 1.5%-2% increase in price I raised my stop 0.5%. When it hit the R2 line at 6.90 I was more aggressive with my stop and raised it to 6.80 because I didn't think it'd break an R2 line. Volume was declining and RSI was weakening so I decided to be aggressive. It ended up falling to 6.80 after it tried for about an hour to break R2 and I got stopped out at 6.79