Number 8 Numerology

Posted by on Jan 30, 2015

Number 8 Numerology

Published on Numerology.com (http://www.numerology.com) Home > Numerology News > Number 8 Numerology Created Apr 7 2011 – 13:10 Number 8 Numerology Balance and power by Hans Decoz [1] 40 The number 8 is perhaps the most misunderstood of all single-digit numbers, as novices and professionals alike always seem to hammer on the “money and power” image of the 8. More often than not,… This content is for FREE TRIAL , SILVER , GOLD , PLATINUM , Gold – 6 Month and Platinum – 6 Month members only.Log In...

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Money Never Sleeps… But You Probably Should

Posted by on Jan 20, 2015

Money Never Sleeps… But You Probably Should

Recently, while working on a few charts, I was perusing through the Netflix movie carousel looking for some background noise for my evening TA session ( I’m a hardcore mutli-tasker that requires 30 different things happening at once in order for me to feel comfortable doing any work, most of the time this consists of 2 or 3 movies playing in the background, some music, maybe a game of angry birds).  As I was scrolling through, I happened to land on the sequel to one of the greatest movies ever to be made about the topic of the financial markets:  Wall Street.  (Shia LeBeouf anyone???) Every trader at one point or another in his/her trading career should watch the movie, Wall Street.  It’s mandatory.  It’s like when you had to take pre-requisite classes when you were working towards your degree back in college.  The great Gordon Gekko emphasized some choice phrasing when it comes to the markets, such as: “Greed captures the essence of the evolutionary spirit.” Which, in the overdramatic world of cinema, makes for great movie fodder.  But the reality is, there’s a fine line between greed & ambition.  It’s good to be ambitious about trading the markets.  Particularly for those who just recently discovered the beauty and intrigue of doing this.  At the same token though, it’s important to realize that ambition can quickly turn to greed, which if not managed properly can cause all sorts of issues. When it comes to trading, it’s important to maintain a proper balance between your emotions.  And although greed, fear, and ambition can inspire you to reach goals that you never really would have expected of yourself, you still have to maintain a balanced perspective in regards to your approach to the markets. How Do You Accomplish This? Obsession can be dangerous and it’s important to know when to step away.  Clueless8 has mentioned time and time again, that the markets at various points necessitate a “reset phase”.  They can’t just perpetually go up or down.  Well, your mind works in a similar manner.  Meaning, you can’t spend every waking moment in front of your computer burning your retinas staring at charts.  This kind of behavior will wear you down both intellectually & emotionally. It’s integral that an individual trader be able to walk away from his/her screen and do other things in order to break up the monotony and emotional ebb & flow of trading.  It’s easy to become frustrated, overzealous or desperate.  When that happens, it’s easy to make mistakes, second guess yourself & over analyze.  PARTICULARLY if you’re dealing with a bad streak of trades.  Not only does this negatively affect you mentally, it’ll affect your portfolio too.  So the important point here, is to know when it’s time to walk away.  Take a run, maybe do some house cleaning (yeah, we see those dishes building...

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The Infamous Crash of 1928…

Posted by on Oct 14, 2014

The Infamous Crash of 1928…

I know what you’re probably thinking.  Siam, the market didn’t crash in 1928.  What the hell are you talking about?  You need to lay off the late night pot stock research…     No, there wasn’t a stock market crash in 1928.  I’m fully aware of this.  But after a minor typo in chat one day while making a reference to the stock market crash of 1929, the ridicule ensued and the market crash of 1928 was born.  After a few chuckles,  the actual conversation that was to be had really got me thinking about current market environment & the psychological implications for us traders.  Ya see, the ACTUAL market crash of 1929 was a pretty catastrophic event for the financial markets, traders & brokers alike.  I’m not going to get into too much detail when it comes to the possible causes & speculations behind the crash as there’s plenty of other resources out there that can explore just that.  But according to some sources (*Cough* TangoFoxTrot…*Cough*), the price of butter beans skyrocketed to as much as a NICKEL per bushel & to top it off, at that point the government was so broke they couldn’t even print nickels!  <—How’s that for irony???     What I am going to talk about, is the crash of 1928. The crash that well…Never happened. Ya see, all too often we have rampant fear mongering occur on the major media networks, social media forums and among traders.  This causes many traders to react emotionally when the market starts to take a downturn & all of a sudden the sky is falling and the market is crashing (just like it didn’t do in 1928…).  Now, there’s nothing wrong with being cautious when it comes to trading the markets.   I personally like to think of myself as being cautiously optimistic.  We all know how  ruthless the financial markets can be if you’re not careful, but at the same token they can be plenty rewarding as well.  It all boils down to how you MANAGE YOUR RISK. But the big problem that occurs from a psychological perspective, is this “impending doom” mindset that I see start to take hold every time we get a pullback in the markets.  It’s imperative that every trader understands that the stock market DOES NOT MOVE IN A STRAIGHT LINE up or down. It’s a natural occurrence for prices to move in stairstep, sometimes up & sometimes down. I mean, look at it this way.  Big money is always looking for the best deal.  Wouldn’t it make sense that larger institutions & “smart money” would let prices drop within certain sectors in order to position themselves for the next trade?  I mean, that’s what you’d do right?  Obviously, there’s other factors that come into play when it comes to these moves up/down that can cause things like capitulation & panic selling or on...

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Why So Serious?

Posted by on Aug 12, 2014

Why So Serious?

Over the years I’ve come to realize when it comes to dealing with the day to day nonsense of the markets it’s important to maintain a sense of humor.  One of the guys that sort of mentored me when I first started trading really emphasized this point.  I specifically remember him telling me: “The most important aspect to being a day trader is knowing when to laugh. Without that, you’re gonna have a tough time in this biz…” Day trading can become a pretty emotional endeavor at times.  Our emotions swing with the highs & lows of the market.  One minute we’re ecstatic, the next depressed.  And as much as we attempt to pretend that we’re machines meticulously monitoring & adhering to technical levels, the fact is we’re going to experience emotions, over/under analyze and make mistakes.   It’s part of the human condition. Remember that one time you spent 5 days mapping out a trade?  You found that “perfect” entry level, planned your stops and entered the trade, only to get stopped out for a loss in some nonsensical intraday flush.  But then, just to add insult to injury, the stock immediately rallies and hits your upside target almost to the penny??? Yeah.  It’s situations like that, where a good sense of humor comes into play. You see, we work in a high paced algo generated market where predatory algorithms are specifically programmed to hunt and take out price levels where they see a high volume of limit orders (stops) on the queue.  See the problem in situations like this, it’s extremely difficult to gauge whether these are “false” downdrafts, or a legitimate flush.  And when trading options, it’s always best to err on the side of caution and the let the stop trigger. After about the 10th or 15th time this happens, a well timed good joke may determine whether or not you fling your computer monitor out of your office window. Of course we can’t forget about the other side of the coin.  When we’re in a winning trade, get a little bit spooked by the first sight of a red bar on the SPY and decide it’s time to close the positions and take our meager gains.  But by end of day, we realize we just left more cash on the table than is in our entire portfolio!!!  Yup… Been there, done that.  As frustrating as this can become, it’s part of the business and we just have to grit our teeth and smile when it happens.  As they say, “profit is profit.” Compounded with volatility inspired by random analyst upgrades, surprise macro economic catalysts, and in some instances nothing at all – things can get awfully stupid on an intraday basis.  So the point here is that you have to keep a sense of humor about these things. And remember… If all else fails, make...

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Risk On, Risk Off: Manage Your Risk, or Your Risk Will Manage You!

Posted by on Aug 3, 2014

Risk On, Risk Off:  Manage Your Risk, or Your Risk Will Manage You!

One of the most difficult things for me to wrap my thick skull around when I first started trading was the proper methods to manage risk.  As an options day trader, as important as it is risk management can get a bit tricky.  For the most part, we’re trading large positions in quick moves & attempting to capitalize on intraday fluctuations in volatility.  Which, when trading in the right direction can make out to be pretty lucrative.  BUT… What happens when a trade goes against you?  What do we do then?  This is where the proper perspective on risk management comes into play. Position Sizing: Position sizing is key when day trading.  You know that saying “Go big, or go home”?  Yeah… more often than not when INITIALLY entering a trade, going too big is going to inevitably get you sent home.  Broke.  So the key is scale your entries.  Monitor your intraday charts & use specific technical inflection points to base your entries. *Useful Tip:  Save your largest lot for your last entry.  This accomplishes two things: 1) it gives you the best cost basis.  2) When using FIFO this also allows you to maximize your profit potential when scaling out of the position, as your last exit lot will have the lowest cost basis. Vertical Call Spreads Selling (or going “short”) options against your long positions is a great way to cope with intraday noise/volatility.  There’s also a few tricks that can turn this strategy into a bi directional trade which allows you to profit both on the upside & the downside (but more on that later).  Using short options as a hedge against long options is as simple as selling a higher strikes against your long lower strikes (i.e. Long: NFLX 420c @ 1.00; Short Nflx 425c @ .50 – Total risk:  -.50).  This is referred to as a “Vertical Spread”. Though this approach in its simplest form will CAP YOUR GAINS, it also limits the amount that you’re able to lose as well. ***It should be noted that selling options does entail certain additional risks (such as possible assignment). The ramifications of utilizing options spreads, including any necessary margin should be well researched & understood prior to entering any live trades. *** RESPECT YOUR STOPS!!!! Before entering into a trade you should always have your exit plan intact.  Both upside AND downside. It’s important that when you place a stop, you stick with it.  There’s a reason why you put it there in the first place. This is a key component to defining your risk BEFORE you enter your trade. As humans, we have a tendency to become our own worst enemies when it comes to this topic.  Studies have shown that human beings have a natural inclination to want to “be right”.  Which is why stops are so important considering, we’re not always going to...

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