March 20, 2011


CRM Setting up for a move back to 100.00, then 80.00.

FFIV Short

Looks like a great short as long as it can stay below 103.00

Cup & Handle - CNX

Measured move it to 80.00. 24pt move.

First Solar

FSLR is setting up for a move higher. Short term measured move is to about 200.00

Don't Worry Be Happy

Go placidly amid the noise and haste, and remember what peace there may be in silence. As far as possible without surrender be on good terms with all persons. Speak your truth quietly and clearly; and listen to others, even the dull and the ignorant; they too have their story. Avoid loud and aggressive persons, they are vexations to the spirit. If you compare yourself with others, you may become vain and bitter; for always there will be greater and lesser persons than yourself. Enjoy your achievements as well as your plans. Keep interested in your own career, however humble; it is a real possession in the changing fortunes of time. Exercise caution in your business affairs; for the world is full of trickery. But let this not blind you to what virtue there is; many persons strive for high ideals; and everywhere life is full of heroism. Be yourself. Especially, do not feign affection. Neither be cynical about love; for in the face of all aridity and disenchantment it is as perennial as the grass. Take kindly the counsel of the years, gracefully surrendering the things of youth. Nurture strength of spirit to shield you in sudden misfortune. But do not distress yourself with dark imaginings. Many fears are born of fatigue and loneliness. Beyond a wholesome discipline, be gentle with yourself. You are a child of the universe, no less than the trees and the stars; you have a right to be here. And whether or not it is clear to you, no doubt the universe is unfolding as it should. Therefore be at peace with God, whatever you conceive Him to be, and whatever your labors and aspirations, in the noisy confusion of life keep peace with your soul. With all its sham, drudgery, and broken dreams, it is still a beautiful world. Be cheerful. Strive to be happy.” 
Max Ehrman

The ends justify the means...

Never get into something you can’t get out of by the closing bell. Every trade you make, you’re looking for the exit point. Always keep your eye on the exit point.

Don’t ever take anything at face value. Because face value is the biggest lie of any market. Nothing is ever priced at it’s true worth. The key is to figure out the real, intrinsic value - and get it for much, much less.

One minute you have your feet on the ground and you’re moving forward. The next minute, the ground is gone and you’re falling. The key is to never land. Keep it in the air as long as you fucking can.

You walk into a room with a grenade, and your best-case scenario is walking back out still holding the grenade. You’re worst-case scenario is that the grenade explodes, blowing you into little bloody pieces. The moral of the story: don’t make bets with no upside.

Don’t over think. If it looks like a duck and quacks like a duck - it’s a duck.

Fear is the greatest motivator. Motivation is what it takes to find profit.

The first place to look for the solution is within the problem itself.

The ends justify the means, but there is only one end that really matters, ending up on a beach with a bottle of fucking champagne.

Friday - WYNN Day Trade

Questions to Ask everyday

Be critical and patient when entering trades
What is my game plan?
Is it a “take your trade” type trade?
Is it a A,B, or C type trade?
Is the stock in play today? (Large opening gap, percentage wise)
Is there open space for the stock to have a move?
Is it trading above average volume?
Is it a leader or laggard of its sector?
What did the stock do after the first hour? Gap fill or not?
Did the stock have a gap open yesterday?
Did it fill the gap?
What does the daily chart look like?
What does the 30 minute chart look like?
What does the 15 minute chart look like?
Timing in on the 1/5 minute ?

20 Rules

1. Create a game plan and stick to it! You should have a reason for entering each trade and always have a stop-loss price and a level to take profits before you enter a position. In the long-run, discipline is the key to consistent success.

2. You must learn to adapt quickly to changes. If a short-term trade isn’t working, don’t hesitate to switch sides. The market and stocks can change very quickly, and you must be able to change with them. Don’t be stubborn!

3. Don’t get married to trades! If a stock isn’t working for you and you are losing money, you don’t have to make it back in that stock. Likewise, don’t force a trade in a stock only because it has made you money before. Always just trade the best set-ups.

4. Do not try to bottom fish or pick tops. The trend is your friend; when you find it, follow it. Don’t trade with a bias because you think something should or shouldn’t happen, let the stock tell you what its next move will be. Trying to identify tops and bottoms is a losing way to trade in the long-run.

5. Accept losses, they are part of the game! Prepare yourself mentally and emotionally for this eventuality. Try to limit losses when you are not on top of your game and take a break if you need one.

6. Keep it simple. If a trade is working for you, stick with it!

7. Stay confident and positive. Don’t hesitate to take a step back or ask for help if you are not feeling good about your trading.

8. Be consistent with your game plan, size and execution. Don’t make a winning trade in 300 shares and a losing one in 1,000! Keep your tiers consistent and stick to your game-planned trades.

9. Stick to your trade, believe in your preparation! If you like a trade set-up, stick with it until it works or is no longer compelling. Even if it doesn’t work the first couple times, be patient and keep it on your radar.

10. In a losing trade, if you have an out, get out! The first stop is the cheapest stop in a losing position. Do not give into the temptation to let a losing stock run, because you will usually end up getting killed. Small losses are part of trading.

11. When you are wrong, admit it and move on. Don’t waste time with a trade that is no longer compelling.

12. Give your trade time. If you believe in the trade, wait for it to play out and stick to your game plan.

13. Never let a winning trade turn into a losing one! Take profits when you can, you can always get back in later.

14. Try to capture the full move of a stock. While it is important not to let winners turn to losers, you will make your good money from capturing larger moves. It is ok to give a little back if you have made a lot on a trade, but know when to let it go.

15. Recognize the type of trade it is. If it is a swing trade, don’t impulsively get out. If it is a quick trade, don’t get greedy. If it is a slower moving stock, be patient. If you are on, push yourself. Always be aware of the type of trade you are in and act accordingly.

16. If you are feeling good and happy about your day, it is ok to relax and enjoy the money. Don’t turn a great morning into a losing day. Catch yourself, it’s not worth it. In addition, if you have a bad morning and make it back to flat or a little green, call it a day and declare victory! If you push it, you are likely to end up back with a losing day.

17. Trade the same way whether you are up or down. Traders tend to press when they are down and get careless when they are up. Stick with what got you there.

18. Trade stocks that are in play. Don’t trade something just to trade it, make sure there is a catalyst. Volume is a trader’s best friend.

19. Stick with winners and don’t add to losers. Make sure you capture big moves in winning trades and get out of losing trades quickly.

20. Trust yourself! You will always make more money trading your own strategy than someone else’s.

One Trader's Rules

1.   Only Trade Stocks That Are In Play.

a.    Volume is a Traders Best Friend
2.   Learn to Adapt Quickly To Changes
3.   Create A Game Plan And Stick To It
4.   Stick To Your Trades And Believe In Your Preparation
a.    Always Add Prices To Alerts
5.   Recognize The Type Of Trade
a.    Scalp
b.   Swing
c.    Momentum
d.   Etc…
6.   Stick With Winners & Don’t Add To Losers
7.   Except That Small Loses Are Part Of The Game
8.   Do Not Try To Bottom Fish or Pick Tops
9.   Stay Confident And Be Positive!
10. On A Good Day, It’s Ok To Relax And Walk Away

Some Common Problems...

Overtrading- be aware of time and volume in a stock- don’t always think a move is about to happen. Sometimes moves will come at random times of the day like 12:30 but you will see volume to help you know the move is real
• NEVER average down
• Pairing out of your position- in either situation of taking profits or hitting out for a loss. If you are in 400, you should set tier size to 100 shares or 200 shares and hit out based on your own judgment. If you know for certain you are wrong hit out all at once, otherwise wait to get more information
• Hitting out too early and missing the move- don’t be as quick to hit out when you are on the right side of a trade- let the stock work for you more. Just because one bid is getting hit or one offer is being paid doesn’t mean you need to exit the trade immediately. No matter the trade, the stock never looks perfect the
whole time- there are always areas of uncertainty- in this case hit out of some but be quick to buy back in
• Stop constantly flipping back and forth between long and short - if you are doing this it means you have no clue what is going on and no conviction in what you are doing. It’s ok to do it once or twice to get a feel for what is going on, but more than that means you are just guessing.
• When a stock is in a range don’t initiate a position in the middle of the range because it can turn any second. Instead get in at the extremes of the range and add more if it breaks out or something significant happens in the stock to make you think it is an actual move
• Get the best price available in the stock by using either ECN or SDOT- don’t be lazy
• Pay attention to getting the best entry- if you are in from a better price you will be more likely to hold the position longer if it is the right way. This is a result of good timing and patience- don’t overreact to every little thing that happens in the stock and think that it is time to get involved- stay disciplined
• Reevaluate what you are doing wrong after a couple trades in a row do not work out instead of doing the same thing over and over
• Do not get emotional with stocks- if you are wrong just get out and stop doing the same thing thinking that you are right and the stock is wrong

Rising Wedge

A Day Comes...

A time comes in your life when you finally get it. When in the midst of all your fears and insanity you stop dead in your tracks and somewhere the voice inside your head cries out - ENOUGH! Enough fighting and crying or struggling to hold on. And, like a child quieting down after a blind tantrum, your sobs begin to subside, you shudder once or twice, you blink back your tears and through a mantle of wet lashes you begin to look at the world through new eyes. This is your awakening.

You realize that it's time to stop hoping and waiting for something to change or for happiness, safety and security to come galloping over the next horizon. You come to terms with the fact that she is not Cinderella and you are not Prince Charming. And, that in the real world, there aren't always fairy tale endings (or beginnings for that matter) and that any guarantee of "happily ever after" must begin with you and in the process a sense of serenity is born of acceptance.
You awaken to the fact that you are not perfect and that not everyone will always love, appreciate or approve of who or what you are... and that's OK. (They are entitled to their own views and opinions.) And you learn the importance of loving and championing yourself and in the process a sense of newfound confidence is born of self-approval. You stop bitching and blaming other people for the things they did to you (or didn't do for you) and you learn that the only thing you can really count on is the unexpected. You learn that people don't always say what they mean or mean what they say and that not everyone will always be there for you and that it's not always about you. So, you learn to stand on your own and to take care of yourself and in the process a sense of safety & security is born of self-reliance.

You stop judging and pointing fingers and you begin to accept people as they are and to overlook their shortcomings and human frailties and in the process a sense of peace & contentment is born of forgiveness. You realize that much of the way you view yourself, and the world round you, is as a result of all the messages and opinions that have been ingrained into your psyche. And you begin to sift through all the crap you've been fed about how you should behave, how you should look, how much you should weigh, what you should wear, where you should shop, what you should drive, how and where you should live, what you should do for a living, who you should sleep with, who you should marry, what you should expect of a marriage, the importance of having and raising children, or what you owe your parents.

You learn to open up to new worlds and different points of view. And you begin reassessing and redefining who you are and what you really stand for. You learn the difference between wanting and needing and you begin to discard the doctrines and values you've outgrown, or should never have bought into to begin with and in the process you learn to go with your instincts. You learn that it is truly in giving that we receive. And that there is power and glory In creating and contributing and you stop maneuvering through life merely as a "consumer" looking for your next fix. You learn that principles such as honesty and integrity are not the outdated ideals of a by gone era but the mortar that holds together the foundation upon which you must build a life.

You learn that you don't know everything, it's not your job to save the world and that you can't teach a pig to sing. You learn to distinguish between guilt and responsibility and the importance of setting boundaries and learning to say NO. You learn that the only cross to bear is the one you choose to carry and that martyrs get burned at the stake. Then you learn about love, romantic love and familial love. How to love, how much to give in love, when to stop giving and when to walk away. You learn not to project your needs or your feelings onto a relationship.

You learn that you will not be more beautiful, more intelligent, more lovable or important because of the woman on your arm or the child that bears your name. You learn to look at relationships as they really are and not as you would have them be. You stop trying to control people, situations and outcomes. You learn that just as people grow and change so it is with love and you learn that you don't have the right to demand love on your terms just to make you happy.
And, you learn that alone does not mean lonely. And you look in the mirror and come to terms with the fact that you will never be a size 5 or a perfect 10 and you stop trying to compete with the image inside your head and agonizing over how you "stack up."

You also stop working so hard at putting your feelings aside, smoothing things over and ignoring your needs. You learn that feelings of entitlement are perfectly OK and that it is your right to want things and to ask for the things that you want and that sometimes it is necessary to make demands.
You come to the realization that you deserve to be treated with love, kindness, sensitivity and respect and you won't settle for less. And, you allow only the hands of a lover who cherishes you to glorify you with her touch and in the process you internalize the meaning of self-respect.

And you learn that your body really is your temple. And you begin to care for it and treat it with respect. You begin eating a balanced diet, drinking more water and taking more time to exercise. You learn that fatigue diminishes the spirit and can create doubt and fear. So you take more time to rest. And, just as food fuels the body, laughter fuels our soul. So you take more time to laugh and to play.

You learn that for the most part, in life you get what you believe you deserve and that much of life truly is a self-fulfilling prophecy. You learn that anything worth achieving is worth working for and that wishing for something to happen is different than working toward making it happen.

More importantly, you learn that in order to achieve success you need direction, discipline and perseverance. You also learn that no one can do it all alone and that it's OK to risk asking for help.

You learn that the only thing you must truly fear is the great robber baron of all time, FEAR itself. You learn to step right into and through your fears because you know that whatever happens you can handle it and to give in to fear is to give away the right to live life on your terms. And you learn to fight for your life and not to squander it living under a cloud of impending doom. You learn that life isn't always fair, you don't always get what you think you deserve and that, sometimes, bad things happen to unsuspecting, good people. On these occasions you learn not to personalize things. You learn that God isn't punishing you or failing to answer your prayers. It's just life happening.

And you learn to deal with evil in its most primal state - the ego. You learn that negative feelings, such as anger, envy and resentment, must be understood and redirected or they will suffocate the life out of you and poison the universe that surrounds you. You learn to admit when you are wrong and to building bridges instead of walls.

You learn to be thankful and to take comfort in many of the simple things we take for granted, things that millions of people upon the earth can only dream about; a full refrigerator, clean running water, a soft warm bed, a long hot shower.

Slowly, you begin to take responsibility for yourself and you make yourself a promise to never betray yourself and to never ever to settle for less than your heart's desire. And you hang a wind chime outside your window so you can listen to the wind. And you make it a point to keep smiling, keep trusting, and stay open to every wonderful possibility. Finally, with courage in your heart and with God by your side you take a stand, you take a deep breath and you begin to design the life you want to live as best as you can.