rule # 1, stay away from market on boring day

Ten years ago, when I began my career as a professional trader, I was of the mistaken belief that I needed to be active in the market every day, or else I was being lazy and not doing my job. However, I eventually learned this was far from the truth. On the contrary, I discovered the most successful traders were actually out of the markets more than they were in the markets. Rather than being in the markets every day, I learned the most profitable traders laid low when nothing was going on, while being aggressive when trading conditions were ideal. My personal experience has proven this to be true. Over the course of my trading career, many of my biggest losing months have been the result of overtrading during low volume, choppy markets, not the result of suffering big losses in a bear market. Rather than adhering to our usual format of sharing individual trade setups we like, we thought new traders may appreciate this brief, yet very important psychology lesson. Similarly, experienced traders may appreciate a reminder on the dangers of overtrading when there's not much going on

17 Jan 2009, When news all doom and gloom

I have the feeling. Very bad. Stocks crashed, Banks losing billions, and traders cash in all their stocks position.

I am trying to be different, against it. I decided to go in again to buy CITIBANK with some of my money again. This is the 4'th times trading Citibank this week, and all profitable.

This time I go Long with Citibank, and few other stocks.

I have a can of beer, seeing all stocks sinking, and sleep.

I say good bye to my money, where there are many say good bye to stocks.

Today 17 Jan 2009, and citibank traded at 3 - 4 dollar.

RULE COULD NEVER BE FAIR

After stocks plunge to nearly hopeless, when all investor have cut loss and dump all their stocks, leaving a big hole in their pocket. Guess what? US Government pumping in money, to buy at the bottom, and ask everyone of traders, investor not to SHORT their stocks!

Many ordinary traders having their trading capital shrinking by the meltdown, and already out of the market.

Experience traders, that IN THE MONEY, being forced to cover their short, when the rule require NO SHORT at all.

This could spell DISSASTER, both Long and Short position being hanged. This would be ultimate catastrophic in a stock market and financial system.

But be it, swim with the shark have never been easy.

Stupidity of stock market

market is always as stupid as it was..it will never change...from that stupidity...there is always at least 1 opportunity.

KNOWING THE VALUE OF COMPANY

Before you enter a day trade, it is very important to understand the company value. The value of the company is total asset divided by number of stocks. And from there, we have to see the cash position and immediate loans need to be paid. After that we have to check company making profit or losing money. These could be done in merely 2 - 3 minutes by seeing company's financial report.

RULE NO 1: DO NOT BELIEVE THE FINANCIAL REPORT.

So why we need to check the value if the financial report is a pure rubbish?

Answer: even if we understand that financial report is cook-able, at least we know that rubbish.
Knowing rubbish is better than don't know anything.

A Winning trade on AKAMAI

Buying AKAMAI at 24.50 and 24.68...sold at 25.17 done in approx 5 minutes

nett profit approx. 1.5% in 5 minutes

computer off...sleeping now

Clearing your mind

Make sure before you do a trading, you have a very clean mind. Do not trade when you are not ready mentally. Trading is short term, investing is long term. Short term is about fear and greed management.