Saturday, September 29, 2007
So here are some of the notes to learn about trading or the stock market from the book:
I was twetny when I made my first ten thousand, and I lost that. But I knew how and why... ... ... I hoped to win, instead of knowing that I ought to win on form.
The game of speculation isn't all mathematics or set rules, however rigid the main laws may be. Even in my tape reading something etners that is more than mere arithmetics. There is what I call the behavior of a stock, actions that enable you to judge whether or not it is going to proceed in accordance with the precedents that your observation has noted. If a stock doesn't act right don't touch it; because, being unable to tell precisely what is wrong, you cannot tell which way it is going. No diagnosis, no prognosis. No prognosis, no profit.
I had to study what was going to happen; to anticipate stock movements. That sounds asininely commonplace, but you know what I mean. It was the change in my own attitude toward the game that was of supreme importance to me. It taught me, little by little, the essential difference between betting on fluctuations and anticipating inevitable advances and declines, between gambling and speculating.
They say you never grow poor taking profits. No, you don't. But neither do you grow rich aking a four-point profit in a bull market
Suckers differ among themselves according to the degree of experience.
The big money was not in the individual fluctuations but in the main movements--that is, not in reading the tape but in sizing up the entire market and its trend
It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!... ... ... It is only after a stock operator has firmly grasped this that he can make big money.
One of the most helpful things that anybody can learn is to give up rying to catch the last eighth--or the first. These two are the most expensive eights in the world. The have cost stock traders, in teh aggregate, enough millions of dollars to build a concrete highway across the continent.
Remember that stocks are never too high for you to begin buying or too low to begin selling. But after the initial transaction, don't make a second unless the first shows you a profit. Wait and watch. That is where your tape reading comes in---to enable you to decide as to the proper time for beginning. Much depends upon beginning at exactly the right time. It took me years to realize the importance of this. It also cost me some hundreds of thousands of dollars.
To be angry at the market because it unexpectedly or even illogically goes against you is like getting made at your lungs because you have pneumonia
In this business a man has to think of both theory and practice. A speculator must not be merely a student, he must be both a student and a speculator.
The big men of the Stret are as prone to be wishful thinkers as the politicians or the plain suckers. I myself can't work that way. In a speculator such an attitude is fatal.
Of course, if a man is both wise and lucky, he will not make the same mistake twice. But he will make any one of the ten thousand brothers or cousines of the original. The Mistake family is so large that there is always one of them around when you want to see what you can do in the fool-play line.
It would not be so difficult to make money if a trader always stuck to his speculative guns---that is, waited for the line of least resistance to define itself and begin buying only when the tape said up or selling only when it said down. He should accumulate his line on the way up. Let him buy one-fifth of his full line. If that does not show him a profit he must not increase his holdings because he has obviously begun wrong; he is wrong temporarily and there is no profit in being wrong at any time. The same tape that said UP did not necessarily lie merely because it is now saying NOT YET.
You can't tell till you bet.
The speculator's chief enemies are always boring from within. It is inseparable from human nature to hope and to fear... ... ... Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses. Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit. It is absolutely wrong to gamble in stocks the way the average man does.
A man may beat a stock or a group at a certain time, but no man living can beat the stock market.
A man cannot be convinced against his own convictions, but he can be talked into a state of uncertainty and indecision, which is even worse, for that means that he cannot trade with confidence and comfort.
Always sell what shows you a loss and keep what shows you a profit. That was so obviously the wise thing to do and was so wel known to me that even now I marvel at myself for doing the reverse.
The loss of the money didn't bother me. Whenever I have lost money in the stock market I have always considered that I have learned something; that if I have lost money I have gained experience, so that the money really went for a tuition fee. A man has to have experience and he has to pay for it.
A trader, in addition to studying basic conditions, remembering market precedents and keeping in mind the psychology of the outside public as well as the limitations of his brokers, must also know himself and provide against his own weaknesses. There is not need to feel anger over being human. I have come to feel that is is as necessary to know how to read myself as to know how to read the tape. I have studied and reckoned on my own reactions to given impulses or to the inevitable temptations of an active market, quite in the same mood and spirit as I have considered crop conditions or analysed reports of earnings.
TIPS! How people want tips! They crave not only to get them but to give them. There is greed involved, and vanity.
I sometimes think that tip-takers are like drunkards. There are some who can't resist the craving and always look forward to those jags which they consider indispensalbe to their happiness.
Observation, experience, memory and mathematics---these are what the successful trader must depend on. He must not only observe accurately but remember at all times what he has observed. He cannot be on the unreasonable or on the unexpected however strong his personal convictions may be about man's unreasonableness or however certain he may feel that the unexpected happens very frequently. He must bet always on probabilities---that is, try to anticipate them. years of practice at the game, of constant study, of always remembering, enable the trader to act on the instant when the unexpected happens as well as when the expected comes to pass.
When the stock you are manipulating doesn't act as it should, quit. Don't agrue with the tape. Do not seek to lure the profit back. Quit while the quitting is good---and cheap.
In addition to trying to determine how to make money one must also try to keep from losing money. It is almost as important to know what not to do as to know what should be done.
Friday, September 28, 2007
It's a battle between all the channels, almost like football teams. ABC is catching up to NBC as the king of tv. Fox is still trailing as always b/c they have so many idiots working there that probably transferred fro Fox News. I can't predict who the winner is going to be, but I have a pretty damn good idea who it isn't going to be: MTV. Yup! Just one dumb, shitty show after another. Didn't you hear what JT said at the VMA? Play more videos!! It's MTV, Music Televison, not STV, Shitty Televison.
Wednesday there was a scalp trade on a huge print down that I hit I got a 65 cent profit immediately and I marketed my order out and took it like if it was going to disappear like a puff of air. Looking back, if I had waited just a little bit I would've seen that it was going to trace back eeven further to over a whole point. By noon I was easily topping my best day with just maybe 2, 3 trades. That wasn't exactly a good news. Feeling confident, maybe even too much so and letting my success gone to my head, I tried to trade the BSC news that there was going to potential investors including Warren Buffett. Well, I got my butt kicked couple of times in that stock going different directions and luckily I still manage to have an up day. Really, if I didn't have such a good morning, I might've still traded BSC but after I get smacked once I would've stopped.
Lesson: DON'T TRADE NEWS STOCKS!
I think this share size upgrade give me some validation... I want to start talking to other traders more. Pick their brains a little. See if i get some tips or trading strategies.
What I want to learn right now: MACD, Fibonacci. I need to finish Reminisces of a Stock Operator and start reading some more relevant trading books on say technical analysis.
Tuesday, September 25, 2007
2. Real men drive stick shift. (Seriously? For real? Dammit!)
3. I will leave if you lie.
4. You are cute in raglan-sleeved T-shirts (two-toned baseball undershirts).
5. I'm convinced I'm pregnant and obsess about it for a minimum of 24 to 48 hours before my period, even when I have no rational reason to think so.
6. I love it when you hug me from behind and whisper in my ear. (What else do you like from behind?)
7. "Fine" is never an appropriate response when I ask you how I look.
8. Most of the time when I fantasize, it's about you.
9. I'm terrified of becoming my mother, even though I admire her.
10. I get turned on simply seeing that I have an e-mail from you.
11. I expect you to call me.
12. Only rock stars are allowed to wear leather pants.
13. I'm scared of losing my independence.
14. I'm more forgiving of you than I really should be.
15. Oral sex is your get-out-of-the-doghouse-free card. Manolo Blahnik shoes also do the trick.
16. You did something bad. I seem cool with it. I'm not. (See directly above.)
17. If I'm not having sex with you, I'm... a. ...having a fat day. b. ...not feeling "connected" to you. c. ...blackmailing you to get something I want.
18. Shoes determine whether you're fashionable or not.
19. I own a Debbie Gibson CD, and I'm not afraid to use it.
20. When I compare my flabby tummy to a kangaroo pouch, say nothing.
21. A man I love plans the occasional fancy-schmancy dress-up date and impromptu weekend getaways, and he buys my favorite candy in advance when we're just going to the movies.
22. You look hot in hooded clothing items.
23. You should never tell me what to do. (Not even in bed? son of a bitch!)
24. If I slept over, you owe me breakfast.
25. My breasts love much licking and sucking. (I knew it! Wow wowie wow!!)
26. If you ask me out directly, I will say yes.
27. I'm very impressed when you ask for my advice.
28. I'm unimpressed with a man who doesn't take the lead. (Are we talking about something other than ballroom dancing?)
29. When in doubt, go with the shirt that matches your eye color.
30. I want to be Madonna.
31. Women get urinary-tract infections easily, so watch (and wash) your fingers. (This is important why....? Oh...., got ya)
32. I'm in heaven when you hold my hand.
33. You're sexy when you're shaving, fixing things, wearing a white T-shirt and jeans, driving, eating a peach, holding a baby.
34. I need to hear how you feel about me. Often. Tell me now. (Can I tell you how I feel about you with shoes?)
35. Surprises, especially gifts for moi = more loving. (mmm... sex)
36. I want to be the best thing that ever happened to you--and for you to recognize this.
37. If I'm not feeling loved, I will start looking....
38. Discussion of ex-gf's and ex-bf's should be avoided at all times.
39. I like it when you tell me what you're thinking, even if you don't know yourself.
40. Celebrating our anniversary, even if it's only been a few months, earns major bonus points.
41. I love it when you're sweaty.
42. It's best to consult your gal pals for gift ideas.
43. A lady should always be greeted with kisses. (tongue or no tongue?)
44. I like porn. (Wow, I knew we had something in common)
45. I love holding your bum in the palms of my hands. (and give it a little squeeze)
46. Even nice girls like hushed dirty talk in public.
47. It's cheating as soon as you're doing something with her that you wouldn't want me to see, hear, read... (I'm not cheating on you with my Playboy mags)
48. For the record: I'd rather you break up with me than cheat.
49. I remember everything about our relationship. (mmmKay, kind of creepy)
50. You should know all this and more with-out my telling you. (C'mon, I'm not a mind reader)
1. Express yourself. It makes us proud, even if someone thinks you're wrong.
2. You look hot in running shoes and shorts. And that top thingy with the stripes.
3. Bare, tan shoulders are underrated.
4. If you think I’m speeding now, you should see me drive when you're not in the car. (vroom vroom)
5. If you're truly interested in us, don't play hard to get.
6. Shopping is a chore, not an activity. (true dat, brotha. a shopping list for us is a to-do list, not some kind of scavenger hunt)
7. When I screw up, go ahead and tell me--once. (even better, don't say anything at all b/c chances are I already know!)
8. No question need ever be asked through a closed bathroom door if I'm inside. I love you less with each syllable you utter.
9. I'm hot for you, not your sister or your friend or your coworker.
10. My guy friends. Not only are they not negotiable, they’re your best sign that I’m not a whack job.
11. Don't be afraid to ditch the makeup. Natural is sexier.
12. Leave the eyebrows alone. Plucked ain't pretty.
13. You can have sex with us any time you want. Seriously. (Except when Grey's Anatomy is on... NOT)
14. When the game is on, we will pay attention to you if you're nice about it. Bark, and we shut down.
15. I don't ask for directions because I’m just happy to be driving. Anywhere.
16. Masturbation is merely practice for the big game. Encourage it.
17. We crave hugs and hand-holding too. And no, it doesn't always have to lead to sex.
18. But you can have sex with us any time you want. Did we mention that?
19. There's no better sound in the world than you, having an orgasm.
20. Though the exhaust note of a Porsche Boxster is pretty damn fine, too.
21. I just may lie to make you feel good. Don’t be angry about this. You really weren't looking for the truth anyway.
22. When you get angry over some stupid little pointless thing, I question your intelligence.
23. You’re really bad at faking it. (Oh yes. YES! YES!! It's so true!)
24. If I offer my help while you're getting ready, it means you’re late. (I care more about us being punctual than how your ass looks)
25. Never ask me to pick out your outfit. (See above.) I will invariably get it wrong and make us even more late
26. Giving me two or three choices, however, can be fun. Assuming you will change outfits in front of me. Slowly.
27. Err on the side of hot; I love to show you off.
28. Unless we're meeting my parents.
29. When you call us at work "just to chat," we're not really listening; we're checking our e-mail.
30. Spring means baseball and skirts. Doesn't need to be a mini-skirt; it's been a long winter.
31. Chicks who drink beer are hot. Better yet: chicks who drink beer and watch the game. Better still: chicks who buy us a beer during the game.
32. We don't mind being told we look good. Just don't call it a "cute outfit."
33. We love ponytails. (they give our hands something to do)
34. Being good in bed means a) enthusiasm; b) a sense of humor; and sometimes c) patience.
35. The first time? We're as nervous as you are. (So is Little Jason)
36. A random unexpected grope is always welcome, even in public. Especially in public.
37. Make us laugh and we'll want to hang around.
38. Yes, I laugh really loud around the guys. And I always will, so deal.
39. Sure, men stereotypically like to solve a woman's problems. But a woman who solves her own while we watch? Instant erection.
40. You can pick the movie, but have a reason.
41. Do not expect to have a conversation via text message unless you use the words "naked" and "waiting."
42. Sometimes we wonder why any woman would want to be with us, much less someone as amazing as you. So, thanks.
43. Anytime you cook for us, we're happy. (or sex. or silence. food, sex and silence. that's what'll make us happy... not shoes.)
44. If you can hit a golf ball 150 yards, we just might fall in love.
45. No, I don't remember what he said next. Or she. Or anybody, for that matter. I'm a guy, not a tape recorder.
46. We love you even more because you know we need to go out with the guys once in a while.
47. And we love it when you hang with us guys, too.
48. We have a keen sense of imminent danger. It sounds like, "Do you think she's pretty?" (Along with: "does this make my ass look big?" and "if there's one thing you would change about me, what would that be?")
49. Don't rely on us for keeping you up on the news.
50. Never say, "I know you better than you know yourself." Nobody does.
Flight 5822 operated by UNITED EXPRESS/SKYWEST / Flight 906
Austin, TX (AUS)
9:50am - Thu, Sep 27
Next day arrivalMunich, Germany (MUC)
12hrs 54min - 1 Stop
Change planes in Chicago, IL (ORD)
If you don't see updates on this blog for a few days, assume I'm in Germany.
Sunday, September 23, 2007
- You have to be willing to lose in order to win. You can't be afraid to have your stop getting hit if it's a good trade.
- The most important thing is protect yourself, protect your capital.
- You make better decisions by making fewer decisions. Some people think that as a trader you're suppose to trade so if they're not trading they feel they're not working and force trades when the opportunity is not there.
- Get out an excel spreadsheet and see how the strategy works candle by candle. You don't need to test it live.
Anyway, things didn't go so well as I wanted. I got in a trade which I knew would bounce back up but I had to leave since I had an appointment with Brooke for lunch... I didn't know what to do since my manager was away and I decided to take a small $6 loss so I can leave without having this on my mind. I haven't seen Brooke since Europe and that coincidental rendes vouz at Zilker Park over the summer. We've tried a couple of times to go to happy hour or brunch but the schedule didn't work out and I'm very happy and excited we finally got to do this.
All I need was a $15 winning trade, well, after my first trade back in the office that total was at about $22 instead since I hit a terrible u-quote... fortunately the next one I hit was a good winner. It printed way up and I got hit plus there was some strong selling pressure so I just kept it on its way down. Unless I calculated incorrectly I should be up about $5 for the week, which for a newbie like me, hey, I'm quite proud of it. Next week, I just have to be very careful still and really watch my losers. None of the $20+ losers that I've had like this week. Hopefully I get another up week next week and then I can swing a bigger line.
Friday, September 21, 2007
It was interesting when David called out the a trade today. The stock was reaching its 52 week high and he went long on it and made a good profit of 20, 40 cents on it I believe. I remember Patrick saying something to me about that kind of trades before... hmm...
I'm maybe down one or two dollars for the week after today, stupid... let's be careful today and I'll have my first real net positive week and if I have one more next week I'll be able to get my share size increased.
Oh, and to my surprise when I came in the office in the morning, I see my name in the top 5 rookie list for the past 5 days! So cool!! Maybe it got to my head a little bit that's why I lost money today... booo.
Thursday, September 20, 2007
Career Expo is actually kind of fun when you're a recruiter man. I'm just there talking about my job. I hopef I didn't talk about stuff I really shouldn't be and maybe get in trouble. I remember the first guy that asked me the question: "do you like it?" I had to pause briefly to think and I replied: "Yeah, I love it. I think I sound like a dork but I love my job." And it's so true and thanks to whoever that cluess sophomore was I have that revelation.
Oh, this is kind of interesting, I mean... it's not laugh out loud funny of course, but on my ticker yesterday came up the symbol DOG (it's an ETF to short the Dow 30. you buy it if you believe it's a bear market) and then right after the symbol CAT (Caterpillar). I just found it amusing that's all. If you don't, whatever.
I was suppose to have coffee with Kristen but she cancelled so I was just sitting at Starbucks reading for a while before meeting up w/ Vicki for dinner and go to the volleyball game. My energy just crashed after sitting in my car for a while... then I remembered that I woke up at 2:30 the night before and couldn't sleep b/c I was so excited about the trading day and just tons of different scenarios are playing out in my head. I'm so sad that Ashley Engle is injured. She's so good. I hope she's back before we play Nebraska again.
Tuesday, September 18, 2007
Now, this is my thinking: a 25 point cut is already priced in the market. The only way to get a major reaction is if 1) there are no cuts and 2) a bigger cut than 25 points.
Literally, as the voice over the speak goes: "50! 50! 50!" I longed XLF the financial sector ETF. I watched it shoot up 20 cents and got in as soon as I can. Might not have been a great idea, in retrospect, but it worked out. Chalk it up to one of those instincts trade. As soon as I see it starts to pull back I got out. Honestly, I knew I didn't really want to trade a stock that'll move beyond my ability to do damage control if it goes against me like GS, BSC or LEH so that's why I picked XLF b/c ETF's move more steadily. It might not move as much but it's more of a sure bet. Risk/reward I guess... you hear that two words right next to each other a lot when you're in this business. Technically I probably should've just adjusted my stops up and keep holding it. The ECN and all my tickers were going so nuts I couldn't even read it at all. It was just a blur.
I got in some other scalping trades. Mostly though I didn't get hit at all, which pissed me off. I looked back at the end of the day and it must have been at least 30 different times I didn't get printed. I wasn't slow at all is what pissed me off. I just have a lot of my bids or offers far away from the print b/c I felt that with such high volume it's probably gonna print away from it. I did get in a stock that was about $100 and the spread was well over 20 cents so that caught me by surprise that I was down $20 the second I got hit. Fortunately someone took my offer through ARCA and I got a $25 profit from it.
There was one trade though, I guess it wasn't the best set up. I saw that it printed up so I shorted it but really it printed down and already ticked up so I got burned for $17 there I think. As we approached the close I remember I was $2 away from making my personal best and I finally got in a scalp for a $5 and I took it with like maybe 3 minutes until the market close, hehe. Really though, I knew I shouldn't have taken it and could probably make $5 more on it but oh well.
Tomorrow I'm going in to trade during the open and then I'm going back to campus for the Career Expo but as a recruiter this time! I already set up some time to meet with old friends and then going to the volleyball game at 6:30. Coffee at the Alumni Center with Dani @ 12:30, grab a drink or bite with Kristen after the expo, dinner with Vicki and then go to the game with her and Steven as well. After the game I need to swing by AJ's place to pick up my Hofbrauhaus mug <3 and then head over to Holly's new place and hang out for a bit.
Friday, September 14, 2007
- Read everything you can get your hands on
- You have to go through the experience, figure it out for yourself, back test your strategie and do your homework. It takes 6-12 months and it just doesn't get through faster simply because you want to
- It's not as simple as doing what other people are doing. You have to test it out for yourself. Not necessarily trade it live but go through the historical prices or candle by candle.
- Go back and revisit why you made a trade in the first place instead of trying to figure out why it went wrong
- Have the discpline to go back in time and test out a strategy and trade in the same manner live later
I don't care. I need to focus on myself. If I keep comparing myself to others I will always be neg. Grass is always greener somewhere in the world. I might not be the best trader but there's no way in hell I was going to let someone else outwork me.
Sigh... It's been slow the past couple of days. Actually, the past two weeks has been pretty slow. This Thursday was Rosh Hashana and try not to read more than what I'm saying here but all the people on Wall Street that are Jewish are no working... It's the calm before the storm. Next Tuesday baby!
Thursday, September 13, 2007
Wednesday, September 12, 2007
Well, it's been a rough day... my winning percentage is like 10% today and that was for a grand total of $2, even though I knew that I should've held that scalping trade and make $15 or so on it but I took it, lest I forget what the taste of winning is like.
Lots of bad trades today, kind of. I got burned on TSL and couple of times I tried trading IWM and SPY because they correlate to the S&P futures pretty closely when I feel it was making a move but I got with probably $3-$5 lost each time.
I felt like I haven't really improved that much recently. I know that scalping, especially the speed is suppose to come in time and actually Lawrence called me out on being way too broad and general with my comment. He's been saying to keep my losers small and he suggested 3 cents... which quite frankly, I dunno, that's not a whole of wiggle room. What do I want to improve on... that's for another time, like in the moring. It's too late right now and I've got to get some sleep.
... I feel like I should branch out of my pod and talk to some of the other traders more, but how do I approach them? "Hey, I'm Jason. I'm new. I suck right now. What's been making you money?" God, that former NYSE specialist guy Ben yahtzeed already. Sick! Well, he does have much much more experience than me. Argh! Just frustrated, you know. For awhile all this trading stuff seemed to make sense but now it's all completely foggy again. son-of-a-bitch!
Tuesday, September 11, 2007
Thursday, September 6, 2007
I had set some good targets for my trades today but twice I took my profit early. I've been patient in waiting for good entry points, now I really need to learn to be patient to wait for my exit points.
Wednesday, September 5, 2007
Take away for the day: continue work on scalping speed. don't be a dumb dumb and chase.
Question to ask: buy/sell imbalance, the PLX trade towards the close, why does scalp keep going down... what am I not seeing?
Tuesday, September 4, 2007
I really need to learn to let my winners run a bit and how to block out the noise. I know how to look for my entries and I just need to be patient and not trade on wishful thinking.