Life relates to trading and trading relates to life. Constantly revealing, unfolding before us as we trade and live, so I write about how my life relates to trading and how I trade the markets. Along the way I share my opinions on anything that evokes my passion or tickles my funny bone trying not to forget that enjoying life is the best part of living.
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*****Thank you to my trading community and readers everywhere. Below is my PlayList for the Wednesday with all the stuffing.* Happy Tday to all .. that is Turkey and Trading .. and have a safe and happy weekend.
Anni
*please note that The content provided herein is not to be construed as recommendations to buy or sell stocks of any kind and it's just for information, education and entertainment purposes.
The VoiceThread below is a place where you can view, listen, make comments, ask questions and share ideas on this video. and don't forget to subscribe to my services currently offering a 2 for 1 special.
Enjoy.
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*****I am amazed about the disconnect this market has with reality or as I call it, actuality. We are daily hitting new highs yet the consumer confidence misses consensus by a large margin. Mid 2000's that miss would have dropped the markets by a large margin, and as we witnessed this morning we did drop initially, yet it was considered to be good for the markets, like all bad news has been these past 4 years, especially this one.
We can continue to compare the past with the present as to how the markets reacted in the mid 2000s to good news vs. bad, but what's the use in that? Well, we can learn from it by noticing that all those dips and slides eventually became gains anyway; which means that the majority saw opportunity or what I call possibility. So here we are, in the actuality and we can envy those optimist or we can learn from them; they did not get here because of a special crystal ball, but by knowing that the markets in the long term go up and not down. They had to have patience and also had to disregard the reality of a recession, and burst of the housing bubble and have infinite great timing. Do you believe that or will you see that they too have an amazing disconnect from reality.
The truth is that in the mid 2000's the market had an amazing disconnect from actuality also. Low unemployment was bad news because the media said so, consumer confidence had to be beaten each time or markets plummeted and when the manufacturing index was not gaining by much higher margin than we currently accept as great; also, the housing market and starts were not fast enough for some. Get the picture?
We can always believe the numbers and what others say currently or we can stay a bit disconnected from the hype and look beyond to see the possibilities. We have no worries, the debt is not rising and it will not hit us smack in the face anytime soon because the Fed. will protect us from that reality. Right? Besides, hopefully the "boomers" will die soon enough leaving their offspring rich to take care of it all for their children, and so on. As you can see, if we continue seeing actuality, we'll go terrible depressed or go insane, so perhaps staying a bit disconnected from actuality is good and maybe even amazing for us.
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*****This week is traditionally a slow one in USA when it comes to trading, but what I'm seeing is further enthusiasm among traders and perhaps shoppers as well. I think we all like to count our blessings when we assess everything in our lives. Even if our lives are in turmoil and maybe not all our wishes have become reality, we all look forward with hope to reach that next possibility on the horizon.
Certainly the markets have shown that many have done just that this year. The danger perhaps with some is that temptation to look back and wish to have done better and become overly anxious to make that next trade the home run into the end of the year. It's what I tend to caution against in all my writings because we always do the best we can at the time of our actions. So I'd like to remind us all that trading is a marathon, and not a sprint. Second guessing ourselves is not being kind to ourselves, instead give thanks to yourself and appreciate all you have achieved. Then, give thanks to those who have been your cheerleaders and guides along the way. We all have them.
So, with that, I wish to thank you all; all who have taken the time to read these articles that I've been writing, all who have listened to my outlooks and opinions. I thank you for your patience and faith in all that you do, because you have also been my guides and cheerleaders this year. Wishing you all a happy and safe Thanksgiving Day.
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*****No matter where you are on your investment plans, it is important to make a note to yourself about illusions. Illusions occur to support our view of things as we wish to see them but not as they actually are. We are all prone to illusions because we are successful liars to ourselves.
Please don't mistake my thoughts to be negative. Illusions help us to see the positive while hiding the negative so they are a two edged sword. They are part of "hope" therefore often necessary to get us through our day. Most often a daily routine. Trick is to be able to balance them and not allow them to rule our lives.
When they become predominant is when we tend to go off course and maybe even off a ledge, so keep your dreams and illusions simply clear.
In trading what puts us often into an illusion is when we get lost in the possibilities. If we dress our charts with too many indicators, we don't see clear movement of the patterns because we see too many possible outcomes. When we second guess ourselves about the satisfactory outcome of our trades, we get lost in illusions. Being lost in illusions is when we tend to "overthink" or even "underthink" a trade. When a trade hits a target too easily an illusion may run away with us that the "sky's the limit". Or if a trade turns slightly against us and/or near our stop we may second guess our plan and quickly exit before our planned trade finishes. In either case we don't trade our plan therefore allowing the illusion to rule our actions.
Besides alerts, what helps me is to keep my ledger and a post it note for reminders in plain visible sight. It helps me to remember my original plan and thinking, as it keeps reminding me of my targets, so I can view the possibilities without getting lost in them. Remember illusions are not magician tricks in trading; amusing at best as entertainment, but in real life they can also be dangerous sideshows.
The ponies run, the girls are young,
The odds are there to beat.
You win a while, and then it’s done –
Your little winning streak.
And summoned now to deal
With your invincible defeat,
You live your life as if it’s real,
A Thousand Kisses Deep.
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***** I used to think that what hurt us the most was that others lied to us and that if we only stopped lying to others, the truth would set us free to make choices of our own. I've written about it in the past, stating that without lies we have choices, with lies we still have choices but they are false ones based on a false premise.
I still think that it's true but more to the truth about what hurts us is the fact that we lie to ourselves. That natural wonder which we all do so well. You can lie to me because it's a way of presenting illusion, but I, deep inside know when you lie and the moment that I chose to accept that lie, I am lying to myself.
We do this everyday believing and accepting the lies we are told daily by the government, markets and media, even family, friends and lovers. We elude to the fact that we want to make intelligent clear choices with our living and lives yet we continue to believe others that mislead. In the end though it's that belief that hurts us the most, when we fall down, fail and succumb yet to another lie, that blames the cause to be the other.
Not all lies told us are intentional but I think that all lies we choose to accept are. Therefore, if we continually blame somebody else for what we accept as a lie then we will continually believe that our strategy should work and our trades are safe, even when all evidence is contrary. Perhaps looking ourselves in the mirror saying and repeating "Don't lie to me" may help but more to the point acknowledging that we do it may be the most freeing to ourselves and our lives. It frees us to quit blaming and let's us move on to accepting which is the biggest step before that forever sought after change.
Imagine applying it to all parts of our lives and imagine the change that is could bring. So, lie to me or don't, the choice is still mine to make.
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***** Isn't that SPECIAL! ? ! As the "Church Lady" used to say on SNL (Saturday Night Live)
I said on Monday's Weekly Outlook that the markets are looking for something special. I honestly did not think that Janet Yellen would be that significant special news which would propel the moves I was looking for. Nor did I think it would be happening so fast.
Aside from my political views, it is not exciting for me to hear or learn that the main continual objective of our government is to ignore the debt, keep inflation to the upside (especially the one they don't measure: food and energy) and call it "good" for the people. Obviously my thoughts differ from the markets in this, as this bit of "good" news was what inflated it more; and "Why not?" I say, "it worked thus far".
These are the kind of significant "surprises" that developed my thinking and started my planning to be set up both ways. You see, I prefer to be at the ready than to scramble. Since it's impossible to predict when or why the markets will move this way or that, it's easier to plan for possibilities instead. So, if I know ahead of time what I'm looking for and set up accordingly, I'm already ahead of the game.
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*****Frankly, I have no clue about what to write. Many thoughts have crossed my mind about the markets and its direction, but really what is being reflected is the growing concern about tops. I think most likely we are all looking for something. Something to indicate a more solid direction; notice, that I said "solid". So the markets want more information, or more leadership and maybe more assurance that these times will march on the same road as before.
When I look at what lies ahead, the holidays come to mind along with the end of the year. The current unknown is whether the consumers will again open their wallets to reflect an optimistic outlook on the economy. Since it's a bit early to tell and since some indications are the opposite, we are feeling uncertain about the direction, therefore patience and tolerance is perhaps the best course of action.
One day there's going to be a correction, that is for sure, but no one will know ahead of time when that day will arrive or for how long it will last. Multiple top tests is a consolidation of a different kind. It may indicate a serious concern or just a time for taking a breather therefore temporary adjustment. Volatility tends to indicate profit taking and buying and ranges reflect how traders tend to see when each reaches the opportunity. We all know that opportunity is a two way street. Both buying (long) and profit taking (short) are opportunities for traders and volatility gives us more in each direction, even if nerve wracking.
So, it's a good time to look toward the indexes because noticing what they show to you may be at this time your most friendly indicator about what's happening. Be ready for a direction change and be tolerant of snaps. Notice the ranges and notice the supports along with the resistances. Markets are never one way or another they are always both and it's why I like to be ready for both, long and short. when I set up my charts and plays.
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***** The past couple of weeks I spoke about various possible reasons why people might try trading for a living. What I often presume and not mention is that traders enjoy what they do and their motivation to make money at this quirky, difficult and frustrating and risky business is really for the good times.
Good trades like good times propel us to try once again. I won't go into the the chemistry of it because I have very limited knowledge about the science of chemistry, but trust that the brain gets motivated by chemicals when we are feeling good. They get triggered by touch, taste, smell, and sound which we all know, but they also get triggered by knowledge. Just the sheer fact that we think we 'know' something makes us feel good. Apply that knowledge to a task resulting in feeling of achievement and success, and you have that feeling of satisfaction, and the release of more feel good chemicals. Test it out for yourself or recall when you shared or taught what you know. Parents can related this best when passing on or teaching their kids what they know. When that feeling of achievement/satisfaction occurs is when we know more chemicals were released for us to enjoy that feeling.
I was not good at chemistry but I know that those little gray cells like to be tingled and anything that has a chance to give them that feeling they will encourage, so we try and to do it again. Many of us try it over and over again perhaps to the point of addiction and quite possibly it's this feeling which propels us forward to success or at least to try and succeed again and again.
Does that give you an answer to why we do something over and over again and whence the definition of insanity is born? Perhaps now with this understanding you now know why you try repeating that trade over and over again and will help you to give yourself a break, both figuratively and literally, May take only one taste of success at this business which hooks us into the loop and recognizing that in itself can perhaps will help you get off the hamster wheel.
Equally, if you do succeed over and over again, it too propels you to keep repeating the task again and again. So I could argue that ultimately, whether we get them or not, we are trading for the good times.
The above article is not a solicitation but this tape below, is. During rest of November I am offering a 2 for 1 sign-up special (2 months for the price of 1 month) good on both the PlayList and SwingTrade List. Sign up on the Services page.
Below is an actual PlayList tape for last Thursday.
PlayList Week45 for Thursday 07 November, for - $AAPL $AMZN $BIDU $CMG $LNKD $NFLX
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*****In physics it is said that two cannot occupy the same place at the same time. All evidence that I know, studied or read points to this to be true. So, I may expand the point that we cannot live our past in the present.
True, I've often said that history repeats, and evidence also shows that it does otherwise traders could not trade patterns and the markets would not move in cycles; but the cycle rather than being a circle, it's a spiral. Thus, it's not in the same place ever again. I'm not only talking about the price but also where we are. Our thoughts our positions our experiences all have changed from one cycle to the next, spiraling also along with the earth we are always moving through space. Therefore, we cannot be where we were previously no matter how we try. It is why we cannot apply the same solution.
Looking for the exact same occurrence in the markets is a useless exercise. How often have we said we will never do that again, just to find that we are doing it once more? If we were to recognize the exact same occurrence we probably would not repeat the same action if it hurt us before or repeat it if it did not, but we seldom can just due to the fact that we are not in the exact same spot.
I realize that I'm speaking of seeming minute differences but oddly enough, they are not minute in our psyche. Let me know when the next time an occurrence repeats that brings memories of pain. Do you not hesitate? The frustrating evidence is that we don't realize our hesitation often until after it happens, or that if we notice it, we give it a different label, until we can analyze our decision moments or days that follow, recognizing a past pattern. It is why I prefer to let my trade entries and exits trigger and it is also why machines become better traders; they are always in the moment.
I know that often I can define a problem and give it a solution, but in this case I don't have one; other than staying in the moment, I have no other advice. Being in the present moment or the "now" tends to make us become more harmonized with the natural flow of life. No resistance, no support, only the being. Worry, fear, anything negative usually comes from memory and creates hope or fear, which means we are not current. and as we know, trying to occupy the present and the past or the future at the same time is, after all, impossible.