3 Weeks Reflections





For those of you visual people, here have been the net daily cumulative results over the past 3 weeks of trading the ES, as well as more specifics of the daily summary.

The Daily Journal would be too much to put on here.

The first week, Thursday, 13-Nov-2008, that was a total outlier and I acknowledged I should not have done that. In the following 2 weeks, I stuck by my rules of not using more than 2 contracts at any given time. The goal is to be able to make $300-500 using 1 contract. As I get really good at doing that, then I can add to trade with 2 contracts simultaneously.

I'm still working out the kinks as I do like to leg in and leg out of trades, so perhaps only legging in with 1 contract at a time, which is what I have been doing may still constitute as 1 contract. Eventually I'll bump that up to 2 contracts simultaneously, which if I'm still legging in and out, it will be with 2 contracts instead of 1, which would mean that I would have up to 4 contracts on the table at a time.

As I continue to trade, I document what works and what doesn't. I may find that it may be too much and have to go back to just 1 contract total on the table. This is highly doable to really support most people's families on 1 contract of the ES.

As you can see, my trading time daily is around an hour. There are 6.5 hrs of trading time in the market and if you trade futures, that is considerably extended to really 23.75 hrs a day, though, outside of normal market hours, the volumes are considerably lower. Trading on my 1 contract, I'm not impacting the market at all.

My plans are to continue to trade again on Monday through to Christmas Eve. I will not be trading on Friday after Thanksgiving and will just take time to enjoy my family and relax, workout, do nothing or something.

I did not put the starting amount for this account, but it's a modest amount and as you can see, in 13 days of trading, with some days where I did goof up majorly, I still ended with a 270% return on my money in 13 days. That's pretty phenomenal if you ask me.

As you can also notice, there are some habits I'm working to break and it can be a challenge. There are some things you'll notice that I do right and when I do, it ends up being quite profitable. I do have some really good days and there are bad days, and quite a few ordinary days.

Let's see what will happen over the next 3.5 weeks of trading and see if I can get the cumulative daily profits to be over $20K. My goal is still sticking with the 1-2 contracts and not do goofy things as I did that first week.

There are a number of factors that do play into my being successful or not. However, the #1 factor is my relationship with Jesus Christ. In Deuteronomy 8:18, it says that it is God that empowers me to be able to create wealth. That is exactly what He's doing, inspite of the things I mess up from. I'm grateful that I do have the ability to learn and to change.

May you be able to find many things to be thankful for this Thanksgiving. And, I challenge each of my readers to be able to daily find 5 things you can be thankful for. When we have joyful, appreciative hearts that are filled with gratitude, it makes it so much easier to be able to receive, especially from the stock market.

God bless you and see you next week.

Bottom Line On ES For Wk of 24-Nov-2008

Profitable Trades = 22 (76%)
Costing Trades = 7 (23%)

Total Trading Time = 5 hrs

Total Profits = $4200
Total Costs = $1125 (26.8% of profits)
Total Commissions = $115.71 (2.8% of profits)

Net = $2959.29 (296% ROI on capital) or $591.85/hr of trading

Trades on ES for Wed, 26-Nov-2008

My goal is $700 for the day. Today I grossed $812.50.

Total Trades = 3 (1 hr, 9 min. from 7:57 am to 8:30 am EST and 9:50 am to 10:26 am EST)
Contracts Used at 1 Time = 2 ($500 margin/contract)
# Profitable Trades = 3 (100%)
# Costing Trades = 0 (0%)
Range of Profitable Trades = $100 to 412.50
Range of Costing Trades = $0

Total Profits = $812.50
Total Costs = $0
Commissions = $15.96
Net = $796.54 (79.7% ROI of capital used)

Things I Did Well for Today:

1. Planned my trade. Traded my plan.

2. Did not trade when I was distracted.

3. Knew where I was - location.

4. Set stops (profits & costs) appropriately.

5. Did not sit at the computer the whole time, so let my trades work.

6. Traded based upon the price action, indicators & understood where i was.

7. Stopped trading when I reached my goal for the day.

Trades on ES for Tues, 25-Nov-2008

My goal is $2000 for today. Today I grossed $2187.50.

Total Trades = 5 (2 hrs, 7 min. from 9:27 am to 11:34 am EST)
Contracts Used at 1 Time = 1 ($500 margin/contract)
# Profitable Trades = 5 (100%)
# Costing Trades = 0 (0%)
Range of Profitable Trades = $275 to $687.50
Range of Costing Trades = $0

Total Profits = $2187.50
Total Costs = $0
Commissions = $19.95
Net = $2167.55 (433.5% ROI of capital used)

Things I Did Well for Today:

1. Spent time the night before pouring over various aspects of the markets technically, so I was already in the groove when I started to trade.

2. Patient.

3. Planned my trade. Traded my plan.

4. Verbalized trades, not just entry, but throughout the trade to allow myself to stay in longer.

5. Had my stops (profits & costs) set, but did not stay at the computer the whole time to unnecessarily get me out of trades.

6. Knew where I was in terms of the market and location of pivot points.

7. Focused, undistracted, inspite of my little boy being home from having a skateboarding mishap.

8. Stopped trading once I reached my goal.

9. Adjusted my goal for the day and did not think about what happened the prior day.

10. Ate well the day before and the morning of trading, to nourish my mind & body.

11. Waited for signals to all match up with price action and indicators.

Trades on ES for Mon, 24-Nov-2008

My goal is $300 for the day. Today I grossed $75.

Total Trades = 21 (1.75 hrs from 12:29 pm to 2:15 pm EST)
Contracts Used at 1 Time = 2 ($500 margin/contract)
# Profitable Trades = 14 (67%)
# Costing Trades = 7 (33%)
Range of Profitable Trades = $37.50 to $187.50
Range of Costing Trades = 0 to -$350

Total Profits = $1200
Total Costs = $1125
Commissions = $83.79
Net = -$8.79 (-0.9% ROI of capital used)

Lessons Today:

1. I did not get enough sleep and basically stayed up fairly late. The night before my kids were having problems with coughing, puking, breathing and it spilled on over to Sunday night, just less of it. My sleep has been greatly thrown off.

2. Started trading late and was really groggy, but kept trading.

3. I started off to a bad note with a -$250 cost on one contract. That is not a good way to start off the day negatively and so much. I don't think I was really paying attention as my entry was at the bottom of a double bottom to go short. Does not make sense, but I did that and I continued to hold on after the MAs were broken.

4. VERBALIZE TRADES.

5. Know where you are. Location, location, location.

6. Over the weekend, Sunday night, I consumed 1/2 of a 1/2 gallon of ice cream. I've never done such a thing and all that refined sugar and dairy in my system does not make for clear thinking. I'm used to eating very healthy, so this was a shock to my system.

7. I do much better when I'm focused and not trading a lot. 21 trades in a day is far too many trades for me in one day.

8. Though I grossed positively, barely, all the trades I did caused me to be net in the negative. Almost broke even, but the 7 trades that went against me were far too big.

9. Of my first 6 trades, 4 went highly against me and I kept trading to recoup what it cost me. I was better able to focus, but I had some fear and got out of some trades too early, instead of waiting for my signals to get out.

Behind

Sorry folks. I have traded the past 2 days and do have results, but I haven't posted them yet as I've been busy. I hope to put my results sometime over the Thanksgiving timeframe. Please be patient.

Stocks That Are Doing Well Or Holding

I have not been really looking at stocks too much over the past few months as I've been really focused on trading the emini's, particularly the ES. Plus, my life has been really busy. But, this evening, I was looking at a few of my favorite stocks and saw how much they had dropped in price. Though I'm loving the "bear" market, as I looked at all the stocks I could think of that I've traded in the past 3 yrs that I have loved, none of the stocks have held during this market and they have all taken a beating big time.

So, as I poured over 100 stocks, I began asking, which stocks have faired well and which sectors. I don't have a ton of time, but for those needing their stocks to go up, here are some stocks that have faired well, meaning they have either held their price or gone up while most of the market and stocks have gone down:

Biotechnology (BIO1 subsector) : OSIR, GENZ, MYGM, EBS, CBST, CEPH, ALXN, DNA, OMRI, IMCL

Environmental & Facility Services (CSV sector CMS5 subsector): WCN, SRCL, WMI, AW

Food Beverage & Tobacco (FBT sector): UST, CPB, GIS, FLO, LNCE, ADY, TR, DMND, RAH, HSY, BUD

Consumer Services, Restaurants (HTL sector, HTS4 subsector): MCD

Consumer Services, Education Services (HTL sector, CON5 subsector): APOL, ESI, STRA, DV, CPLA, COCO, LINC

Pharmeceuticals (PHA1 subsector): BRL, ALO, KG, VRX, QCOR

Insurance (INS sector): FFH, CIA, NFS, PHLY, TWGP, SIGI, IPCC, NAVG, ORH

Materials (MTR sector): ROH, RGLD, WPP

Capital Goods, Aerospace Defense (CAP sector, AER1 subsector): ADG, DRS

Utilities (UTI sector): NJR, SJI, LG, PNY, GAS, WGL, HE, CHG, VV, NST, WTR, CWT

Food & Staples Retailing (FDR sector): WMT, NAFC, KR, CASY

Do take note that I did not go to all 24 major sectors, nor did I go to each subsector. I did an initial scan and looked at stocks that caught my eye and then their subsectors & sectors.

I went through all these areas really fast and some I thought might be good were not all that great after I looked at them just a few seconds more. I did not go on statistics of how they performed, rather I quickly looked at the chart pattern, volumes, RSI and made a quick judgment.

These are not stocks that you should just jump into purchasing without doing your due diligence.

All major sectors trended down for the year. However, the subsectors that did not were in education and water utilities.

Anyway, my commitment to go to bed at a reasonable hour is upon me, so off I go. Enjoy.

Evolving

Since I'm up, got woken up around 1 or 1:30ish this morning with my 5 yr old son supposedly sleeping beside me, hacking up a lung. Needless to say, he ended up puking. He'd been coughing a lot and it made going to sleep not very easy for either of us. I'd probably only been asleep just a little over an hr.

Poor little guy. Anyway, he threw up on the bed, but thankfully the majority of it made it into his puke bucket. I cleaned up all the messes and since I wasn't in a great mood, my language at the time wasn't too good. My 8 yr old daughter reminded me that it wasn't good to say bad words and my son didn't mean to puke. I totally know this and apologized to both of them.

Calmed everyone down, began washing all the bed linens with puke, and got things cleaned up. Then, I began doing accupressure on trigger points and massage on my son first, whose coughing was just terrible. Spent quite some time on him, hoping to help ease his cough. His cough now at nearly 3:20 am seems not as intense, but it's still there.

My daughter was having some difficulty breathing. We had been to a friend's home for a birthday party and people had been smoking outdoors and indoors they had cats, which she and I are allergic to. I'm guessing this bothered my kids and did not help them.

This is going to be a long night, so I decided to do some reading of when I started this blog, about 16 months ago. My, how my trading has really evolved a great deal. Additionally, I went through a divorce and have learned how to better manage single parenting. This is my most challenging, but rewarding job, of which I'm grateful to God for giving me this opportunity to be the parent of 2 incredible children, to help mold and shape their formidable years.

I have been aggressive at tackling my dreams and goals for trading. This road is the road that is less traveled. Looking back from where I was 13 years ago to where I am now, I think about all the changes of me personally as well as my trading. Certainly for a typical person, having gone through such huge things, they would've given up.

How important are your dreams to you? Whose to say they are realistic or not? The question, rather, is, are you willing to have an indomitable spirit inspite of the obstacles you may face?

Enjoy the journey, even if you come across some big potholes in the road. Maybe you'll learn to see them sooner and learn to avoid them, rather than falling right in. Who knows where my trading will be in a year from now, except God.

Keep pursuing your dreams. Allow the obstacles/challenges in your lives to help you be more creative, more determined. God bless you.

Trading IS Psychological

Proof is in the pudding. The market is always right and as perfect as anything can get here in this flawed world. Even if you have great technical analysis, a good trading plan and strategy, it really boils down to the psychological aspect of trading.

I am humbly psyched.

This week there were some huge milestones for me personally. Taking the trip out of town without a man was a huge thing and I haven't done that since before my first marriage, when I was in college. I also was better able to understand and express to my dad something I've been wanting to do for over 30 yrs and I was able to do it in a manner that honored both my dad and myself, building a stronger relationship.

I'm learning to really trust God and have an expectant hope in Him, especially when things don't turn out well or are going my way. Over these past few years, especially the past year plus, I've learned to praise God inspite of my outward circumstances.

I'm also learning to abolish those things which I CAN control that are toxic. People, we don't need toxic people in our lives and it would do a lot of us a lot of good to have healthy boundaries, stick to them without fear or reservation, and get rid of people who cannot respect them. That sounds cruel, but it's much easier to pull someone down than bring them up. So, cut the cord.

What if it's family? Sometimes you have to then minimize exposure or avoid things that would create toxicity. I grew up and led most of my life in such dysfunctionality, but by the grace of God, He can redeem, if we allow Him to.

I feel so blessed that God has been revealing all these areas of my life that need changing and He's doing it in an incredibly way. Yes, fairly painful in many respects, but what's resulting are some amazing changes in my life.

If you're trading isn't going well, I would highly recommend looking at the psychological aspects of your life. Sometimes you just gotta dig really deep and what may seem obvious really isn't. And, you may need help (professional) to get there.

Differences Between ES Wk 10-Nov and 17-Nov-2008 Trading Results

These are the differences between trading for this week and last week:

1. I got some badly needed rest and relaxation over the weekend. Got away and allowed my right brain to be nurtured through change of scenery and piano playing.

2. The capital used this week was 1/10th the trading capital used last week.

3. A greater calmness in trading.

4. Greater profitability.

5. The number of trades made were cut in half this week from the prior week.

6. Greater consistency in time spent at the computer this week than last.

7. Stopped trading when I reached my goal for the day. My day goal varied daily.

8. Much better execution of trades this week, which resulted in higher probability of profitable trades.

9. Significantly better focus this week and it was much easier to focus.

10. The costs portion of this week cut very small into my profits where last week, the majority of my costs ate most of my profits.

I am now a FIRM believer in giving the mind, body rest and nurturing. This week's market may seem "scarier" to more people, but it really has been a calm, fun time for me. I am really excited about trading as I get a better hold of my psychological aspect of trading.

There is no difference in technical analysis of last week or this week. The only thing is psychological.

Do you want to give 80% of your profits back to costs? Or would you like to keep that 80% as profits?

It sure does something to one's psyche to give back most of your profits, and is not good trading.

I praise God because it is God that empowers me to be able to create wealth. He's sent a number of people, resources, and situations to help open my eyes to things I need to change in my life or allow God to work and intervene. He is an amazing God and I look forward to sharing my successes and well as my failures with my readers.

It's a continual learning process and I bless your trading. May you find this journey an incredibly rich and fulfilling one. God bless you.

Bottom Line On ES For Wk of 10-Nov-2008

Profitable Trades = 42 (76.4%)
Costing Trades = 13 (23.6%)

Total Trading Time = 4.8 hrs

Total Profits = $9062.50
Total Costs = $7387.50 (81.5% of profits)
Total Commissions = $219.45 (2.2% of profits)

Net = $1455.55 (14.6% ROI on capital) or $303.23/hr of trading

Bottom Line On ES Wk of 17-Nov-2008

I have been working very aggressively on the psychological aspects of trading, which encompasses mental, emotional, spiritual and intellectual stuff. Last week when I went to my chiropractor's office, the newer chiropractor did muscle testing of my body's systems.

One of the things he's identified was my right brain was very weakened. This is the creative side, the emotional side. Yes, a nasty separation, divorce, no vacation, financial challenges, single parenting, blah, blah, blah and no real respite during all this time. I hadn't been out of the metropolitan area for nearly 1.5 yrs, and I really needed time away.

Anyway, so I took the weekend off and went out of town to the mountains. It wasn't a long trip, but stayed teh night there, saw pine trees, did some hiking, just relaxed and enjoyed driving (normally I don't like to drive) and the peaceful scenary as I listened to Harv Eker talk about "The Millionaire Mindset". It was very motivating to listen to him.

Anyway, here is the bottom line for me for the week:

Profitable Trades = 23 (88.5%)
Costing Trades = 3 (11.5%)

Total Trading Time = 4.18 hrs

Total Profits = $2412.50
Total Costs = $250.00 (10.4% of profits)
Total Commissions = $103.74 (4.3% of profits)

Net = $2058.76 (206% ROI on capital) or $492.52/hr of trading

I need to check what I did for last week and I'll post what I have.

So, if I can make nearly $500/hr in trading, why don't I trade for longer? It really is a law of diminishing returns for me. It takes a great deal to stay so focused. I don't want to be glued to the computer all this time, as much as I like trading and being on my computer.

So, taking this weekly amount, multiplying by 48 weeks, that's nearly $100K for the year. That still gives me 4 weeks of vacation with absolutely no trading. Except, my workweeks are usually under 5 hrs a week. Not bad, eh?

I went from making near this for a salary (more with compensation) as a senior level engineer working 40 hrs/wk, plus commuting and waking up at ungodly hours to go to work, restrictions on my time, and now I can make more money, working less, and have a great quality of life. Not bad.

I'm very far from a millionaire and still very much in debt, but the money that I don't need to live off of can go towards paying down debts. As I free myself from self-limiting mindsets, habits, behaviors, my trading success can only get better.

It's really irrelevant what the market is doing, because if you're focused and you know what you're doing, you can make money in any market under any market conditions. If you can't trade the market, it's not the market. It's you. In my case, it was me. No excuses.

Life really is short. Now I'm going to go do a rough recap of last week and compare to this week.

Today's Trades on the ES (Fri, 21-Nov-2008)

My goal is $700/day when I trade. Today I grossed $750.

Total Trades = 5 (40 min. from 9:46 am to 10:26 am EST)
Contracts Used at 1 Time = 1 ($500 margin/contract)
# Profitable Trades = 5 (100%)
# Costing Trades = 0 (0%)
Range of Profitable Trades = $87.50 to $325
Range of Costing Trades = $0

Total Profits = $750
Total Costs = $0
Commissions = $19.95
Net = $730.05 (146% ROI of capital used)

Things I Did Well for Today:

1. Got enough rest.

2. Did not trade when I was distracted with kids, getting them up, etc.

3. Verbalized trades, though, not very loudly.

4. Waited for the setup of the trade.

5. Took profits, though a couple times a little premature.

6. Stopped trading when I reached my goal.

7. Increased my target $ goal for the day based upon how the market was moving.

Things To Improve On:

1. Traded the wrong account. Thought I was in one account when I was actually in another account. My ladder did not match my chart. Need to make sure both are the same.

2. Verbalize louder instead of whispering.

3. Make sure to look at all indicators and make sure they are saying the same thing before entering a trade.

Pivot Point

Well, what I'd been hoping for is actually happening in the market. We are not at a pivot point on the S&P and just about there with the Dow, minus about 250 points on the Dow. This truly is a thing of beauty.

If we look at the M pattern, and M does not stand for Murder, rather Money, if you know what you're doing. On the Monthly, we crossed below the 200 EMA, which is significant, signifying a greater bearish sentiment. However, without looking at moving averages, it would be significant if on a monthly close if we closed below the 7200 for the Dow and below 770 for the S&P.

The market will look to see if they can bring buyers in at these points, which means they would take the market further down to see if they can shake out all the sellers. So, we may see some very interesting actions taking place which I see to be fairly volatile over the next couple weeks to come.

It would be very significant if the close is too much below those numbers because it is breaking the pattern, signifying there is a VERY bearish sentiment in the market and we've not hit bottom yet.

Would it be The Depression? I don't remember what the analysis was for the Dow, but that would mean the S&P would need to reach around the 200-300 area. But, keep in mind, that millionaires were still created during The Great Depression. There are still people who make money during economically challenged times.

If the 7200 area on the Dow does not hold, then 5100 would be the next likely level of support. It doesn't take a rocket science to see the market is very bearish, but just like anything, there needs to be some pressure relief. What I've noticed is the market often likes to work in 3, 5, 7 type patterns. This would be 3 strong months down and often December is usually a fairly bullish time. We'll see if this is the case or not.

I honestly thought that we would have a bear trap type movement after the elections, to give people some hope, but maybe the market really is not too thrilled with the new president elect. All the same, I'm fine with the market tanking and if this market doesn't work, then I can always move to another market or differential to trade. That's one of the beauties of being a technical trader. A different differential would just mean that I would have to learn new terminology and logistics, but the technicals are the same.

There are opportunities even in what is perceived very grim circumstances, if we would allow ourselves to be opened to them.

Always manage your risk in trading, appropriately setting your stops, being knowledgable, size of position and never trade with hope. We can see when we do that, it always ends up biting us in the booty.

It would not be unreasonable to test this point for a few months and see some big volatility. Once again, more opportunities.

Today's Trades on the ES (Thurs, 20-Nov-2008)

My goal is $300/day when I trade. Today I grossed $375.

Total Trades = 3 (51 min. from 8:53 am to 9:44 am EST)
Contracts Used at 1 Time = 2 ($500 margin/contract)
# Profitable Trades = 3 (100%)
# Costing Trades = 0 (0%)
Range of Profitable Trades = $75 to 175
Range of Costing Trades = $0

Total Profits = $375
Total Costs = $0
Commissions = $11.97
Net = $363.03 (36.3% ROI of capital used)

Things I Did Well for Today:

1. Planned my trade. Traded my plan, well, most of it.

2. Looked at various timeframes to see bigger picture of what I'm trading (15, 3 and 1 min.)

3. Remained calm, keeping big picture in mind.

4. Got enough rest last night, so I can think clearly.

5. Legged out of the trade.

6. Stopped trading after a net of $300 was made. Resisted the urge to keep trading.

Things to Improve On:

1. Forgot to verbalize trades, though, I did talk it out in my head. VERBALIZE TRADES!

2. Trade Navigator was glitching and I found myself in 2 positions, when my intent was 1 position. Click just once and wait.

3. First trade failed to notice where RSI was, which was way oversold. Though I planned my trade and looked at overall, on the 3 min. it was at oversold and not a good time to get into a short position.

4. Need to remember to have ALL my stops in place, not just to take profits, but to take costs, in case things go really against me and I'm wrong. It's okay to be wrong.

All my positions were short today. There was a lot of opportunities within the first 12 min. of the market to make some big money, There was a 17-18 point move down, but when I got into 2 positions (contracts) when I meant to get into one a little over a 1/2 hr before the market opened, it was at 792.25, so it going up to 802.50, that was a big move against me, but my stop was "mentally" just above the 200 EMA on the 3 min. chart. I was sweating bullets as the first 3 minutes, it really moved up there quick.

Thankfully, it began moving down fast. My inclination was to get into a 3rd contract, but the reality is, I had my broker make it that I can only trade up to 2 contracts at a time for now, so I would not have been able to have done a 3rd contract, so I sucked it up and waited. The 15 min. picture still looked bearish to me, so I decided to wait and within the next 9 min., I was back in the positive and my 2 legged out positions got taken out.

It looked like it would go further down, so I quickly got in to take another $75, so I would net over $300 with commissions and stopped.

The market at 10 am EST still looks to go down further and I want to get in, but I'll resist the urge to do so and just watch it. In fact, I'm going to go back and backtest things when I get back from dropping the kids off school and maybe go workout at the gym also. This is a part of balancing my life and having overall good quality.

Eventually I'll do some charts, but that takes a little more time than I'm willing to do right now.

Today's Trades on the ES (Wed, 19-Nov-2008)

My goal is $500/day when I trade. Today I grossed $562.50.

Total Trades = 7 (1.55 hrs. from 11/18 from 6:12 pm to 7:25 pm EST, 11/19 from 9:42 am to 9:44 am EST, 11:07 am to 11:25 am EST)
Contracts Used at 2 Time = 1 t($500 margin/contract)
# Profitable Trades = 7 (100%)
# Costing Trades = 0 (0%)
Range of Profitable Trades = $50 to 125
Range of Costing Trades = $0

Total Profits = $562.50
Total Costs = $0
Commissions = $27.93
Net = $534.57 (53.4% ROI of capital used)

Things I Did Well for Today:

1. Be emotionally stable and free, well. This was a very healing morning for me as well as last night, though I did not get much sleep. God's been doing an incredible mighty work. There were some huge spiritual breakthroughs. Some things that have held me in lifelong bondage spiritually and in my mind were broken in the past 24 hrs. My mind was clear and free to think.

2. Wait for your trades to come to you. Do not chase trades. I waited for each of my trades and so far, trading does not look challenging, because I can see clearly. There is no anxiety. When the signals are clear for me to get in and get out, I took them.

3. Plan your trade, trade your plan.

4. Stopped when I reached my goal. I upped my goal for today to $500. The last trade I made $125 and put me above the $500 mark, and that includes commissions. The market looks so beautiful today, but I'm done. One of the trades, $125 was made last night.

5. Know who I am in Jesus Christ, as a woman, as a mother, as a trader and be confident in it, knowing that God has called me to trade and to trade well. I have to attend to first things first.

6. Thank you God! You are my Provider and it is You that enables me to create wealth.

7. Verbalized trades by talking through the trades before putting them on.

Overall, I took very little money from what was available in the market, but I'm very happy what I took. It was easy because my emotional state was very clear and good today, even though I spent a good portion of my morning crying. My face is stained with tears, but they are healing tears of humbleness and joy at what God is doing in my life and all around me.

I am 100% confident that God who has called me to trade and to do amazing things in the market, He will complete that in me. It is not without it's learning curves and there are some big ones for me.

It is humbling to know I can essentially make more in a very short amount of time than I can in a full day's senior engineer's salary, doing what I love, being the mommy I want to be, living the life I want. It's only a matter of time that I will be making consistently enough money to pay off all my debts, to keep providing for my family, to use the money to empower the lives of other people.

I'm looking forward to writing out those million dollar checks to other people and organizations God calls me to give to. I can see it, taste it. It's so close.

To Wait Or Not To Wait

For those new to my trading blog, here are my shorter-term goals in trading over the next year or so:

1. Trade 5 days a week (daytrading).
2. Make the profits I need to support my kids and I (for now $300/day) in 1 hr or less of trading a day.
3. Use as little capital as needed to make as much money as possible in the timeframe I want to trade in (< 1 hr/day). 4. Keep trading as simple as possible. These aren't grand goals to get me to millionaire status quickly, but they are goals that help develop discipline, good money & risk management while still developing my skills. What I've typically found is if I follow my written trading plan and strategies well, the $300/day can be EASILY made in a very short amount of time, usually in less than 1/2 hr, and often less than 15 min. When I worked as a senior level engineer, I was getting paid more than $300/day on salary, but it really wasn't a whole lot more than that. Yes, I did get benefits that put me in the $400-500/day range overall, but some of the benefits that I get with what I'm doing now are:

- being taxed AFTER expenses rather than before because of how I have the trading setup (this makes a huge difference)

- buy less gas as I'm not having to drive that far distance to work, and less wear and tear on my vehicle, also, since I'm driving a lot less, my car insurance is lower

- since I'm doing something I love, my health has gotten tremendously better

- do not have to dress up for work, so less money for clothing

- things I could not deduct before, many of those things are tax deductible because of my business structure

- rarely eat out as I cook the majority of time and can control what is in the food, which is way healthier than eating out

All these things contribute to lowering the amount of money that is needed to live on. Of course, there is my debt situation. My focus is on creating wealth, generating money in the stock market, not on DEBTS. Whatever you focus on more, you'll get more of. Yes, I need to and want to pay everyone I owe money to, but for now, I need to continue to work on becoming a better, a consistently profitable trader.

Each day as I trade, I'm identifying areas of my trading that are needed to make me that consistently profitable trader. One has to be realistic, but at the same time, you do not have to focus on things that are negative.

As I've been periodically looking at other trading blogs, there is a lot of content others have with charts, commentaries and all this. You'll see some charts and videos periodically here, and some personal opinions. Yes, I am wrong at times and that's totally okay.

I'm really working a lot on the psychological aspect of trading and learning how to juggle everything, not making excuses. Today I do physically feel pukey. But, I still traded and worked through that. Did it cloud my judgment? I don't think so, but I did make some unwise trading moves today where I gave back profits. There is still much to learn.

One of the things I also saw was that I did have profits on my costing trades to end up being costs. Why? On a couple of them, I was on a shorter timeframe (1 min.) and didn't bother to check the 3 and 15 min. timeframes (the ones I normally use). It showed I was already at a bottom and that meant I was supposed to move my stop up and capture less profits, but still profits. By the time I realized that, it was too late and I got out at costs on those trades.

Many of us what to optimize our trades to get in at the very bottom for a long position and get in at the very top for short positions. Is it possible? Absolutely. However, it may or may not be there that it reverses, so sometimes waiting for confirmation is a better thing than to risk it, unless you have tight stops or are willing to wait.

Other times, it's best to see where the target is and begin taking your profits before it reaches the target, which can be ideal if it turns and begins going against you sooner, you'll be glad you got out. Then, there are those times that not only does it reach the target but continues in your favor A LOT and you're already out of the trade. In my case, I'm usually only trading 1 contract, and if I'm out, I'm out. I can always jump back in, but yet, commissions and the gaps between the trades are what I'm missing out on. Well, profits are still profits and I'll take every penny.

A trader suggested I do trailing stops. I worked on that this morning and could not seem to get it to work the way I wanted to, even though yesterday I had tech support to guide me. I'll have to figure it out myself but without real money on the table. It got to be quite costly. It's a great idea.

So, know what you want. Have goals set and figure out how you're going to achieve them. If you want to make X amount of money in Y time, you can figure out how to do it. It'll take time and experimentation. For some, they can and want to spend all day at the computer. Great. Others do not want to trade but an hour a week or a month, great. Figure out what you need to do to get to what you want.

Anyway, time to go to my small group for church where I can get and give encouragement to others and to pray for them. I bless your trading.

Today's Trades on the ES (Tues, 18-Nov-2008)

My goal is $300/day when I trade. Today I grossed $362.50.

Total Trades = 9 (64 min. from 8:36 am EST to 9:40 pm EST)
Contracts Used at 1 Time = 1 t($500 margin/contract)
# Profitable Trades = 6 (67%)
# Costing Trades = 3 (33%)
Range of Profitable Trades = $37.50 to 212.50
Range of Costing Trades = $12.50 to 150.00

Total Profits = $612.50
Total Costs = $250
Commissions = $35.91
Net = $326.59 (65% ROI of capital used)

Lessons for Today:

1. When you've reached your daily goal, stop trading. Today in the first 2 trades, I made $375. I planned my trade, traded my plan exactly and precisely. Then, I decided the 26 min. it took me to make that wasn't enough so I ended up giving back $150 in my next trade. Needless to say, it took me a few trades to get that back and still not recouping all of it.

2. A 5-tick trailing stop is definitely NOT good for my style of trading. This erodes my profits very quickly.

3. It's fine to use a shorter timeframe, but always know what the longer timeframes are doing. If the indicators are showing oversold in one timeframe, the likelihood of it going even more is slimmer, so take profits while they are available.

4. I am definitely going to have to figure out how to use the trailing stop thing in Trade Navigator before using it on real money as this can cause a lot of problems in trading for me.

Today's Trades on the ES (Mon, 17-Nov-2008)

My goal is $300/day when I trade. Today I grossed $112.50.

Total Trades = 2 (3 min. from 3:51 pm to 3:54 pm EST)
Contracts Used at 1 Time = 1 t($500 margin/contract)
# Profitable Trades = 2 (100%)
# Costing Trades = 0
Range of Profitable Trades = $50 to 62.50
Range of Costing Trades = $0

Total Profits = $112.50
Total Costs = $0
Commissions = $7.98
Net = $104.52 (20.9% of capital used)

Lessons for Today:

1. I was physically very tired, but more than that, I was mentally feeling not right. My emotions were all over the place, so I chose to sleep for awhile and trade for the last 2 hours of the day, which it turned out to really be only a few minutes. It took me most of that 2 hrs to write in my private blog how I felt about things and turn to the Bible for comfort and direction.

My commitment to trade daily (okay, it was supposed to include Sunday's, but for now, I'm nixing that and just going to trade from Mon-Fri) no matter what is my commitment and a reasonable one. The ideal is to trade for at least 1 hr daily real time whether with real funds or practice, but it's to trade. However, I realize not daily that is realistic for me, so I re-evaluated that goal to be at least make 1 trade a day. Not unreasonable and there is no set amount for that one trade. The goal is still $300/day, though.

It was good that I waited to trade, so I can see more clearly, and I was able to.

2. Verbalized trades, waited.

3. Considered suggestion of another trader regarding trailing stop, though, I did not put that into practice for the 2 trades I made today. It is a bit confusing how to setup my order to do a trailing stop, but I called Genesis Tech Support to get a step by step play on how to do this. I will have to do this in backtesting to make sure this works correctly, as I don't want to be doing this on real funds and be wrong. It's one thing to be wrong in a trade, but to not know how to execute in terms of logistics is not a good thing.

There was a $10K lesson I learned about 3 yrs ago regarding not understanding the logistics of execution of a trade, and that has stuck very well in my mind. If you have to call 100 times until you fully understand how to do this, CALL them 100 times.

By tomorrow I will have backtested this (unless it somehow doesn't work during backtesting) and do it in real time trading. Today had I had the trailing stop in place, I would've met my $300 goal, but another learning point.

4. It's good to end on a positive note for the day.

5. I planned my trade, traded my plan.

Today's Trades on the ES (Fri, 14-Nov-2008)

My goal is $300/day when I trade. Today I grossed -$337.50.

Total Trades = 2 (5 min. from 9:21 am to 9:26 am EST)
Contracts Used at 1 Time = 1 ($500 margin/contract)
# Profitable Trades = 0 (0%)
# Costing Trades = 2 (100%)
Range of Profitable Trades = $112.50 to $125
Range of Costing Trades = $0

Total Profits = $0
Total Costs = $337.50
Commissions = $7.98
Net = -$345.48 (-69% of capital used)

Lessons Learned:

Once again, this is taking responsibility for my actions and trading, blaming no one but myself. This is not self-defeatist talk, rather it is acknowledging incorrect things to do in trading. I had my IM chat on and allowed someone I know fairly well to interject thoughts of negativity into my trading right around the time I began trading. He used the words "knuckleheads on Wall Street" and I found myself being backwards in both the trades I entered.

1. FOCUS in trading. Remove distractions and center your mind, focus on trading.

I allowed this person to interject these thoughts into a time I needed to be focused on my trading. Of course, I didn't know that he was going to say this, and this person often makes very negative comments about the market, big business, the wealthy, etc., over the weekend I thought why would I keep someone like that around me to aid in sabotaging my success. Once again, I own my success and I can choose the people whom I associate with or not.

"Knuckleheads" normally do things that are not well for whatever it is. It turns out I had 2 costing trades to start off my day, and I realized that this was not a good start and the words rang very loud in my head, so I needed to make sure to get a grip on things. Fridays are my day to do other things typically, so if I'm to trade, it needs to be sharp, focused, and quick before the rest of my day began. It didn't happen, so I stopped trading to prevent further damage.

Live to trade another day. It took a part of my profits from the day before, but that's okay. I stopped when I needed to. That was what I did well.

I also got out of the trades quickly when they went against me, so that was good, too. It would've been nice to have a profitable trade, but it was a learning time. Not every moment is good for a trader to trade and such was the case for me.

Trades For Today on the ES (Thurs, 13-Nov-2008)

My goal is $300/day when I trade. Today I grossed $787.50.

Total Trades = 24 (2.5 hrs. from 8:30 am to 9:48 am EST and 1:20 pm to 2:31 pm EST and 3:06 to 3:09 pm EST)
Contracts Used at 1 Time = from 1 to 20 contracts ($500 margin/contract)
# Profitable Trades = 18 (75%)
# Costing Trades = 6 (25%)
Range of Profitable Trades = $50 to 2500
Range of Costing Trades = $150 to 2262.50

Total Profits = $7337.50
Total Costs = $6450
Commissions = $95.76
Net = $691.74 (6.9% of capital used)

Lessons Learned Today:
1. Today was a big one. As you can see I made a lot of profits, but I also gave back a lot. I had 2 trades where I had 4 contracts going on and they went sorely against me. The combination of that was about $4.5K. Three other trades totalled about $1.7K of costs. Of course, the combination of those 5 trades alone were nearly $6K. Not a good thing.

I was going to do one contract at a time to get the money back, which would've sent me into a further tailspin, so I decided to bring my account back to where it should've been. I focused really intently and waited to get in at the right time. I decided to do 10 contracts and play them as ONE contract. I legged into the trade with a 2nd set of 10 contracts.

In a matter of 9 minutes. I recouped all the money back because I was down about $5.5K. In that 9 min. I was able through 5 trades even be up $137.50. My goal was still $300 net for the day. I ended up with $362.50 for the day at 21 trades, but saw that after commissions, it was netting less than $300, so I went back for one more trade and was able to get another $87.50. This paid for the commissions for the day.

2. Have to be more diligent to be more focused, especially if mentally/emotionally I do not feel like it. If I'm going to trade, I need to make sure I'm grounded & centered. I was able to make the money because God empowered me, but I was abiding by my rules in my trading when I was either making profits or smaller costs.

3. FOCUS!!!! Don't think about the money, rather trade well.

The last 2 trades which was $337.50 was obtained in less than 3 minutes. One contract each. Wow. I did not go against the trend and went with it. It was really cool. But, I remained calmed, took my profits and left. Done for the day.

Brains - Piano

Daily I will begin playing the piano to help me better in my trading. It seems my left brain is way over used and my right brain is very weakened. In order to strengthen the right brain, I was advised to talk more, do creative things like play music, workout, play sports, quilt, scrapbook, etc. It was also advised that I take a vacation or get away from the valley for a bit.

I've played the piano since I was 4 yrs old and was good enough to give lessons to others while in high school. My playing since college has greatly gone downhill as I sporadically played and in my 30s, rarely ever played.

So, now at 40, I'm starting over in my piano. Of course, I don't have to start from square one and probably my playing is still in the advanced levels, very low levels, but it's certainly not where it used to be. While at the music store picking out music, there weren't that much music that I saw that would challenge me to the level I wanted, but I did find a few classical books by composers I love, but my favorite, was not there. It was okay. I think there is enough music to last me for awhile.

I'm really going to start off with playing 15 min./day and see how that progresses, see if it helps ease my stress some in my brain. I decided to work on a number of exercises by Hanon that it'll take me awhile to get through.

For those of you just starting to read my blog and wondering why I would be talking about playing the piano, so let me explain. My skills, knowledge, and risk are pretty good as a technical trader doing what I'm doing. Note that last part. I'm not a guru of Elliot Waves or even of the technical indicators I use, but I do know how to use them and to use them profitably. That's what ultimately counts, right? It's good to know theory and the basis of things, but if you cannot put things to action, it just seems like a useless "trophy".

The aspect of trading I've been most focusing on for a good portion of this year and especially more so aggressively lately is the psychology of trading, particularly MY psychological makeup. There are a number of challenges in my life right now. We all have our own and I have employed different people to help me to be a better trader.

Today I learned my left brain is super dominant over my right brain, and the right side is very weak. This is not a good state and I need to be involved in things on a regularly, daily basis that will help level those 2 things out. Having this imbalance causes me to be far more emotional and emotional trading is NOT good in the long run. Sure, you could profit, but this is not a good way to trade and very hazardous.

So, we need to balance out my emotions and ability to do this. Though I am in psycho therapy and do exercise regularly, perhaps I need to step up the exercise a bit more to incorporate more than just regular yoga, but also more cardio and strength training. That stimulates a bunch of areas of my body physically.

The playing of the piano stimulates my brain in a different way and since music has been a part of my whole life, this will most likely help me very much in my trading, because I see "music" in trading. It's often like a dance and as weird as this may sound, I do hear music in my head and different pieces playing on different days of the market.

I originally wanted to be a musician, but the fact I went into engineering because it was seen as more stable, was not a bad thing, but it wasn't my passion, my love. I believe trading allows me to marry music, engineering, art, socialization, interaction, psychology and athletics all together. It's truly a work of art, beautiful.

So, I'm just documenting here so I can see the progression of my trading over the next weeks, months, and years.

Today's Trades on the ES (12-Nov-2008)

My goal is $300/day when I trade. Today I grossed $337.50.

Total Trades = 3 (9 min. from 10:28 am to 10:37 am EST)
Contracts Used at 1 Time = 1 to 2 ($500 margin/contract)
# Profitable Trades = 3 (100%)
# Costing Trades = 0
Range of Profitable Trades = $37.50 to $150
Range of Costing Trades = $0

Total Profits = $337.50
Total Costs = $0
Commissions = $11.97
Net = $325.53 (32.5% of capital used)

Things I did right today:
1. Waited for the correct entry.
2. Planned my trade. Traded my plan.
3. Stopped when I exceeded $300 for the day and knew that I would net more than that after commissions.
4. Allowed myself to be stopped out by my stops.
5. Focused.
6. Took a deep breath.
7. Committed to trading today and did it.
8. I knew where I was on the price action as well as where I was on RSI.

Notes:
Today I feel the spirit of criticism, judgment and condemnation wanting to come upon me. It's a cultural thing. My dad was over here last night watching my kids so I could go to my church small group last night. He starts in today and I'm fighting to feel incredibly incompetent as a person and a parent. I knew there was a risk that I could trade poorly, as those are feelings of self-worth. But, I committed to trading every day no matter what is going on.

I said I could focus for that short amount of time it would take me to earn $300. It would only be a few trades and it turned out to be 3 trades. I praise God for it. Now I need to go spend some time in God's Word and allow Truth to come into my life and reject the harsh, untrue words of my dad. I am a good parent. I love my children. I am worthy and loved by God.

Today it took me 9 min. to get $300 from the market. That's great. When I get really good at taking this from the market in a short time, I'll up it to $500, but for now, $300 will suffice.

Note that all my trades are real, whether they are funded or not, as I do the same exact things in both funded and not funded. So, you won't really know unless I tell you, and it's really not necessary.

The one thing I did not do that I violated was that I did not verbalize my trades today. So, though all my trades were profitable, this was reinforcing something I did not want to reinforce.

Longer

A question was posed to me that if I can make $425 in 15 min., why don't I trade for the whole day. That's a very valid question, afterall, there is 6.5 hrs of the market and that would equate to $11K in a day, $55K/wk, $220K/month, $2.64M/yr. You get the drift.

That 15 min. I'm very focused. To maintain that focus for 6.5 hrs is very challenging and it's only been a handful of times I've been able to do that. My kids go to school in the middle of trading hours and I always take them to school. Plus, getting them ready also impedes into the focus and distractions. Those are not excuses, but the fact of my life and something I need to include in my trading plan, which it is.

Plus, when my children are not in school on trading days, like vacations or holidays, that is my extra time with the kids and often friends are over. That means even less trading time. There is also taking care of myself through yoga and other things.

So, in the end, what I can manage to trade during market hours probably averages at max 2 hrs a day. Some days that time is really only an hour or less. Other days, it's more.

The fact is, there is this law of diminishing returns for me that I tend to do well for a certain period of time and then just need to stop. If I go beyond that point, then I tend to give back to the market a part of my profits. That is what I did today, but I quickly stopped with one costing trade. Yay! Didn't need to repeat that and need to have to spend more time trading to catch back up, like I did yesterday.

So, for now, it's to make a certain amount of money and then be done with it, and preferably in a certain amount of time, whichever comes first. Then, analyzing where I went wrong on any of the trades, whether profitable or costing.

My overall goal is not to have to trade the whole trading day or even most of it ever, rather it is to trade for 1 hr or less a day. In order to increase my profits, I would double up on contracts. Right now, when I enter an order, even if it is legging in and legging out of trades, I'm only entering in as ONE contract. When I get really good at consistently every day taking $300-1000/day, then I will increase that to TWO contracts. When I'm good with that, then I'll go to FOUR contracts. Get the picture?

It would be feasible to one day make $11K in a day trading just ONE hour/day, but that would most likely be between 16 and 32 contracts at a time. Maybe fewer, I don't know.

There is psychology in this. I found when I have lots of profitable trades in a row, the meticulous factor begins to drop off and sloppiness starts to set in, or over confidence. So, before that can kick in, I'm done and out of there to do other things, like take care of business stuff, my personal things, volunteer at my kids' school, etc.

I do technically spend more time than the 15 min. to 1.5 hrs trading on trading stuff, but the rest is analysis of things or reading up or honing my skills/risk management.

Today's Trades on the ES (11-Nov-2008)

My goal is $300/day when I trade. Today I grossed $362.50.

Total Trades = 8 (30 min. from 9:32 am to 10:02 am EST)
Contracts Used at 1 Time = 1 to 2 ($500 margin/contract)
# Profitable Trades = 7 (87.5%)
# Costing Trades = 1 (12.5%)
Range of Profitable Trades = $12.50 to $137.50
Range of Costing Trades = $87.50

Total Profits = $450
Total Costs = $87.50
Commissions = $31.92
*Net = $330.58 (33% of capital used)*

What are some lessons learned today?

1. My first 6 trades were all profitable and done in 15 min., capturing $425 (pre commissions). I thought I should stop, but then, didn't listen. 7th trade was profitable and I gave back the 8th trade to net my results. Stop when I've reached my goal which is a net for the day of $300/day.

The things I did well:

1. Was focused with each trade.

2. Had my stops in place.

3. Verbalized trades.

4. Confidentally traded my plan and got out when it went against me.

5. Took profits.

6. Legged in and out of trades.

Today's Trades on the ES (10-Nov-2008)

My goal is $300/day when I trade. Today I grossed $425.

Total Trades = 18 (1.5 hrs from 1:47 pm to 3:22 pm EST)
Contracts Used at 1 Time = 1 to 2 ($500 margin/contract)
# Profitable Trades = 14 (78%)
# Costing Trades = 4 (22%)
Range of Profitable Trades = $12.50 to $187.50
Range of Costing Trades = $50 to $200

Total Profits = $937.50
Total Costs = $512.50
Commissions = $71.82
Net = $353.18

What are some lessons learned today?

1. I started off on a timeframe that was too fast for me, the 3 min. timeframe. Though I got enough sleep last night, I was feeling a bit sluggish. Perhaps it was that small slice of cranberry walnut bread I made last night, which might have been too foggy?

2. It seemed like I was going the opposite direction of where I needed to for many of the trades, though, most of them still turned out profitably, but when they went against me, which the first 3 were bigger costing trades than they should have, but I was watching the shorter timeframe instead of moving to the 15 min. timeframe.

3. Was watching the "money" instead of the trade. Trade well. Do not watch the money.

4. Know where you are. When I traded where I knew I was, even if it turned against me, as long as my indicators were fine, I continued to stay in and what I was reading WAS correct.

5. Observe trends in your price action, RSI, volume, MACD. When the trend is broken, you need to either get out of the trade. It's good to go to a smaller timeframe to see more specifically when to get out.

6. Verbalize your trades. Everything sounds and looks good in your head, but when verbalized, doesn't often sound too good.

7. Took small profits here and there, which is fine, but this creates more commissions.

8. It helped to have my stops (for taking profits and costs) set and walk away from the computer momentarily so as to not get out unnecessarily.

9. Today I said I would stop trading and I did at the 1.5 hr mark or when I would hit $300. The last trade gave me $187.50, so that was it for me.

10. When things look like I can't figure out what is going on, it's best to stay out of the trade and wait for something clearer. There is plenty of money to be made, I do not need to decrease my chances of profitability.

11. Know where support & resistances are with indicators as well as price action. Check various timeframes. If it's at support for RSI on the 15 min., it may not push further down on the 3 min. and it would not be wise to take a bearish position here.

12. Take a break.

13. Know when you need to physically, mentally take a stop.

Out Loud

As I've mentioned in the past, everything sounds good often in our head, but when we begin to verbalize things, they don't always sound as good. Meaning, as we talk things out verbally. I've found when I have to explain my trades, even if it is to myself, sometimes what I thought was a good move ends up being a bad move.

Today I've traded (realtime practice) for 2.5 hrs today, 21 trades, gross $600. That is still within my $300+/day.

Here are the stats:

Futures: ES (S&P emini's)
Profitable trades: 12 (57% ratio) - range is $25 - $187.50
Costing trades: 9 (43% ratio) - range is $12.50 - $187.50
Profits = $1500
Costs = $900 (60% of my profits)
Commissions = $83.79 (14% of my profits)
Net = $516.21
Contracts = 1 ($500 margin)
Day ROI = 103%

Inspite of the many mistakes I made, there were a number of things I did right. Focus on doing those right things and minimize on the things that are not good trading.

What are the correct things?

1. Got out of trades that went against me when they broke my short-term trends
2. Verbalized trades, talked them through before getting in or out of trades
3. Did not get into or out of trades that did not meet my trade strategy
4. Waited
5. Took incremental profits

What did I do incorrectly?

1. Jumped into trades without verbalizing
2. Waited too long after my signals were met to get in or out of trades
3. Got distracted with the phone or something
4. Impatient
5. Didn't allow for all my trade strategy criteria to be met before getting in or out of trades
6. Did not take incremental profits
7. Hope

I certainly know how to make money. However, keeping it is another thing, and cutting costs is also another thing.

Some things to look at are that I did was:

1. Get into a DOWN position when the overall minor trend it was in was up and it was nearing support. Not a good time to take a DOWN position unless it breaks that uptrend, and often even if it does, it comes back to test, so it's better to get in when it makes a 2nd attempt to head back down below where it broke the uptrend. This works similar to the UP side.

2. What is volume doing? If the trend of the bearish volume is going up as the price is moving down (this would be "closing" price), that signals traders are more bearish. However, is this strong volume or is the overall bigger trend weakening. Keep in mind the micro and macro timeframes you are trading. So, if you get this action happening and then all of a sudden a bullish candle shows up, what do you do? As long as it's not violating your written trading strategy, and though the bullish candle may be big, if the volume is weak and you see the bullish volume trend is weak, then be patient. They are just testing to see if buyers will come up. But, you must have a point that says when you will get out, though.

For example, I usually trade 3 and 15 min. timeframes. You have to know what your goal is and if it's to take quick profits, trade that way. Don't oscillate and say, well, my position is going against me, so I'll go to a longer timeframe. Your position went against you. Get out. Start over or stay out.

3. Know where you are. Location, as in real estate, is very important. Are you nearing a place where traders have rallied a lot before? If so, taking a DOWN position without any trends being broken may not be wise in the short-term. Remember the timeframe you are trading and stick to it.

4. Get good at pattern recognition. I'm not only saying this with the price action, but also for the indicators you use. I use RSI, volume, MACD and each of these indicators have patterns. Are you nearing support or resistance in these?

5. Know when to stop. In profits, I made more than double my daily goal. Stop trading and go back to analyze your trades. I know that if I was really sharp, my profitability ratio would be higher in the 80+% instead of where it is. I'm not ready to fund my trades yet.

6. Be humble. The market doesn't owe you anything and it's not out to get you. It does what it does and it's perfect (well, as anything could be in this fallen world).

Trade well!

But

This is another soapbox post. This is just pointing out some of the things I've experienced in my own life and I'm guessing many people can relate. Hopefully we can learn and do something about it and jump on this journey to becoming Champions, rather than living a life as a victim.

As I hear myself speak in my head or to others, I catch myself saying, "But . . ." a lot, making excuses. Yesterday my EMDR therapist whom I meet with weekly to address my mental/emotional issues and get rid of self-sabotaging stuff, she asked why I wasn't back to funded trading more regularly and consistently, really.

I told her I didn't know. Certainly I am very skillful, knowledgable and have good risk. Something is holding me back and it's not that my life is very busy, a jam-packed schedule or anything. Everyone is busy. I asked her if she knew what my issue was that was holding me back. She continued to ask me questions and turning things around for me. Great, eh?

There were 3 things that came up that really suck out in my mind, in particular the last thing:

1. I do not trust my judgment.
2. I am not successful.
3. REBELLION

Actually, the last point was not on the paper she gave me to look at that had a long list of positive and negative statements. The word REBELLION came up like a neon sign in my head and seemed to be much stronger in point than the #1 and #2 statements. Why? I'm not sure.

So, this morning I began looking up in the Bible the references to the word and there were 44 counts of it. I do not really like the number 44 or lots of 4's. The word "4" means death in Chinese. 44 seems like double death to me and though I'm not into numberology, but I do believe numbers can mean something from a biblical standpoint. I'm also not superstitious and when I turn 44, I believe God will bless each year of my life no matter what the number.

Rebellion in some translations is likened to witchcraft, which if you're a Bible believing Christian, this is not a good association. Anyway, I'm not going to go into any of these too much more, but I do need to take some spiritual action here, as I believe God is revealing something to me here.

My therapist asked me to commit to something small between now and our next session, which is next Wednesday and allowed me to choose. I told her I would commit to actively trading for 1 hour a day each trading day, which is 6 days a week, and one of those days I will use real money.

The market for me is now from 7:30 am - 2 pm. No excuses. I would like to trade with real money on Monday and Wednesday of next week. There is no set amount of money for me to make at this point, though, my goals are $300+/day.

Entitlement

I've looked back at my own life and see the good and bad choices I've made. One of the things I've learned is often I played the victim in things, feeling I was entitled to more than I was actually. For years I griped about the last company I worked for. Honestly, that was not good of me to do it and showed immaturity.

It was a good company to work for, even though there were many things that I and others deemed faulty. For 8.5 yrs they gave me a good salary that I agreed to at the beginning, and by the end of it, my salary before compensations I was making nearly 50% more than I was hired to, which was 50% more than what I was making at the prior company. As a senior level engineer, my hours were overall easy, rarely more than 40 hrs a week.

Yet, I incessantly complained and eventually chose to leave the company and that profession because I was tired of the politics and a host of other things. I took some actions, actually a lot of actions. I was truly fed up and began taking responsibility for where I was in life with my career and was tired of hearing myself complain and whine about this and that.

My friends that heard me were truly nice to listen, but I wished someone would've said, just shut up and do something about it. Focus on that instead of expending all this negative energy. That would've saved me so much. Either people didn't know, or they just didn't want to confront my victim/entitlement mentality.

That company didn't owe me a job, yet they provided financially for my family and I with good benefits. Yes, I provided a service to them, my expertise, so it wasn't for nothing. No one (but God) told me I had to work for them or forced me to. In the end, I made the choice to work for them and to stay as long as I did. I was not an indentured servant, though, often I felt like I was.

If you don't like what you're doing, change. If you don't like where you're working, change. No excuses. You may have more challenges and it may take you longer, but so what? We all have our own stories and challenges. What may be a greater challenge for me may not be for another and vice versa. If you don't like something, then do something about it.

The greater the thing you want to change to, most likely the better planning and perseverance is needed. Spend the energy directed towards making it happen rather than focused on the negative stuff. Of course, you do have to eventually deal with the negative stuff, so hire a good psycho therapist or whatever is needed.

Stop making excuses. Live empowered. Live challenged.

I also wanted to address an article someone sent me that talked about this man named Albert Dunlap. It was fairly long and I only skimmed it, but basically "Chainsaw Al" was responsible for cutting the fat from a lot of companies to make them run more efficiently, profitably. And, he did a great job of this. Eventually he was fired from his job. I didn't read the reason for this. But apparently in the past, he's been responsible for the loss of many people's jobs while making hundreds of millions for the companies he helped.

A lot of people seemed to hate this man because of the loss of their jobs. What those people didn't realize is that no one had to hire them and they were responsible for their own fates ultimately, not Al. Some may or may not have managed their finances well, or maybe not good things have befallen them for whatever reasons. The list could be endless.

Very few jobs have things like you will work for this company for X time, and we must keep you until then. This is usually more like a contracting job. But many of us sign agreements that say we can be fired at any time for whatever reasons. Yes, employers have certain guidelines they must adhere to, but outside that, it's a no holds barr.

It is not one's entitlement to have a job. It is a privilege and blessing, but we turn this around into entitlement. If you don't like working for someone else, then create your own job, your own company. If you don't know anything about that, well, there are plenty of resources.

A college friend of mine married a man who had no college degree. She ended up getting her master's in engineering, but due to other circumstances, did not work long in her field. When they got married, her husband worked a few minimum wage jobs, but he had this idea to have his own business. He got a grant or loan or something like that. He learned how to start his own business and took advantage of the opportunities he saw.

Fifteen or so years later, the company he created makes millions and he's been able to expand his company and employ a lot of people. He bought my friend a beautiful, custom made 2008 Bentley. It's gorgeous. I remember the apartment they lived in when they got married. It was around 600-700 sq ft. They now live in a beautiful, big home which I have yet to see, but will one day.

He didn't make excuses. They have had to make a lot of sacrifices to get to where they are at in life. I'm so very proud of them.

The difference between him and many Americans is that he didn't make excuses, he wasn't afraid and held back by anything, he was willing to work hard/smart, he was willing to change, he had support from the right people, he was focused/determined/persevered; he was a visionary; he saw opportunities when others just complained and saw nothing.

He inspires me. He did not seem himself as limited, but saw he had limitless opportunities. I'm so proud of him and his wife (my friend).

He didn't feel entitled, other than he knew he was God's child and that He could do anything as long as God was in it and blessed it. He did not fear. I'm sure in this process, there were many not pretty things that happened, but in the end, he kept his eyes on the prize.

If someone like him who had far less than me can make it, why am I not? Stop making excuses and just go do it. Have a plan and go for it. If you're wrong, change what is needed and keep pushing forward. Failing is not failure unless you quit, not learn, and change.

Opportunities

With every adversity, we are provided with opportunities. I see our new president elect as providing more opportunities for many of us to better learn the tax laws and interpretation of them to use them to our benefit legally. I think it's also a great time to see what other tax shelters lie around the world where we can grow our money without having to pay into a system of things we do not believe in or to people who feel they are entitled. Entitled to what?

Granted, I'm a bit steamed right now, but there are opportunities.

Sure, we'll spend more money in getting a tax team to help us better use our money, but so what? One thing I am certain about the wealthy who have worked hard & smart to achieve their wealth, as well as those truly striving to be in this category, is to have someone dictate that you give what you've worked and sacrificed for to people who feel they have a right to your stuff when they've done nothing.

I'm going to cheer you on, and as I learn of different things over these next 4 yrs, I'll share as what is appropriate and wise in a public arena. Though I am not yet a part of the financially wealthy, my plans are I will be in the next couple years. Inspite of all the hard circumstances I've been in, what I've been called was to acknowledge my "sins" and wrong choices I've made, had to humble myself, ask for fogiveness & help, and take action to correct those behaviors/habits/mindsets and do something much better, much different.

There is no one to blame for where I am other than myself. These are my series of choices and it sucks, but I'm learning a great deal.

Let's say in the next year I make $3 million. That would more than pay off my debts, and the taxes on the remainder would be pretty high. However, operating under a business, and depends on how you structure that business and it's purpose, in the end, what is shown as profit could be $50K. One could structure the business to include all sorts of things like real estate, trading, other businesses, and we know we have operating expenses.

One of my friends earlier this year got a 2008 custom made Bentley that was over $200K. It was a business expense. I thought it was extravagent, but cool because if you personally bought it, the Bentley would be worth far less and you would've spent far more than that. As a business expense, taxes are taken after expenses.

The business astute will always be smarter than the common folk. I have a great deal to learn about business shrewdness & astuteness, but guess our next president is pushing me along that road quicker than I anticipated. Every cloud does have a silver lining.

Maybe under normal circumstances I might have bought maybe a $50K car, but that gets me less a tax break than a $200K+ car will, so I can see the rationale here. This is nothing I have to be concerned about now, but always thinking ahead, and perhaps some of my readers are in that boat and if they didn't know, well, here you go.

I would've probably had another $150K of extra income to pay taxes on at a lower rate, mind you, however, probably the taxes of that $150K of around $60K is still more than taxes off of $0. Go businesses and the wealthy, and those striving truly to be financially wealthy!!!

Send your write off ideas and maybe we can collaborate on how to have MORE tax deductible expenses to keep us in that lower tax bracket of Obama's. I think that would be so cool to make $10M or something of some big amount, but when all is said and done, legall there may be only $200K profits to pay taxes on.

I need to find a good book or resources that give me not just the common every day stuff to deduct, rather what the the financially rich and wealthy deduct? I wonder if the Donald deducts nearly everything, including his haircut.

So, I take this as a personal change. How much can we deduct to pay as little taxes as possible? For those of you who are do gooders and feel you need to pay more taxes, go right ahead.

I find I'd rather write out a big fat check or whatever amount to the places I choose to give (or God directs) rather than taking my taxes to fund things that I am against (i.e., abortion, illegal immigration, etc.). I'll personally give to United Way, or Cancer Research, or some Right To Life Movement, or Children's Education, which I've done all these things anyway.

So, if you have a philanthropy heart, I implore you to not pay more in taxes, but write out those checks to those organizations that support your values/beliefs. Make the checks as big as you'd like. I'm pretty sure they would be very appreciative. If you feel truly guilty for maybe the thousands you may be cheating people who want something for nothing, make the check bigger for donation.

Sad Day?

For me it's a sad day that it looks like Obama will be our next president. However, maybe a true recession going deeper wouldn't be a bad idea for the country. Maybe a loss of freedoms with no personal responsibility or accountability is what is needed for this country. I figure, if you don't truly appreciate what you have, maybe we don't deserve to have it.

I'm very bearish on the economy, at least over the next 2 years. That's fine by me, though.

We often think we are entitled to this and that, when it's really more a privilege and blessing. So, Obama wants a small percentage of people who already pay a lot in taxes to pay even more. What happens when they don't want to and leave the country or do other things? Who then will you go to for the money? Oh yeah, you just print more money from out of the blue and borrow more from China, a communist country.

To be in debt to a communist country. That's real wise, that alone has a population that surpasses the U.S. several times. Wow, this looks even worse than I thought. Well, one thing China and the U.S. now have in common or will soon is a disregard for the sanctity of life.

As I've written before, every situation there is opportunity, especially in challenging circumstances. This is no exception. Guess others and myself will have to collaborate on how to hire the right people who know tax laws/codes to better use it to our advantage and take actions to keep our taxes low.

Bite the hand that feeds. Not a good idea. Guess this is greater opportunities for those of us willing to think out of the box to be really creative. Though I am not wealthy financially yet, I'll be darned if I'm going to be forced to give to things I don't believe in and a lot of it. So, even if I have to spend more money in areas that I would not have to preserve the wealth I'll attain, I'd much rather give it to whom I want than not have that choice.

Yes, I'm a bit pissed, but I'll learn in this opportunity of challenges over the next 4 yrs.

News, Events, Etc.

As I look at my charts of the S&P and other stocks, with the exception of perhaps earnings for stocks, I can't really tell when there is an election day, year, when the GDP reports, unemployment, etc.

I see patterns, behaviors, movement. I don't see events. Really.

Yes, it is important to know when certain things are happening as they may be impacting the market at that moment, but when looking at it from a daily or monthly perspective, I honestly cannot say this is when "what" happened.

For example, 9/11/2001. That was a significant day for America in a bad way. The markets were shut down. But, if I look at the monthly chart, that month doesn't stand out really in the grand scheme of things.

I think there is always news to fit what is happening in the market.

If Obama becomes president, people think he will be able to turn the economy around. Yeah, okay. But, there are a lot of big businesses and wealthy people not happy with that. Even as I look at elections, the race is a lot closer than many Obama supporters would like to see. This is not a landslide election.

How many do you think those who have a direct influence on the market are Obama supporters as he impacts their bottom line?

If McCain becomes president, although he may be good for many businesses & the wealthy, he may be less effective in change due to the high democratic majority in congress.

So either way you look at it, the market going bearish overall in the next 1.5 yrs at least would be natural and a great possibility than it being bullish.

Note that in every market there are always retracements. How I see this is no matter who is president elected, we'll most likely see some stalling here and maybe a slight bullishness because we've had 2 VERY bearish months in a row. There is some pressure relief needed and this would really be a good time for it.

It seems to fall in line with maybe people being tired of all the muckraking going on and further pressure relief, which would coincide with what may happen. If we look at Oct'01 beginning, for 8 months it was in a pullback/complacency area, but began it's last major decent down which lasted another 4 months. It then spent another 8 months testing support. That puts us to summer of 2010.

I'm perfectly fine if there was a repeat of a similar fashion happening. Of course, there will ALWAYS be news that fits what the market is doing, when most people think it's the other way around. Hopefully this site will continue to be up and we can see if my predictions are correction or not.

Depression

Today I made a comment in Facebook how I'd like to see the S&P get to 770 or the Dow to 7200. A person commented that we are already in a Depression, another trader. Where is he getting his information or is he going back the general media?

A economic depression means there is an economic downturn for at least several years. Has it been several years? I don't think so. It's been less than a year. Even what happened in 2000-2002, that was not severe enough to be called a depression. The last time we had a true depression was nearly 80 yrs ago.

Really. It was this guy being overly emotional.

Even if the S&P gets to 770 or the Dow to 7200, that is not the end of the world. People are still making a profit in things and people still prosper during these times. It is during these times people find out what they are made of.

Even as I look in my neighborhood and surrounding neighborhoods, I see fewer foreclosures and fewer homes for sale. That's a positive sign to me.

One has got to ask where information comes from. Where does the media get their information? Is it someone who trades? I hear and know people who make money on a regular basis in the stock market, in their businesses even right now and some are prospering pretty darned well. It sure doesn't seem like an economic downturn for them, more like an economic boom.

What about all those people who are losing their jobs? Yes, that is unfortunate, but since we live in a democracy where there is capitalism, we are not restricted to working for someone else or to one way of earning a living. Granted, some ways are not moral, ethical or legal, but setting those things aside, there are many ways to make money. The stock market is just one avenue.

Having been on the other side of things in the early turn of this century and having not a clue how to make money as the markets tanked, losing all that money was quite a blow to me, as it was in the realm of 95% of my portfolio. I was one of the biggest losing accounts I knew, yet, I'm still in it because though I did fail then, that was an opportunity for me to learn a great deal.

This time around, more of my money has been made to the downside than to the upside. It almost makes me feel vindicated, as I shared with a couple people. Some people have told me that I should feel bad for wanting the markets to tank. What about all those people in their 401Ks and retirement? They'll have to work for longer. Of course that concerns me with regards to other people. I don't like seeing people see their retirements/savings drop a bunch.

However, I believe through every adversity, there are opportunities to learn and grow from. I've certainly been learning a great deal through my own stuff and though I do not wish it upon anyone and cannot say that I'd like to go through all this hell again, but it's forced me to make some very drastic changes in my life, to begin honestly looking at and addressing the issues in my life.

One of the great things about pain is that if and when there is enough, people make changes, whether positive or negative. It's our choice. I've offered to a number of people who know me to use me as a resource to learn from with regards to the stock market, so they can better understand what is happening in the markets and not listened to that darned media into scaring them into things.

Remember the War of the Worlds radio program? Well, I wasn't alive when they did that, but I heard about it. People thought this world was actually going to be invaded. It was a radio program but the people listening didn't realize that and began panicking.

I tend to err on the side of more the conspiracy theorist side in the markets are VERY manipulated. One of my "predictions" earlier in October was come election day, the S&P would close around 1015. What did it close at on 11/4? It closed at 1005.75. Gee, I was 9.25 points off.

Don't tell me that I'm psychic or that I have any influence on the market whatsoever, because I don't. I don't have anyone feeding me information or any inside track, but what I do understand is how to read a price chart and my indicators relatively well. Yes, there is always room to improve to learn and that is a continual process.

What is the information? Is it objective? Where does the information come from? What is it's source?

For example, we hear analysists say it's a good time to BUY xyz stock. Do you think that's for the common investor or trader to go buy? Actually, it's not. It's code for SELL. There is a code between the analysts and the big institutions on what they need to do. Those institutions are bound by certain laws and behaviors that they cannot do like the majority of the rest of us traders or investors. Few of us, and I do not personally know anyone that fits this category, have to notify the SECC that we are selling our shares.

Institutions buy and sell not in large clumps, but they do things on the down low, meaning, discretely so as to not cause a frenzy in things. But, you can begin seeing when key players begin to take notice and begin acting on this. There are signs and to be aware, astute, and take action. Go with the flow.

As a parent, and for those of you who have children that can talk and interact with other people regularly, how do you tell if your child is lying or something is up? You know the signs of which to look for, the behaviors, even if they are very subtle. Similar in the market. I liken it to all those gestures given in baseball to tell the other players what they are doing. To the commoner and outsider, it means nothing, but to the right people, they mean something.

We are not in a Depression. It looks like we are at the beginning of a recession. Is that a bad thing? No. Opportunities exist no matter what the economy or what our situation. Be open.

That Which We Focus On

For my regular readers, it may be shocking the financial situation I'm in. Cannot quite remember if I shared it before or not.

Some questions one might ask are:

1. How could an intelligent woman get herself in such a mess?
2. Can she be trusted with this mess?
3. Does she know what she's talking about in terms of trading?
4. If she knows what she's talking about, how come she's still in this mess?

Those are some valid questions that I would ask, too.

Some other questions that might be asked are:

1. Has she learned from all this?
2. What are the things she's doing to correct these things?
3. What changes in habits & behaviors is she making, made or plans on making?

The title of this blog "That Which We Focus On" is what I'm going to explain. This really boils down to 2 things that I can address: Debt or Creating Wealth

That's really it. Many, many books are written on how to manage debt, how to pay down debts, how to live on less, give up stuff. All of that is focused on DEBT and lack, not enough, mistakes.

Creating Wealth focuses on abundance, on receiving, creation, on prosperity.

I've had some posts on my debt situation, but more have been focused on creating wealth.

A part of creating wealth is empowerment, knowledge, discipline, work, a plan, and for Christians, God is the number one factor, and risk. I have a lot of knowledge (though, this is a continual learning process), discipline, work, a good plan and am focused on Jesus Christ.

As for empowerment, what are the things that would empower me?

1. Having the right mental/emotional attitude
2. Correct self-talk
3. Physical, mental, emotional, spiritual well-being
4. Seeing through eyes of opportunity & faith

Much of my time this year has been spent on that. I've already thoroughly and continue to test my trading strategies and they work really well. The psychological part is the greatest part, and my plans are to aggressively tackle and master that part of trading.

I've learned my every day life does impact my trading, and if I cannot get that under control, prospering in trading will be handicapped. It's like wanting to run this race with huge weights tied to various parts of your body. Though you may be making headway, you're expending a lot of energy to not get very far.

There are some things, like my children, I will not want to do away with because they are a huge part of what I live for and my joy. So, I will work around the things I have with my kids. Of course, I'm open to suggestions on how to better manage things.

A part of creating wealth is good management of everything. Once again, another area for me to improve on.

No Fear - Go For It!

Today my 5 yr old son taught me a valuable lesson and I had a great 'aha' moment. I see a lot of myself in him but he’s a much better version, and cute, too.

He had a goal to go back to Peter Piper Pizza to get some really cool toys, earning them through the games. He and I went there on a date last weekend. He had a blast, but with all these tokens, he earned about 300 tickets and all he got were a few pieces of candy. He was very happy, but he wanted some of the cooler, nicer toys.

I explained to him that he gets a certain amount of money. That’s his budget. He can choose to use it as he pleases.

This evening, I gave him 2 options: go bowling or a harvest festival party. He negotiated to go to Peter Piper Pizza (PPP). I said okay.

When we got there, I said this was the amount of money he had. We could get pizza & drinks and the rest use for tokens. He so wanted the cool toys and said that he didn’t want to eat and rather eat healthy stuff like eggs & veggies when we got home, and that he would drink water.

I said okay. He used some tokens and was only earning a few tickets at a time. He asked if it would be enough to get the toys he wanted. I said No, not at the rate he was going. He asked how many did he need.

I said he needed A LOT, like a mountain of tickets. Then, I said he needed to find a game where he could earn LOTS of tickets. He eagerly said okay and ran off.

He came back probably 5 min. later with literally hundreds of tickets if not close to a thousand. My eyes got very big. He asked if it was enough. I said probably close to it.

He said he still had lots of tokens left. I said go earn more and let’s see what you can do. He came back a bunch of times with hundreds of tickets. In the end, he earned a few thousand tickets.

He had so many tickets that him and 2 PPP employees had to help him carry all those tickets to get them cashed in.

He set his goal on one thing, but was not limited to just that and wanted to see how much he could get. He ended up buying about 1/2 dozen or more toys with all those tickets.

He didn’t think about what he couldn’t do, or that last weekend with about the same amount of money he got just a few things of candy. He went from making a few hundred total to a few thousand.

He had no fears or self limitations. He wasn’t going to be defeated. I watched as he watched other people playing the games and determined which game he could earn a lot of tickets.

He focused in on his goal—get LOTS of tickets with what he had. In the end, he had extra tickets and I asked if he could share them with some other kids. He gladly did it.

He also went up to the employees that helped him and thanked them, shaking their hands. He did not fear failure. He showed appreciation and gratitude for help he received. He also made friends during that time with quite a number of kids there.

He bought toys for himself, his sister, and even something for me. This spoke so greatly to me tonight.

What are the key points I took from this 'aha' moment?
  • Know what you want
  • Focus on what you want to achieve, not on what cannot be achieved
  • Leverage
  • Negotiate
  • Have fun in the process of obtaining your goal, whether you fail, make a little process, or a lot of process
  • Share your success
  • Have a good plan
  • Bring others in on your success
  • Every experience is a new one
  • Learn from your past, but do not dwell on failures or successes
  • Observe
  • Be generous
  • Be grateful during the whole process
  • Show appreciation to those who help you; give them respect
  • Cheer for the success of others & celebrate with them
  • Be excited here and now
  • Sacrifice where needed
  • Know your priorities
  • Celebrate every step towards your goal
  • Ask for help (do not be ashamed or embarrassed)
  • Get involved in the help
  • Follow-up on the help you receive

These are the key points I learned from my son who greatly demonstrated these for me. EVERY single time he came back with tickets. Each time I gave him 5 tokens. Sometimes he only came back with maybe 10 tickets, but he was so excited. He would say, "Isn't this cool mommy?" I was so excited seeing him, and you can't help but want to be excited for him.

Honestly, I never thought he'd using the same money make what he made to get the toys he wanted, much less 1/2 dozen toys. It might have been more. I don't recall because he came back with a bag of toys in the end.

I wanted to add that I was on my laptop working and didn't want to leave my laptop and high techie gadgets unattended and was too far away to help him. So, I suggested he ask one of the PPP employees to help him. Because of all the tickets, it required 2 of them, and him to help.

One of the things that he did after he asked for help from complete strangers, but the right people (employees of the PPP), was that he told them what he wanted done, where he wanted to take the tickets, he had them walk ahead of him so he could make sure no tickets were lost. Every ticket was valuable.

These are the things I learned from my 5 year old last evening.

Hopefully those reading can see how invaluable this lesson is. We all have lessons in our lives and if we can look around, we can learn and grow from them. That is how I need to live and I'm beginning to step into it.

It doesn't matter what your situation is, whether you deal with people or not, there are things to learn all around us. Open your eyes, your heart, your mind and you will be surprised.

968.75

Well, the S&P closed at 968.75. My prediction was 1015. I was 47 points off. The reality is, it was heading towards that 1015 mark, which is where the 200 EMA is on the monthly. My 200 EMA monthly does not go back to the Great Depression, but starts around 1977. I'm thinking it should've began like by 1950. Oh well.

I think it's monumental that Oct'08 closed BELOW the 200 EMA. Oh, traders know where they are. What it looks like to me is that more bears are going to be coming in. Of course, I could be wrong.

It's had basically 3 cycles since 10/8 to test the 1015 range. The first time it came up near that and slightly exceeded it with a high at 1044. The 2nd time the high was 985.40. The third time, which is today, the high is 944.50. The highs are getting lower. There is not enough umph to get back up.

The last 3 days (10/29 to 10/31) have been not strong bullish days, in fact, quite lack luster.

However, RSI does have bullish divergence. It'll be interesting to see what happens after the elections. My vote is we'll continue down after maybe a little bit up up. We've had 2 strong bearish months, so it would not be surprising to get a pullback of some sort.

I can't help but to think that closing firmly BELOW the 200 EMA on the monthly is significant. It's never closed below this or even had a tail below it in the past 30 yrs. I'm thinking we are in for some rough waters as the United States.

Of course, I could be wrong.

If we drop below the 770 area, that's REALLY bearish.

Well, I need to get to bed. G'nite folks.

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