Tuesday, March 31, 2009

Tom Vu

1980's commercial. When it comes to making money, some are great at forgetting about past mistakes.

Friday, March 13, 2009

What is the most annoying word used in Financial Media?


The Results are in. We are tired of Bailouts and Fundamentally sound companies that go bankrupt.

Thursday, March 12, 2009

Jon Stewart Vs. Cramer Interview March 12, 2009

I watched Jon Stewart interview Cramer tonight and have to applaud Stewart for asking some bold questions to Cramer. The Video should be up soon.
Part 1

Part 2

Part 3

Monday, March 09, 2009

Traders Most difficult Problem- Trading with Stops

Lets say you go long the market at XX, but the market moves lower, so at this point you think that you've got an even better deal to average in on your original entry. Do you really know the future and how far this trade will go against you?

I'm bringing up a point of a major problem that I've faced as a trader. STOPS.
When I'm in the zone, I will exit a bad trade for a small loss and move on to the next one. When I'm trading relaxed or I've built a cushion of profits from previous days I will let my guard down and give a bad trade more room to breath and end up losing more money than I should have. Have you ever lost weeks or months worth of profits from being too relaxed or by breaking your "rules"?

Have you ever averaged your trade or widened your stop? There are a couple ways to deal with your problem of NOT taking stops.

1.Take out excess money in the account to the point to where you can only put on 1 trade and not be able to average into it.

2.Trade with a platform that has an automated risk management parameter that will close your position when you are down XX amount for the trade or reached a max daily loss.

3.Start working with another trader that can help train you on using stops.

4.Realize that you are not trading with a plan/system before you put on a trade, because your plan was for the trade to work in your favor immediately and not let it run against you.

5.Develop an Automated Trade System that will trade for you and take your emotions out of the trade.

Here are some of my Key Posts dealing with stops and problems traders face-

Realistic Expectations of your Trading Results

Dr. Brett goes over A Few Trading Psychology Observations

The stock market ruined my life

For FX.

Friday, March 06, 2009

Stock market Bounces off of HELL,,,,666


If you watch the S&P 500 futures, you will notice that we tested Hellish levels today, briefly dipping below the Devils number of 666. Is it a sign from GOD that we bounced 20pts at the close and rose from HELL? Stay tuned next week, as we watch a battle between heaven and hell in the stock market.

Quote from HPT's Famous blowup video "Lets watch it go to the depths of Hell"

Dow to 6,000?


Some say 6,000 on the Dow will be the bottom, some say 4,000. Each day we go lower more pain is felt by "buy and holders". People are asking when will it turn around?

The economy lost 681,000 jobs in December and another 655,000 in January. February saw the highest job loss since late 1983, as employers cut another 651,000 jobs.

Since the recession began in November 2007, the economy has lost 4.4 million jobs. What is surprising is that more than half of the job loses have occurred in the past four months. President Barack Obama said "This recovery plan won't turn our economy around or solve every problem,,, All of this takes time and it will take patience."

Wednesday, March 04, 2009

FDIC failed bank list chart

It's only been a month since I last posted the FDIC failed bank list and the month of February we saw the largest monthly increase in failed banks(10 banks). The FDIC has a detailed list of all the failed banks.

Tuesday, March 03, 2009

Tax matters for proprietary traders

GreenTraderTax puts together some great articles on tax issues for traders.

Find out the differences between filing as-
-Independent contractor (that receive a Form 1099-Misc.),
-LLC member (that receives a Form K-1.)
-Employee (that receives a W-2.)

Monday, March 02, 2009

Suspending Mark To Market Accounting:

Here is a great article titled "The Tale Of Two Cows" from ClusterStock.

Now there are reports that the SEC is planning to give banks "flexibility" on mark-to-market accounting rules. It may even suspend mark to market rules. What on earth could that mean?

Let's go to the cows.

You have two cows.

You write down on a piece of paper that the cows are worth $100 each.

You notice the cows are on fire.

Your paper still says $100.

Fortunately, mark to market has been suspended so you don't have to pay attention to the fire.

Your cows are dead from fire.

Your paper still says $100.

Fortunately, mark to market has been suspended so you don't have to pay attention to the dead cows.

You notice that you aren't getting as much milk as expected, so you adjust the model and mark the cows down to $98. You are confident, however, that the dislocated stream of milk revenue will quickly revert to expectations.

You need to borrow some money so you ask investors for a loan against the cows. The investors tell you the cows are dead, and you already owe them $200 dollars you borrowed to buy them in the first place. You show them the paper that says the cows are worth $98 each.

They light your paper on fire.

You ask the government to buy the dead cows at $98 each.

The government holds meetings all weekend and finally comes up with a plan to inject $45 dollars into your cattle ranch. In exchange, the government gets a right to milk generated from the cows at some point in the future. It expects you'll buy a new cow with the $45.

You have two dead cows, $45 and $200 in debt to your investors. You have no plans to buy new cows.

Sunday, March 01, 2009

Hit the Bid

Krull explains the fine inter-workings of the market-

PS- Megan FOX is SINGLE........for now,,,,

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