Deconstructing A Trade: Staying In The Game.

A few weeks back I was fortunate enough to hear Howard Lindzon give a speech about his thoughts on successfully trading the markets.  One of his main points was “staying in the game.”

In the context of his speech it meant making sure you were risk averse enough so that you could whether bad trades, in order to stick around for winning trades that would eventually come.  But as I thought about it more, I realized that “staying in the game” can also apply to trading in a micro way as the following video illustrates.

(Enlarge when video starts to watch in HD)

Don’t forget that you can subscribe to bclund.com Via E-mail or Via RSS  and follow me on StockTwits and Twitter.

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading – The Best of the Best: Top Trading Tips For Our Times by clicking here.

Week In Review: The Best Of The StockTwits Blog Network.

Let’s be honest, you could pretty much throw a dart any day of the week at the StockTwits Blog Network, and end up hitting a post that is better than 99% of the other stuff out there that passes as financial blogging.  So to say these are “The Best of….” is a little disingenuous; let’s just say these are some of the posts from the last week that caught my attention and I think will interest you.

The true sign for me of a great blogger is when they can engage me on a subject I usually don’t care about.  Value investing is definitely not my thing, but quality posts like “Now Starbuck Will Do What McDonald’s Couldn’t, Crush Jamba?  Uh No…”  by Todd Sullivan always hold my interest.

This week it is Peter Brandt who goes out on a limb to suggest that the sustainability of the $AAPL juggernaut might be questioned by a legend of trading in “Would Jesse Livermore be looking to go short Apple?”

“Congress trades, you pay” by Abnormal Returns reminds us that our elected representatives suck ass.

Will someone please tell Robert Sinn to just stop it?  Every time I review articles for this post, his are some of the hardest to choose from because the quality of ALL his stuff is so good. “Rethinking Stop Losses” is just the cream of this weeks bumper crop.

Brian Shannon of Alpha Trends delves into the psychology of traders and how it affects supply and demand in the markets in “Absorption of Supply In an Uptrend Near Moving Averages.”

If you didn’t already think the countdown was on til somebody snaps up our beloved community, you will after reading “StockTwits as Predictor….Research Says Yes!” by Howard Lindzon.

Angles are different from VC’s and the midwest is showing signs of being their next “heaven.”  Points and Figures explains it all in “Giving a Talk to Graduate Students.”

The Reformed Broker gives everyone on the StockTwits Blog Network such “nachas.”  I think I can speak for most in saying that we love seeing our “regular guy” Josh crushing it in the ossified world of both finance and media.  “Pics From The Book Party” is full of familiar faces who turned out to celebrate Josh’s book launch.  And one important take away…Josh is a whole lot taller than I thought.

“But how will they monetize it,” has been the cry from the Facebook naysayers since it first hit the 10-figure valuation mark.  TechInsidr explains why that is “no problem” in “Want Premium Advertising On Facebook?  Bidding Starts At $710,000.”

Making trading concepts understandable by relating them to everyday life is something I am passionate about and Greg Harmon of Dragonfly Capital does just that in “Understanding Fractals by Watching The Bachelor.”

One of the network’s newest additions, Lydia Idem, gives us three simple but powerful tips on how to be a more effective trader in “Timing Is The Only Thing.”

I have been holding a failure of a biotech stock, that was recommended to me by guys who actually worked in the company’s lab, for almost 20 years now.   Phil Pearlman inadvertently pours well deserved salt into my gaping wound with “Trading Biotechnology New Is Gambling Even If You Are Married to a World Renowned Pediatric Pulmonologist.”

All Star Charts illustrates how the ratio between the Russell 2000 and the S&P 500 can be an important tell in “What’s Up With the Small-Cap Underperformance?”

And finally, Derald Muniz of 1nvestor continues to give us a front row seat into his tools and methodologies with “The Watchlist vs the Scans.”

Subscribing to bclund.com Via E-mail or Via RSS is free and easy, like me.

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading – The Best of the Best: Top Trading Tips For Our Times by clicking here.

The Greatest Myth About Trading.

Elementary school can be a brutal place if you are not careful.  It’s not so much the possibility of being bullied, shunned, or made fun of as much as it is the fear of being “branded.”

Yes, this is the place where if you didn’t play your cards right, you could end up with a nickname that would scar you for life.

Enjoy your grilled cheese sandwich a little too much at lunch one day, well guess what….your new name is “cheese.”  You might as well just get it tattooed on your forehead because it is going to follow you wherever you go for at least the next 20 years.

This nightmare scenario became a reality for a guy I knew named Chris Stevens.  To be honest, Chris wasn’t really a friend of mine.  In LinkedIn terms he would have been considered a “2nd degree contact,” meaning I was acquainted with him, but really only hung out with him because one of my good friends was friends with him too.

Back in the 70′s they had this weird annual event called the Presidential Fitness Council Test, where elementary school kids would be tested to see how many push-ups, pull-ups, and “line straddles” they could do.  Arnold Schwarzenegger was even Chairman of the Council for a while.

The winners in each grade would get a medal and a certificate signed by the President. There were always a couple of pre-pubescent über-athletes at each school that took it seriously, but most of the kids just sleepwalked through the process, doing enough of each exercise to be deemed respectable.

The test started out okay for Chris.  He got through the line straddles with a decent score and was able to post a reasonable amount of pull-ups.  But it all fell apart at the push-up mat.  He did seven.  Seven measly push-ups.  I still can’t figure it out to this day.  He wasn’t a weak or scrawny kid, but for some reason that was all he did…..seven.

I’m not a religious guy, but I will swear on a stack of Pumping Iron DVD’s that I never heard anyone call him “Chris” again after that.  He was simply known as “Seven.”

There was no committee meeting to decide it.  No decree from on high.  Just an instinctual understanding from all those who knew him that this numerical scarlet letter was to be his new and permanent moniker.

The transition through intermediate and high school did nothing to erase its hold.  Just like with Norm on Cheers, in any room he walked into, the occupants would simultaneously raise their heads and shout “Seven!”  And eventually, in some twisted linguistic derivation, the nickname ultimately just ended up morphing into “Sev!”

Sev was a solid guy, but not too smart and the one thing I remember about him (besides the push-ups), was how on one 4th of July he tried to pull a stunt that would have made the Jackass crew shudder.

We all had few packs of firecrackers, and like any normal young male pyromaniacs we were trying to see what the “coolest” thing we could do with them was.   One guy threw some in a hole, another put a few in a tin can, and still another chucked a whole lit pack into the air at once.

Sev thought he could do everybody one better, and decided he was going to light one and drop it in the gas tank of a car.  Like I said, Sev was not the brightest guy, and since I am actually writing this post you can infer that his plan did not work out, but it was one of the riskiest things I ever saw anybody do.

Risk is something that most people associate with trading.  In fact, to the public at large, you are often likely to get the response, “isn’t that risky,” when you tell them that you trade for a living.  However, I think that is one of the biggest myths about trading, and I assert that trading is no more risky than most other jobs.

When I ran my own business, on the first of each month, the moment I woke up I was 60K in the hole.  That meant that in order to just “keep the lights on” I had to generate 60K in revenue each month, even before taking a dime out for myself.  And every month that I decided to keep my company going, I had to take the risk that I would not meet my nut.

Trading has no operational costs (or very minimal ones), which makes the decision to pursue the endeavor a relatively risk free one.

“Yeah, but where else do you have the possibility of losing more money than you started the day with,” is the lame rebuttal I often hear.  Really…?  These people obviously have never run a business.   If one of my employees damaged a client’s merchandise or backed a truck into a parked car I could easily lose more money than I started the day with.

Trading has no operational risk.  No employee is going to hurt his back and jack your workman’s comp rates up.  No douche from OSHA  is going to unexpectedly show up at your office and tell you that you are not in compliance with a new law passed the previous week and are on the hook for a large fine.  And you are not going to have a piece of equipment go south on you that you have to drain your bank account to replace.

But that is only for business owners right? What if you do the “dance” by getting a four-year degree and going to work for a solid blue chip company?  Well in some ways that is one of the riskiest things you can do.  Now you have turned over the fate of your continued employment to some mid-level management asshats or fair weather board of directors. Take a look at how many people took that “safe” path to corporate security and got tossed out on their ear when the economy imploded in 2008.

Trading has no asshat risk.  Nobody will even come into your trading room and tell you that you are being downsized, or that the macrame conglomerate you work for is going out of business after 75 years because the board of directors couldn’t resist getting involved in arbitraging high risk CDO’s.

At the end of the day, trading is one of the rare businesses where ONLY YOU DECIDE THE AMOUNT OF RISK YOU ARE WILLING TO TAKE.

The reason that most people go off the rails and blow their account out is not because there is any outsized risk associated with trading, but because the barriers to entry are so low, they are able to jump in feet first without really knowing what they are doing (or they are a seasoned pro who lets their ego get the best of them).

Being a pro football QB is risky.  Being a firefighter is risky.  Being a jet fighter pilot is risky. But the average Joe can’t just jump into those positions without a shitload of training and without attaining a high level of competency.  And thus the risk is less for a Tom Brady, for a fire Captain, and for a Top Gun pilot.

Trading gets a bad rap due to the “Sydney or the bush” portrayal it has received in pop culture and OWS type propaganda.  It’s perception has been “Gekkoized.”  But in reality it may be one of the safest professions if you do it properly and make the choice to keep your ego in check.

It’s no myth.  You can actually subscribe to bclund.com Via E-mail or Via RSS  with no risk.  Or follow me on StockTwits and Twitter.

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading – The Best of the Best: Top Trading Tips For Our Times by clicking here.

Dear Market News Services, WTF Are You Trying To Pull?

Today’s guest post is by Tom Morton.  Tom started his career at the Chicago Mercantile Exchange in 1996, working in the Eurodollar futures pit, then moving to the Nasdaq 100 pit in 1998. In 1999, Tom left the floor and began building a successful career trading individual equities.  He is the co-founder of The Equities Room.

Dear market news services….

Before I start, I’d like to say that generally, I find your products to be useful.  Getting corporate news and earnings and economic data in a timely fashion helps me navigate the stock universe for trading opportunities, and I have come to rely on it.

I used to actually be able to trade-off some of this news, digesting the information quickly, and occasionally be “first” into a move.  That has proven to be difficult lately, so I’ve left that for the news reading algorithms (more on them later).  Still, just being aware of real news in a stock and the market in general helps me make sound  trading decisions.

This brings me to the point of this letter.  I’m begging you to stick to real news. Lately, the “chatter” and “rumor” stuff has gotten out of control.  It happens so often now…everyday, every hour ”XYZ takeover chatter” pops up constantly, causing XYZ shares to flip around wildly (thanks to the news reading algorithms mentioned earlier) and disrupting trading flow.

I know, you probably will say something like “we are just reporting what we hear” and “we’re trying to explain why stocks are moving”, but I’m here to tell you that nobody is buying that anymore.  Instead, we’re pretty sure you’re getting played… that someone at some hedge fund or HFT firm is looking to spark a move in a stock by reporting these “rumors”.

Am I being too cynical?  Possibly, but why does it always seem to be the same type of underperforming stocks that get attached to these rumors?  Why is it,  that once you have reported this “chatter” those market making algo’s continually seem to aggressively take the other side of the trade, backing it away from its psuedo-elevated prices, grinding the stock back down to where it was before you reported this “rumor”?  And, why is it that more often than not,  there is never any color as to who is behind the “rumor”?

Here is the thing.   If you want to report takeover chatter and rumors, that is fine with me…there are occasionally some legit ones I’m sure, and we don’t want to ignore those.  But, if you’re going to report them, let’s make sure that either it’s based on an actual article or research report that can linked to.

Not only will this allow traders and investors a chance to get a sense of background on the “rumor”, but it will allow us to know for sure that the chatter is based on an actual thought from a firm or individual, and not being used as a vehicle to stir up volatility.  See, our market structure has already eroded enough with HFT and quote stuffing algos that were built to confuse human traders…we don’t need you making it worse.

Sincerely,

Tom

Follow Tom and The Equities Room On StockTwits.

Subscribe to bclund.com Via E-mail or Via RSS

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading – The Best of the Best: Top Trading Tips For Our Times by clicking here.

Stops And Smiles Should Be Automatic.

Jeff Morse was a dick.  Okay, perhaps that is a little bit harsh.  Jeff Morse was a “corporate dick.”  The type that buys moderately priced brown suits from Men’s Warehouse by the baker’s dozen.  He was everything a young, pseudo-nonconformist like myself hated, and now I had to spend an hour listening to him drone on like a second-hand air-conditioner.

It was “orientation” day at the Sheraton Newport, and all new hires, of which I was one, had to attend this mandatory meeting designed make sure you knew which side of your shirt to wear your name tag, as well as other critical information contained in the revered employee manifesto.

This was the type of day that Morse got off on.  He loved nothing more than to break the spirit of each batch of new recruits; crushing any sense of individuality they possessed, and replacing it with the distilled teachings of his beloved Sheraton Corporation.  He had the ability to create new batches of “group think” automatons in a way so ruthlessly efficient it would have made Mao proud.

I was hired as a “bellman” which though technically pretty low down on the food chain, could, if worked correctly, be a powerful position due to the freedom of movement and ability to interact with guests it allowed.  Unfortunately, at that time I had no “game,” no “hustle,” and definitely no “flow.”

I was forced, at least until I got up to speed, to toe the line and follow all the paternalistic rules Morse was laying down.  And the rule he was bleating on about at the moment made my stomach churn…..

All employees at the Sheraton Newport are required to meet a guest’s eyes, smile, and say “hello” in a strong but warm voice, before the guest does.  I never want to see an employee in this hotel pass by a guest without looking them in the eye and greeting them first. If I see that, it is grounds for a write up.

The “dick meter” was going off the charts in my head.  Smile and say hello to somebody I don’t even know?  First off, I never smiled; I scowled or better yet, sneered.  That was much more “punk rock” than smiling.

 Sid Vicious – One of the greatest punk rock “sneerers” ever.

But what could I do?  I needed this job, so I had to follow the rules until I could figure out a way around them.

It was hard at first, very hard.  Each time I saw a guest coming down the hall towards me my body would start to go into an involuntary spasm.  Greeting them a la Jeff Morse’s insisted upon way went against every instinct in my being, so much so that it physically hurt when the corners of my mouth started to turn up and the whites of my teeth began to show.

“Hello” would then somehow emerge from my mouth with the same enthusiasm you get from a cat when dragging it towards a bath.

I continued on in this way like the good worker bee Morse wanted, consoling my inner rebel by learning how to “appropriate” beers from the lobby bar, stashing them in various refrigerated vending machines, and then drinking them on night shifts while watching “spank-travision” in vacant guest rooms.

Then something strange happened.  I began to actually greet customers without thinking about it.  Not only that but I would then find myself walking out in public or at the mall and just greeting strangers with a warm smile and a loud “hello.”  It got to the point that my then girlfriend would freak out on me when I did.

“Who was that girl?” she would scream.

“What girl?” I would honestly reply.

“That girl right back there with the mini skirt on.”

“Hey, I have no friggin’ idea who she is.”

“Oh, don’t give me that.  You just smiled at her and gave her a big ‘Hello!’”

“I did?  I didn’t even realize it.”

And I didn’t.  At some point, after forcing myself time and time again to do the “corporate shuffle” and greet all those guests, the process became internalized and automatic.  I didn’t think about it anymore, I just did it.  Nor did I have any negative emotions attached to the act; I just did it and moved on without a thought.

It was an extremely important lesson in my young life; that not everything you should do, have to do, or is beneficial for you to do comes naturally.

The same goes for stopping out a losing position in the market.  Most traders don’t like to take losses; it doesn’t come naturally and often it is very hard, and sometimes painful to do. The problem is that there is not a universal “dick” like Jeff Morse standing over your shoulder, forcing you to do what is ultimately best for you.

Each trader has to find what method works for them.  What trick or device they can employee to get them in the mindset of taking their losses.  But If you do this on a consistent basis, even if it seems forced in the beginning, eventually your ability to put your stops in and take your losses will become internalized.  You will be able to act automatically, with no negative emotions attached, and can move on to the next trade without a thought.

Ultimately my time at the Sheraton Newport was one of the best and most interesting of my life.  It is where I met one of my life-long best friends.  Where I fell in love for the first time (with a girl who then ripped my heart out and fed it through a meat grinder…..but I’m not bitter).  And where I learned that even a “punk rocker” can learn something from a “corporate dick.”

You would never catch Jeff Morse subscribing to bclund.com Via E-mail or Via RSS,  which is exactly why you should.

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading – The Best of the Best: Top Trading Tips For Our Times by clicking here.

The Week In Review: The Best Of The StockTwits Blog Network.

Let’s be honest, you could pretty much throw a dart any day of the week at the StockTwits Blog Network, and end up hitting a post that is better than 99% of the other stuff out there that passes as financial blogging.  So to say these are “The Best of….” is a little disingenuous; let’s just say these are some of the posts from the last week that caught my attention and I think will interest you.

If some guys pull up with a case of beer, an eight-ball, and some “pros”, and you get in the car; don’t be surprised if the next morning you wake up in jail.  Kid Dynamite illustrates the stock market version of this in “TVIX – You Mess With The Bull, You Get The Horns.”

James Altucher reveals who makes money on Wall Street in…..uh….well, “Who Makes Money on Wall Street.”  (Hint: it’s not you).

Though it’s on The Reformed Broker’s blog, “So you want to be a Wall Street intern…” is technically a guest post by Josh’s friend Haley Feinberg.  It is worthy of a mention for the witty and intelligent way she describes how women are still objectified on Wall Street.  Plus there’s a hot photo of her in a bikini as well.

This week’s $AAPL heretic is The Armo Trader, who proposes the unthinkable in “Time To Sell Apple?”  I think I heard somebody else take that position earlier this week…hmmm……who was that?  Was it…….SATAN?

A single in baseball….boring.  A single malt Scotch…..sophisticated.  The single bullet theory……doubtful.  The “Single Trading Event Syndrome”……interesting.  Courtesy of StockTwits U.

Robert Sinn, aka The Stock Sage, makes the argument in “Unplugging from the Matrix” that everyone (not just traders) can benefit from having some “quiet time” each week.

Jeff from Points and Figures explains why an activist government is like Kryptonite to businesses in “US Regulations and Laws Inhibit Growth.”

Joe Fahmy’s post from last weekend in which he says he “wouldn’t be surprised to see a 3-5% pullback” is already starting to look Nostradamus-ish.  See the whole video analysis in “VIDEO: Stocks on my Watch List.”

We all have been accustomed to rates just going lower, but Julian Hebron of The Basis Point says it’s not that simple in “Mixed Economic News Makes Rate Predictions Difficult.”

And finally, when is a surprise not a surprise?  When you pay attention, as Todd Sullivan’s Value Plays shows in “The Only Surprise in Employment Numbers is That People Are In Fact Surprised.”

If you don’t want a “surprise” visit from my friend Guido, you should to subscribe to bclund.com Via E-mail or Via RSS?  It’s an offer you can’t refuse.

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading – The Best of the Best: Top Trading Tips For Our Times by clicking here.

How To Fish – Finding Growth Stocks Before Everyone Else.

Today’s guest post is by Henry Brookins.  Henry is a former hedge fund manager with 18 years of trading experience.  He is a graduate of the US Naval Academy and holds a dual Masters of Science degree in Meteorology and Physical Oceanography.  He is the founder of Stocklooker.

I could just “give you the fish and feed you a day, or teach you to fish and feed you a lifetime.”

Today I will teach you to see the water ripple created by the fish swimming, then you will know where to cast your net.

While the Federal Private Reserve Banking Cartel pumps trillions of printed dollars into the stock market to prop up underfunded Pension funds, it’s easy to make money in this market if you are a rookie – just buy AAPL or PCLN and go back to sleep. I proposed a “Too Big to Fail” model portfolio of stocks on my website February 15, and by the close yesterday it had gained 10.2% (120% annualized). The Banks (and Obama’s Administration) are going to do all in their power to support the markets through the November elections.

One day, maybe a 100 years from now, we might see a stock market that is less manipulated. When that time comes, you will need to know how to find fish for yourself. I use a few searches to find my fish, and these searches work even today. The reason I like to find stocks few people know about is because they are much less manipulated my market makers and computers, and these stocks can make large gains before institutions enter them. Often times it is institutional buying that my searches find, which means I can usually get the stock early in a run.

Ready for it?

“Volume footprint” – I started using this phrase about 15 years ago and I don’t recall seeing anyone else using it – so here’s my definition. A volume footprint is a period of 3-7 days of higher than average trading volume in a stock, while the stock is in a basing pattern, or just leaving a basing pattern.

I simply have a search I use that finds these little footprints for me, and I watch the price and action of the stock price as the volume increases.

Here’s some examples from yesterday’s search…..

Don’t be fool by how simple this concept is.  If you do this scan on a regular basis you will greatly increase your chances of “hooking” a whale.

Follow Henry On StockTwits.

I don’t fish, but once I puked my guts out on a tuna boat in Cabo after a hurricane.  Some day I will write about that, and if you don’t want to miss it, why not subscribe to bclund.com Via E-mail or Via RSS?

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading – The Best of the Best: Top Trading Tips For Our Times by clicking here.

Books Every Trader Should Know About – Reader’s Suggestions.

Earlier this week I wrote a post called “20 Books Every Trader Should Know About” which I ended by asking readers to suggest any titles they felt were worth a read.

Igor suggested…

I think you should add books from Brett N. Steenbarger they are top books on trading psychology.

Berkek offered…

I think it was one of the best books I have ever came across called “Master the Markets – Taking a Professional Approach to Trading & Investing by Using Volume Spread Analysis” by Tom Williams.

Shuaib added….

I found Corey Rosenbloom’s “The Complete Trading Course” highly insightful and practical.

Ben was kind enough to comment….

Moneyball-Michael Lewis.  This book chronicles the meaning of having courage in your convictions. It exemplifies defining what works and relentlessly sticking to and executing a plan. Especially good if you like baseball.

Mike from Houston emailed me to suggest a possible oversight on my part by not including Nassim Taleb’s book “Fooled by Randomness” and given the fact that I wrote a post recommending it as well as his brilliant “The Black Swan” he might be right.

Ted from Germany suggested the book “Technical Analysis Using Multiple Timeframes” by StockTwits own Brian Shannon, as did John Egan, saying…

After buying several dozen books covering the same old moving averages etc, his actually explained very succinctly how to trade. It is now one of only 3 books that I still own. I re-read it periodically to bone up again.

Thanks for all the input and please feel free to email me with any more suggestions at bclundBlog@gmail.com.

Oh, I almost forgot, Paul Tudor Jones wrote to suggest everyone subscribe to bclund.com Via E-mail or Via RSS?  It’s free so make “TJ” (as I call him) happy.

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading – The Best of the Best: Top Trading Tips For Our Times by clicking here.

Week In Review: The Best Of The StockTwits Blog Network

Let’s be honest, you could pretty much throw a dart any day of the week at theStockTwits Blog Network, and end up hitting a post that is better than 99% of the other stuff out there that passes as financial blogging.  So to say these are “The Best of….” is a little disingenuous; let’s just say these are some of the posts from the last week that caught my attention and I think will interest you.

Investing is not always a “clean” endeavor, as you often have to interact with all sorts of unwanted entities. Knowing what motivates them may affect your financial success as Abnormal Returns highlights in “Incentives matter when it comes to investing.”

Dynamic Hedge finally solves the mystery as to why Kurt Cobain blew his head off in “5 Things I Learned While Working For Courtney Love.”

Kid Dynamite uses some “sick” analysis in “Why Can’t Journalists Who Write Article About Gambling Understand Math?” to illustrate how The Atlantic misreported their recent story on the whale who broke Atlantic City.  Note to self: Never sit with KD in a 30-60 No Limit hold ‘em game.

“The best laid plans of mice and men……” well you know the rest, and Dragonfly Capital explains how that saying applies to trading in “Always Have an Emergency Plan.”

In “My Last Will and Testament” James Altucher talks about the non-material things he hopes to leave to his children, and ponders why his blog is a magnet for those who want to take a long walk off a short pier.

Charting the CRB Index and explaining why the way it reacts to its current levels may give a clue as to where we head for the rest of 2012 is the focus of “What Can We Learn From The CRB Index?” by All Star Charts.

Nouriel Roubini is know to thrown some pretty wild parties, but Eddy Elfenbein of Crossing Wall Street probably won’t get an invitation any time soon with posts like “Nouriel Roubini Three Years Ago.”

“Who am I to Question the Animal Spirits?” by The Stock Sage tries to take the crazy position that some fairly interesting and significant things happened this week in the markets that were not related to $AAPL.  Yeah right!

Upside Trader brings us a “twofer” on the use of trendlines in “Why I Draw Trendlines” and “The Transports Bottomed.”

And finally, bookmark “Clips from Street Signs Today” as this is the exact point in time where the “I knew him when” story will begin for The Reformed Broker.  There may be hope for CNBC yet.

If you would like me to get so famous that I am on CNBC on a friggin’ loop, the best way is to subscribe to bclund.com Via E-mail or Via RSS?  It’s free and comes with coleslaw.

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading – The Best of the Best: Top Trading Tips For Our Times by clicking here.

Ten Years Ago Today I Was Wearing A Dress!

Life doesn’t tell you when you wake up in the morning that this is going to be the day that your life changes forever.  There is no email alert, no desktop pop-up, and certainly nothing on your Facebook page to give you a clue as to what lies ahead; so when it does happen, it hits you without warning.

That day for me occurred in the summer of 1993.

I went to work like normal, dealt with employee issues like normal, and got annoyed by clients like normal.  However, when the lunch hour came, I did do something a bit out of character.  To me that hour was sacrosanct, and I was dogmatic about making sure that every one of those 60 minutes was spent NOT thinking about my business.  It was the oasis in the middle of the day that I needed to keep from losing my mind.

But in this lunch hour, I decided that on my way to get something to eat I would stop by a vendor of ours that was just around the corner, in order to drop off a check to initiate a new order.  I knew everyone there at the company and was on friendly terms with Lilia who ran the front office.  I walked inside, greeted the staff, and started to go into my patented wacky banter routine.  I was droning on, fascinated by the sound of my own voice, and then in a split second my world was turned upside down.

From out of the corner of my eye I saw a figure enter the room.  I turned my head to greet who I thought would be one of the standard company worker bees, but when she came into view my tongue stopped working.  I am convinced as well, that for perhaps a millisecond there was a synapses misfire in my brain, causing my spine to momentarily go limp before a “re-boot” kicked in and snapped me smartly back to attention.

Who was this girl?  This girl with the beautiful black hair, dark brown eyes, and a nimbus trailing her every movement?

I am highly skeptical of love at first sight.  Hell, I love my kids like I have never loved anything else in my life, but even the first time I saw them I went “Ugh” (in my mind of course). And back then I would have fought you tooth and nail against this phenomenon actually existing.

But there I was….stunned…..taken aback…..speechless……..and as close to experiencing love at first site as I had ever been.

But she was quick, and as I was trying to regain my composure she ducked out of the room just as suddenly as she had come into it.  I had to know more about her so I decided to “stall” and began to talk to Lilia about anything I could think of, just trying to buy some time until she came back into the room.

If must have stayed there for 10 minutes, talking about everything from the ramifications of the recent Latin trade agreement talks, to my assertion that our newly sworn in President Clinton was of high moral character; but she never returned.

In the next few weeks I suddenly found every excuse under the sun to visit or call over to that company.  I slowly but surely charmed my way into my future wife’s heart, and although it wasn’t exactly a straight line from that first “meeting” to the night when we wed 10 years ago today, that day ranks up there with the birth of my children as one of the most important of my life.

(I later found out that in fact, as I was “stalling” and waiting for her to come back into the room, she was actually “stalling” and avoiding going back into the room until I left. Sometimes ignorance IS bliss).

Looking back on ten years of marriage, I have to say it is still hard for me to believe how far I have come.

Remember, as I have written about before, I was the guy who was NEVER going to get married.  I was such an asshole back then.  I can only be thankful that my wife was altuistically naive enough to look past my bullshit, past the insecure and insensitive exterior, and have faith that there was someone better buried deep inside me.

I give myself a B- as a husband, but that’s much better than the D+ I started out as.  In fact the running joke is that not unlike software upgrades, I continue to improve with each version.  I think I am up to “Brian 7.0″ right now, but it’s an ongoing growth process.

Today marks the anniversary of start of that growth process, and I wanted to take a few self-indulgent moments to acknowledge that, and to let my wife know (when she gets around to reading this six months from now), that I love her with all my heart.

And as for that “dress” that I wore ten years ago today?  Well actually it is not really a dress, but a traditional Vietnamese outfit called an “áo dài” (pronounced “ow zai” in the North and “ow yai” in the South), which is worn at festive occasions.

And If you subscribe to bclund.com Via E-mail, I will send you an exclusive photo of me wearing that “áo dài” along with am amusing short story about how it was made for me.

And if you don’t want to subscribe, well just trust me, I looked “hot.”

(Note: If you are new to my blog, I post about all sorts of things.  Sometimes it involves something extremely personal, like creating a 30K baby or my Monster Trades.  Other times it deals with hot ex-porn stars who trade stocks.  And sometimes it’s about how to avoid “suicide”.  But a good place to start is The Best of bclund.  If you like what you read, please tell a friend.  If you don’t, please tell two friends.)

Brilliant stuff like this rains down like..well, rain, on my stream during the week. If you want to get wet, follow me on Twitter and StockTwits. You can also pick up my book Trading – The Best of the Best: Top Trading Tips For Our Times by clicking here.