Odds And Ends

I am not the best at curating links and sites, but I have picked up a few during 2012 that I go to on a regular basis.  All of them are top shelf and great additions to your Google Reader or RSS feeds.

By the way, please feel free to suggest any worthwhile sites you think I should follow in 2013.

Jerry Seinfeld’s Personal Archives – Three clips a day, curated by Jerry himself.  I find a trip to this site a daily oasis, and can tell how good/bad things are going by how early in the day I hit the site.
Seinfeld
The Wall Street Warrior – Jamie’s site basically started my fascination with trading/investing blogging and he was very kind to me when I was still a total idiot, opposed to the semi-idiot I am now.  Has some of the best trading analysis on the web.
Wall Street
Savage Chickens – It’s rare that I actually laugh out loud at anything, yet Doug Savage’s cartoons on sticky notes cause me to do it on a regular basis.
chickenfaster
Masteroftheuniverse’s Weblog – Jeff Watson is a former pit trader who has forgotten more about trading than most of us will ever know.  His blog, though not as updated as I would wish, is a great place to talk about trading, surfing, and fine art collecting. Jeff is the modern day version of a Renaissance Man.
Jeff Watson
Brain Pickings – Not that Maria Popova needs little ole’ me to give her tremendously eclectic blog any more publicity, but I’m going to anyway.  If you have any proclivity for art, poetry, writing, graphic arts, literature, or any of the creative disciplines, this is a site you must follow.
BrainPickings
The Coolist* – I am a closet architecture and design buff and this site has some of the most striking posts on anything from Modernist Churches to Subway Photography to the new Air Jordans.
Modernist-Church-Photography-by-Fabrice-Fouillet-11
JennyJohnsonHi5 – Jenny Johnson is no doubt one of the funniest people on the planet and the person responsible to Chris Brown quitting Twitter (temporarily).  Nuff said.
Jenny
And finally….

Zen Pencils – Gavin Aung Than’s site is one of my favorite finds of 2012.  It shows that no matter what has already been done on the Internet, there is always someone out there who can use their creativity and take it in directions most of us would never have thought of.

2012-12-18-bukowski

Why not subscribe to bclund.com for free  Via E-mail or Via RSS and follow me on StockTwits and Twitter?

What bclund is, is the intersection of markets, trading, and life (with some punk rock, pop culture, and off-beat humor mixed in).  Check out “The Best Of bclund” to get started.

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 Most Fantastical Posts Of 2013

I would like to take a moment to thank everybody who reads and supports bclund. This has been a life changing year for me in a real sense, and much of it is due to the interactions I have had with people whom I have met through this blog.  I hope to take it to bigger and better things in 2013 and that you all come along for the ride.

Looking back on 2012, I did over 300 posts, and here are the top ten most popular based on pageviews.

  1. 20 Books Every Trader Should Know About
  2. The 10 Commandments Of Trading
  3. 5 Reasons You Deserve To Lose Every Penny In The Market
  4. 10 Tips If You Are Losing Money In This Market
  5. The Most Important Concept In Successful Trading
  6. 5 Ways I Can Smell You Will Be A Failed Trader A Mile Away
  7. How To Place More Effective Stops
  8. How To Day Trade With Less Than $25,000
  9. Why Would Any Serious Trader Subscribe To A Trading Service?
  10. How I Missed 400 Points In Apple (aka In Life, Always Go For The Cubans

Once again, thanks for reading and here’s wishing you and yours the best for the new year.

Why not subscribe to bclund.com for free  Via E-mail or Via RSS and follow me on StockTwits and Twitter?

What bclund is, is the intersection of markets, trading, and life (with some punk rock, pop culture, and off-beat humor mixed in).  Check out “The Best Of bclund” to get started.

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.

Your 15 Trade Ideas For The Week Of 12-31-12

You’ll have to forgive my absence over the last two weeks but I was in full holiday mode, which means I was too drunk to do any posts.  But now I have sobered up enough to get back in the swing of things.

As I write this, the clowns in Washington are still trying to decided if they will drive us over, or pull us back from the fiscal cliff.  Keep that in mind, as well as how the overall market reacts to whatever these asshats come up with when looking at these set ups.

$AIR broke out nicely above a gap resistance level and has formed a tight flag/consolidation area, setting up a good risk/reward entry on a break.

Biotechs were hot this year and $ALXN was up over 70% at one point before taking a brutal drop in October.  Since then price has been consolidating for what may be another leg down.  Friday’s inverted hammer was an NR7 bar which you could use as you risk/reward set up on a break below the trendline.

$ANR is basing below a resistance level that has been tested numerous times, which is good action.  Each successive try increases the odds it breaks, and if it break both the 200ma and that level at the same time it can create a fast move.

Everybody and their brother had been watching $CRM for a breakout, which it eventually did.  Now it’s coming back in to test that breakout level on light volume.  A successful test may be your chance for a “second bite at the apple.”

A cup and handle pattern is usually only valid on a weekly chart, but we have the same pattern on a daily with $EQIX and I like it.  Especially since this stock is at ten-year highs.

Not unlike $CRM, we have $GS breaking out and re-testing that breakout point on low volume.  If it holds you have a great objective place to get long with a protective stop below the trendline.

A nice flag after breaking out of a large pattern sets up a good risk/reward trade in $OC.

Everybody’s favorite small cap stock $SIRI is flagging right below five-year highs.

2012 was a great year for the housing stocks and all eyes are on them to see if their recovery is real or just a “bounce” from the devastation of the financial meltdown.  $TOL has come in very orderly here, and will soon be “squeezed” between it’s 200ma and the down trendline.  A break of that trendline is a buy.

Flagging below five-year highs is good for $TSO.

I love $WFM.  Any place where I can eat pizza and drink craft beer while my wife shops is okay by me.  The stock had a great year in 2012 but is looking like it is rolling over here as it goes under its 20, 50, and 200ma.  A break of the lower trendline would be a short.

I have been keeping my eye on $WTR for a while now as it creates a large flag or pennant formation at six-year highs.

I have no idea what $YPF does and I also get really nervous when the work “Sociedad” is in any stock I am looking at.  That being said, there is a nice, tight flag formation after the break of the 200ma that looks compelling.

I have talked about trading “scripts” in the past, and how it’s okay to do that as long as the technicals confirm the script.  Last year it was reported that for the first time in their history, Fidelity had more than 50% of the funds they manage in bonds.  To me that is a massive contrary indicator.  Sure, conventional wisdom is that retail investors have left the markets, never to return, and if that is the case, then the retail broker dealers must be “dead money” as well.  But money has to find return, and I think we may be questioning the so-called “death” of the retail trader/investor at some point.

With that in mind, we have $SCHW in an extremely tight flag on a closing basis after breaking out of a large consolidation pattern, and $ETFC nearing the top of a similar pattern.  Obviously if this “script” plays out these stocks will be longer term plays, however there may be opportunities to day or swing trade them along the way for the nimble trader.  Just something to keep on your radar as we enter 2013.

Why not subscribe to bclund.com for free  Via E-mail or Via RSS and follow me on StockTwits and Twitter?

What bclund is, is the intersection of markets, trading, and life (with some punk rock, pop culture, and off-beat humor mixed in).  Check out “The Best Of bclund” to get started.

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 12 Days Of Trading

This time of year is very special to me and when I was just a little trader I used to love the annual holiday tradition we had at our prop shop.

We would all gather round the warm glow of the quote screens and listen to the head of Risk Management tell us wonderous stories of “The Great Compensation Committee” located far back East, and how each year they would bestow fantastic gifts on deserving traders.

At the end of the evening we would join hands and sing this, my favorite trading carol.

(Sung to the tune of “Enter Sandman” by Metallica).

On the 1st day of trading the markets gave to me, a spike from high frequency

On the 2nd day of trading the markets gave to me, two blow off tops, and a spike from high frequency.

On the 3rd day of trading the markets gave to me, three missed fills, two blow off tops, and a spike from high frequency.

On the 4th day of trading the markets gave to me, four phantom bids, three missed fills, two blow off tops, and a spike from high frequency.

On the 5th day of trading the markets gave to me, five boooo-yaaaaahs, four phantom bids, three missed fills, two blow off tops, and a spike from high frequency.

On the 6th day of trading the markets gave to me, six Goldman upgrades, five boooo-yaaaaahs, four phantom bids, three missed fills, two blow off tops, and a spike from high frequency.

On the 7th day of trading the markets gave to me, seven rogue traders, six Goldman upgrades, five boooo-yaaaaahs, four phantom bids, three missed fills, two blow off tops, and a spike from high frequency.

On the 8th day of trading the markets gave to me, eight flash crashes, seven rogue traders, six Goldman upgrades, five boooo-yaaaaahs, four phantom bids, three missed fills, two blow off tops, and a spike from high frequency.

On the 9th day of trading the markets gave to me, nine false breakouts, eight flash crashes, seven rogue traders, six Goldman upgrades, five boooo-yaaaaahs, four phantom bids, three missed fills, two blow off tops, and a spike from high frequency.

On the 10th day of trading the markets gave to me, ten pumping analysts, nine false breakouts, eight flash crashes, seven rogue traders, six Goldman upgrades, five boooo-yaaaaahs, four phantom bids, three missed fills, two blow off tops, and a spike from high frequency.

On the 11th day of trading the markets gave to me, eleven anchors rambling, ten analysts pumping, nine false breakouts, eight flash crashes, seven rogue traders, six Goldman upgrades, five boooo-yaaaaahs, four phantom bids, three missed fills, two blow off tops, and a spike from high frequency.

On the 12th day of trading the markets gave to me, twelve double baggers, eleven anchors rambling, ten analysts pumping, nine false breakouts, eight flash crashes, seven rogue traders, six Goldman upgrades, five boooo-yaaaaahs, four phantom bids, three missed fills, two blow off tops, and a spike from high frequency.

Here’s hoping that you and your loved ones have a great holiday season.

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.  All proceeds go to fight pediatric brain cancer.

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.

25 Years Ago Today My Best Friend Died

The phone rang.  It was 2:17 in the morning. It’s never a “good” phone call at 2:17 in the morning.

For almost a week I had been expecting this call, but some part of me was hoping that it was a wrong number.  Perhaps my roommate’s ex-girlfriend drunk dialing him after the bar closed? However it was a Wednesday, so that was a long shot.

When I answered, the voice on the other end of the phone was the one I most feared, my mother’s.  Her normally stoic nature was absent and all I could make out was, “your father is gone.”

“I’ll be right there,” I replied.

I threw on some clothes and ran down the stairs to head over to my parent’s house.  I remember thinking how cold it was when I got in my car, even for December.  I remember thinking that the place I was going to was no longer my “parent’s” house, plural.  Now it was just my mom’s house, singular.  I remember thinking that I was now one of “those” people.  You know, the people who get spoken about at parties.

“Did you hear what happened to Brian?  His father died of a brain tumor.  Only 47 years old.”

“No, really?”

“Yes!”

“Oh, I have no idea what I would do if something like that happened to me.”

But it did.  It did happen to me.

I know now as a father myself, that the worst pain in the world would be to lose a child. But at twenty years of age, I didn’t yet have that perspective on life.

Back then the worst pain I could imagine would be losing the person you loved most in life.  The person you looked up to.  The one who protected you when you were frightened.  The one who taught you how to fish, to throw a baseball, and to charm your mother when she was mad at you.

That was my dad.  And now he was gone.

There is an age-old debate about whether it is best to go “quick,” or “slow.”  The consensus is always that “quick” is the best.  But here’s a secret…it depends on who is answering the question; the victim, or those they leave behind.

There was nothing unspoken between my father and I.  He regularly told me that he loved me and I told him the same in return.  There were no long simmering grudges or stretches without speaking that needed to be reconciled before his final exit.  If he had died suddenly, in a car crash on the way home from work, it would have been cleaner.  Neater.  More dignified, certainly for him.

But the fact of the matter is, no matter how tough it was on him, I was glad to have him for those eighteen months in which I knew he was going to eventually die.

I used to feel guilty when I thought about this. How could I be so selfish?  Those last months were hard on him as the tumor began to shut down parts of his body and mind day after day. What sort of non-caring, narcissistic person would want his own father to linger on in that state just to stave off his own fears and insecurities of a life without him?

With no kids of my own, I often assumed he would have rather gone quick if he could have. But now, as a parent myself, I know that that wasn’t the case.

If, God forbid, I was ever diagnosed with a fatal disease, I would put every ounce of my being into staying alive as long as I could.  I would endure any amount of discomfort or suffering in order for more time with my children.  A year.  A month. Even days or hours would be worth any pain I would have to endure.

I would want every precious moment I could grab in order to help ensure that my children were that much closer to being able to live and prosper on their own after I was gone.

Back in 1985, if you lived six months past the time you were diagnosed with a brain tumor you were considered “lucky.”  I think the reason my father tripled that “lucky” number was because of me and my sister.  I think he felt then just like I feel now.  I don’t think he regretted one extra moment with us, no matter how much he suffered.

I always carry my father’s spirit within, but at times he feels like a ghost to me.  A fleeting vision or dream of a time that never really existed.  I can see the man who was my father in the yellowing photos of camping trips, soccer games, and birthday parties past, but they don’t connect with me like I think they should.

In the world we live in today everyone has a video camera in their purse or pocket, but I feel somewhat cheated that there are only fourteen seconds that exist of my father on film.

Just fourteen seconds of a random video my aunt and uncle shot on their visit here from Australia.  If it wasn’t for them being 1985′s tech version of “first adopters” there might not be any moving images of him at all.

This video was shot just months before he had the seizure that first alerted us that the clock was ticking on his time left on Earth.  Though my mother naturally is “dominating” the conversation, he is very quiet in the video.  Too quiet. Uncharacteristically quiet, focusing his attention on my young cousin instead of joining the conversation.  I often wonder if he had any clue at that moment that things were not right?

Were there any pains in his head that woke him in the middle of the night?  Did he begin to forget things he should know?  Was there an inner sense in him that something was wrong?  It’s a question I will never know the answer to.

In the months and years that passed after he died I would feel extremely guilty if I had a day where I was happy.  Or a day where I didn’t think about him for a few hours here and there. I thought that that meant that I was forgetting him, or that I wasn’t missing him like I should.

Then one day it hit me.  It was the cliché’ of all cliché’s but somehow it rang so true.  I realized that my father, being the type of person he was; happy, outgoing, friendly, funny, warm, and loving, would not want me to cry over him.  He would want me to live my life.  To take all the best parts of him and make them part of me.  He would want me to remember him, but to move on with my life.

I have tried to do that in the years since he left me as a very young man, unsure about myself, my life, and my future.

A quarter of century is a long time.  I have lived more of my life without my father than I did with him.  And sometimes I wonder if I have moved on too much.

In the last few years, as my daughter has gotten older she has begun asking me certain questions like, “where is YOUR daddy.”  I have explained to her best I could about my father, who he was, and why he is not here with us. With the godsend that is youthful naiveté, she has only soaked up the joy of his story and not the sadness of his loss.

And for some unknown reason, instead of “Grandpa Kelly” he has become “Uncle Kelly” to her.  And when her school had a project where the children brought a picture of someone in their family who had “gone to heaven” she brought a photo of my dad.

Photo of my dad, Kelly Lund, and my original avatar.

The other day she asked me if we could go to see where he was buried.  Taken aback a bit I asked, “why do you want to do that?”

“I just want to remember him,” she replied.

“Remember him?” I said.

“Yes.  I want to remember all the times when he played with me when I was a baby.  And all the fun I had with him.”

“But sweetheart, ‘Uncle Kelly’ died a long time before you were born,” I explained to her.  ”You never got to play with him.”

“Oh,” she said pondering my statement for moment.  ”But I just want to go there and think about him daddy.  It that okay?”

“Yes,” I told her as I held back my tears.  ”Yes, that is okay.  That is very okay.  I want to think about him too.”

Why not subscribe to bclund.com for free  Via E-mail or Via RSS and follow me on StockTwits and Twitter?

What bclund is, is the intersection of markets, trading, and life (with some punk rock, pop culture, and off-beat humor mixed in).  Check out “The Best Of bclund” to get started.

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 Media And Sandy Hook – Where Journalism Goes To Die

Old habits are hard to break. This doesn’t just go for individuals, but for large institutions as well.

There was once a time in this country when the term “media” basically meant newspapers. These institutions were concentrated exclusively in the Northeast and if there was a news story of any significance it would be reported there first, and then the molasses-like process of Westward migration would begin.

This usually happened on a person-to-person basis as travelers on the railways moved about the country.  Then in the mid-1800′s the first transcontinental telegraph lines were installed, creating a great jump forward in information dissemination.

As different technologies, including radio and television can into existence, the concept of speed began to creep into psyche of the news departments and bureau chiefs of the major media organizations.  It became important for you to “break” a story first. If you could, you might get anywhere from a few hours to a few days head start over your competition, and people would look to you first to bring them their news.

But even though being first was important, being accurate and factual was still more important.  Reporters and editors would hold a story back, even at the risk of being “scooped” by their competition, in order to get confirmation that their sources, and stories, and facts were accurate.  This was because if you reported something incorrectly you would have to print a retraction, and if you did too many of those your credibility would be shot, along with your readership.

Fast forward to 1980 when CNN was launched as the first 24-hour a day news network.  Now the traditional “news cycle” began to contract, and the speed in which you got your stories to the public became even more critical.

As the pressure to be “first” mounted, slowly but surely the integrity of the news being reported began to slip.  At first it was nearly imperceptible, but as time went on it became more obvious to those who were paying attention.

I first noticed it back in 2005 during hurricane Katrina.  I remember watching Chris Matthews “lose it” when reporting that alligators were swimming up flooded streets and attacking stranded people.  I remember thinking to myself at the time “wow, that doesn’t seem to make sense.”  And it turned out in retrospect that there were no credible reports of what Matthews was alleging.

Then I saw Ray Nagin, the Mayor of New Orleans, on The Oprah Show.  Here is a quote from that show.

“They have people … been in that frickin’ Superdome for five days watching dead bodies, watching hooligans killing people, raping people.”

This quote was taken as fact and repeated over and over in the major media, each using the same reasoning; that the previous outlet had reported it and thus was justification that it was “credible.” Similar reports were widely circulated by the media about shootouts at the Superdome, snipers firing on rescue helicopters, and “bodies stacked in the convention center freezer.”

However none of it was true.  When the Superdome was cleared, six bodies were found, not the 200 that had been planned for.  Of those six, four had died of natural causes; all older people who could not take the strain.  One was ruled a suicide and one was a drug overdoses.  At the convention center four had died, three of natural causes and one of stab wounds.

The only confirmed discharge of a weapon was by a Louisiana National Guardsman who shot himself in the leg with his own M-16 when jumped by an assailant.  And no bullet holes were ever found in the fuselage of any rescue helicopters.

Though my faith in the media was shaken, I still rationalized that this was an exceptional situation, an outlier where the normal rules of journalism were hard to stick to.  Then came Anderson Cooper and the live coverage of the West Virginia coal mine disaster in 2006.

I watched for hours, along with much of the nation, as the developments from a mine explosion trapping thirteen miners unfolded on live TV.  Then suddenly word started to spread through various news outlets that all of the miners were safe.  That they had been rescued from the abyss.

I watched Mr. Cooper go from reporting that there was “no new news” to instantly repeating over and over again that “all the miners were safe.” Not only that, but he went into great detail as to how they were all in the company offices, being prepared to reunite with their loved ones.

Then a group of distraught people walked by him and he asked them what was going on.  ”They are dead.  They’re ALL dead,” was all the sobbing woman could say. Cooper looked stunned.  ”What do you mean, we were told they were all safe,” he whined.  ”They are not safe,” the lady continued, “They are all dead.  All dead.”   And they were.

Someone started a rumor that the miners were safe, and in the rush to “break” the story, one reporter repeated it, which got picked up by a network reporter who repeated it, which got repeated by another, and another.  CNN not wanting to get left behind had their producers feed the info live to Cooper one the air, which he repeated like the automaton he is.  Media credibility for me died that night.

Now here we are in 2012.  And we have this horrific shooting at Sandy Hook Elementary School.  And we have every news outlet trying to “break” the news, and in the process, getting almost every aspect of the story completely, and totally wrong. And for what?

The days of breaking stories are gone.  They don’t exist.  The internet and social media have seen to that.  If you report a story, that information is instantaneously disseminated to millions of people, faster than someone can change the channel, or radio dial, or content provider.  Nobody cares who is first today.

But nobody cares who is accurate anymore either.

I heard a very well-known talk show host remarking how the Sandy Hook story was “evolving” in a way that he couldn’t remember any other story doing.  It wasn’t evolving.  It was just being continuously corrected.  Correcting all the information that had been inaccurately reported over and over, by hundreds of news persons who still think they have to “break” stories, and damning any journalistic pride or integrity in the process.

My father used to tell me when I was a kid, “believe half of what you read, and none of what you hear.”  I think if he were alive right now he would say, “just turn it off.  It’s all bullshit.”

Why not subscribe to bclund.com for free  Via E-mail or Via RSS and follow me on StockTwits and Twitter?

What bclund is, is the intersection of markets, trading, and life (with some punk rock, pop culture, and off-beat humor mixed in).  Check out “The Best Of bclund” to get started.

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.

Best Of The StockTwits Network 12-15-12

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.

How to manage a Long Term position – starring AT&T 1nvestor

Is this the Chart of the Decade? All Star Charts

Stock Market Analysis for Week Ending 12/14/12 Alphatrends

Ten Reasons I Don’t Have Opinions Altucher Confidential

Inflation at Lowest Rate in Four Years Crossing Wall Street

Warren Buffett Shows His Technical Analyst Roots Dragonfly Capital

Geopolitical Simmering Dynamic Hedge

Momentum Monday – There is NO Fiscal Cliff in Mexico…Just Cliff Diving, and How to invest in Startups with Marc Andreesen Howard Lindzon

Some Twitter Drama: My Real Name is David, and I Am A Fraud Trading with Options

13 Insights From Paul Tudor Jones Ivanhoff Capital

Have Conviction In Your Ideas! Joe Fahmy

Now Accepting All Mayan Apocalypse Wagers Kid Dynamite’s World

Chart pattern of the day — the rectangle Peter L. Brandt

ReutersTV: The Apple VIX & How to Play It with Condor Options Phil Pearlman

Innovation Is Everywhere Points and Figures

Labor Unions The Basis Point

The Dumbest Thing You’ll Hear All Day The Reformed Broker

Did This Trend-line Stop The Market? The Armo Trader

Groupon- Creating Competition in Margin Compression AlphaVN

My Mayan Bucket List Upside Trader

Are Indian Stocks a Buy ? Sizemore Insights

And what you might have missed on bclund this week….

Swing Trading With A Day Trading Mentality – Don’t Do It! bclund

Why not subscribe to bclund.com for free  Via E-mail or Via RSS and follow me on StockTwits and Twitter?

What bclund is, is the intersection of markets, trading, and life (with some punk rock, pop culture, and off-beat humor mixed in).  Check out “The Best Of bclund” to get started.

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.

Swing Trading With A Day Trading Mentality – Don’t Do It!

This post hurts.  I mean it really hurts.

I have been pounding the table for a few weeks in my Monday “Trade Ideas” posts about $TEX.  Everything about the setup looked great from a swing trade standpoint.

And if you have followed me for any amount of time, you know I have written about how traditional patterns in the market can be distorted and that you have to account for that in your trading (see “How To Place More Effective Stops”).

So why is it that I got shaken out of my $TEX trade last Thursday and missed the move that I had been predicting would come?

Because I was swing trading with a day trader’s mentality.

At the risk of putting too many links in the first 150 words of my post; I recently wrote about how I am transitioning back from a day trading style to more of a swing trade style, but I obviously haven’t completed that process yet.  Let’s go to the tape.

Here is the setup I was looking at; $TEX coming out of a nice large down channel, where I got long.  Then it even got better as a small consolidation area formed, which gave me an objective stop level.

But the trouble began when the stock tried to break out above that resistance and was turned back, creating an inverted hammer.  This was a potential “failed breakout” and I waited til the next day to get confirmation.

Confirmation did come the next day, however here is where I made my mistake.  I sold when the stock was at the low of the day, instead of letting the day finish out.  Of course price came right back up and formed a red hammer, just below the breakout point.

And thus the painful part.  $TEX broke out the next day and continued with a beautiful picture perfect follow through today.  Ouch!

The problem with this trade is that I reacted too quickly, a la day trading.

Even at the low of the day when I sold out I was just a hair below break even.  Now if the stock had been at that low going into the close I would have probably been justified in selling out there, wanting to avoid a possible gap down the next morning.

But intraday I could have, should have given it more room.

Normally  I would inset some sage advice to myself here, but this time I think I will skip it, as I need to find a fiscal cliff to jump off.

Why not subscribe to bclund.com for free  Via E-mail or Via RSS and follow me on StockTwits and Twitter?

What bclund is, is the intersection of markets, trading, and life (with some punk rock, pop culture, and off-beat humor mixed in).  Check out “The Best Of bclund” to get started.

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.

Best Of StockTwits For The Week Of 12-8-12

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.

How a Collar helps to the downside 1nvestor

What books Abnormal Returns readers bought in November 2012 Abnormal Returns

It’s Game Time for Small Caps All Star Charts

Stock Market Analysis for Week Ending 12/7/12 Alphatrends

How I Personally Saved the Global Economy And Why I Blog Altucher Confidential

Mega-Cap Stocks Dominate Wall Street Crossing Wall Street

Draining the Excess Derek Hernquist

The Airline Index is About to Take Off Dragonfly Capital

10 Tips From the Trenches Dynamic Hedge

The SEC, Mary Schapiro, FINRA, Penny Stocks …The Opposite of Investing for Profit and Joy Howard Lindzon

Why You Need to Short Apple Right Here Investing with Options

5 Reasons I Like Salesforce.com Joe Fahmy

Netflix, Social Media, and Regulation Fair Disclosure Kid Dynamite’s World

Trading futures- and forex-related ETFs is for fools Peter L. Brandt

S&P Capital IQ’s Scott Kessler Upgraded Apple Inc in November at 536 & Here’s Why Phil Pearlman

Shedding Tears for The Bubble Points and Figures

Inside the November BLS Jobs Report The Basis Point

Sometimes, a Guy Just Nails It… The Minimalist Trader

Emerging Markets Emerging The Reformed Broker

The Market Is Almost Never Normal….Apple Upside Trader

Labor Sees Little Effect From Sandy ValuePlays

USA Banks Return on Assets at Post-Crisis High Osprey Flyer

Barnes & Noble: Of Bricks and Nooks AlphaVN

Japan is a Dead Man Walking Sizemore Insights

And what you might have missed on bclund this week….

Apple Is Currently Down 10% And You’re Already Dead bclund

Why not subscribe to bclund.com for free  Via E-mail or Via RSS and follow me on StockTwits and Twitter?

What bclund is, is the intersection of markets, trading, and life (with some punk rock, pop culture, and off-beat humor mixed in).  Check out “The Best Of bclund” to get started.

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.

Can You Learn About Trading From Someone Who Is Pretending To Trade?

This post originally appeared on TraderPlanet.com.

This week I want to tell you about an amazing trading blog that those of you who are trying to take their skills up to the next level should definitely check out.

It’s written by an experienced trader who does a nightly recap of each of his trades, meticulously deconstructing them in order to give you a contemporaneous view of what he was thinking at the time.
He details not only his stock selection process, but his setups, his entries, his trade management, and his reasons for exiting the trades when he did.

But one of the best things about his blog is that he is willing to share his knowledge with anybody who asks, and is always open to answering questions about his trades and analysis, both in the comments section and via email.

I know that many of you right now are waiting for me to give you this blog’s URL so you can check it out, but first let me tell you something that I recently discovered about the author.
He’s not really trading. He’s just pretending that he is.

Do you still want to know the URL for the blog? No? Well you should.

I’m going to let you in on a secret. A lot of people who claim they are trading in the blogosphere and on social media really aren’t.

To which I say, “so what?”

Long before trading blogs became ubiquitous across the web I used to religiously follow the blog of a guy named “Trader X.” His specialty was in trading gap stocks, and he was the best at it.
Every night I used to go through his posts and match them up with my own charts. I would study the setups, his risk/reward criteria, and his trade management rules. Often I would ask him to clarify or expand on a trade he had illustrated, and he was always gracious enough to do so.

After a number of months someone emailed me and told me that they were positive that Trader X wasn’t really trading, and that he was just cherry picking trades after the market closed and analyzing them as if he had traded them.

I was aghast. I was incensed. I was angry and upset. Oh, and I was able to trade gaps pretty damn good.

Wait, what was that? Oh, yeah, I had become pretty good at trading gaps, apparently by studying the analysis of a guy that wasn’t really trading.

That’s when I first realized that it didn’t matter if the author of trading advice really traded or not, anymore than it mattered if they were short, tall, male, female, ugly, or beautiful. All that mattered was if the content that they put out was of value.

This is a good point to remember as you wade through the noise that we are all bombarded with each day when it comes to the markets and trading. Don’t waste your time getting involved in guessing games, trying to divine who is REALLY trading and who isn’t. It’s pointless and serves no purpose.

Find and follow those out there who produce good content on a consistent basis, that you can relate to, and that helps improve your trading, and let others spend their precious time going on “witch hunts.”

Why not subscribe to bclund.com for free  Via E-mail or Via RSS and follow me on StockTwits and Twitter?

What bclund is, is the intersection of markets, trading, and life (with some punk rock, pop culture, and off-beat humor mixed in).  Check out “The Best Of bclund” to get started.

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.