So I recently ordered two new books

1) Technical Analysis using Multiple time frames, Brian Shannon

Website: http://www.alphatrends.net/

I bought this book because I have no formal knowledge of technical analysis, just what I have read online or picked up over the last few years. I was kind of in the same camp that Jason was when I first started that technical analysis was lame and for morons. But the more experience that I have gained in the markets the more I understand its importance in the marketplace as well as the more I want to utilize it. I really like the systematic approach of technical analysis. Since I took the SMB training course my approach to the markets has become very systematic and the more systematic it becomes the less anxious I feel.

I feel like I have made more progress in my trading in the last 10 months than the sum total of the 3 or so years that I have been trying to figure this thing out. I feel like I have created a snowball effect and the knowledge and the experience just keeps compounding exponentially.

2) The Wallstrip (TM) Edge: Using Trends to Make Money -- Find Them, Ride Them, and Get Off, Howard Lindzon

Website: http://howardlindzon.com/

He is the Co-founder and CEO of stocktwits.com. I enjoy his commentary on the markets and the interviews that he has with the suggested traders on the stocktwits premium blog list. But I also bought his book because he is located in San Diego and I saw it as an opportunity to possibly meet up with him. So I sent him an email after I purchased and he told me to hit him up once I was done with the book to meet up and discuss it. So it was well worth the $10 I paid for it online. He has a huge network of traders, so I think it will be a very fruitful contact to add to the network.

Comments

WOW! I think that sums it up

Many of you have been reading this blog may have noticed that my blogging frequency has increased over the past few weeks as I got short the market. As you can imagine I am down money since getting short the market, this is the time when most people pull away from posting. But my goal is to stay active and involved and show you that trading is not always rainbows and butterflies. It is times like these that the things I have been sharing over the past couple of weeks are so important. You need to trade small relative to your account. I have a decent short position in the market and my portfolios are set up to make some awesome returns if we finally turn lower. But something I would like to point out is that my account is 70% Cash. I learned a long time ago how important it is to live by the rules you preach. Because of my discipline I am able to continue to hold my positions, I have time and capital on my side. I can't stress enough how important it is not to get to big....

Stay Small, Stay Out of Trouble

To expand on my post from yesterday about patience. I want to talk about a very important element that allows patience in a position, and that is staying small. If you trade too big RELATIVE to your personal account size, you are likely to be forced to exit the trade before the trade works in your favor. Many trades myself included have all experienced the pains of trading a position way too large given our account size. There is this predisposition out there that the only way you are going to make money in the financial markets is if you are trading 10 lots of options and 1000 shares of stock at the time. This is not the case, and if this is your mentality you will likely ensure yourself trouble. We have all read the stories of traders blowing up their account. I personally think a good rule of thumb is to not risk more than 5% of your account value on any one position. Good Luck Trading! In The Money Trades And 1 favor that we ask: If you like the hard work w...

more good news from FXStreet : Tom Fitzpatrick, senior technical analyst at Citibank in New York. Monday, July 15, 2002 "Parity is a psychological, not a technical level...and whether we pause around parity or not, we are likely to see significant further dollar losses...Our initial target is $1.03 to $1.0450. If that level is taken out, it actually casts a question mark against the whole of the dollar's rally of the last seven years, and could open up a full-blown bear market for the dollar." Julian Jessop, chief European economist at Standard Chartered Bank. Monday, July 15, 2002 "The dollar is under pressure from everything from economic problems to asset reallocation away from the U.S. and corporate accounting problems. It's difficult to see any positive factor for the dollar at the moment. The root of the problem is the U.S. current account deficit. If the U.S. doesn't have to attract an enormous amount of foreign capital, people wouldn't have to wor...

Forex Is Crazy

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