Bot the pullbacks in HGSI ARNA JAZZ

HGSI

ARNA

JAZZ

I'll take profit on all those pops

ARNA

HGSI

JAZZ

HGG

JAZZ exploding

Talking about catching the brand new highs, check out HGSI right now. It is just moving above the opening candle right now. ARNA HGG new movers as well. Whether any of them keep going is anyones guess though. I just trust in the probabilities

HGSI

Playing the new highs indicator.

For the past couple of days I’ve only been trading off the new highs indicator. This real time information is updated constantly throughout the day, listing price and # of times a new high is made. I posted a picture of it here http://fearandgreedtrader.blogspot.com/2009/07/momentum-indicator.html#links

Anyway I was looking to put another arrow in my quiver to counteract the HFT bs that is going on this days. Trading stocks that are constantly making new highs seemed to me a good way not to get caught in whipsaw action. It’s worked good the past couple of day and today really paid off.

Today I traded :

RL

AIB

LNCR

PCLN

USG

ATPG

AMED

RVBD

If you take a look at the charts they are all similar and constantly moving higher. No shakeouts or messing about. Small spread and big volumes mean it’s easy to move in or out and not get screwed.

You don't have any patterns to figure out. It's making new highs. End of story. That's the side of the trade you want to be on

Not falling in love with any favourite stocks is the key. Just view the symbols as a vehicle to make money and discard them when they run out of gas.

Remember also that when a stock is making new highs or new lows, it is never too late to get into it when it is in play. The fact that it keeps making new highs or lows means it still has momentum and that is the only thing that matters.

Prepare for the trading day 3

I'm back, well not really, I'm just here.

So what did I miss? Let's see... market went up, check. Market went down, check. Seems like business as usual.

Since my first set of positive thinking affirmations were well received, I’ve put together a much longer (10 minute) MP3 that touches on a wide variety of trading areas. Maybe you need them maybe you don’t. But to those that do or those that are looking to raise their game, you should find some good nuggets of wisdom.

Obviously it’s thought processes that I believe are important and found to keep my own mind straight. To use them correctly for the greatest effect, repeat the phrases out loud. The more frequent the better. This ingrains them into your thought processes and neural pathways. You can also listen while sleeping for some kind of subliminal reprogramming. The point is to break bad habits if you’ve got them or just set you on the right track to start with. Since it's long and I did it in one take, I made a few verbal stumbles during recording.
Here is the link to download the free (yes, free) MP3 www.badongo.com/audio/17204955

The affirmations are listed below so you can follow what you are listening to.

- I am a consistent and competent trader

- I have complete confidence in my abilities

- I have complete trust in probabilities

- I have no expectation of what a trade outcome will be

- I successfully trade patterns based on probabilities and momentum

- Probabilities work out to my advantage more often than not

- I am able to make my winning trades far outweigh my losing trades

- I can sense the minute changes in market momentum

- I immerse myself into the market flow

- I become one with the market, experiencing the moves without distraction

- I am an excellent trader

- My trading plan has evolved over time into a system that fits me perfectly

- My edge gives me an unfair advantage over my competition

- I follow my trading plan without deviation

- My trading plan tells me when to enter a trade

- My trading plan tells me when to take a profit

- My trading plan tells me when to take a loss

- I never take big losing trades because it is not part of my plan

- I know that I will have many small losing trades every day

- I know that losing trades are one part of being a trader

- Losing trades do not affect me as they are only probabilities in action

- Knowing that my plan backs up my edge gives me great confidence

- I am an excellent trader

- I never have an emotional response to winning or losing trades

- The results of my trades are merely outcomes of market opportunities I acted on

- The markets will continue to move in the same fashion if I choose to trade or not

- I can control my interaction with the market but not the market itself

- My only intention when I trade is to follow my trading plan

- Following my trading plan has proven to be very profitable

- The machine like execution of my trading plan brings me great benefits

- I trade only on the chart and momentum information displayed in front of me

- Market momentum has proven to be the most important factor in deciding when to trade

- When I see momentum I know powerful and successful traders have given rise to it

- I am an excellent trader

- I have the ability to develop intense concentration when I am trading

- My ability to concentrate comes from my years of market experience

- The markets replay the same information over and over again

- Chart patterns and momentum give me the opportunity and information to make winning trades

- I have the ability to see opportunities as they develop

- I know when a stock is rising and I know the correct response

- I know when a stock is falling and I know the correct response

- I know when a stock is falling and I know the correct response

- I take advantage of opportunities to put on winning trades

- When I make an incorrect read of market conditions I quickly exit the trade

- Quickly exiting a losing trade is part of my plan and thus makes me a winner

- I am an excellent trader

- It is easy for me to be totally detached from all opinions of others

- The opinion of others on what a stock may do is in no way relevant to my trading

- I trust completely in my ability to trade my plan

- An important part of my trading plan is when I set stops

- Setting stops prevents me from taking large losses

- I let stops do their work automatically

- I embrace the uncertainty of all things market related

- I face not knowing what the future holds by playing the probabilities

- I mentally take the amount of risk at my stop level out of my psychological bank whenever I enter a trade

- I am good at constantly recalculating probabilities and odds of opportunities presented

- I constantly strive to become the best trader I can be

- I invest whatever time and focus is required in order to reach my goals

- I am an excellent trader

Will be gone for awhile....

Recently, when trading AIG I've had thoughts in my head "like shooting fish in a barrel" "like taking candy from a baby". Yesterday I just killed it again. Absolutely slayed it. And afterward I thought about AIG being like a soft serve ice cream machine where I can fill up my bowl with as much money as I want. Like a pig.

Well when my ego gets to thinking like that, it's time for me to take a step back. Because not having respect for ones opponent is one of the classic mistakes in any kind of competition. Anyone remember Mike Tyson vs. Buster Douglas?

It may seem strange to some of you out there trying to grasp onto the wispy secrets of trading and scrape whatever knowledge together so you can win at this game, for me to walk away going into the fall session. Afterall it's only about money right? That's the name of the game right? Remember last fall. Those were glorius times to be a momentum trader. Well, I need to be humble and not think that I can do no wrong. There's a big difference between believing in yourself, having loads of self confidence one one side and thinking "Is that all the game/talent/smarts the chumps against me in this trade have?" on the other side. Those are very dangerous thoughts in this business.

So I'm going to take time off and not think about this trading for a while. I'll leave the blog up for those of you that want to study my method and articles.

See you...later. Ski season starts in less than two months around these parts anyway.