New Beginning

It has been two months since my last post and in that time an enormous amount has changed in my life - similar to the volatility in the current financial markets.

I've returned to Australia, started a new job as a Business Development Manager for an Australian company and will begin an IVF cycle on Wednesday. It has been a little hectic settling in as I am also currently living with the in-laws, however I have finally reached a mental state where I feel ready to continue with my trading journey.

I was reading my previous blogs and something struck me - Everything a person needs to be successful in this industry is available to them. All of the information and quotes and lessons which I have put forth, I've either read or heard from somebody. I then arrived at the realisation that there is NO reason not to be successful. It is an AMAZING feeling knowing that everything I need to be extremely successful is within my grasp. This is a powerful thought because I've realised that I have everything I need - let me add though, you can never stop learning and continually reading and improving is a necessity.

With this calmness of mind I feel ready to trade, regardless of the chaotic nature of the current markets. I see it as an opportunity - volatility is wonderful for a trader.

May my journey continue........

Have UNWAVERING faith in ABUNDANCE!!!!!!!

Beginning

It has been several weeks since my last post. Since then my wife and I have made the decision to return to Australia. We will be leaving on Wednesday the 8th of August. Coupled with all of the packing and organisation that is involved in such a move, I've had the opportunity to study Mr. Market and my assessment is as follows:

I'm expecting further downward pressure in all major indices after a short term bounce. My following blogs will display graphs representing my views. Also, I will identify both bullish and bearish looking stocks. This provides a form of diversification. My intention is to place a number of trades early next week.

The stocks I'm looking at with a bullish bias include CNQ, WCC, STV, MA, CVD.
The stocks I'm looking at with a bearish bias include FXE, AUY, BTU, INT, TS, SLW, XRTX.

Similar to the general market conditions, consequent blogs will outline the reasoning behind the above thoughts. It should also be noted that for every bullish idea, there is another person who will have a bearish perspective and vice versa. This thankfully forms Mr. Market. Each person may also be correct in their analysis, depending upon their timeframe. It is therefore advisable that you perform your own homework before placing any trade and my thoughts are to be used only as a guide.

Let the fun begin..

Have UNWAVERING faith in ABUNDANCE!!!

Condor

Miscellaneous - Photos

Recently I was fortunate enought to visit two of the natural wonders of the world - Niagara Falls and the Grand Canyon - Both locations were simply BREATHTAKING!!!!



I have also included a photo of the bull in NY - I always thought the bull was located on Wall Street, however it isn't. It is possible to smell the money in Wall Street.



I took a picture at the front of the Bellagio in Las Vegas - That's what I love about casinos - the odds are always in the house's favour and that's my goal in trading - To ensure that the odds are in my favour.



A final photo is of Dana Point marina, close by where I currently reside....







Bull in NY

Dana Point Marina

The Bellagio (Las Vegas)

Grand Canyon

Niagara Falls

Have UNWAVERING faith in ABUNDANCE!!!

Visualisation

When i visualise my trading day, the following are topics that I cover. I obtained these topics from a book that I read that I currently can't recall.

Visualise:

• Accepting large windfalls.
• Pulling the trigger.
• Trading in CERTAINTY.
• Statement equity increase.
• Limiting risk
• Clearing the calculator and move onto next trade.
• Daily routine, including entering/exiting trades
• Next monthly target – ?????%
• Final financial goal with specific date – $US ????

When visualising the above, ensure that you 'feel' the various topics as if they are real and you are experiencing them now. This may take some time in order to control the mind. It is imperative that this is done in a RELAXED state of mind and body. One way to achieve this is to reiterate in your mind the words, “Calm Body, Calm Mind” and breathe deeply, yet comfortably. One final note to remember when visualising the above topics is to mentally make note of as many details as possible - BELIEVE you are in that situation.

Coupled with visualising your trading day, this process should be implemented for your personal goals that include abundance. After extended visualisation, your thoughts WILL become reality through the law of attraction.

Have UNWAVERING faith in ABUNDANCE!!!

Daily Routine

A daily routine will vary significantly from person to person. Everybody has "life" to deal with in addition to their trading. "Life" includes work / family and friend commitments. The trick is finding a balance to "Life". This balance obviously depends on one's life, priorities and trading system. When developing a daily routine, everything mentioned above needs to be taken into consideration and more than likely, sacrifices will need to be made. A strong determination is required in order to maintain one's focus.

I thought it would be best to outline my daily routine and some of the techniques I use to maintain focus when "Life" occurs. It should be reiterated that every person is different and every life is different, hence, when determining a daily routine it must be realistic and tailored to each person's situation. I will also discuss my thought process in determining my daily routine.

I believe that trading should be monotonous and simple. The more variables that are present, the more open to interpretation and the more likely a system will not be followed. With this in mind, I wanted to create a stringent daily routine with minimal room for complacency. As mentioned in a previous blog, I am currently working full time and am married. After analysing my life and trading system, I felt that it would be realistic if I devoted six hours on the weekend and 1.5 hours daily for my trading. I feel that I need at least 1.5 hours of trading related work daily to feel "in tune" with the markets and my positions. Whenever 1.5 hours and the weekend work becomes difficult - eg. when the mind is tired and trading is furthest from my mind, that's when I realise if I stop and don't do what I have to, this process will continue and I'll never achieve my primary goal. It is imperative that a person has a strong desire to achieve whatever their goal is, and this desire must be so strong that it overcomes all challenges, as those challenges will come...

The 6 hours on the weekend are utilised for preparation. I review all my graphs and determine if any positions will trigger within the next week, two weeks and month. I also gain a feel, from the charts as to the general market conditions. Furthermore, entry and exit points are set for all potential positions. Hence, by the beginning of the week I have a plan as to my trading landscape. Each consequent 1.5 hours is then utilised by only analysing those stocks that may trigger. This does not take long as all of the preparation has been completed. The rest of the time is spent reading general articles and looking for new opportunities (currently reading optionetics and thestreet.com). Any additional time can be spent reading general interest articles and books that deal with psychology and personal development.

I have a tendency to split my 1.5 hours of trading time between the morning (30 mins) and evening (60 mins). I'm a 'morning' person as I feel that I am most alert when I wake up. In the morning I refresh any open positions and read an article or two in relation to pre-market news - both general and stock specific (stocks that I'm following). I am also a strong believer in trading psychology. I believe in visualisation and positive reinforcement. When I wake up, I say "thank you" many times in order to display gratefulness at the opportunities that are presenting themselves to me. While eating breakfast, I read a summary of William Wattles, 'The Science of Getting Rich', or a chapter from Rhonda Byrne's, 'The Secret' or a chapter from "The Art of War" Each of these books puts me in a positive and alert frame of mind. Also, when I rise I turn on my computer and play the following songs; Eminem's 'Lose Yourself', and Survivor's 'Eye of the Tiger'. These songs wash away any tiredness that may be present.

During the course of the day, I constantly reflect on my goals and ambitions. This is a wonderful technique as it refocuses oneself when the demands of daily life take hold. It can also be done anywhere. I believe that a person who has control of his/her mind is unstoppable. Maintaining this positivity and focus can be challenging at times. Whenever a negative thought enters my brain, I try to squash it with one of the following mantras; "I have more than enough TIME, MONEY and ENERGY for everything I want" and "I am confident, courageous, disciplined, energetic, inspirational, intelligent, magnetic, magical, omnipotent, passionate, perfect, powerful, sexy, exceptionally successful, unstoppable, vibrant and abundantly wealthy". I have chosen these words as they resonate with me (Note: they are in alphabetical order to make make them easy to remember). It is also important to say one's mantras with purpose, passion and intensity. It is amazing how your physiology and psychology changes after changing your thoughts. This is a very powerful tool and should be practised religiously.

I also visualise my trading day for 20 mins - This has proven difficult initially as the mind is continually racing and at times difficult to calm down. However, by visualising your trading day, you have effectively already completed your day in the sense that when a trade or trigger arises, you will have the confidence and knowledge to react accordingly.

I conduct a similar routine in the evening in relation to visualizing my trading day. It is probably more important to do this in the evening after a day at work and dealing with work / family related issues. It is important to distance yourself from that and focus entirely on your trading. Another way to analyse trading is to treat it as a business which it effectively is, as you have your expenses (losses) and income (wins). How much time and effort would you devote to your business if you knew the end reward is everything you wanted? That's where unwavering faith enters the picture. One MUST believe and have confidence in oneself and their trading methods. The moment you begin to doubt and have fear is the moment you should exit all open positions.

Upon reviewing the days action and analysing all open positions in the evening, I have completed my daily routine. However, this doesn't prevent my mind from continual positive reinforcement. Before I go to sleep, I listen to Mozart in order to calm my mind in a meditational sense. The next point may sound psychotic, however, I have tried it and it seems to work for me. I picked up this technique from Napolean Hill's, "Think and Grow Rich". I have a mental mastermind group consisting of 9 brilliant leaders in their field, and I regularly hold conversations with each of them and ask for the attributes I wish to obtain from them. If this is done continuously, a 6th sense develops, an intuition, it is amazing - You begin seeing things before they occur. My mastermind group includes; Jesus, W.D.Gann, Richard Branson, Thomas Edison, Donald Trump, Henry Ford, Bruce Lee, Warren Buffet and Bill Gates - they all have a seat at my imaginary (In my mind, it is very real) table and coupled with me they are all on equal footing.

I've found that a daily routine can be difficult to maintain as 'life' intervenes. It is crucial that one DOES NOT trade if they haven't prepared sufficiently or their mind is focused on the external environment. Mistakes, or lessons rather will inevitably occur. As for motivation in maintaining a daily routine, ask yourself, how badly to you want that particular goal? Do you want it enough? Are you prepared to do whatever it takes to get there? If you aren't, it is not worth even beginning, as you'll be destined to fail and this trait runs the risk of being repetitive in the future.

Hopefully some of the above points and ideas are applicable to your own situation. If there is one thing to take away from the above it is that whatever your daily routine is - STICK TO IT!!!! unless of course it needs to be improved.

Have UNWAVERING faith in ABUNDANCE!!!!

Philosophy on Trading

My philosophy on trading has been shaped from the books that I've read and from an understanding of my personality. I am primarily a technical trader (rule follower) coupled with an understanding of fundamental analysis. I will take this moment to clarify that I will from this point onwards refer to myself as a "rule follower". I was exposed to this term after reading an interview by a gentleman who referred to himself as 'the Phantom of the Pits'. I believe that technical trading is basically following a set of rules unconditionally. When a particular set of conditions arises, a trade is made. Hence, rule following should be relatively boring, however, when emotion and money are involved, this clearly changes the landscape. Therefore, in order to be successful in this industry, rules must be followed unwaveringly.

I have chosen to focus primarily on technical analysis as I have a mathematical background and oddly enough find enjoyment in numbers. However, if a person is not mathematically inclined, it doesn't matter - they just have to find a system that works for them. It should be noted though that I keep a watchful eye on particular events such as earnings reports and Fed meetings in order to understand general market drivers. As discussed, I strongly believe in rule following and hence endeavour to adjust my life and thoughts to accommodate this vocation. It is crucial that one doesn't allow personal external influences to govern one's rule following. I am married and have a full time job and at times balancing it all can be challenging. Once my goals and ambitions are achieved, I am certain that the sacrifices endured will DEFINITELY be worth it.

My rule following philosophy has been based on one principle - keeping it as simple as possible. There are hundreds of indicators out there, and I'm sure in specific applications they all have their benefits and are useful, however, by entertaining all of these indicators, one runs the risk of analysis paralysis in an attempt to find 'the Golden Indicator' or system. The indicators I will primarily use are volume and a stochastic RSI. My charting analysis uses candlesticks, trendlines, support and resistance lines, known patterns and Fibonacci analysis.

I currently only trade simple option strategies, straight call and put buying, however with increased knowledge and backtesting this will surely evolve. I don't believe in re-creating the wheel, hence I have no issue in following stocks and setups identified by other authors - why take the time to find them yourself? However, when utilising other author's analysis, ensure that your own rules and criteria are met before placing a position. The authors I follow most include Chris Tyler from the optionetics.com website and various authors from thestreet.com including Jim Cramer.

My next blog will contain my thoughts and techniques on my daily routine.

Have unwavering faith in ABUNDANCE!!!

Condor

PS. As knowledge and experience develop, these thoughts will most likely evolve as I will evolve.

Introduction

Hello,

My name is Peter. I am writing this blog and all subsequent blogs in an attempt to be accountable for my trading results. These blogs will include my thoughts on the market landscape, all positions I have undertaken and the reasoning behind them and any miscellaneous thoughts on trading and life.

I have been trading, on and off for the last three and a half years with varying levels of success - I am yet to post a net annual profit. In saying that, I would like to thank the market for the lessons learnt and promise myself not to repeat them. These lessons will be published in subsequent blogs as required.

I am a chemical engineer by education, however, I fully realise and understand that one's background is irrelevant in this industry. All that matters in the end are your results.

I am currently living and working in the United States. I've moved here from Australia 9 months ago. My expected return date is September 09. These blogs will provide an insight into my journey in obtaining my short term goal and beyond - to become a full term trader (or rule follower) upon my return to Australia.

Coupled with the intention of becoming more accountable, I also want these blogs to provide other traders with information and a forum where they may exchange information and experiences. We are all on this journey of life together.

Let the journey begin, and for those of you that join me..... WELCOME!!!

I will be signing off on all my blogs as Condor - For those of you familiar with options, you will know that this is one of many option strategies. Personally I am yet to use condor strategies in my trading - Another goal of mine is to become comfortable with many strategies and to implement those stategies depending upon market conditions.

Thank you for taking the time to read my first blog.

Have unwavering faith in ABUNDANCE!!!

Condor