Last Night's Set-Up's

I received a lot of e-mails this morning. Most were very complimentary about the choice of topic for last night. Even though we discussed a few general ideas, anytime we can start with a few ideas of how to create a positive attitude and discuss trading psychology, not only will it impact your trading approach, but will also help you in other areas. Professional, personal, etc. When I talked for a few moments on quantum-physics and the water molecules experiment I should have expressed more clearly that I am no chemist or biologist. It was an interesting story I heard while dining with a good friend of mine. For those that were offended, no ill-intentions were meant.

We followed up on last weeks trades...PXK, ATI, OIS, and BUCY. BUCY was the only trade that generated a signal. BTW- I met someone in our three day class today, and no sooner than I shook his hand, he pointed out I was wrong about this one. I appreciated that, since it helps me to check my emotions and take opinions with a grain of salt. In the past when I felt accused or blamed, I would become defensive and instinctively throw people through walls. (My psychologist has done wonders for me!) Just remember not every trade will make money, right? Just make sure when you take a trade from another persons research, and it fails, try and feel equally responsible for overlooking it's weaknesses before jumping in. Each time one of my guys here gives me a reco and it results in a loss, I blame myself for not seeing the weakness before jumping in. I stopped blaming others for my misfortunes long ago, and worried about what I could be doing differently, and my perspectives in life have taken a 180.

Anyway, Here is the short list of set-up's we looked at. All bearish babies...


These were all short term, going with October options, one strike in or one strike out depending on how aggressive or conservative you are. What is funny is that I believe they all went up today. Such is life. That's ok. I DARE YOU TO SEND ME AN E- MAIL BLAMING ME!!! I might need to give a certain "button" on my keyboard a rigorous workout!

Just kidding!!! You all know I read each and every e-mail, and care about everything that is on your mind. Since I discussed where to place blame, I thought it was funny. I promise I won't delete any e-mails.

I will get a decent post going after I finish my deadline for today.

Jeff; I really need to focus on the psycology and the positive thinking. What do you do consciously to put yourself into a proper trading mindset? I am finding that it is better not to look at the intraday activity as it is addictive and mostly non productive to sit there and wach numbers reel off in the opposite direction I anticpated my trades to go.
Dan

I suppose it's a matter of opinion whether BUCY has failed or not. That all depends on your entry, your exit and your risk tolerance. The stock broke out of the triangle on MASSIVE volume, and has since returned to the 30-day MA (a line it has reacted to many, many times in the past). True, it's back inside the triangle but it's been on comparatively small volume in a market that's taken a breather for the last week or so. I am still holding my October calls on this one and I fully expect it to show more strength in the upcoming weeks.

Then again, if that lower trendline is broken, i'm gone, as it signals a much larger problem.

Brett,

AWESOME POST!

Jeff,
Last month I hosted a trader's retreat in NH, just a bit of time for me and some other traders I've met through Investools to get together to trade and learn.
On a quick trip to the local apple cider donut store, we found a plaque that became our motto for the entire week. It said, "If you follow the advice of others, you'll make their mistakes." I love it, and I took it to heart immediately. I only follow my own advice. I can take it if I'm wrong!

Tunnel vision can be both good and bad, I found the site a week ago and couldn't find a way to post. OOOPS, well now I know, thank you Jeff. I live in Vegas and I'm looking for some like minded traders in the area, to help find a cure for the virus in my account. It seems to have a tape worm, and an healthy appitite for greenbacks. I feel like I'm in the Casino's lately where the house always wins. My E-mail is terrysellsvegas@msn.com if you're intrested please contact me. Under subject put investools.

As not to be entirely selfish, and use this forum for me me me. Jeff you have made this so much easier on the ole melon. Not to mention more enjoyable, I feel like I'm prospecting for gold. That nugget is out there somewhere.

I missed the breakout for BUCY so I patiently waited for a retest at what is now (I believe) the last support line. It's there now so I am ready if it confirms. It's fun to watch a trade develop. I have had a hard time with "patience". I'm learning to wait for the market to tell me what it is going to do and not anticipate. Who ever said "patience is a virtue"?

Tunnel vision can be both good and bad I suppose. I found you site about a weel ago, and never saw the the comment link. OOOPs, Love the way the way you trade Jeff, KISS just what I needed to clear the ole melon a little. Now lets see if it works for me too. Also looking for like minded traders in the Vegas area that would like to start a little group. Lately I feel like I'm playing in the Casino's, and as we all know the house always wins. If interested email to terrysellsvegas@msn.com, under subject line write investools. Thanks again Jeff, can't get enough of you teachings.

Excellent comment lisa and a very good quote. I also like the idea of traders retreat. I am trying to set one here in Omaha, Nebraska. I read all posts and comments on this excellent blog site. Jeff good stuff.

Jeff,
I also was following BUCY for several days before you used it as a possible pick last week. When it made the breakout as expected I entered on what was good, confirming technical analysis. I am still seeing the technicals for it to start the move up again so I am still committed to it based on analysis and not emotions. If it does NOT move up now and goes against the technicals then I am prepared to say "win some - lose some" and move on. Afterall it is what you are teaching us - have a plan and stick to the plan. If all we ever did was to wait on you to give us picks we would not push ourselves to become independent and confident in our own actions. I hope that we are all doing our own searches and technical analysis to form a solid, actionable watchlist to work from when the timing is right. I enjoy your teaching and honesty so much. I have grown from just listening to you and your words of confidence and encouragement!!! BTW I liked what you said to us last night about learning in this type of market as being good. I think it is good for us to be "baptized" by fire as opposed to "gliding" through the night like the Titanic.

Please keep up the outstanding work!!! I promote your Blog everyhwere I can, I will just add one word of caution - keep the rules clear and enforced. It MUST NOT turn into a Political - Axe to Grind - Agenda Oriented Site. My hope is for it to a positive exchange of trading ideas and experiences to help us all grow!!!

Thank you!!!

Randy

Mahmood, i'm here in Omaha as well, so keep me in mind.

Hi Jeff,

Read your comments (and others!) every night. Keep up the great work. I was in BUCY but bailed out (based on my exit rules). Stuff happens. The technicals looked great but the stock broke down and I got out. Such is life...just keep going and get the next one...

Certainly would be pretty arrogant to take another person's set-up and not do any of the research and trade it based on "opinion" and then gripe if it bails. Do own analysis based on your own rules and if it fits then trade.

Jeff, any anger management technique in those "confrontational moments" would be appropriate if it involved spontaneous laughter masking the need to grab someone by the shirt collar and boot them in the butt.

I personally like to see a master talk presenter have a set up fail. Not because I like to see a failure, but because it helps me see that all trades are not going to be winners and actually builds my confidence that they can pick 'em wrong....JUST LIKE ME...ahahahahah. Kidding aside, we are moving forward and KNOW the next one WILL work.

Great post.

Travis Roy
travis.roy@insightbb.com

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About me

  • I'm Option Addict
  • From Saratoga Springs, Utah, United States
  • I am a professional trader and an instructor for Investools. I've had relations with the markets for 9 years. Born in Concord, CA, but reside in Saratoga Springs, Utah. Father of THREE, Husband of one.
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