Jeff,
Good post. I took profits on BIDU today......Just wish I would of waited until later in the day (man I love that stock)

PS- To answer the question "How does tomorrow's event impact your decision to take "this trade" right now...

Would you install your new lightnig rod today if you heard there was a potential lightning storm on it's way?

If you have to ask this question, take another look at RISK. Do you know how the market will react tomorrow? do you know what stock prices will do tomorrow?

No.

But you should always know what is at risk.

Jeff, I can see why you do not want to take profits. Great trades!

I am down to one contract each on GRMN and LEN. Who is pushing GRMN to $104.50 to blow out the weak I wonder?

Man I miss trading and having a full week of business is killing me. I will be out for the FED talk tomorrow and that is double bad. Ok, double bad as in TWO contracts. Risk managed!

I was within .03 of being stopped out of GRMN. I hope I won't be sorry that I'm still in it tomorrow.

Closed out a 190/195 bc spread on GS for a small loss. Between the fed, earnings, and the fact that it is so close to being in the money I decided to err on the side of caution.

Jeff,
Congrats on having a great profit taking day. Wish I could say the same for my account (pout).

What time is the Fed news tomorrow?

Jeff- It was nice to see a large positive day today in my account. This is a positive change. Nice video, btw. That is an all time classic.

Kim

Matt -

FED news is at 1:15PM central on Tuesday ... and if you listen at all to the media, the opinions as to what 'might' happen are all over the place.

That's why I choose to position size correctly, follow my rules and trust my charts ..

My take:

1/4 point cut: we sell off hard

1/2 point cut: we rally hard

But Wednesday could reverse either hard. Tread carefully. If you're playing stock patterns, stick to the patterns and do NOT get shaken out until at least 1/2 hour before the close, unless it's a colossal game-changing rally either way.

Many of us have been through these announcements before. However, this one is a little different due to the uncertainty and the hype surrounding it. Financials are reporting this week too and that could move the market even more.

I agree. I think a 1/4 point cut will kill the market but I am not sure a half point cut will make everybody happy, especially after Greenspan decided to discuss advancing inflation today during multiple interviews. I am glad the market was not up today because then I would worry more that the half point cut in the funds rate is already factored in. The bottom line, WHO KNOWS! I have a slightly positive total delta in my current positions so I am hoping for the half point cut.

Good luck to all tomorrow.

here's my prediction -- i think the market has a knee jerk rally on the news of any rate cut, though if only 1/4 point, i think the rally will be short lived (maybe not even lasting all the way to the close) and possibly a good opportunity to take some bearish trades as they hit their resistance levels. If 1/2 point, I think the rally continues into the close and possibly after.

But, like the rest of you, I don't really care as long as GRMN goes to 200 tomorrow. :)

Amen on GRMN brother Tim!

Im from Modesto not really the Bay Area but how can i get more info about this BAMM CLAN! Let me know.

Danny

DG, unfortunately we are together today in a down day. Would have rather had a Kim (up) day. This is the largest down I have had in over a month mostly due to GRMN. That is really not saying much though as I have been mostly in cash. Tim, I am with you on GRMN to the moon!

RESP..and all the bloggers asking questions about it, REE and RTR..

$46.50 or $47...all depends on how thicka line you use. I use thick lines, and never let intra day price movement blow me out of a trade. In fact, I've read to many times on this blog how some folks have hard stops in place so tight, they get tossed out of perfectly good trades. I wiat till end of day, look at volume as well, see where the price closed, and did it really break back down below my REE to warrant me closing the trade.

AS for price target and time frame, I think Kim nailed that earlier, thanks Kim..

As for the volume question, no, on a trend bounce I do not need volume. Yes, this is an anticapatory play looking for the ascending triangle to breakout. BUT, I took the trade as a bounce play...and yes, I hope this pattern confirms. We need volume of sourse to breakout and confirm the pattern, and the more volume, the odds are more in my favor. So, no volume needed on the bounce, but volume needed on the breakout. If I did not the trade here at the bounce, then I would wait for the breakout on volume.


As for how did I handle the trade with regard to Bernanke tomorrow..I accepted the risk and took the trade. I will exit if it closes tomorow below that thick diag support line I outlined in my first post about RESP.

As for BIDU, congrats on all of you that took the trade. I eixted on RTR...sold half today....

Did the same last week on LVS...(damn RTR)

But, rules are rules.

Lets talk GREED. For me, and I am a greedy one, greed means taking money from the market and paying myself, not letting my profits remain at risk, out there, away from support, and time wasting away. RTR forces me to tkae profits that are at risk (away from support, and time wasting away), and re-invest those profits in a new trade that is at REE...much less risk in my eyes..

Hope this all helps.

Phantom Poet...trust me son, it's coming, I have not forgotten you and look foward to blasting you to smitherines...

Raimo,

I am waiting!!!

signed PP

Raimo,
Good post, good example. For those of us who trade smaller, any suggestions? When you first started trading and had small positions, did you just take profits when they hit the target if you only had one contract? Just a question that I know others have on their mind.

Thanks for the teaching. It helped me. In fact, I took profits on a couple of trades today. Like you said, I can always find another trade or re-enter.

Michelle

Yea, I considered taking a couple trades. Then decided against it, even though some became more attractive today, they may become even more tomorrow and I don't really know what will happen.

Jeff, what is your take on doing index options or something like options on the SPY either tomorrow or the day after we get the verdict, honestly it seems like we will only get .25 cut, which seems like the path of least resistance is still down to me, I am hoping for a rally to like 1490 and a turn over, but what do you think or what do the other OA's think?

thanks

Ben

I think RESP provides us a great opportunity to discuss one of the nuances of technical analysis. Some people use closing prices to draw their support and resistance lines, some people use the wicks, and some people use both in different situations.

If you look at RESP today, there's no question that it's at a great entry at a trendline in a forming ascending triangle.

However, look at the action on 9/11. If you draw your resistance line using closing prices, 9/11 was a confirmed breakout on fabulous volume. The following day would have been a failed breakout.

Now, draw your resistance line using the tops of the wicks. Now you've got a valid ascending triangle that hasn't broken yet.

What can you take from this post?

1) No matter which method you use, you're going to be wrong sometimes.

2) If you are wrong, don't be so quick to call it a failed pattern and bail out. Always look below (or above on a put play) and find the trendlines supporting or resisting the pattern. Sometimes a breakout will appear to fail, but come back and break out later.

3) The only way you're going to survive trades like this are if you position size accordingly and plan ahead for what can happen.

4) Lastly, and most importantly, I need a huge game from Donovan McNabb tonight.

Brett,

A 1/4 pt and we sink...I don't think so..I gotta go with my Bulls here buddy...I'll even bring out the big guns (you know I have them) and go bear hunting yet again...I say we put in a higher low at a 1/4pt cut or higher, and the Bulls run us up from there...

My reasoning....

RTS......

Very nice posts from Brett and Raimo. Also some excellent examples from Jeff.

Looks like your guys have already raised the level at this blog by a few notches. This is by far the most valuable source of learning from me. I learned basic trading and options at investools but this blog has helped put it together to help me become a consistently profitable trader, hats of to all you guys that are part of this experience.

Looking forward to when I can contribute until then I appreciate all I learn from here

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This comment has been removed by the author.

[This post has been edited 3 times because it made no sense even to the author the first 2...]

Raimo,

The good news is that it doesn't matter what we think is going to happen because we both trade the patterns. And we both love Erin Burnett. And Becky Quick. But not so much Mark Haynes.

Can we talk about GRMN for a second here? Why are we talking about GRMN! There's nothing to talk about. GRMN is an ascending triangle that took a month to form. That means you have to give it a month to hit its target. That means we still have 3 weeks left for it to rise $20. It's also still above horizontal support and right at trendline support (what my friend Champ Kind and I like to call "WHAMMY!"). So we have a key action point. Either we bounce up from it or we sink below it and close the trade.

Patience is really tough to have, but I've lost more money being impatient and trying to preserve captial than I have waiting for a trade that's actually working to fail.

"I LOVE LAMP!"

Brett,

You have raised an IMPORTANT issue here using the RESP example..one that the newer traders should ESPECIALLY understand, and take SPECIFIC note of....

On this blog are many traders with VERY varied degrees of experience.

Two traders of course stand out to me...The Big Kahuna himself, and my friend and colleague Brett . I of course know nothing...(Cramer yells, "HE KNOW'S NOTHING")

This example, this point Brett brings up re: RESP....should RESONATE FLAGS to all of you newer traders. NEVER take another traders picks and trade them. NEVER. You do not know what their rules are, you may know a few, but not all, you do not know what they look at when looking at a chart. Brett for example uses indicators that I do not use. He sees A, I see B, and Kohler sees C!! Yes, this means you should NOT even take JEFFS PICKS and trade them until YOU have analyzed them , applied YOUR eyes and YOUR rules to them. Period.

My point is simple...when you read here on the blog about a trade reco that I make, or anyone else, it is a reco for MY type of trading, MY rules, MY risk tolerance, MY lines, MY eyes.

I do not always agree with Jeff or Brett on their trades, and hence do not take them. Vice Versa. I only take them if I see the same thing....clearly..and there are
times I don't.

You see a trade reco here on the blog, dont jump on it without applying your eyes, your rules, your risk, then YOUR MONEY. To do so any other way, you might as well invest your money in botox injections..something other than your account will get fat..

Now, where is Erin and Becky.....??

I love them...

Brett..

I just heaved iced tea out my nose all over the damn place..too funny, edited three times becasue you don't know....lol..too damn funny......

([This post has been edited 3 times because it made no sense even to the author the first 2...]

too funny

Ben,

Trade futures. No matter the outcome, I bet you'll see a contraction in volatility. Since the market has priced in a 25 basis point cut, I don't think we drop all that much.

Don't be long vega tomorrow.

Don't sell yourself short, Raimo. You know how to shoot a deer and turn it into jerky.

Just kidding. Raimo, you're an excellent trader and a very generous teacher.

Is this MSN's answer to Cramer and Mad Money???? Just kidding. This is just too wacky for me not to post:

http://video.msn.com/v/us/Money.htm

and check out the Don't Drink and Trade video.

Ha ha, this has been the Brett and Raimo show tonight. Some great edu macation going on here. Thanks guys,you are both generous and great teachers. Oh by the way, it's nice to "eavesdrop" on your conversation....for once.

Jeff, I loved the GRMN video, it also was very educational

I missed the drama this weekend, but Kudos Raimo, I think you made some great points.

See you all in the morning

Jodi

Well, I pull into Vegas and pull up my account. Half up, half down. All in all... another $33 day. Hey, it's like shooting fish in a barrel. You guys are making this way too complicated.

1) Close eyes
2) Pick random stock
3) Buy Calls/Puts
4) Buy beer
5) Drink beer
6) Sell Calls/Puts
7) Pocket $33

Just so long as you're buying beer that's cheaper than $33 you're ahead. It's a living.

Now I must powder my nose, curl my hair, and head out into the Vegas night. Wish me well.

Chris,

I don't know where you're staying, but if you find yourself downtown one evening you must have dinner at Hugo's Cellar in the basement of the Four Queens. It's the best-kept secret in Vegas. I usually stay at Caesar's or nearby on the strip, but I'm glad I followed someone's reco on that one. Phenomenal dinner and they have world-class Manhattans (the house special).

Jeff, if i miss another BIDU trade i will stick my own shoe up my a$$ !!! jeeeshhhhhhhh!!

Raimo....i have a question i have been wanting to ask....where/how did you learn to trade??? are you self taught??? clearly you have been trading for a while, yes Brett is like kid wonder, he holds the world record for the fastest investools student turned pro....but you have a certain type of wisdom and calmness in your trading, like it is in your blood.....maybe you have plenty of time to think and contemplate when you are sitting in your tree stands....when you have time, i am interested in hearing your story.....thanks....
tmarie_2020@yahoo.com

I hope that was Catherine posting with the "curling hair" reference.

Brett and Raimo, too funny.

Chris, CVD, I took profits. It just looked too good today to take a chance. There will be another entry. Maybe tomorrow. If it weren't for the Fed, I would have let it ride.

Michelle

Raimo and Brett-

Notwithstanding Jeff's posts this evening has been some of the best blogging I've heard since I've been on the blog. Truly awesome.

One question: Who are Becky and Erin? It's got to be some movie reference I'm supposed to remember, but don't...

Now if you were talking Tom Brady, Tedy Bruschi or Asante Samuel I'm all set. Raimo, I hate to go against you but McNabb is all washed up. That one is a low probability trade, high probability sack situation.

Scoot - I can't believe someone stole my trading methodology! I knew I should have copyrighted my idea. Hilarious. They should have been looking at healthcare stocks 'cause they were in need of some serious medical care if they kept going.


Blog on...Kim

Raimo,

RTS?

sue

Kim-

Becky and Erin are the dynamic duo on CNBC. They complete me.

Va Beach Girl,

Becky and Erin are CNBC chicks!

Brett,
I'm glad I checked back in before heading out. I'm only here tonight, so I'm going to head down and check it out. Tomorrow, it's back to Toronto and then off to Vancouver. Kind of blows a hole in the day. I wish I'd had time today to sell of a couple of things.

Michelle, I'm with you on CVD, only I was in the air all day so I didn't sell it. 100% gainers are few and far between right now... so I don't want to let this one slip away. I'll try to get rid of it tomorrow morning before I head off.

I have to echo the sentiments of several others. An uncommonly... most excellent... top notch day on the blog. Some real meat to throw on the Barbee (as opposed to Barbie... which would just be a waste.) GRMN is walking a very, very tight rope right now. We flew right over the grand canyon today and it made me think of GRMN... looking right over the precipice and into the brink... down to the Raging River of Death!!! This one's going to be interesting.

OK off I go to try Hugo's Cellar. Although with it being in the Four Queens, I think I'll keep my back to the wall. I need Catherine for protection.

Thanks Jeff,

I have to read up more on futures before I get into them, I just haven't taken the time to learn futures as I have with options(and obviously still have a lot to learn in both). I am going to go read up on them right now. :-)

Yes, I expect there will be a drop in volatility as well which was why I was considering waiting till the next day, although maybe it will continue to drop after that, but usually after big events they seem to decline sharply, kind of like after earnings.

You say you don't expect it to drop much, but what catalysts do you think will push us up? we are at the high end of the range on the S&P to resistance and I think we all are waiting for a break of 1500. It just doesn't seem like we have the market we had before when it was all positive economic news and we could move higher without worry(which was part of the issue, haha).

I guess I should not question a technical signal because I think it happens due to everything such as psychology and sentiment etc... but a break of 1500 meaning we possibly re-test new highs seems somewhat odd, although I guess maybe once we actually do break it, that will mean it is clear sailing and ok to go to new highs, haha. I am possibly overthinking this....

thanks for the help.

Ben

Brett - Sounds like I might need to pass along the reco to Dan on this one. "Honey! Brett's got some hot chicks for ya!"


Kim

I don't want to totally throw this off topic but is anyone located in Vegas?

I'll be there in October, I think 18-21, if anyone is there that wants to meet up we'll likely be at Caesar's palace. I always enjoy meeting fellow market enthusiasts and learn from more experienced people.

Jeff and Eric want to make a road trip down? haha, if they have a basketball court we can play some ball Jeff.

Ben

Brett,
"I love lamp"....

Do you really love lamp or are you just saying it because you just saw it?

Ben,
Good god, man. Look about 6 posts up at my 7 step program for traders unanimous. Over analysis is a sin. Yes, the market will affect any given stock to a certain extent... but look at the ones that Jeff highlighted today. Go with the trend. Pick your REE. Buy.

Now I'm REALLY hungry.

Brett,
I love that movie: "You complete me." Oh, toss that one out to your wife and you'll get big points.

See you guys tomorrow "Same Bat time, Same Bat channel." What a corny show, but I bet you guys watched that one, too.


Raimo, Brett..... what can I say, the blog was Excellent today. I think we all enjoyed and LEARNED and hopefully made some money.

Jeff,
Market Cast was very helpful going into tomorrow. Thanks for all the effort and work you and Eric put into that.


Michelle

Oh, thought I'd better clarify just so this blog stays on track. I am not slamming those who watched Batman. I loved that show as a kid. Don't want to move backwards here. That was painful.

Michelle

Ka-Pow!! Michelle.:-)

No offense here.


**Raimo,
Was that "greed" blurb for me? If so, if was very helpful and quite timely. I need to change the way that I think. Just because I close out a trade, with a profit, and it continues to rise or fall after I took my profit does not mean that it was a losing trade. I just gave myself another opportunity to make money elsewhere. Right?

(I am talking about the profits that I take after it has hit my target.)

Excellent blogging today. I don't have much to say except that I am long GRMN, GLD, RESP and BIDU, though BIDU is a spread at max profit so I'm not getting much from this great tear that it's on. Short KSS and ATI (also a spread).

Feeling good with all my positions heading into the Fed tomorrow. Just got into GRMN today and I tend to get emotional about trades the first day so I'm trying to get prepared for it.

Good night all.

Thanks Brett, excellent meal!! Well worth the 45 minute walk from my hotel.

The great thing is that I passed my first CMG on the way back... so I just had to stop for a quick one (in a manner of speaking.) There was a long lineup (good for business) and I got extra jallepino peppers. Then... when I was walking by the piano bar at Harrah's the Duelling Pianos was going on and they were playing Ring of Fire. "That song completes me" for tonight, anyway.

CMG is tightening up a very juicy looking asc triangle ("asc" having NOTHING to do with the dreaded Ring of Fire, of course) which could break out any minute. If tomorrow's news is good, watch for it to break.

All of this because of Brett's suggestion for dinner. Look, it's dinner AND a show!

You guys have me doing too much RTS, I may never get to blasting the Phantom Poet.

Been an IT student for over 2 years, and Jeff is one of my mentors...

Prior to that, I owned 3 business, one of which included a lot of teaching.

The "Greed" blurb was for everyone, we all deal with it.

Brett, back off. Though you introduced me to Erin and Becky, I am taking them away from you. You want them, you better get a bigger gun.

Sue,

my last post should have nailed RTS for you......LOL

Raimo,,

rts,,,raimo's trade secrets?

sue

Sue - nice guess. Mine were more like
- Responding to sh**
- Reading this sh**
- Raimo teaching sh**


Everyone settle down now. Raimo is writing. Be in the zone Raimo...Become the poem....Feel the poem flowing out of you...Oooouuuummmmn Ooouuummm.

FYI: Jeff's price patterns class is this morning, 8:30 for those who can/want to attend.

Kim

Raimo,
Can I e-mail you? Or would you mind e-mailing me at gardnerfam4@hotmail.com.

Thanks!

Just to follow up on some excellent concepts Raimo has introduced:

You are always going to face the dilemma of whether to let winners run or taking profits. Let me share some of my ideas:

1) You set your target when you enter the trade, figuring out your target gain, your exit loss and your time frame. Hitting your target ahead of schedule is a 'tip for the dealer.' I think you should keep it.

2) This might be the most important concept to grasp: The trade ends when you close it out. It doesn't matter what the stock does the next day. If you hit the target and you take profits, you should smile and be satisfied that you executed a perfect trade. Do not look at 'all the money you could have made by being patient.' We are risk managers and deal in probabilities. There are always going to be times where the stock will continuing running and times where the stock will tank. I faced this exact scenario yesterday with BIDU. I chose to sell half my position. Today, the stock is up $2.50 in the premarket. Instead of lamenting the half position that's gone, I'm celebrating the half position I KEPT. If I sold all yesterday, I would not be upset. I would be looking for the next consolidation to get back in.

3) Sometimes letting profits run is a good idea. It depends on the market, but my advice would be to only let a portion of your profits run. If you use your skills to identify a target and figure out your expected gain, and you then leave your profits hanging in the wind, you're effectively putting a dark cloud over your analysis.

4) Never ever take someone's trade idea unless you've broken it down yourself. Just because someone you trust and respect throws out a trade idea doesn't mean you should run out and trade it. If I throw you a good trade idea, it's because I see something exciting in it. But unless you can see exactly what I see, and know my parameters ahead of time, you're taking an unnecessary risk. I generally DON'T provide those parameters to you, because I want you to do your own analysis.

Hope this post helps!

RTS...Raimo Talking Shit...

BTS...Brett Talking Shit...

KDR...Kim Drinking Reisling...

Anyone can e-mail me anytime by clicking on my name. Please keep it short...


And get ready for my bulls today..I smell something, not sure if it's the bulls coming, or maybe I stepped in something this morning walking the dog..

Brett,

another great post

sue

Thanks, Raimo. Keep it short? I am a woman, remember? :-)

Brett,
What a great way to begin the day, thanks for that insightful post. Your number 2 was especially what I needed. I am printing that off and haning it up on the wall 'o rules.

My boys have a field trip to the fire station this morning so I won't be here. I trust Raimo has everything under control. :-)

My $.02 on profit taking this morning:

I plan on taking profits on BCSI. There is too much profit there to risk for me.

I am holding:

Long - UA, KLAC, ROG, GRP, VTRX
Short - GGP, FAST, XLF

Small positions, low value a present, but let's see what the day brings!

Looking at KSS and RESP.

thanks
strat

Brett,
Thanks for another great post. #2 resonates for me as well since I am often second guessing myself when I take profits (or small losses) too early. Your posts are always so helpful.

Was going to post about CMG this morning but see that C2 has beaten me to it. Could be another 10 pt move in the making.

A response to Brett's and Raimo's excellent posts from a newer trader.

I placed my first trade 11/8/06, 10 months ago. Prior to the 3 day live class I took last month I was 100% guilty of the following:

1. Not planning my trade to include intelligent stops, profit targets, correct option selection

2. Letting outside influences (Bloomberg, etc.) skew my judgement of what the charts were telling me.

3. Taking trades based on reco's from better traders than me w/o making it my own (because I didn't know how)

4. Having emotion overtake me (in large waves) to the up and down side because I didn't know how to fix what was broken in my trading.

I attended the 3 day live class in August which was a big game changer for my trading. The financial results are still working on turning around but the emotional side of trading has been removed from the equation because of learning how to map a trade before I ever hit the send button on TOS.

The 3 day live teaches you:
1. Where to place 4 kinds of stops
2. Money management
3. Calculating Porfolio heat
4. Correct Option Selection
5. Calculating Risk to Reward on each play
6. Searching in Investools
7. Determining your trading stance - Are you bullish or bearish in the short term, intermediate term, and long term?

This all may sound like things you have already learned before but the live class was worth every penny spent.

My point is that Jeff, Raimo and Brett sound unemotional about their trading because they have taken the measures to be so. It is no longer a personal attack when the trade goes against you. It is what it is, a failed trade. Take the loss and move on.

Whether or not you take the 3 day live class I feel very strongly that any trader should have the 7 steps outlined above incorporated as part of everyday trading.

To Brett, Raimo and Jeff: Look out because I plan on catching up to you all. It's time for some estrogen infusion into the master trader camp.

Hope this helps someone. Off to the price patterns class.

Kim

Strat, I can't tell you what to do, especially since i totally blew the BCSI trade, but after move like this has made, and the coiling up that's going on now, I'm watching it for a break higher to get IN, while you're looking to get OUT! The last time I sold this stock at resistance, I watched it shove knives, icepicks, nails and bayonettes into my heart.

Good Morning!!

Being from Canada and not politically inclined, I didn't understand the whole Fed meeting thing, so I looked it up. I found point form version of what's happening. Thought I would share, for others as ignorant as me.

# The Federal Reserve Board was created to in 1913 to provide the nation with a safer, more flexible and more stable monetary and financial system.
# The Board of Governors of the Federal Reserve heads up the Fed.
# Twelve Regional Federal Reserve Banks are the operating arms of the Fed.
# The Federal Open Market Committee (FOMC) is the policy-making branch of the Federal Reserve.
# The Fed's mandate is "to promote sustainable growth, high levels of employment, stability of prices to help preserve the purchasing power of the dollar and moderate long-term interest rates."
# The Fed serves as the banker's bank, the government's bank, the regulator of financial institutions and as the nation's money manager.
# Monetary policy is influenced through open-market operations, the discount rate and reserve requirements.
# The FOMC sets a target for the federal funds rate and attempts to reach that rate primarily through the use of open market operations.
# The FOMC typically meets eight times per year to make decisions on monetary policy.
# If the FOMC wants to increase economic growth, it will reduce the target federal funds rate (and vice versa).
# If the target rate has been increased, the FOMC sells securities. If the FOMC reduces the target rate, they buy securities.
# Reducing the target rate means that the fed is putting more money into the economy (and vice versa).
# Chairman of the Fed, Ben Bernanke took over the position from Alan Greenspan on February 1, 2006. Greenspan had held the position since 1987.

I was away from the blog for a few days at a wedding.
Wow..... tons of stuff to catch up on. Thanks Jeff, Brett, Raimo, Michelle, Kim, Tonya and all the OA's out there for all the good reading.
I'll raise the bar on my own posts.

Jamie

Bear with me here, because this is going to be a TV-related post. However, it's also an Option Addict-related post:

If you haven't seen Curb Your Enthusiasm from Sunday night, dial it up on HBO in demand. Not only is it one of the funniest I've ever seen, but it stars...ANONYMOUS!!!

Brett...

Bite me...here we go again with the TV refrences??

Hey, can I throw out my approach to the RESP trade and get some feedback from the great Brett and Raimo (or anyone else).

I took the trade on 9/12 when it touched what I considered to be the breakout point at 48.50. I was playing the retest of a breakout, but like Brett said, I was open to the fact that it might not hold.

Therefore, I sized my position around a stop of about 47. This was about 3% below the 48.50 breakout point and also right below the lower trendline.

So, I didn't exit when it pulled on back. I am in as long as it continues to hold the trendline. I am in this with stock so I have time.

Brett, is this what you meant by planning for the different possibilities of what can happen?

Brett,

Thanks for your thoughts on BCSI. I'm considering your comments...

EKON @ ree

Raimo,

KDR....that's perfect.

There is a great article on Yahoo finance by Kyosaki on the current economic/market situation. It's very easy to read and makes lots of sense.

http://finance.yahoo.com/expert/article/richricher/45300;_ylt=An7pYGxGP2xGgTgzy.76dx27YWsA

Enjoy,

Dan (aka Kim's husband)

Arty,

I don't know if was the Big Black Java Monster that I pounded this morning, but I can see the fire storming over the hills. The Phoenix has risen again!!!

Incidentally, I hope everyone here understands that you CAN (and in many instances SHOULD) trade stocks even though we are 'option addicts.' In fact, the position I've built in BPHX is far more profitable than any option trade I've had.

Just food for thought.

NVDA is bouncing of support

Great blogging gang!
Crox got a lot of bad press about their shoes sticking in escalator tines and causing many injuries. It was all over CNN last night and this morning. Dropping out of a symmetrical triangle with volume this morning.
Oh, and Chris, pleeeeeeeeease don't think of GRMN as you fly over the Grand Canyon.

Brett - was it the drastic change in volume that first turned you onto this trade? BPHX, that is.

Kim

Brett and Raimo, I hate to say me too but me too. You two have been on a roll here lately and I like many others here sure do appreciate it. So far the market is pretty calm and my account is riding allong nicely. Sean M. I am with you on no connections between big holes in the ground and GRMN. Chris think Rockies...

Raimo, three businesses huh? Boy I need to talk to you!

This is a test ... this is only a test of the blogger renaming system....

Hope it works.

Dan

Kim,

Trend and buying volume. The more you hunt for these stocks, the earlier you'll find them. If you can find a few, and get just 1 ten bagger that you add to along the way, you can get rich very quickly.

ELON is another one.

RESP – I, on the other hand, was in on 9/13 (at open) and out on 9/13 (at close). It is not that I wasn’t positioned correctly or hadn’t noticed the ascending triangle support below. I was playing the breakout with resistance based on the end of the day pricing at $48.50. As Brett mentioned, all the triggers were there to take the trade with this approach. For my comfort zone, the only thing * I * see now is the support bounce. For me the loss was small and based on market conditions, I wasn’t going to give it the chance to make it bigger.

A plan is a plan is a plan. If in review, the plan was flawed, there is room for improvement.

Letting winners run… I too have a small account and recently getting smaller by the day because I have tried to let winners run even after hitting my targets and giving a bunch back. I like the dialog on this and hope it helps me adjust my approach on positions I only have one contract on. In a market that is not trending, letting winners run is only for the REAL strong trending positions and breakouts, not patterns. There is room for improvement.

CLEAN CUPS!!!!! CLEAN CUPS!!!!! SFM

Jodi,
Thanks for filling me in on the Fed. Being a Canuck as well I had kind of assumed it was a typo and really meant "Bed" which was where the head of the Fed should be. Just goes to show that we really need to look stuff up.

Anyone looking for a put at REE should have a look at CAT. It's hard to say if 72.50 is acting as resistance but even if it is... there's 2.50 in it for you.