How a Photo and Social Media Inspired a New Passion and Hope

A few months back one of the traders I follow on a regular basis posted a vacation picture from Cinque Terre Italy. In looking at the photos I would be hard pressed to find a more amazing landscape. Although Italy had always casually awed me with respect to culture, history and family tradition I had never gone much beyond hand me down traditions and here say stories. A combination of the sheer beauty of the photo, an unending interest in Italian cooking and an excuse to escape studying for a professional certification exam sparked an unimaginable curiosity I had never expected in my wildest dreams. And so I began my journey into learning Italy through casual reading, followed by sharing my new found passion with friends.

The entire situation still strikes me funny, as I would have never expected an individual I have never and likely will never meet spark months of unparalleled curiosity in my life. None the less, many months later, my passion to learn Italian culture is only becoming stronger and more enjoyable. The journey has taken a strikingly similar path as my interest in trading did, which began with casual reading on my own, followed by a need to share my passion with friends of similar interests and exchange ideas and information. 

Aside from the enjoyment I get from learning a unique and amazingly interesting Italian culture which I will likely post about going forward; I also find reprieve in the social forces of my generation that enabled such passions to foster. I’m still not sure whether or not the ease with which I was able to find friends with comparable passionate interests to mine a result of chance, or a representation of our generation.

However, being the relatively optimistic person I am, I’d like to think it speaks to the potential of our generation. The aforementioned individuals I had encountered along my adventures of trading and learning Italian culture had a head start on their respective learning curves. Both were exceptionally receptive to my new found interest and willing to fulfill my curiosity on a recurring basis that most would take to be obnoxious. They had both exploited the wealth of information available to our generation through 24/7 internet access, blogging, social media, tangible experience and were more than willing to collaborate on their findings with me.

Is it merely a coincidence to find such individuals? Maybe.  Is it just a one off example of a group of college students amidst many within our society without such privileges? Maybe. Or do these peer mentors of mine speak to an example of the value within the structure of our generation and the passion, intelligence, willful collaboration and generosity of the generation to come. Let’s hope.

Thanks for your help.

Idea for the post inspired by Barry Ritholtz

http://www.ritholtz.com/blog/2012/04/the-future-of-america/?utm_source=dlvr.it&utm_medium=twitter

"The Value in Getting Away: A Subtle Lesson of Stocktwits"

Being a relatively new trader with only a handful of years’ experience I’ve attempted to learn the business in a wide variety of forms. Whether it be academic and theoretical ideology, “Security Analysis”, Livermore, O’neil etc, I have at least considered most of the frameworks.  However, one area of the business that often goes without discussion is mentally removing oneself from the trading.  As a young trader trying to develop a concrete strategy, it is easy to become completely mentally immersed in trading. Prior to my encounters with Stocktwits I had overlooked the importance of completely removing myself from the business on a recurring basis.

In addition to providing great value in terms of idea generation, one of the more subtle lessons of trading presented on the stream is the mental game of trading.  Although Mark Douglas does an amazing job discussing the psychology of trading, there is limited literature on the importance of detaching yourself from trading.  In following traders such as @gtotoy, @jfahmy, @daytrend, @howardlindzon etc I’ve observed the value they all seem to place on “getting away.”

@gtotoy is among the most consistent and transparent traders on the stream in my opinion. In following him, I’ve noticed he regularly discusses the joy he gets in getting away regularly. I’ve observed @daytrend discussing that by the end of the week traders should be mentally exhausted and in need of getting away (like making a killer BBQ that makes me hungry every time). @jfahmy has always provided comic relief throughout the week on the stream. While @howardlindzon adds to the Instagram valuation by posting his feet on Coronado Beach.

Since I’m not a fan of preaching I will wrap it up quick. I think it is easy to become completely immersed in this business, especially as a new trader. In following more experienced traders, I’ve learned a subtle lesson that it is not widely discussed. Having the where with all to escape is important for traders of all levels and skill sets.  This is not to say working hard is not a good idea. I’m sure I can speak for most in saying that trading requires a significant time commitment; however it cannot and should not be one’s end all in my opinion.

Few Long Setups for the Week of 03/18/2012

Thought I'd share a few charts of interest to the long side going into the week.

Nice bull flag after strong breakout. Breakout over $30

Strong flag pattern. Breakout over $20

Triangle breakout over $118

Breakout over $46.75

Nice flag after breaking out, breakout over $134

Looks good over $118

Recent IPO looks good over $32.50

Couple of sector charts that also look good in my opinion below

Didn't see as many setups this week as in past weeks. However, the trend is still higher and I see no evidence to assume otherwise at the moment.

Macro Weekly Trends of Interest- Make it Your Own Idea

Thought I would share a few macro trends I am interested in lately. If any look interesting make it your own and manage accordingly within the context of your strategy.

"WLT: Bottom Feeder Explained on Multiple Frames"

Walter Energy is by no means a leader in this market. However, there may be an opportunity none the less.  I've been watching the $57 area serve as major support that has been tested many times.  Given that everyone has unique time frames and risk tolerances, I thought it would be reasonable to simply point out what I am looking at.

The weekly time frame illustrates a potential slowing in the severity of the downtrend in relation to the 20 period moving average below.

On the daily frame recent action provides further evidence for $57 being firm support in the name. The wide range bar on 03/09 demonstrates institutional interest on 145% of average daily volume. The wide range day was followed by a constructive consolidation and navigation of the 10 day moving average. Friday's action caught my attention with solid relative strength on increasing volume, as it began to breakout of the flagging pattern.

I will be watching to see if we can crack the 20 period moving average and the $63 level overhead next week for a potential entry.


Never forget to make every trade your own.

Charts of Interest - 03/10/12

Thought I would run through a few charts on my radar this week.

$HSFT- Support $15-$15.20 with room to move above $16

$USB- Consolidating above prior breakout level. Supported by rising 10,20 and 50 day moving averages with price support at $28.50. Measured move out of recent consolidation about $1.50

$GRMN- Consolidating nicely after an enormous volume breakout. A confluence of price support and the 20 period moving average at $46.50. Breakout over $48 with a first target of $50.

$FBHS- A powerful breakout this week on strong volume and a well defined recent IPO trend. Potential for trailing prior breakout support in the event of a retest.

"Charts of Interest"- Manage Risk

Still seeing a number of healthy setups. Could we correct, yes, could we continue higher yes. Identify potential opportunity and manage risk.