I Wear T-Shirts to Work
July 10, 2007 at 10:05 am
The trading lifestyle can at times be demanding, but man…I sure love it. There are obvious perks of course, like unlimited potential income, but I also thoroughly enjoy some of the more subtle perks.
Like my wardrobe, for instance. Who am I trying to impress, seriously? I see these guys on CNBC sporting $2500 suits, but ironically their type is a dime a dozen. My label is Old Navy – don’t knock it. I’d rather have a unique t-shirt for a couple bucks than a big-name tailor for my imported silk suit. The other day I went into Chipotle wearing a t-shirt I bought off a clearance rack like 3 years ago with a faded iron-on decal of a 70’s muscle car on the front and I got a compliment! I don’t remember the last time I saw Dylan Ratigan tell a guest on the show that his pinstripes are sweet. Try to catch me on a day when I’m not in cargo shorts, I dare ya.
The speakers are usually on blast when I’m doing my “research.” I have no boss, and I get to call my own shots. I have no set hours. The smarter I work, the more I can get paid. My dog is next to my desk every day. I can make a fast food run anytime or go get a 44oz. Diet Coke whenever I need my caffeine fix. Shoes are optional!
You get the picture.
What I Get To Do
Don’t let the unusual perks fool you though, I work very hard. I’ve never been called lazy by anyone, probably because I didn’t give them a reason to. I am passionate about my work, and I thrive on the challenge of ongoing achievement. I get bored otherwise.
On an average day, you might find me performing a variety of tasks. I’m always stalking some trades, but due to the nature of the market, some days I am more market-focused than others. On those days when my trades don’t need as much babysitting, I’ll I focus more on my business and the educational side of what I do in the trading world.
My email inbox never seems to quit dinging at me, but I like it that way. Members and friends email me about the market, individual stocks or with funny stories. I feel no guilt when I take 2 minutes to laugh at an email loaded with pictures of redneck inventions. I post tons of messages on the forum in the member area of my site, interacting with traders, sharing insights and exchanging trading ideas. I tinker with software tools, write articles like this one you’re reading, and occasionally IM with trading buddies. I discuss ideas with my web developer.
And did I mention that I’m constantly on the lookout for trades? It is the trades that I’m most interested in during the course of the day since they’re at the heart of why I’m not under someone else’s employment to begin with.
Why I Do It
I’m an entrepreneur. I loathe the idea of working for someone else. I don’t want to be told what to do, so I work my tail off in order to keep working for myself. I don’t want a boss! Of course there are plenty of challenges and lean times, but it’s those times that really force me to grow. There’s something about putting your nose down and battling it out, whether it’s a stretch of tough trading or a lengthy to-do list which demands my attention. Once I get through it, I feel empowered and confident. I sleep better and walk a little taller. (But I don’t sleepwalk.)
When it comes to the main site at TheStockBandit.com, I started it as a hobby since the market closes at 3pm here in Texas, but I quickly realized how helpful it was to my routine to post my trading ideas each day, much like a journal of how I’m viewing and trading the market day after day. I also missed trading in an office full of traders with ideas flowing back and forth. After all, there are lots of lessons to be learned (and reminded of) when you’re interacting with other traders regularly. That’s the selfish part.
The unselfish part really boils down to the fact that I like to help other traders. I had a few very good traders help me out in my early days, and passing along some of the things I’ve learned is a good thing to do. I’ve written about 250 of these free articles for the same reason – to share insights. There’s some fulfillment in doing so.
Along the way, I have of course seen the opinions of some people who generally believe that newsletter writers are snake oil salesmen who don’t know how to trade and are just out for the money. People will think as they wish, but my response to it is that if you saw how little the website generated in terms of revenue back in the early days, you’d know that I wouldn’t have continued doing it if I wasn’t passionate about the underlying premise, which is helping traders. And these days I’m 100% confident that if you were to ask any of our subscribers about it that they would quickly verify that I’m in this to provide help as much as trade ideas for them. I don’t reply to the complex questions of members with 1-line emails or generic answers. I provide thorough help so that they “get it” by the end of a conversation.
I enjoy providing encouragement – we all need some from time to time, don’t we? And I know I’m helping traders when I point out blind spots to someone who’s unsure of what is plaguing them. Every one of us have blind spots, which means somebody’s gotta help us if we are to improve. That “Aha!” moment is great to experience. That’s why I camp out in our members-only forum every trading day. I like to share ideas and help traders who are seeking it. If that weren’t the case, I certainly wouldn’t devote the time I do to providing assistance, because nobody is forcing me to do it. I truly enjoy it and find it more fulfilling than just executing my own trades.
So there it is. Wonder no more about what I do or why I do it! To some, my routine would seem like total chaos. Every day is different, exciting and new (kinda like the Love Boat), but that’s exactly how I want it. I get to make decisions that impact both my personal wealth as well as the health of my business. I have flexibilities and freedoms that “regular” people don’t, and it suits me perfectly. It may not be for everyone, but I do my best to share it with others. Yes, I work hard, but it’s on my terms and that’s why I love my job.
Plus I get to wear t-shirts.
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Real Rally or Just Bull Ticks?
July 8, 2007 at 8:01 pm
The bulls managed a nice gain last week and they only had 70% of the usual time to accomplish it. Nonetheless, it was a solid advance with several of the indexes going 4-for-4. Impressive stuff! Of course there will be lots of skeptics who argue that the volume wasn’t good enough to justify the move, but the volume is widely expected to be light every year during the July 4th week. Not to mention that price is always far more important.
Be sure to check out this week’s Market View page over at TheStockBandit.com for a closer look at the indexes for more of my comments. And don’t forget to sign up for the the Free Trading Newsletter to catch tomorrow’s issue before you start your trading week.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Grab Trading Opportunities Big or Small
July 5, 2007 at 1:51 pm
It’s easy to fall into the rut of trading the same size for every stock across the board, but on occasion you’ll inevitably run across a stock that fits a lot of your criteria but isn’t quite ideal. That’s when the dilemma arises: Do you ignore it or take the trade?
Volume is a key ingredient to me when I’m considering trades. Not only do I want the stock to be reflecting some level of interest (activity), but I also want to know that I can execute my orders effectively and without too much slippage. Strong volume also tends to mean narrower bid/ask spreads, which means a more competitive market. Naturally, volume is the next thing I look at after the chart. When it seems too light for a trade, my first inclination is to pass on the stock and move on to the next, but that isn’t the best or only option I have.
So in the case of the light-volume-but-bullish-stock, why not pick up a few shares if the chart is good and simply take a smaller position? If it pays off and the chart pattern produces the move you’re expecting, the profits may be slightly smaller but it’s still money in your pocket!
RIMG is a stock I’m currently eyeing which has a nice bullish pattern but trades much lighter volume than I generally prefer. The pullback of the past two weeks off the recent high has created a large bull pennant pattern, and a push up through the upper trend line will confirm the pattern and could free up this stock to head north.
(Click for full-size image, courtesy of TeleChart)
Instead of passing on the trade entirely due to the light volume, simply taking a smaller position in the trade if it goes would still allow room for some profits. Perhaps that will translate into a smaller winner than another trade where I may have a larger position, but as a trader I’m all about seizing opportunities whether large or small.
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Timothy Sykes: An American Hedge Fund
July 4, 2007 at 3:26 pm
I love to read trading books, so I’m always pleased to have the opportunity to do book reviews when writers offer to send me a copy of their book. Recently I was asked by Timothy Sykes if I would be interested in reading and possibly reviewing his upcoming book, An American Hedge Fund. I obliged, and soon after I found an “uncorrected proof” copy of the book sitting in my mailbox. I was pleasantly surprised to also find a very nice handwritten note by Timothy thanking me and offering an open invitation to contact him regarding any questions I may have. That set the stage for what was to become a very good read.
With a hectic schedule like most of us have, I found occasions to work my way through the book over the course of the last couple of weeks, but as I got to it I found it was a real page-turner. Once I completed it a few days ago, my plans were to post my review this weekend, but when I saw my friend Charles Kirk posted his review yesterday and then Timothy appeared on Fox News today, I figured it was time to stop dragging my feet!
I had seen Timothy on CNBC (he was the first to bring models to the show – nice touch Tim!), in Trader Monthly magazine, and he also stars in Wall Street Warriors on MOJO. He definitely was getting some press, so I was interested to see how he had gotten there.
This was a book I thoroughly enjoyed. In fact, not since Dumb Money have I found a trading author’s sarcastic humor and no-holds-barred honesty regarding his trading decisions, conquests and faults so authentic and compelling. I related to so much of it as a trader, was inspired by his successes, and was reminded of important lessons through his failures. Timothy’s style of writing kept me entertained and intrigued as to what would happen next, plus I kept getting waves of nostalgia whenever he’d mention flash-in-the-pan stocks of the 4-letter variety which I’d also traded in recent years. It can be fun to dabble in the story stock of the day, and fading those moves in micro-cap stocks just happens to be Timothy’s specialty as a trader – he’s the first I’ve known to do so well with such a strategy.
Timothy’s story takes you through the complete transition from his $12,000 bar mitzvah money all the way to his multi-million dollar Cilantro hedge fund, chock full of juicy details along the way. The P&L numbers keep on getting bigger, and he keeps nothing in reserve when it comes to his feelings after each individual victory or defeat. You’ll relate as I did not only to the highs and lows of his trading, but to the calculated (and sometimes uncalculated) risks he takes, the disciplines he learns to employ, the pain his weaknesses occasionally cause, and even the burnout he sometimes encounters.
His audited returns are certainly impressive, but he gives the reader a very clear glimpse of just what it takes to get there. Timothy details the lifestyle of a big-city trader, the journey of building a hedge fund when you’re a small fish, how to adapt to changing markets, and how to deal with the everyday challenges and thrills of just being an active trader.
Even though my copy of it was free, I found An American Hedge Fund to be an excellent book which has a lot to offer any self-driven investor or trader. Watch for it in stores or at Amazon October 1st this fall and pick up a copy for an entertaining read!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Uptick Rule Ends, Short Selling Gets Easier
July 3, 2007 at 9:21 pm
For those who have not already heard, the SEC has voted to remove the “short sale tick test”, Rule 17 CFR 240.10a-1 for all equity securities. Effective Friday, July 6, traders will be able to short all securities on an up, down, or zero tick.
WOW! All these years of having to wait for an uptick to grab a trade on the short side has finally resulted in the simple removal of the rule. This means that on Friday, short selling will be just as easy as buying a security, as the uptick rule will no longer apply. Faster fills on shorts will mean less slippage and a greater ability to add exposure on the dark side for those who are willing to trade it.
Up until now, ETF’s have been shortable on downticks, as well as select securities which were a part of the SEC’s short sale tick test. The Regulation SHO pilot program began in May 2005. It suspended all short sale price tests for a select group of over 1,000 equity securities. But now the gates will fling wide open and there will be no restrictions on what you can sell short on downticks other than if your broker has shares available to borrow.
Ironically, we just happen to be in quite a bull market with the NAZ at 52-week highs, so shorting heavily at this point may not be the solution to all your trading problems! Stay selective out there and don’t let a rule change dictate your next move. Stick with the charts and let them determine your course of action. It’s just that now when that calls for shorting a stock, it’ll be easier for you!
For more info regarding Rule 17 CFR 240.10a-1 and the SEC’s proposal to remove the rule, visit the following links:
http://www.sec.gov/news/speech/2006/spch120406ccc-10a.htm
http://www.sec.gov/news/press/2007/2007-114.htm
Trade with Discipline!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Holiday-Shortened Trading Week
July 1, 2007 at 10:13 pm
The trading ranges are still intact for the major averages, and we have a holiday-shortened trading week this week with the market open until 1pm ET Tuesday and then closed through Wednesday. That could keep the volume light and conditions choppy, so keep that in mind if you’re trading these next couple of days and consider shortening your timeframes.
Be sure to check out this week’s Market View page over at TheStockBandit.com for a closer look at the indexes before you start your trading week.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
Pride vs. Plan in Trading
June 25, 2007 at 2:24 pm
If survival as a trader depends upon self-control, then it all boils down to how well you balance out your internal pride with your trading plan to make it all work.
This week’s Free Newsletter over at TheStockBandit.com discusses this exact topic, so be sure to stop by and read it for more of my thoughts on the topic.
By the way, you can sign up for the free newsletter on the Free Newsletter page at TheStockBandit.com and we’ll notify you every time one is published. An opt-in form is provided at the top of the page which puts you in full control of your email subscription at all times.
Trade well this week!
Jeff White
President, The Stock Bandit, Inc.
Swing Trading & Day Trading Service
www.TheStockBandit.com
[tags]Stock Market, Day Trading, Stock Trading, Investing, Swing Trading[/tags]
