Keeping it Real

After months of laying low in this blogosphere, I’ve decided to emerge in these trying times to share my latest creation..er recreation of some of the great stuff I’ve been reading.  Honestly, I was getting annoyed at the image sharing features of this blog, and just didn’t feel like fooling with it.  Sorry I didn’t feedback that info sooner, Ryan!

I just finished Stan Weinstein’s Secrets to Profiting in Bull and Bear Markets, an excellent read for new or struggling traders.  When I read his explanation of chart Stages, it was like a light being turned on, and I saw charts for the first time all over again.  His approach in the book is to maintain 2-yr charts with weekly periods, but I’ve applied the principles to 30-minute and daily charts as well.  So far, it seems to be working out.  I start by deciding what stage a stock is in on the chart, and then all the usual technical analysis follows.

So, after several successful runs using my new tools, I’ve decided to share with some of my coworkers some of the ideas from this book.  I created a single-page article to share with them on how they can apply Stan Weinstein’s basic principles to their 401k’s, as this has obviously been a point of conversation lately!

I’m posting the article on this blog, and you can also get the jpeg on Flickr.  I’d appreciate any comments and suggestions to make this better and easier for my non-trading coworkers to better understand.

I’ve already started on the next book: How to Trade in Stocks by Jesse Livermore.  As much as I study history, I still get surprised to read the advice from people in the past that could apply just as much today!  Sure enough, comments on stock market trading from this 1940 book could have been said by a trader today.

As for now, I’ve got small positions in CPB and FEED calls, and the rest will stay in cash over the weekend.  I suspect we’ll see some more fun next week, but I don’t care to be surprised with money involved!

Until next time, keep those stops tight!