Tuesday, February 26, 2013

The Stock Market Ecosystem



Sometimes stock movements are beyond candlesticks or technicals
 and more of the stock's "characteristics" given by 
the players that control the stock.


The Stock Market is one Big Ecosystem.



You never know what kind of devil spawn predator lurks within.


But don't you worry, there are a lot of  ways to survive and thrive in it.
Here are some eco-relationships you might already have or might consider having...



COMMENSALISM

Commensalism is a relationship in which one organism benefits
 from another organism that is not affected. This is a positive,
 neutral relationship. 





Just like the photo above, most of the market players choose to ride  with the "whales." 
This relationship immensely benefit the small fishes since whales don't usually get "attacked."

Whale Buys Up a Stock = Small Fish Happy
Small Fish Buys Up a Stock = Whale doesn't feel a thing

Blue Chip Ecosystems are perfect examples of this.
More protection from market volatility.




MUTUALISM

"You Scratch My Back, And I scratch Yours."

Mutualism is the way two organisms of different species 
exist in a relationship in which each individual benefits. 





Well ain't that Cute...

Happens mostly in 2nd Liner Ecosystems 
with good fundamentals like TA, CPG, RFM and PIP.

Big players. Market Movers. Jockeys.

One Of these Bad Asses Buys Up = Everybody Happy

They usually form alliances and make Joint Ventures (JV) 
to push their common stocks for their mutual benefit.


Some players however, turn out to be "freeloaders"

Which in turn leads to...


PARASITISM

Parasitism is a non-mutual relationship between organisms of different species where one organism, the parasite, benefits at the expense of the other, the host. 




This could be fatal in cases where the host becomes filled with
hoards of parasites - especially when the BIG ones get on board!

Parasite Hoard Attaches itself to Host
Host Works Its Ass Off
Parasite Hoard Sells
Host Feels Sick
Parasites Happy







And Now to my favorite part...



PREDATION

In ecology, predation describes a biological interaction where a predator feeds on its prey. Predators may or may not kill their prey prior to feeding on them, but the act of predation often results in the death of its prey and the eventual absorption of the prey's tissue through consumption.






Oh what Lovely Shots Don't you think?



Very Common with 3rd Liner Ecosystems.

Predator Buys Shares, Prey Buys Higher
Predator Sells, Prey Gets Trapped.
Predator Happy.

Need I say more?

It's EAT or BE EATEN policy.




Happy ECO-SISTING Everyone.






Friday, February 22, 2013

Market Thoughts : 2.22.2013




RSI Judge To Overbought 
Market and Stocks





Thursday, February 21, 2013

P.D. : The Crazy Trader's Port







Showing You Crazy Trades for the Month of Feb (And March).
- Extend ko daw. Port Shaded For Everyone's Safety.
Tsupitas Not Included.

Main Trading Port.
(Please Don't Ask Me what Stocks I'm holding.)







Ending Port 2.21.2013

Ending Cash: 9.xx% Of Current Port.
Stock 1 : New Entry
Day change = +0.11%


Week Ender Port 2.22.2013

Ending Cash: 0.09% Of Current Port.
Day change = +3.30%


Other Transactions for the Week:
Withdrew 11.xx% Of Gains.
Rolled Back 100k Worth Profits



Ending Port 2.25.2013

Ending Cash: 0.18% Of Current Port.
Stock 1 : Re-Entered @ Close
Day change = +0.48% 



Ending Port 2.26.2013


Ending Cash: 0.18% Of Current Port.
Day change = +0.52% 



Ending Port 2.27.2013


Ending Cash: 0.18% Of Current Port.
Stock 3 : New Position
Day change = +2.70% 




Ending Port 2.28.2013


Ending Cash: 0.02% Of Current Port.
Stock 1 : New Position
Day change = -0.64% 


Week Ender Port 3.01.2013


Ending Cash: 0.51% Of Current Port.
Stock 1 : Here We Go Again
Stock 3 : New Position
Day change = +1.22% 



Ending Port 3.04.2013

Ending Cash: 1.66% Of Current Port.
Day change = -1.70% 





Current 2013 YTD (less realized profits)
+7.58%



Tuesday, February 19, 2013

Borg Plays : SMDC






One of the Best ingredients for the perfect Borg:
A Price Breakout to a new All Time High.
And a good catalyst to push prices 

"where no price has gone before..."






Always remember when playing with Borg Stocks,

There are no TPs. Only Trailing Stops.



Related Posts:




My Rules On Trailing Stops:

Always Set/Adjust to 2 Trailing Stops.
Once the first stop is hit, consider that as a warning shot. Sell a part of your position. 
And when you see your 2nd Stop getting hit, Sell without any hesitation.
Lock-in those profits and don't look back!
(especially if that stock decides to go up later on.)
Nobody likes a bitter and bitchin' trader.



This is me when prices go near my second stop (50/100 MA)



"SEEEELLLLLLLLLLLLLLL!"





Thursday, February 14, 2013

Trading 101 : Osmosis




On this post, I'd like to emphasize on money management and
 diversification when dealing with 3rd liners.

But before that....




This game is really kick ass!
Extremely Fun when played using Pads.
Here's a link if you want to try it out


Quick definition of Osmosis.

Definition taken from : http://www.merriam-webster.com/dictionary/

Totally related to trading right?
Well.. not really.. But if you played the game, 
you'll get what I mean. Hopefully. Hahahaha



Anyways, 

When buying 3rd liners, assuming the chart 
is good and all, make sure you study its liquidity.  
You don't want to be buying something you can't sell.

So Ask yourself this question:
"If i put in X amount of money in stock Y, 
would I be able to sell it with ease on the same day?"

If your answer is YES, then you're one step 

ready to make that trade.



Moving on...


I usually keep 1 to 4 Trending Stocks - all with almost the same trade value. 
And when a stock is ready for profit taking, I sell all, if not some of it and 
transfer the funds to the remaining three stocks or add to a new stock position.

Sometimes I go over 4 stocks, but when I do, 
I switch and sell the weakest of my holdings and go 
back to the original 4 or less.. 

Focus is extremely important. 

Just imagine if lets say, you have 10 basuras in your port,
all with equal value, then suddenly a wild bear appears! 



"Imma eat yea alive biotch!"

And the worst part is, your broker... let's say.. just out of total "randomness"  
House 203 would have one of those "stroke moments" during market panics.

What do you do?


Imagine the pain...


So as much as possible, keep or buy only what you can manage.


"Okay Zee Enough with the talk". 
I get it. You want results.

Here ya go...



This is the Unshaded Version of 


Port as of 1.20.2012


Port as of 1.24.2012


Port as of 1.25.2012



Port as of 1.26.2012

 Port as of 1.27.2012


 Port as of 1.30.2012


 Port as of 1.31.2012




Here are my other trading rules:

On Cutting Losses:
Don't let a loss reach -4%
Cut before it reaches that level.

On Taking Profits:
There are no Target Prices,
Only Trailing Stops.

On Trading A stock:
Trade with bias. If a stock does not 
move according to your bias, Sell.

I also get this question a lot, So i'll just Include it here:
"What is my average holding period?"
4 Trading days. Or until a stock's uptrend snaps.



And If I'm dead sure of a killer trade? 
I never hesitate to go All-In!






Happy Valentines Everyone.




Thursday, February 7, 2013

Case Study : NI



Are we there yet?




NI Monthly Chart as of 2.7.2013


While NI is demanding for a bounce from its oversold state,
 patternwise it still has... uhmmm.. more bad news,
lots of finger cutting, and capitulation to do.





Tuesday, February 5, 2013

Basura Plays : ARA




Jockeys. 

Cute and Deadly at the same time.



 Chart as of 2.5.2013





ARA Recipe For Failed Ceiling
Minute Chart as of 2.6.2013



Still boils down to the basics.
Click here to learn more about MA's.



 Chart Update 2.21.2013

If my bias is correct, spike will happen within 2-3 Trading days.


Looking at its long term chart,
ARA reminds me of BHI/WIN/PHES
Could this be the next people stock?




 Chart Update 2.22.2013




Remember, There are no Target Prices. Only Trailing Stops.




Post Update 2.26.2013






If ARA gaps up tomorrow with heavy buying,
expect a super borg play.


Post Update 2.27.2013

Strong Close By ARA today.
Another Gap tomorrow?




Deja vu?

Whatcha think?


Post Update 3.11.2013


Let's do a little countdown before the blastoff shall we?
(Countdown Cancelled if 1.86 Breaks.)

4...

Post Update 3.12.2013

3...

Post Update 3.13.2013

Countdown Cancelled.
1.77 / 1.8 / 1.84
Watch these supports.
Violate these, and see you guys
for bounce plays!