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    Today's Ideas:
    for afternoon of Thurs. Dec. 20, 2007

    IMPORTANT: Below is what we're looking at currently, but pay attention to our UPDATES on the side of each page for actual entry/exit times and prices. Refresh pages often! You will witness our winners AND losers; something that is rare in our business.    TO VERIFY ACTUAL PRICES AND TIMES, PLEASE CLICK ON  A TICKER ENTRY TO THE RIGHT.  ALL TRADES, WHEN THEY OCCURED, ARE VIEWABLE.  

    Whenever possible, we have included the ETF symbol for those who are not experienced trading futures, etc.

    Position update as of 12:22pm:

    Long 2 units FXI (avg. price 171.003) 

    Long 1 unit NQ (avg. price 2065.00)

    Long 2 units SB (Sugar avg. price .10375)

    NOTES:

        There was quite a bit of news affecting the markets this morning. Oracle had great earnings and the Nasdaq wanted to go up, but Bear Stearns and MBIA had bad announcements and weighed on the market...net effect is not much change. Since Nasdaq was relatively stronger than our other long candidate (FXI), we chose to add the NQ long, late in the morning. Again, don't get too caught up in particular stock names, as most are highly correlated and move together. As noted on the ticker, this NQ trade is short term, and we could exit as soon as today. We don't see the holidays as a time to be active, and will thus not be adding/holding much (except sugar, which is a long term position). It appears that MBIA really took the wind out of the markets sails! Article: MBIA

    Regarding sugar prices, they've been marching forward every day this week. News came out of India that production for 2008 will be less than originally anticipated. It's not that we predicted this, we didn't. However, we're able to be on the right side of "surprises" in the news, by staying on the side of the LONG term moving averages. This same idea has kept us out of financials (on the long side), and thus avoiding news and "bumps" on the head. We sleep much better not being long stocks that are likely to announce poor news, including other industry related issues. It's not that we're "married" to our sugar position, it just is exhibiting what we like in a trade. Here's a related article: Sugar      

    On the topic of this site, we're trying to make it as useful as possible. We're in the process of adding a comments section, as well as writing a page describing what exactly a "unit" is. A unit, related to position sizes, is one of the most important aspects of successful trading. We'll make it as easy to follow as possible, as the numbers will vary for each individual trader.

    People often ask what our time frames are for each trade, and that is different for each position.  In general, however, most trades last about a week or two, BUT we  trade around the positions as you saw today.  Hence, we DO day trade at times.  We encourage any questions and comments on how to improve our site, and hope you find it useful.  This is a great business, but the learning curve can really take awhile as most successful traders don't have any reason to share ideas. This site is our way of giving back to the trading arenas, in the name of the few mentors we found that helped us along the way. Good luck.

    We can't always explain the reasoning for trades, but they are often a combination of technical, fundamental, and "gut feel". Pay attention, have fun, and make money!

    For previous posts visit the archives.

     

     

    This site is for instructional purposes only, and is not to be construed as investment advice.

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