QUANTUM TRADING LIFE

Murphy's Laws

noreply@blogger.com (pokykim) — Wed, 28 Nov 2007 09:43:00 +0000

Myspace Quotes at WishAFriend.com

Bulletproof Your Portfolio

noreply@blogger.com (pokykim) — Fri, 09 Nov 2007 08:42:00 +0000

Investors should shield themselves from the coming housing-led recession with a bulletproof portfolio, Jim Cramer told viewers of his "Mad Money" TV show Thursday.

Cramer said the current situation is similar to that of 1990, where there was a sharp downturn and averages fell 13% in six months because of credit problems related to commercial real estate. Right now, he said, the credit problems are in residential real estate.

He said if investors are going to make money, they have to own stocks that worked in 1990. Those included high-growth stocks, indestructible stocks with solid balance sheets, high dividend-yielding plays, and companies with international exposure.

Read the full article HERE .

Good Luck : Forward This Picture

What The Heck Is Sub-prime Derivative ?

noreply@blogger.com (pokykim) — Thu, 08 Nov 2007 08:55:00 +0000

Dow Jones down 360 points on Wednesday on the recurring fears of sub-prime mortgage woes. Global markets follow the down trend. What this credit collapse has done, so tragically, is trigger one of the biggest stock declines in market history… increase borrowing costs… shrink profit margins… panic investors… and raise fear of global economic collapse.

For these reasons, the huge market gains we saw between August and October of this year are the verge of reversing itself, as both consumer spending and corporate profit growth risk decline.

We may have to reposition our financial assets to preserve capital in view of the above.

Watch this video to understand what is the real problem of sub-prime mortgages that caused the current meltdown in the stock market.

Legal Disclaimer: The above posting is strictly for information and educational purpose only. You are advised to carry out your own due diligence and check with your licensed broker, investment adviser or financial adviser before making any investment decisions.

Currency Trading

noreply@blogger.com (pokykim) — Tue, 06 Nov 2007 09:56:00 +0000

The gurus are forecasting further drifting of the US dollars and the further upside potential for gold prices to hit new record highs. Watch this video to find out why.

For those interested in forex trading, you can get free charting and trading platform software from NorthFinance.com . This software allows you to do back testing with different technical indicators of your choice to find out how profitable is your trading system before you start using it.

The download link to this free software is at : http://quantumtradinglife.blogspot.com .

To find out more on why the weakening of US dollars with the current bullish sentiment on gold, you can it check out at : http://quantuminvetinglife.blogspot.com .

According to Bloomberg, Jim Rogers is in the process of getting all his assets out of the dollar. You can read the article HERE.

Oil Prices Hit New Highs !

noreply@blogger.com (pokykim) — Fri, 26 Oct 2007 01:28:00 +0000

Oil prices hit new record highs ! The probability of a recession is higher now if oil prices sustain at this level, leading to inflationary pressures.

But nothing is 100% sure. We can only talk in terms of probability. So in trading/investing, the same concept applies. If the gurus' predictions are no better than a flip of coin, then what can we, as retail investors, do to protect ourselves in the current economic/trading environment ?

Having a "cut loss" policy is the only sensible thing to do , particularly at this juncture. If you have yet to firm up your "cut loss policy", it is high time you do so now !

Why a "cut Loss policy" is important ? This has to do with the principle of preserving your capital.

Trade Your Way to Financial Freedom

noreply@blogger.com (pokykim) — Thu, 25 Oct 2007 04:10:00 +0000

"Trade Your Way to Financial Freedom" by Van K. Tharp (Author)

Van Tharp "...cuts right to the essence of professional trading: how to develop winning attitudes and approaches; how to forget trading for accuracy and trade for expectancy; how to master position sizing. If you intend to trade, you'd better know what's in this book."Ed Seykota, professional trader

The above comments appear on the back cover of this book. This is the book I recommended to my clients when I was a broker. It is in my recommended reading list or you can search for it at Amazon.com.

People Think It’s All About Prediction

noreply@blogger.com (pokykim) — Thu, 25 Oct 2007 03:38:00 +0000

People Think It’s All About Prediction
But It Is NOT!
by Van K. Tharp, Ph.D.

This trading coach said in the Free Newsletter that :

"My point in mentioning all of this is to show the importance people place on prediction. Countless books have been written about how to “pick the right stocks.” The media tend to interview professional traders about what stocks they are picking and why. And perhaps they’ll even show what happened to the last set of picks and ask what happened with the losers.

I have yet to hear anyone say, “I don’t make money picking stocks – I make money by cutting my losses short and letting my profits run. And more importantly, I meet my investment objectives through the judicious use of position sizing.” "

You can read the full report HERE.

Look at the predictions by the experts in the two postings earlier, they are no better than a flip of coin !

Loss and Larger Write-Down at Merrill

noreply@blogger.com (pokykim) — Thu, 25 Oct 2007 03:12:00 +0000

New York Times reported on 24 Oct, 2007 that:

"Merrill Lynch, the brokerage firm, reported its first quarterly loss in nearly six years today, after it increased the amount of its write-down by $2.9 billion for a total of $7.9 billion.

Merrill said it lost $2.24 billion, or $2.82 a share, compared with a profit of $3.05 billion, or $3.17 a share, in the period a year earlier. Earnings from continuing operations were $2.85 a share.

Revenue fell 94 percent, to $577 million from $9.83 billion a year earlier. "

You can read the full report HERE.

Watch the video below on the buy recommendations by the experts:

Is A Recession Dead Ahead?

noreply@blogger.com (pokykim) — Tue, 23 Oct 2007 23:54:00 +0000

I received this email Newsletter with the above title. An extract of this newsletter reads as below:

"Is A Recession Dead Ahead?
James B. Stack, InvesTech Research

WHITEFISH, MONT. - The U.S. economy is now in the sixth year of the fourth longest economic recovery of the past century.

This is when things can go wrong – and usually do.

I wish it weren’t so, and I wish I didn’t have to say it. But today’s economy is on a collision course with a recession. And the most probable starting point is the fourth quarter of 2007. Because the stock market typically leads the economy by several months, you can guess what that means for Wall Street from here on out.
For the most part, we’re in uncharted waters when it comes to the housing sector, and the boom-to-bust unwinding has been underway for over 18 months.

Then there’s the unpredictable Dow Industrials. The DJIA plummeted over 1,000 points from its peak in July through early August and declining stocks overwhelmed advancing stocks more than 2:1. That type of negative breadth divergence has occurred only 15 times in 75 years – the majority of which were in bear markets."

Are we facing a recession ahead ?

You can read another article written by James B. Stackmon "Bear Market Warning Flags" HERE.

Guru Stock Market Forecasting Grades

noreply@blogger.com (pokykim) — Mon, 22 Oct 2007 12:56:00 +0000

Can experts, whether self-proclaimed or endorsed by others (publications), provide reliable stock market timing guidance? Do some experts clearly show better intuition about overall market direction than others?

I stumble upon this site that gives valuable information on Guru Stock Market Forecasting Grades. Click HERE to see yourself how good they are.

Overall, they are no better than a flip of coin.

Do What You Love To Do

noreply@blogger.com (pokykim) — Tue, 16 Oct 2007 08:43:00 +0000

Peter Buffett is the son of billionaire Warren Buffett.He said that his father was not disappointed with him for not follow his footstep and advised him to do what he loved to do.

Is trading is what you love to do ?

Treating Trading As A Business

noreply@blogger.com (pokykim) — Mon, 15 Oct 2007 10:29:00 +0000

The importance of treating your trading as a business and what it means as part of your goal of consistent profits. Watch this video to gain insight of trading or visit my blog at http://quantumtradinglife.blogspot.com/ for more.....

Right Focus For Successful Trading

noreply@blogger.com (pokykim) — Thu, 11 Oct 2007 04:42:00 +0000

Trading Success

noreply@blogger.com (pokykim) — Thu, 11 Oct 2007 04:14:00 +0000

According to Ray Barros , trading is simple but not easy. It is simple because the Plan to success is clearly laid out. It is not easy because following the Trading Plan is very difficult, particularly the simple rule of " Let your Profits run, Cut your Losses short".

Before you consider making money, you must learn to preserve your capital and hence avoiding the risk of ruin. Managing risk is therefore the starting point before you initiate any trade. You need to have a "cut loss policy".

One thing is clear, there is no short cut. You can acquired information and knowledge but you cannot buy success. Your success is a function of time, energy and money you put in.

Success comes from :

1. A winning psychology ( 60% ) ,

2. A sound approach to money management ( 30% ) ,

3. A plan with an edge (10% ).

The relative importance of each is shown in bracket.

Trading is about balance. It is just a microcosm of life - if you can succeed in trading, you can succeed in life. To trade well, you need to have a probability mindset. To grow your money, you need to know the magic of compound interest - the 8 th Wonder of the World - as said by Albert Einstein.

There are some useful articles from his web-site : tradingsuccess.com. You can search for it by using the Google Search on top right corner.