Archive for the ‘Education’ Category

Workshop

June 20th from 6:30 – 7:30 PM at the San Luis Obispo Library (Conference Room)

Topics:

– Maximizing Social Security (free analysis)
– Guaranteed Lifetime Income Solutions.
– The current state of the Stock and Bond Market (interest rates).
– How to move your 401k while still employed and or retired.
– Properly Funded Living Trust and Long Term Care.
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No Suits – No Selling – No Signing.
Hope to see you there.
– Doug and Gary

10 Year Treasury Yield

An even bigger move (problems in Europe) in Treasuries today.

Inverse:  As treasury yields fall, bond prices rise.

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JackMotana

Blockchain explained (video)

link:  http://www.goldmansachs.com/our-thinking/pages/blockchain/

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SP 500

Click for larger view

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GLD (Weekly)

Each candle is a week.  Down 7 of the last 8.  GLD is due for a bounce.  Has Gold put in a bottom? Don’t know.

Could it go much lower?  Certainly.  Could next week be another down week?  Yes.

What’s the plan?  If playing a bounce, have an exit strategy  (mental or hard stop) to either lock in profit or limit loss.

Eventually a bottom will be in, we just don’t know where and when.  If you keep losses reasonable – you will have the emotional stability to enter when eventually the metals run and therefore wipe out any prior manageable losses.

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Cash

If a chart doesn’t stand out immediately – then don’t force it.

Cash is a Position

Mental Stops vs. Hard Stops and Discipline

About 75% of the time we use Mental Stops instead of Hard Stops.

Why?  Because Hard Stops (orders placed that are resting orders) become a target.  IOW – traders will run the stops to take investors/traders out of the position only to watch price reverse and go higher.   This is shown in the example below with AAPL today.

A Mental Stop is not a resting order placed into the accounts.  Therefore a Mental Stop (a number in your head or that you are watching) is not triggered.  If breached on a close – you then need to make a decision as to where to exit.

The advantage of a Hard Stop is if price continues to fall, – you were hopefully out at, or near the hard stop price.  In the end – it all boils down to discipline.  Stick with and hold true to the system that works for you.  Learn from what you did right and acknowledge what you did wrong.

A losing trade does not mean you did it wrong and a winning trade does not mean you did it right.   The worst case in when you do something wrong or break your rules – and it’s a winner.  That’s not discipline – that’s closer to luck.

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Using Stops (Hard and Mental) To Lock In Profit And Limit Loss

Using Stops from Doug McKay on Vimeo.

Shorting: How & Why

Shorting Using Inverse ETFs from Doug McKay on Vimeo.

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Welcome fellow traders and investors!

As Money Managers and Traders, the mission of our Blog and Radio Show is to go on record and further educate our readers and listeners in technical analysis and proper money management across all asset classes.

Our methods are not the traditional advice you hear repeated and repackaged over and over again, but that’s exactly the point and the reason why we know how to advance and prosper in every kind of market.

To Your Success,

Doug & Gary