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“ME”

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The first time I visited the CME (Chicago Mercantile Exchange) was very intimidating. I was reminded of the Guns N Roses song, “Welcome to the Jungle.”

Here were masses of people and everyone was moving at blitz speed like they had just downed a gallon of Starbucks’ finest.

Traders would crowd into the elevators like cattle. When the elevator was full, a few more people would push their way in until I experienced a feeling beyond claustrophobia.

When we stopped at a floor, someone (usually from the very back) would yell out “Me!”

Then they’d aggressively wiggle their way through their competitors and exit the elevator.

My first day there, after my first morning of trading, a bunch of us decided to break for lunch. So we, along with half of the planet, headed for the elevators. Again, our elevator was full, people pushing their way in miraculously finding space where no space existed.

At each floor, someone yelled, “Me!” And made their way out, aggressively pushing others aside in the process.

Next floor: “Me!”

Next floor: “Me!”

After lunch we corralled back into the infamous elevators once more and I got squished into intimate contact with at least 4 strangers.

I was waiting for the first “Me!” to be sounded, when the elevator came to a HALT!

Oh no!

Stuck!

The ultimate “STOP!”

It seemed strange to me that everyone remained calm and no one said a word.

I wanted to yell, “Hey, we’re stuck and I’m squished and claustrophobic and I’m going to panic big time if someone doesn’t get me out of here pronto!”

But instead I waited to see if anyone was going to say or do anything.

Silence.

I started to think about the whole experience of my first day. The trading floor was a jungle.

Dog eat dog.

Survival of the fittest.

Everyone was out for themselves, FIGHTING to make money for “Me.”

The floor was crowded and chaotic, people literally pushing others out of the way to make money.

Being there changed my trading forever. Being a screen trader, I had been focused on lines and colors and dots and curves and pretty stuff on a monitor. You almost start to think that’s the market.

But when you get on the trading floor, you “see” the market. It’s people. And those people are FIGHTING for their money. These people are serious. Dead Serious.

It’s you against me. And I’m only concerned about me.

Nice guys finish last.

Welcome to the jungle.

This is not “compassionate capitalism!”

It was a lot like the elevator.

I tried to distract myself with my thoughts as long as I could, but then my attention came back to where I was and the feeling of panic started to rise again.

Finally I blurted out, “Does anyone know how to get us out of here?”

Someone responded, “This happens all the time.”

I replied, “How long does it usually last?”

He said, “10 to 15 minutes.”

And sure enough, the elevator started again.

Yes, it changed my trading forever because though I remained a screen trader, I realized that trading is a “competitive sport,” and the competition is fierce. I knew I had to be as tough and as smart and as aggressive as these warriors, or I was doomed.

There was no room for the wall flower, and there was no allowance for laziness.

You had to always look out for the tigers because they are always there, hiding, waiting to pounce. And they feel no remorse in attacking you … in fact they enjoy it because you’re their dinner!

At the end of my first trading day, my sponsor asked me if I had any questions. I said, yeah, I have only one:

“Where’s the stairs?”

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Tricks of the Trade

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Trading TricksThe pros trade differently. That’s why they’re pros!

Everyone needs an “edge” in trading. Without it, you’re dead meat.

Have you ever felt that sometimes it’s uncanny how the market does exactly the opposite of what it’s “supposed” to?

That’s not a coincidence.

Professional traders make a living out of breaking the rules everyone “knows” to be true about trading.

I remember the first time I went to the CME (Chicago Mercantile Exchange). I hired a floor trader to work with me for 10 days.

I had already been trading for years before I met with him, but the very first day we started talking I felt like we were speaking different languages!

There was some foreshadowing of this before I went. He required me read a small library of books before I flew to Chicago. I already read over 100 books on trading … and I thought I had read all of the important ones. But he had me read books I never heard of, about techniques I never heard of!

One week into the training, my head was spinning. I was in a different world. He entered the market with completely different techniques than I ever dreamed of. And he got out of the market when I would normally be getting in!

His style was TOTALLY foreign to me.

The things I saw him do in his trading (we traded together the entire time) looked completely STUPID in my opinion! I mean really outrageous. He broke all the rules in every book I ever read.

… and he raked in piles of cash!

I had to struggle to literally “change my mind” because I thought I was pretty smart. But he was the #1 trader in his firm, making millions of dollars. So I decided to struggle through the complete paradigm shift.

And I’m glad I did. My trading has never been the same.

Recently I wrote a Special Report that reveals, for the first time to many, 4 distinct tricks the pros use to get an edge over the retail trader day after day.

The pros also use technical analysis techniques that are “invisible” to the amateurs.

Now you can see them for yourself and learn how to make them visible on your own charts, by getting “Trading Tricks.”

The feedback I’ve received so far has been great. Check it out and I’m sure you’ll have an “a-ha” experience!

Are You Keeping Up?

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“The times, they are a-changin.'”

The world in which we trade is changing DRAMATICALLY.

I’m primarily a technical trader. However I learned a magical lesson from my good ‘ole Dad: “Keep up with the world.”

My Dad always said enjoyed he trading and investing because EVERYTHING impacted the financial markets. To invest well, it’s important to stay on top of business, politics, economics, technology, religion, war, international relations, science, etc.

So even though I’m mostly a technical trader, I learned from my Dad to watch for major shifts in the culture and in the world because those major shifts bring incredible investing opportunities.

The video below is not about trading or investing. But it is about the dramatic changes happening in our world right now.

It’s a different world. Invest accordingly!

Da Bulls!

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After a surge in energy to the downside, the S&P completed it’s A, B, C pattern and has now made a Higher High.

S&P Daily ChartTechnically it made a Lower Low as well, but looking at the real bodies of the candles, it’s clear that the market rejected a Lower Low, put in a Spike Bottom Reversal Bar, and then broke the previous Cycle High.

The big move down put us into Bearish territory on my broad market indicator. However, that Bearish reading would not be confirmed unless the market stayed in that territory on the way back up. It has failed to do that, and it’s right back into Bullish territory again.

There is no Trend in the S&P right now. The 50 MA is flat and instead of having a Higher Low and Higher High, we have an expanding triangle, which is a consolidation pattern (not to be confused with a contraction pattern).

The move off the bottom on the Daily Chart is a bit parabolic in nature, just as the move down was. From a technical point of view, it wouldn’t be surprising to see the market go all the way back up and test the February High.

S&P 3-Day ChartSeasonal issues:

  • May is coming soon – a time when conventional wisdom advises to stand aside.
  • The up move started in July which is earlier than usual (late October is the “conventional wisdom” time to buy the market). So perhaps the up move could end earlier than May, though it is looking good for now.
  • It’s the third year of the presidential cycle, which is most often a very bullish year.

I’ve also included a 3-Day Chart (each bar represents 3 days) which is better than a Weekly Chart when looking for confirmation of the indicators on a longer term time frame. You can see that we’re likely putting in a Cycle Bottom here and still have a ways to go, so it wouldn’t be surprising to see this carry into April and even beyond.

Watch the next Cycle High and Low for clues, and keep your eye on the 50 MA!

You can click on the charts to make them larger for easier viewing.