The Focus of the ‘Transformed̵...
8 Responses to “The Focus of the ‘Transformed’”
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What Makes an Option Trader Great?...
12 Responses to “What Makes an Option Trader Great?”
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Mike S says:
Jeff, Thank you for the great tips to be a better Trader! Staying in Shape seems to be the toughest for me. Working a full time job, a side business and trying to make real gains trading, while also having a busy, happy family life leaves little time to work out.
The challenge is to step away, get physically fit and clear the head. There is always so much to do that this very (most?) important task is usually left to be accomplished after all of the urgent and pressing.
Knowing the problem is the first step to success. Now ACTING on this problem is the MOST important step to success!
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Dave Brawner says:
One trick that’s helped me subdue the FEAR/GREED monster is to redefine wins and losses.
By defining them as revenue and expenses I find my ego does not get as offended when a “bill” comes due.
We all know that not every trade works out the way we planned. No, STRIKE THAT, not every trade works out the way we’d like. Since we plan our trades then EVERY which ever way it ends, it was the way we planned it.
So whether it made money, or we spent money, the object like any business is to make more than we spend.
That is a profitable trader.
One other redefinition I use is to think points or pips during the trading day. I only count dollars after a trade closes, and usually after my trading day closes. This keeps my mind from fretting or spending what I haven’t yet realized.
As a formerly fully licensed securities broker in stocks, options, and insurance, I appreciate the way you help your clients manage a effective income strategy.
Keep up the good work, people will need it even more over the next few years.
Dave
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Jeffrey Ziegler says:
Boy does that sound familiar! I remember those days, Mike. Here something that may help…find 30 minutes at lunch to do H.I.T training (high intensity training). On Monday, Wednesday and Friday do full body interval resistance training and on Tuesday, Thursday and Saturday do sprints or jumping rope as hard as you can. I’m only talking 30 minutes per day…but it’ll make an unbelievable difference! One other thing…pack all your own food for the day. Get six small meals every 2.5 hours apart so your energy is always at the peak.
Hope this helps…
JZ
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A tip for MIKE S…
Staying in shape is tough for most people these days. With the proliferation of economic, job, time stresses, and fast food joints, it’s no wonder people are getting heavier and weaker each year.
The conspiracy theorists will point to big business and big government plans to enslave the mass populace, but I think we still have choices.
Ask yourself what will you be able to do better later today or tomorrow if you skip your exercise or nutrition plan right now?
It’s a mater of priorities and if you skip the most important ones, you’ll not likely succeed at the rest.
For a quick solution, look for Matt Furey’s Royal Court. It only take a few minutes in the morning, and if you wish, a few more in the evening.
I’m turning 60 soon and credit my health and energy levels to these quick exercises.
Best of luck with your trading.
Dave
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Adam Moon says:
Great list Jeff. Constantly evolving and persistance I think are most important behind discipline. Being that we live in an information age, it is so easy to get side tracked by the next “best” opportunity whether in trading or anything else. Persisting in mastering the foundation of trading basics I have found to be priceless. I believe your training course to be just that.
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Steve Schmidt says:
Great advice – I am changing a few things in my daily routine after going through an extremely trying and stressful family crisis. These 6 steps couldn’t have come at a better time in my life. Thank you for posting them and for everything you provide on you training subscriber membership websight as well.
PS How can I update my reply box with a different photo/avatar? Want to put in a market related picture that is more fun than the default non-personal one that is on there now. Thanks -
Tommy S says:
This is a great list Jeffrey, thanks for posting it. The hardest obstacle for me, without a doubt, is “Trading to Win”. Of course I always go into a trade expecting to win, but I definitely trade “not to lose”. I find myself taking profits early, in order to lock them up. But when I’m faced with a loss, I will hold on waiting for a reversal that doesn’t materialize and usually gets worse. It’s a situation where I am allowing myself to lose more than I will allow myself to win.
I would like to see more posts/videos that talk about the “mental side” of trading, and how to deal with issues traders face.
Thanks!
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Hey Tommy,
Thanks for the suggestion…Will do. By the way, did you get a chance to watch my Fear and Greed video in the members area? I talk specifically about this more in depth.
JZ
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John J says:
I read the book “Trading In The Zone” by Mark Douglas a few months ago. It is THE book for all traders! Highly recommended.
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Rebecca Laughlin says:
Hi Jeff, Great stuff in Zig’s Take! It’s so great to be connected to someone we can trust to help us in this business. There are so many snares out there, especially on the net. I’m thankful that the Lord led us to you. I am also taking the course you recommended with Mac X. Thanks for your lead on that as well. Keep us posted on how your moving forward on the Forex stuff as well.
In His Love ~ Rebecca Laughlin -
Hey – quick tag to previous comment – I got on to quickly comment on the Zig’s Take then saw the above post with the list of six traits. Just another example of the cool stuff you bless us with. Hours of homework summarized right there in a few seconds of reading. Thanks so much.
Quick grammar correction on above comment – “you’re” moving forward ….
Looking forward to more cool stuff – I’m soaking it up like a sponge!
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Is This Rally Rigged?...
17 Responses to “Is This Rally Rigged?”
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cmr says:
Of course it is… they wouldn’t dare voluntarily admit to their true colors and agenda this early into their term, if even ever… With that in mind, they absolutely have to rig it up. I submit that the global community knows/thinks the same.
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Jeff – at this point I can believe our government will do anything and this could just be another example. On the surface Obama goes after Wall Street bonuses while at the same time (if this is true) making those same people rich beyond their wildest dreams. So much for the little guy.
- Jeff W
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Yeah…makes perfect sense to me! This guy does sound like he knows what he is talking about. I have reading much about the US economy and current & past debt/credit bubbles to think that this rally is generated by real buyers of any kind. The FED has manipulated the economy by TARP and other means, the current Obama administration is corrupt (ACORN, ISEU, TidesFoundation by George Soros, and the Progressives) so the idea of market manipulation doesn’t surprise me!
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Dave L says:
Trimtabs often has a unique perspective, and this one is no different. However, claiming that the Fed is propping up the market in the background is a huge issue if true. But even if it is, I don’t think we have to worry about them unwinding too fast. In the short term its about earnings, intermediate term jobs, and long term the drag of deficit & taxes on the economy.
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Joel says:
This doesn’t surprise me at all. I know a Goldman Sachs (GS) employee who told me last June in an indirect way that GS was telling all their large clients that the rally would last at least until the first of the new year (2010). GS has been a heavy trader and was the recipient and middle man of a large amount of TARP money.
There has never been a public disclosure of what has happened to all this $. -
Sam says:
Hey Jeff, of course it’s rigged – thanks for passing this on. There is no doubt in my mind that we are being deceived and manipulated – this video makes sense to me.
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woody says:
I am a fan of Greg Roy and he believes this too. I can’t get my mind around the fact – no wonder they don’t want to release what the fed has done with the money
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Robert Carr says:
GS has been a leader. Using stimulus money they have done a lot(probably more than a 100) million share trades for themselves last year. Can you move the price of a stock with that size trade. GS has been front running and making a ton. It’s illegal but with
Geithner and Bernacke in charge who is going to arrest these crooks? -
mark leach says:
hey jeff,
I have suspected this or similar from the govt for many months now…the s and p website used to post pe ratios and it stopped last oct or nov @ 138 to 1…can u imagine? now might be around 90 or 80 to 1…looks like crash is coming! i would be prepared with at least 25-50% of a portfolio in physically owed silver or gold…what do u think? why else won’t the fed let an audit take place? but good time to be a spread trader…plus by crash insurance…
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Peter says:
Jeff,
This sure backs up what you have been saying this last few months about the inconsistances between the Economy i.e Companies going bust, unemployment and retail and the stock market prices going to silly levels.
Could be woth putting some Puts on before a possible down turn you have been predicting.Peter
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Marty Portner says:
This is a rally like no other. Gloomy news is transmuted into higher prices based on the fact the it is “not as bad” as expected. WHOSE EXPECTATIONS? So-called, anonymous “Analysts”. C-R-A-Z-Y!! I can’t wait until the truth comes out, which it must!
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Jeffrey Post says:
This rally is definitely rigged. The President’s Working Group on Financial Markets (Plunge Protection Team) made up of the Head of the Fed, Treasury, and SEC are all in on it. The president gives the word and the Plunger Team goes to work with Goldman Sachs and Pimco that buy futures to prop up the market at the open, and Goldman Sachs has software that front runs the market to drive the market during the day.
The FBI caught a Russian programmer about 6 to 8 months ago who was working on the software for Goldman Sachs. This programmer stole a copy of the front running trading program from Goldman. The FBI said that it was a good thing that they caught this guy as he could manipulate the markets with this software. They returned the software to its “rightful owner” Goldman Sachs. So, I guess it is OK for Goldman Sachs to be able to manipulate the market.
Any wonder why Goldman Sachs had record profits a quarter ago during one of the worst recessions in history… it was from all the trades that they were making in the market using their proprietary (and illegal) software.
Who cares though… I use credit spreads and am consistently making 5.5 – 7% very conservatively every month.
Regards
Jeff P.
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Al Coven says:
You have been looking for a sell off for months. If the Government is buying the futures, that could be why the rally hasn’t stopped. How long can the rally continue?
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It really is a hard pill to swallow. When the top comes and things begin to plummet, get out of the way because it’ll be like catching a falling knife. What goes up must come down. Who knows how far it’ll go. Some are claiming a double dip…either way it doesn’t matter, just keep the probabilities on your side and sell those fat juicy premiums…. like all you savvy option traders.
JZ
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Hi Jeff,
Here’s an article from another option trader named Jeff Clark from Standberry and Associates Investment Research that goes hand in hand with your blog post:
Is the Government Manipulating Stock Prices?
By Jeff Clark
January 21, 2010After a 20-year career trading S&P 500 futures contracts on the floor of the Chicago Mercantile Exchange, my friend Charlie suddenly retired last November.
“There was no way to protect yourself,” Charlie said to me over lunch a couple weeks ago when I asked him about his unexpected decision. “This guy would walk into the pits and just start buying. It was unconventional. He’d buy at times when it really didn’t make any sense – at least not to those of us who’d been around for a while. And he’d buy HUGE.”
“It got to the point,” Charlie continued, “that we’d have a bunch of our interns just watching the guy when he was off the floor. We’d know if he took a phone call. We’d know if he’d gone outside for a smoke. And we’d know if he started walking in the direction of the pit. That was our cue to start buying futures contracts ourselves – just to get in front of the guy.
“I knew it was time to retire,” Charlie sighed, “when I started planning my trading day around this guy’s bathroom breaks.”
For the past 20 years, conspiracy theorists have engaged in stories about the “Plunge Protection Team” – a group of traders funded by the Fed whose sole purpose is to prop up the stock market. I never really bought into the argument, though. After all, an awful lot of people “in the know” have to stay quiet in order to keep the conspiracy going. And it’s unlikely any group of people can maintain that sort of silence for two decades.
But Charlie’s story got me thinking.
Then, last week, Charles Biderman, CEO of TrimTabs – one of the most respected and widely read financial research organizations – published a report that raised the possibility that the Fed is actively involved in boosting stock prices.
In the article, Mr. Biderman suggests it would only take $5 billion to $15 billion each month to buy enough S&P 500 futures contracts to boost the market 70%. Surely, with all the hundreds of billions of dollars used to prop up the real estate, auto, and banking industries, it’s reasonable to suspect the Fed might use a few bucks to prop up stock prices, too.
At least it’s something to think about.
I’m still not sure if I can completely buy into the whole conspiracy theory just yet. There is, however, one thing I do know for sure…
If the Fed has been actively engaged in manipulating stock prices higher, then it can manipulate them lower as well. You won’t want to be the one left holding the bag when that happens.
Best regards and good trading,
Jeff Clark
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Jack says:
Jeffrey,
This is exactly what is going on. One of my sources explains it quite a bit. Visit http://www.philsgang.com where about a week’s of radio show archives are present.
You will be doing a number of bear call spreads pretty soon.
Jack
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Thanks for the info Jack.
I’d love nothing more than to see the VIX above 40 again, and just clean up on Bear Calls for 2010.
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You Can’t Score on the Sidelines...
5 Responses to “You Can’t Score on the Sidelines”
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Howard says:
G’day Jeff. Pity about the Chargers – I’m a fan because I lived in San Diego for 2.5 years (1985-87). You are right, of course, you can’t win if you are not in the game. I can’t win yet because I only received the training manual a few days ago, but am getting into it.
Go Chargers! (next year!)
Cheers,
Howard -
Hey Howard,
It won’t take you long. Before you know it you’ll be able to trade spreads with your eyes closed.
Who you picking for the Superbowl?
JZ
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Hey – loved the way you mixed in trading tactics with sports and the SuperBowl…I’m gonna go with the Saints just because I think it’s the 1st time they’ve ever been to a SuperBowl but I could be wrong about that…anyway it’ll be a fun Sunday – kinda like a semi-national-holiday…get out the chips, dip a couple of Strohs Fire-brewed
beers and take a well deserved break…Go Saints hahaha
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All Star of the Month...
5 Responses to “All Star of the Month”
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Lucia says:
Wow! Way to go, Rebecca! I look forward to meeting you someday — if not here, then in Heaven! This was just the boost I needed, being a mom of 5 kids who will probably return to homeschooling this next year. If Rebecca can do this, I can do this. We’ve got a great teacher in you, Jeff!
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To Jeff – thanks so much for your encouraging words and for all of your help. I don’t like to bombard you because I know how busy you are, but you seem to never be too busy to respond when I need help. There have been a couple of times I didn’t go to you that I really wish I had! I look forward to a life long (which will be a long life) experience of trading together. Stay blessed!
To Lucia and any other moms out there – Lucia, thanks for your response! You really can do this. It’s not difficult. My family and I did make a few small sacrifices in the very beginning while I dug into the material and practiced to learn because I wanted to take it in and get started on bringing in real profit as soon as possible. But it wasn’t very long and nothing compared to the rewards that it’s now bringing. What ever pace you need to go, just keep at it and don’t give up. The reward is life long and life changing! With God, ALL things are possible!
In His Love,
Rebecca -
Thanks Lucia!
With 5 kids and homeschooling you deserve a round of applause as well. If you keep consistently practicing trading and apply the tools in the Membership site… I will be looking for you to be an All Star here soon!JZ
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Thanks Rebecca for your comments!
You are an inspiration to others, who are just like you, to stay focused on your goals and work towards them everyday… and the results will follow!
JZ
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robert says:
very encouraging to see stories like rebecca’s. i have to echo her praise of jeff and his website. i got the course in oct. 2008 but did not dig in in earnest until 2009. at this point i am truly beginning to treat this as a business and as a retiree with 2 daughters in college am beginning to realize the benefits of option trading. thanks jeff
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I think its the difference between those who pursue trading as a profession vs those who are looking for easy money. That said, I can understand why someone new would ask how much they can make and how long it’ll take. Almost all young people ask that, and rightfully so, as they go into college and look to their future. Once someone approaches trading as a profession, vs some quick money lottery scheme, the odds of them being successful go up dramatically. The next hard question? What >kind< of trader does he want to be?…………
Hi Jeff,
I couldn’t have agreed with you more. This is exactly what happens with every trader. It also had happened to me. I used to focus lot on the end results of profit and loss. I have chnaged my thinking a lot after I watched your video regarding learning from past trades. I went back and jogged down all the trades and then started learning from each trade. Because of this, I have become more disciplined in my trading. Today, I focus only on two things, Why am I taking a particular trade and what is my trading plan for that particular trade. This renewed focus has provided a great sense of relief since I don’t change my plan but I learned from past trades and become a better trader that can handle any situation.
Thanks for your post..
Dharmesh Shah
Thanks, Jeff.
This is exactly what I needed to hear right now… as well as a few months ago. I started off with a bang and wildly successful, both paper trading and real and at one point thought I might have been close to winning the Apple TV.
In June-09, I was put in a situation where I had to begin focusing on $’s results vs % results because I needed monthly income from this. Unfortunately, I let the plan and the technical aspects of trading become secondary. Yes, this does lead to “gut” trading, more risky trades, trading from the hip, losses, not managing account risk properly, trading with my ears not my eyes, etc… and ultimately confusion and frustration. (Kind of feel like I’m in an AA group right now… lol)
I became approaching trades in an “afraid to lose” mindset and decided to “quit” for a few months to “reset” my head and newly acquired habits. If I didn’t change something and quickly, I would not be able to do what I’d always wanted to do for long.
I went back to paper trading account after “the quit” and have only done a few trades in live. I want to make sure that when I go back in, full guns, I’m thinking like the Transformed.
It is my undying goal to Trade full time, just no longer pressing myself for it to happen “tomorrow”. Patience, diligent training and God’s plan for me… are my new mindset.
Hope this helps someone. And Jeff, certainly correct me on any of my thinking here that you feel should be different…
Have a good day, All.
Hey Darmesh,
Good to see you here on the blog. Isn’t it amazing how that one simple act of the writing things down in a trading journal helps clear the mind? Every time I shoot from the hip I get burned. But when I focus on trading well, and planning out in detail what I’m going to do…Amazing Difference!
Are you using the trading journal worksheets that I put in the membership site?
JZ
Cliff…You are on the right path. Thank you for taking a moment out of your busy day to post this. I guarantee someone will benefit big time. Are you using the trading journal worksheets in the membership site?
JZ
Jeff,
This reminds me of the folks who trade without a plan or any idea about managing risks.
It’s been said that once a trade is placed, the only thing you can control is when you you get out. You can’t control the prices or their direction, you can’t take a “do over” on the entry.
You can only manage your Take Profits and Stop Loss strategies.
So, like the baseball player who can only control the fundamentals of executing his swing, the trader can only control the fundamentals of executing their trade strategy.
Once at the plate, or at the computer screen, both have to rely on their training and practice to execute their game with precision. The batter hits the ball, the trader takes the trade, yet, neither can be certain of the outcome of any particular “at bat”.
The fly ball could get caught, the great trade setup could turn south.
But like the player and his stats, the trader who trains and executes with precision will eventually earn the highest “batting average” and salary.
As author of “Awaken Your Speculator Mind,” it’s refreshing to see someone else believing the importance of trader mindset. Let me add, though, that trader transformation is also an ongoing process, not a final destination. – Good article!
When I stopped aiming for Home runs (big killings using directional trades) and started focusing on base hits (smaller but steady credit spreads where I don’t have to be 100% correct on direction and timing) I stopped losing money and started making steady income every month. Thanks Jeff.