Foreign Intelligence

In this era of globalization, it's a wonder that some people would still base some of their trading decisions on which broker is buying/selling a stock. 

This is especially baffling when people would be influenced if people would buy just because a certain broker, usually a 'foreign' broker, is buying.

Is it because of some remnant of colonial mentality? Which is defined as the following: 

Are foreign brokers (if foreigners really are the ones doing the buying/selling) really superior to local brokers? 

Do they have access to some super secret formula that cannot be shared to local brokers? 

Are they really omniscient that they will not take in losses? Or make bad trading decisions? They are still people after all. 

What if I open an account in one of these foreign brokers, will my processing unit be automatically upgraded with this so-called foreign intelligence? 

The idiocy of some stock market myths astound me sometimes.

Finding yourself

There is a thing called the rorschach or inkblot test. Humans are asked what they see in an abstract image. There are no right or wrong answers because it is actually a trick. Their answers reveal more about them then what is in the actual inkblot. 

Viewing charts could be the same way. Different people looking at the same chart would give different views. For example:

"looks expensive"

"BREAKOUT! ALL IN!"

"take profits"

"too bad. sold early"

"I'm not convinced, will wait another day"

"Can I still enter? Is it still safe to buy?"

Another example is this:

"avoid!"

"time to bodega"

"nowhere to go but up"

"I'm an investor and am waiting for future profits"

Two very simple charts. But it can give a wide variety of responses. And this is just a chart with MAs. What if you add in the different indicators? RSI, MACD, STOCHS, STS, FastK, etc. 

Mayhem. 

Analysis Paralysis.

This is why having a simple trading system can be beneficial. Less is more. Having set rules on buying/selling, strategies for the multiple trade scenarios. Having a trading plan is the key to success. 

Going back to the inkblot test and the charts, being able to identify your trading personality will help you to pinpoint make the necessary changes or upgrades to fix any deficiencies or weaknesses in your trading profile. Maybe you don't need an overhaul, just a few tweaking. 

But hey, this is all just the ramblings of a robot. 

Of Half Truths and Faceless Men

"Valar Dohaeris". All men must serve. Faceless Men most of all." ―"Jaqen H'ghar"

In the series, Game of Thrones, there is a small sect of people who worship the many faced god. These people are known as the Faceless Men. They are assassins of the highest caliber who are able to change their faces at any time.

Just like the Faceless Men, the personalities in the tribe come from a wide spectrum of real people. From all over the world. Again, similar to the Faceless Men assassins, we have been taught to be able to strike at a stock with precision and without mercy. 

Now, is it important to know who we are behind the troll/mask? Would it make a difference? Should it make a difference? 

NO

We believe that only the results matter. Who we are should not even be in the computation.

Being anonymous could be seen as a representation of shedding our past stock market personas and mistakes and taking up a new face that we can present to the world. A world that will judge us by how we trade. Not by our profession before we started trading. We may have been chefs, programmers, analysts, OFWs, seamen, doctors, marketers etc. And again, it should not make a difference. 

This is the lie that some people have perfected. They will flash some credential of coming from a prestigious school or profession. Some will claim to be rubbing elbows with the rich and famous. Or even knowing the owners of a stock. They will say that the only way to getting rich is to know someone who is rich. In a way, they are right. But this is just a half truth.

Yes, you could get away on tips and so-called 'instincts' but what happens when the tips go away? If the people who you relied on to give recommendations or picks just stopped giving them? What if that hot stock pick was really just a scam? Or if that mentor was actually just a rotten fraud who could only give a half baked understanding of a more complex trading system?

Burn baby burn

Then like moths drawn to a flame, their followers will follow blindly until they get burned. For what they are preaching is not something that is sustainable. It is all just lies. 

Which brings me back to the power of our anonymity. We will not blind you with our prestigious degree or school. Our only way to convince you of what we are preaching is our results. Judge us not by who we are. But by what we can do. 

Just some trades the last 2 months

If a chef, doctor, marketer could do this, why can't you? Look around you, we could even be hiding in plain sight.  

Art of War: the 300

Given the current state of the market, it looks like it will be a tough 2016 for all. The recent breakdown of the support is a major red flag that everyone should be aware of. 

Money can still be made, but it might not be as easy as in recent years. Buying the dip strategy might not work anymore since it could turn into catching falling knives, swords, axes etc.

Sometimes it is best to know when to stop first and look for alternative strategies. Turn off the breakout mindset and switch on the bounce play techniques. 

Don't have a long term view. 
Cut your losses to be able to fight another day. 
Protect your capital.

For now, all upticks in price should be viewed as short term rallies or chances to get out or just quickie moves.

Hey, even the spartans knew that they were fighting a losing battle. Imagine yourselves as the 300 spartans. You have the better fighters but you are up against an army of millions.

When faced with such a formidable foe, they didn't face them head on but resorted to guerrilla tactics. They made the persian army fight them by their rules. Quick strikes. 

In the end, even after all their efforts, they knew that they were just stalling. That they just had to hold their ground. Waiting for the reinforcements or for their army to come. 

Now think of your capital as the spartans. The persian army as the ongoing selling force. Your capital can't make the selling force stop. It can't. But you can still have small wins here and there. All you have to do is to weather the storm. Hold the line, try not to lose too much capital. You're stalling until the reversal comes. When the bulls come back. 

And that is the time to go all in.