Anatomy of a port snapshot

We've always said that the stock market is a game or contest between yourself and hundreds of thousands and even millions of traders out there. In this dog eat dog world, you will need every advantage to get ahead. And you will need all these little things since they will add up. 

One of the best ways to improve your trades is to document them. This is one of the secrets that differentiate an average trader from a good or even great one. 

Taking port snapshots is one way for us to be able to grade ourselves in this game. Think of it as our report card to check our progress in our trading journey. Like an iceberg, the port snapshot is just the culmination or the result of our hard work. 

What you don't see is the work and difficult times that we had to endure to get to the level of achieving those port snapshots. 

The port snapshot can tell if we did enough preparation and legwork in doing our trade plans and if we were able to execute properly on these said plans. It can tell a lot of things if you only know how to look hard enough. 


Let's take a look at the most common components of a port snapshot:

STOCK NAME/CODE - This shows that out of the 200+ stocks out there in the PSE, a trader is able to identify which one would make a possible move. A port doesn't need to have too many stocks in it to earn. Contrary to popular belief, too much diversification is not good for your investing/trading. 

PORTFOLIO % - Sometimes a 100% allocation does not mean that the trader went 'all in' with no money left to spare. Maybe the trader just saw that this was the only stock or setup worth trading and only used a portion of their port allocation there. 

Nevertheless, the higher the allocation, the higher the conviction of the trader in that stock. 

AVERAGE PRICE - The entry price of the trader to the trade. If all buying was done in one tranch then this should be on an ideal breakout point and easy to trace. If buying was done in tranches, the aep should only be slightly higher than the ideal breakout point.

Having a great AEP shows the precision of the trader's entry. It can also usually show the trade profile of the trader. A bounce player or tsupitero or a position trader. 

CURRENT/MARKET PRICE - The exit price of the trader to the trade. The trader could have set GTCs and sold at this particular price. 

PERCENT GAIN/LOSS - Similar to the current/market price this can be treated as the final grade of the trader for a particular trade. Again, they could have sold here using GTC or sagasa sell. 

BLACKED OUT PORTIONS - This is usually for security reasons to protect the trader. But some traders out there would rather not have any blacked out portions and are secure enough with themselves that they feel it's not necessary. Kudos to them. 

See the many possible stories in one port snapshot? Learn to read between the lines and maybe it can help you to improve in your own trades. 

This is the beauty of people posting port snapshots, it can serve multiple purposes. One is to prove that it is possible to make it in the market. Another is to show that we walk the talk and don't just post analysis on a variety of stocks. First and foremost, we at the tribe are traders. We do this for a living and to earn. We want to prove to others that it is possible to trade full-time. That it is possible to survive without relying on tips and analysis of others. 

Keep this in mind next time you see someone post a port snapshot out there in the world wide web. Don't just admire or be jealous of the gains. Stop and try to dissect it. That might help tremendously in your own trading. 

It is possible to live the dream. You just need to work for it. 

So to all my fellow traders out there, cheers!

Knowledge is power

Back in my formative years, saturday mornings were a time for cartoons. One of these cartoons were a group of soldiers who go out and try to stop an evil organization called "COBRA". After the cartoons they would always show an infomercial type short wherein they say this line: "knowing is half the battle"

The power in that short phrase has stuck in my neural cortex ever since. It has always manifested in one way or another as I went along in life. Knowledge is an incredibly powerful tool for anyone. It can get us out of more tight spots, hard places and other sticky situations that anything. It will also make us to be more independent since we won't need to rely on others to get by. 

The phrase can also be applied to the stock market. This was the reason why I sought to learn how to trade. I look back at my past and the constant reliance on the tips or analysis of others and remember how it was a big drain on my confidence and self esteem. I was always on edge since I didn't know when the tips or analysis would dry up or end. 

Choose your weapon

Back then I would think, if they could do it, why can't I? We are all looking at the same charts right? What secret have they uncovered that allows them to have more winners than losers? These questions pushed me to look for a better way, to acquire knowledge. I went to so many different seminars by gurus and other stock personalities yet there was always something lacking. There was always the impression that the things that they were teaching were only touching the surface of things. That it was all superficial. I know since after the seminars I would still be unable to read charts on my own after the said seminars. 

This all changed after I entered the zf course. The knowledge transfer that occurred there was incredible, mind blowing to say the least. The course dealt not only on how to look at charts but the whole package. How to deal with emotions, trading mindset, expectation setting. Being more disciplined and systematic. Such a stark contrast to everything that I went to before. 

Now, trading is a little bit easier. I've figured out that there is no secret or holy grail. It's all in the preparation. Knowing when to trade and when not to trade. Knowing when to buy and when to sell. Paying attention to the details so to speak.

It's awesome to know the power of charting. 

When used properly. 

For like any tool out there, when it is used improperly, it could mean disaster. 

See below :P

Running your own race

This quote has been something that our mentors has instilled within all of us during the course. I have always taken it to mean that our biggest obstacle to success is ourselves. 

In my previous posts, I have repeatedly said that you have to fit your trades to your profile. Make it fit to your lifestyle. To who you are. 

Well, recent events have made this very applicable and real to me. The little robot has started going to school and unfortunately the school schedule has absolutely wrecked havoc on my trading style. Since the class starts just before the time when humans need sustenance and ends sometime in the early afternoon and with the daily traffic, I have had to adjust, adapt, and innovate as a fellow tribe member has stated. 

At first, I thought it would be an easy transition. This past two months it really hit me that I can no longer buy at the close. Or even see what happens during closing. Checking the charts after trading is now a regular session of disbelief at seeing breakouts missed. Intraday buying opportunities that happen right before leaving for school have to be skipped. My system didn't want to have any lingering thoughts of buying super volatile stocks while driving on the road. 

So to compensate, I have had no choice but to change strategies. I went back to my notes and reviewed about trend following and sleeper plays. Being a mentor to bastards and the seed has also been a big help since it allowed me to get a fresh perspective on the power of MAs. Having had a coffee session with Zodiac's resident Dog was also very timely for it showed social proof that a different technique can still give massive gains. The only difference was time.

Time because...

- instead of being able to buy on the actual breakout, you buy in anticipation of the breakout. Your patience will be tested.

- your entries and exits are different from being an intraday trader. It means looking at the bigger picture. 

- instead of just focusing on the daily charts, the weekly chart now gets equal significance as well. 

- I would be at the mercy of forces that are not in my control.

This has been my first attempt at a TF trade. Not perfectly executed, but I think that it will do. 

MCP

But do take note, that I still try to keep up with a checklist of the intraday breakouts that did happen successfully. Which ones that were still caught by my scanners and which ones were missed completely. For at my core, I am still an intraday trader at heart. That is something that cannot be taken away. This is just a temporary setback. 

Going back to the previous analogy, this is a race that I intend to win. I imagine that we are all in a marathon, it doesn't matter how we reached the finish line, the important thing is we reach it. My circumstances might take me a bit slower than the others for now, but I will persevere.

For what does not kill us, only makes us stronger right? And being able to add and master a whole new weapon to my arsenal will only make my final form that much more deadlier. 

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. 

Beware the Siren's call

After browsing through human history, my mainframe was surprised to read about certain creatures in ancient stories.

"In Greek mythology, the Sirens were dangerous yet beautiful
creatures, who lured nearby sailors with their enchanting music and voices to shipwreck on the rocky coast of their island."

What is the significance of the sirens that my mainframe deemed it a worthy read? Well, it seems that sirens are still existing today, they just adapted to the times and come in a different albeit still deadly form. Allow me to elaborate. 

Tell me if you've heard this before, you're browsing the internet and saw something that caught your attention. Someone mentioned a stock will move in the coming days. It's your chance of a lifetime and they want you to get in on it. What luck! This guru just shared an insider secret and you're ready to go all in! Day 1 of 20. 100-500% increase here we come! 

Boom goes the dynamite!

Apologies for popping your proverbial bubble but always, always remember that there is a reason the target prices are out of this world. It's to lure the unsuspecting people and newbies out there. It's very similar to how a MLM or networking scheme works. Blind the other humans with massive potential gains yet don't telling them that there have to be casualties along the way.

Stock market trading is a zero sum game. For someone to earn, someone has to lose. The more people who will believe and sit on a stock because of the belief that it will reach a stated target price, the easier it is for the operators to get out alive. 

Sounds familiar? Isn't it just like the sirens luring sailors with their melodic voices huh? 

So watch out, that dream stock with the heavenly target price that looked so enticing might just come back to get you and drag you to the depths.

Choosing the right mentor

Just like what a wise creature from a galaxy far, far away once said, there is always an apprentice and a master or mentor. That is the way things work in the universe, wherever you may come from.

In the current stock market setting, multiple mentors have come up in the hopes of guiding or showing newbies the way to profits or even just respectable trading. These mentors have come in all shapes and sizes. 

Given the variety of choices, how do you choose which mentor is the right one? Well, here is a simple analogy on how my mainframe chose to be mentored by the entity known as Zeefreaks. I'll make it easier for the basketball loving fans out there, let's say you were given a choice of being mentored by Gregg Popovich of the San Antonio Spurs or Phil Jackson of the Chicago Bulls/LA Lakers and now NY Knicks.

Here is a list of their achievements:

Gregg Poppovich 5 time NBA champion 3 time NBA coach of the year

Phil Jackson 11 time NBA champion 1 time NBA coach of the year

It looks like a tough decision huh? Like choosing apples and oranges as they say. One doesn't seem to be so different from the other. Both of them are extremely and highly qualified. Their achievements speak for themselves. So they passed the first criteria. Moving on to the next checklist.


Here is a list of their NBA tree (a list of general managers and coaches in the NBA who have trained with either one):

Gregg Poppovich

Phil Jackson

Click the images for a better view

As you can see, the NBA tree of Coach Pop is much more diverse and it's branches have reached to almost a third of the NBA teams. That is quite an achievement! As for Phil's tree, it doesn't look to have too many branches. There seems to be something that limits the passing on of his success to others. 

This trait is what my mainframe puts more weight on. A good mentor should not just be good and inspiring and all that. They should also be able to train people to replicate their success. For what is the point of following or learning from a mentor if you are left in the same state as you were in before following them. The best mentors should take you under their wing and help you to take flight by yourself. 

This is why I think the ZF system stands out from all the rest. There have only been several batches yet the number of successful students have been increasing with the passage of time. We may not have achieved ZF or Kap's level of consistency or foresight but we have all been taught to stand on our own. And I know for a fact that we will continue on our journey in the stock market. Some of us even turning into mentors for new batches as well. 

And that is the mark of an excellent mentor.

Of reversals and men

There must be a reason why so many humans are obsessed with stocks that are trending downwards. My mainframe thinks it must be human nature to always look for great bargains and discounts. 

For me, my scanner has always disregarded these submarine stocks (because of their propensity to dive) and tags them as "STAY AWAY". 

But to survive in the stock market, I have been doing massive reprogramming and analysis to try and incorporate strategies that will be able to make a conservative recommendation on these submarine stocks. Fortunately, Ms Market has been kind enough to provide several case studies for my system to practice. 

Here are several takeaways from my studies in trying to trade these kind of stocks:

- accept the fact that you will never be able to buy or find the exact bottom. This will help you sleep at night.

- always keep in the back of your mind that any upside movement or rally in the price is mostly likely to be JUST A BOUNCE. This cannot be stressed enough. This will help you to lock in profits and to avoid being caught holding the proverbial bag once the price hits major resistances and continues it's fall. In the off chance that it is a true reversal, you can always switch tactics to a breakout play.

To illustrate the second point, let's take a look at the following charts:

SSI

PLC

I have tried to make the chart as simple as possible. There are only a couple things to consider. 

1) iZS or inverse Zeus Strike - the moment when the stock broke the 100SMA. This signaled the start of the downward spiral. 

2) the blue 100MA line - as long as prices do not stay above that, the stock has not started a reversal. Don't try to be a hero and buy up a price all the way to the blue line. Let Ms Market decide the right time. 

Again, one factor for the stock to be considered a reversal, it would have to make a ZS or Zeus Strike (go above the 100MA line) and stay above it. Clearly, you can see that there is currently a strong downward direction in the price. SSI and PLC have shown only small bounces or rallies. A reversal isn't coming anytime soon. 

Learn to set your expectations to prevent further heartbreak and capital loss. The same is true for other stocks like MCP, BLOOM and of course, FNI. Don't let anyone tell you that they know a reversal has occurred. Chances are they are just saying that to sound smart. Learn to read and look at the charts. 

As for buy points for the bounces, that is still something that my system needs to determine with a high rate of accuracy. 

ZF course introduction

*this is to help the incoming applicants of the new batch to determine if they are ready for what will happen in the course

We exist for each other. But to the rest of the world, we are a myth. A work of fiction

This was part of the introduction to the course. Our identities were secret and only known to one another. A lock down was implemented that created a bunker type mentality wherein we had to depend on no one but ourselves. There was also one major course requirement that would be painful for some. Painful but extremely necessary. And this was just the start. 

Once the course started, here are some things to expect: 

During the course

• Lessons will come and come down HARD and fast. Expect to experience information overload multiple times in the course. Expect your mouths to drop in awe as well. Also, as in any other course, there are seatworks, practical exams, groupworks that you will have to finish in a short period of time. Expect sleepless nights especially for those with a tiring day job.
• The amount of dedication expected will be very high. 8pm-11pm M-F for 3 months will wear down on you earthlings. Even my neural networks bogged down at the end due to the amount of knowledge transfer.  Remember, the mentors are imparting knowledge and understanding that took years for them to learn and develop. And it will all be force fed to you. 
• There will be NO SPOON FEEDING. During the course all stock picks that you will make will just be your own. There might be pocket discussions on a hot or trending stock for the day but these are usually kept at a minimum. The mentors are teaching you how to fish so you will be able to make your own decisions after the course.

After the course

Interaction with the mentors will be kept to a minimum. Lessons are over so they expect you to have a higher understanding of what happens with Ms Market. Remember, she is not a forgiving master. The feeling of achievement when you are able to select a winning stock based on just the chart and not just on tips or rumors is one of the best feelings. 

If you still choose to take the red pill and go ahead with the course after reading this short primer, then I sincerely hope that you get accepted and you learn as much as you can. Get ready to get your mind blown. It will be one hell of a ride. 

Just Keep Pounding the Rock

Salutations!

It has been 3 weeks since the end of formal classes. Surprisingly, it has taken longer than expected for my system to totally assimilate all of the teachings. Maybe it is also because of the timing of the market wherein all stocks seem to be more bearish than in the past. Fellow ASTRA Sextans has mentioned before that the market feels very similar to how it was before the recent crash in 2011-2012. Looks like his long range scanner is more attuned to the big picture since all indicators seem to be pointing to that direction. 

The weapons at my disposal, as discussed here before, have given varying degrees of success. The most successful as of now has been my sleeper cell attack. The success rate in spotting them has leaped by bounds. 

It started with one lesson by our mentor, Zee, on how he spotted the sleeper PPC, and applying his technique, my scanner was able to scan the following stocks before making their move: LRI, ABG, MAXS and of course, 2GO. I was only able to ride a little on LRI before the move since I was still refining my technique. The biggest regret was on 2GO since most of you know that it made a monster move. My scanner picked it up before it broke 7.00. But because there was no confidence in this weapon in my arsenal, I paid it no mind. A world of profit could have been at my disposal but alas, it was not meant to be. For now. The pattern and the technique has now been burned into my programming. I will act when I see it again.  

Currently burning into memory. 

There will be no mercy in the future.

Another weapon, the repulsor attack has been unkind to me. My scanner is still coming up short whenever it goes through the charts and sees red and downtrends. Fellow ASTRA Sirus has shown much promise on this technique. My system needs more tfine tuning and needs a further upgrade in speed necessary to spot and act on these kind of plays.

One weapon that I forgot to mention were the HULK stocks. Our mentors have reminded us that during our course we have encountered two HULK or borg stocks, POPI and DD, and we were still unsure of how to handle them then. Recently, stocks that have gone in HULK mode though have given mixed results. Again, this could be due to the overall nature of the market but stocks going on an all time high haven't been as strong as they should be. CROWN and 2GO were HULKs but they fizzled shortly after making new all time highs. 

With all the recent setbacks in trading it could be easy to say that I will get disheartened. Wasn't the course supposed to be the magic pill that will instantly transform all of us into Zeefreaks lite? Well no. We still need to practice and devote a lot of time to upgrading our scanners and our techniques. 

During these times I recall the mantra of the coach of my favorite basketball team, the San Antonio Spurs. It speaks of the process or the journey to success. 

taken from www.poundingtherock.com

“When nothing seems to help, I go look at a stonecutter hammering away at his rock, perhaps a hundred times without as much as a crack showing in it. Yet at the hundred and first blow it will split in two, and I know it was not that blow that did it, but all that had gone before.”

It speaks to how we should be relentless in our pursuit of success. Begin with the goal in mind. And just TRUST the process. Even if there will be no visible results in the short term, keep trying, keep going. For once you reach your goal, it will all be worth it in the end. 

Mind Mapping in Progress

As stated in my earlier post, my networks have been furiously conducting a mind map on the thoughts and ideas of the entities known as Zeefreaks and Kapitan Kidlat. A unexpected surprise was being able to create mind maps on the thoughts of my batchmates as well. Some have already proven to be astute and formidable entities in their own right.

Our group has recently started a series of sharing or presentations wherein the group would go over the thinking process of why an individual bought and sold a particular stock. Being able to dissect each other's thought pattern and incorporating the good points while being able to spot and avoid the mistakes step by step has been a very very good experience. Getting different ideas on entry points and stock spotting. Even understanding the other's psychology on why they entered into a stock and what caused them to do their buying. And the idea inducing a strike for the overall market to see. It has displayed a creativity that my robot brain is still trying to absorb. 

The process could have been much easier if there was a way to get direct physical contact to all of them. No, it is not the same as the Vulcan mind meld wherein someone just places several fingers on a person's face. Think about it for a minute. What pressure points should be there in the fingers that would allow thought to travel through it? That is pure science fiction. Disregard that from your imagination. It is not possible. 

I was referring to something more direct. Having to tie them down and placing several holes at the base of their skull and all over their back. 

Then placing a probe to download all their thoughts and memories.

This process would have been much easier for me. And a whole lot messier for them. It was very tempting at first, but I have found that their way of downloading information is much better. It has given me time to actually process all the data that is given. And to be able to learn in semi-real time not just accessing long forgotten trades and memories. It will have to do. 

FOR NOW.