Cash as a position

Since the end of the course, I have realized that the amount of time that my position was in cash has been more than when I started the course. That is a difference of 4+ earth years as against about 2 months of informed trading. 

I credit this newfound respect for having a cash position to now having the patience and ability to wait for the perfect setups. The ones that will make the most amount of money in the least amount of time. My system has identified a couple of these setups and is already compiling a library for it. Being in a cash position has enabled me to act on these setups when they do mainfest. 

This is the exact opposite of how my previous versions was doing trades. My portfolio then was always holding stocks waiting for it to move up. Stocks like LC, BHI, ACR etc. Bodega moves as some would call it. Since I was already holding these stocks, if there was any other stock that made a big move within the day or week, I could just do nothing but stare and say what could have been or if only I had some cash. 

'Nganga' mode engaged

I am perfectly sure most traders out there have experienced that situation. Always thinking what if a trade was executed when it was going up. Or reached a certain level. Then it goes up again. Oh, so many possibilities! So much lost potential. Of course, the opposite is true. If a wrong decision was made, the appropriate cutloss action should also kick in. 

Another benefit of being in cash is your port will not be affected during red or bloody days when the big bad bear shows it's ugly face. You can just watch and sit still. Safe from the carnage. 

The power and flexibility of having cash could be likened to boxing. In the words of one of your early earth athletes:

This is how I view my portfolio right now. Always floating, waiting for the seemingly perfect or right setups. Then having the ability to strike with precision or going for the knockout blow. And that has made a world of difference. 

Q&A: ALL IN Mentality

Putting all your chips on the table

One of the more frequent questions that I get from PMs through Facebook is:

Is going all in part of the teaching of the course? 

Well, it was discussed briefly. It was not something that the mentors prodded or told us to do. But the philosophy of it was discussed. 

Here is just one robot's take on it. 

It takes a special kind of crazy to go ALL IN. Even more if it is in speculative or basura stocks. But I wouldn't have it any other way sometimes. Especially if my scanners are seeing that there is a perfect setup or there is an abnormally large volume of buying in one particular breakout. The sense of accomplishment in seeing your whole port, not just a portion of it, go up by X% sends chills even in my metal heart. 

Usually before going into an all in trade, my mainframe will do a quick checklist to make sure that going all in will not be disastrous.

• if the daily volume can accommodate the amount that will be bought or sold. Meaning, if I enter or exit the trade will it move the stock by more than one or three flucs? 
• where the potential resistance and supports of the stock will be. Making the needed calculations in real time might need some time, so doing the appropriate preparations and planning before trading starts is essential
• will I be able to monitor the stock movement all throughout the day? This is vital since basuras sometimes have very wild swings intraday. A perfect example and one of my batch's new mantra: REMEMBER DAVIN!

CAUTION: Going ALL IN is not for everybody. You must be able to execute your cut loss or stops without mercy. This will ensure that if and when things go wrong, you will not lose most of your portfolio. 

RIP: DAVIN

Part I

This was a perfect example on why we should never be complacent in trading basuras. Even if it hit the ceiling price. Or maybe ESPECIALLY if it hits the ceiling price. Things could go wrong. I can recall a certain book character who always preaches 

CONSTANT VIGILANCE!

That description says it all. There should be no loyalties to a stock. Always keep your guard up since everyone is just looking out for themselves. Protecting your profit or capital should be the number one priority.


Part II

Again reminded of the power of cutting losses. Though painful it was very very necessary. I do not want to be waiting at the high for prices to come back. Imagine holding the stock when it went to 3 or 4 pesos last year. And still waiting for it to go back to those levels since you do not want to cut your losses. So many missed opportunities. So much lost time practicing and honing your trading skills. 

Here is something that I found on the internet. It was for human relationships but I think it is also appropriate for cutting losses. The same principle seems to apply.

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.