Yes folks, once again we have destroyed the major indices. The S&P 500 ended down -0.5% for the month while we are up 40% for the month.
Total domination of other traders.
So how did I do it?
If you examine my trades last month, you’ll see that I managed to keep my losing trades under 4% on average, while I kept my winning trades above 6% on average. In other words, I cut my losers short, and let my winners ride.
That’s probably one of the biggest mistakes newbies make is that they set a stop loss at 20%, while going for a 10% gain. Think about that for a minute. You are risking 20% to make 10%. That means that you have to have TWICE the number of winners as you do losers just to break even. Tilt the math in your favor. Don’t risk more than you are trying to gain. If you are going for a 10% gain, then your stop loss should be no greater than 10%.
The other pattern that you’ll notice in my trades is that I went long small caps and energy, while going short the S&P 500. Of course I didn’t take both positions at the same time. I correctly timed the up and down swings. In other words, I swing traded the gyrations in the market.
The reason that I chose to go long the market in small caps and energy stocks is because of seasonality trends. December and January are the best months for small caps and energy. In October, I confirmed that institutional traders were buying in the energy sector in anticipation of the run up in Oil that comes between February and April each year. The idea is to trade in the direction of the institutional traders, not against.
If you follow me on Twitter then you’ll know that I bought TNA today. We are already up 3%+ by the close of trading today. I’d like to get one more big 10%+ up day and then I’ll sell and move to the safety of cash. I’m willing to hold until Tuesday of next week but I don’t want to. I’d like to take profits and be out of the trade by Friday. Holding over the weekend news cycle is dangerous in this news driven trading market we are currently in.
Years ago I was wailing on Fox News for their bogus “We Report, You Decide” marketing slogan.
It was clear to me that Fox News was being ran by the Republican party and Wall Street interests back in 2007.
Today, you’d have to be an idiot to get your news from Fox and that truth has been made clear by their unbiased, we report you decide, coverage of Occupy Wall Street.
Thomas Jefferson said that a revolution was a good thing every few years for a country. Democracy, not Capitalism, is taking place on the streets of America. However, according to Fox News, the protestors are just jobless bums who choose not to work, are poor, smelly, socialists and communists.
Now because Fox News wants to brain wash the public into thinking Occupy Wall Street protestors are all a bunch of druggies, they put out the word among their affiliates that they will pay top dollar for any pictures or videos of people using drugs at Occupy Wall Street.
A dishonest conservative blogger by the name of Evan Maloney, packed a huge bag full of weed rolling papers and bongs, and began giving them out to people at Occupy Wall Street and then taking their pictures to sell to Fox News. Check out how he got caught in the video below.
Occupy OKC Members Mic Check Wal-Mart. This is the third and last Wal-Mart stop of the evening, where ten activists were arrested when Wal-Mart brought in the Del City Police to tackle and handcuff the participants as they were peacefully leaving the store. Four women and six men were arrested. I was filming, they asked me to stop, and I complied. As I was leaving, a Del City police officer tackled me from behind, knocking me to the floor and roughly handcuffing me.
WE ARE OCCUPY SACRAMENTO.
WE ARE THE 99 PERCENT.
WE ARE HERE TODAY…
TO ASK YOU TO SHOP LOCAL AND…
SUSTAIN OUR LOCAL ECONOMY.
AND NOT REWARD THE 1 PERCENT,
LARGE CORPORATE STORES LIKE MACY’S.
WHOSE PROFITS ENRICH THE 1 PERCENT.
WHILE THEY PAY NEXT TO NOTHING.
TO THEIR WORKERS, THE 99 PERCENT.
THE CREDIT CARDS THE 99 PERCENT OVERCHARGE
WILL ALLOW THE 1 PERCENT TO ENRICH THEMSELVES,
ON THE BACKS OF HARDWORKING PEOPLE,
WHO SIMPLY WANT TO PROVIDE…
A MEMORABLE TIME FOR THEIR FAMILIES.
JUST IMAGINE WHAT WOULD HAPPEN…
TO THE 1 PERCENT IF THE 99 PERCENT
DID NOT SPEND IN THEIR STORES
ON BLACK FRIDAY.
WE ARE THE 99 PERCENT.
WE ARE OCCUPY SACRAMENTO.
“1%, Your money’s spent to circumvent the People’s intent…
You jacked the rent, caused this descent ‘cuz you broke our sacred covenant.
I’ll pop a tent and we’ll pound cement. We won’t back down, no we won’t relent
till we unf**k, to the full extent, what you did to corrupt to our government…”
A flash mob hit Union Station in Washington DC on October 20, targeting a fundraiser for Conservation International in which Wal-Mart Chairman Rob Walton was expected to appear. Activists from Respect DC teamed up with a group from Occupy DC in the surprise action.
OSD flash mob invades wal mart on 11/25/2011 in San Diego, CA. Wal-mart attempted to silence the human mic via their “seasons greetings” recording over the intercom, succeeding only slightly. Wal-mart vs Human Mic, Wal-mart loses!