Naked I Trade, Naked I Live

No - I don't literally trade naked or live out my day running around the house naked!

I had a zen shift after getting zen slapped - I can't grasp, hold onto concepts anymore - I'm free.  That's what has made me a successful stock trader.  I no longer hide behind technical analysis or look for patterns, or expect the market to do what i think it should - I m no longer attached to the outcome.

 I just use my Stock Trading Riches system.

All I care about is the stock fluctuates - I then play the stock.  I follow it in and out - reset constantly.

That is how the rest of my life is now  - old patterns are shifting, changing.

I want to be reborn every time I trade or write.

Read More

Instant Zen Article on Stock Trading As A Martial Art

On my Tao of Simplicity blog, I used the instant zen writing technique to bang out a quick article on Why Stock Trading is A Martial Art.

Read More

Successful Investing is Not Just About Good Stock Picking - You Also Need to Buy Low and Sell High

If you want your portfolio to beat the market over time (generating a better return with less risk), then picking good stocks is just part of the answer. In fact, you don't need to hit home runs by picking the next potential Microsoft or Apple.

You need a trading system that buys low and sells high (Looking for chart patterns is not a way to do it).

Here are 3 reliable ways:

1. Identify a stock that is about to undergo a dramatic shift. This goes beyond studying fundamental data to find good companies. You are also trying to time big moves up or down. This is the hard way to trade because, not only do you need to study the facts, but you have to figure out how the market will respond - not an easy task.

2. Evaluate the stock like a business. You calculate the intrinsic per share value of the company, and compare it to the stock price. Buy when a good company is under valued and sell when the company is overvalued. This is the system that Warren Buffett uses. It requires you to possess a high degree of financial and business knowledge. You also must spend a lot of time doing research. Unless you have an MBA and/or a background as an analyst, it is hard to really get a good edge.

3. Have an automated formula that scales in and out of stocks. This is the method that I use for trading, and I believe it is superior because anyone can use it. You don't need a lot of financial knowledge and time spent in research - only the discipline to stick with the plan.

With this method, you always have a base position in a good company, and increase or decrease the size of your position, depending on the change in the current stock price. Because you are not making a few large trades, errors caused by buying too high or selling too low are self corrected over time.

Read More

Books, DVDs, Courses, and Seminars - Use Them Up Before Buying More!

Back in 2008, Marketing expert Ed Rivis had a good post about self-improvement materials. He was looking at internet marketing, but this applies to programs in other fields - including investing, sales, and self-help / motivation.

He cautions against investing in more ebooks, courses, and seminars (including his own) until you have fully studied and implemented everything you can out of your existing materials.

This is very good advice. Most people, including me (and, according to Ed, himself), have been guilty of buying an Ebook and course, but then failing to follow through. We have a lot of info on our hard drives and shelves, but have not really taken advantage of it.

It feels comfortable and safe to go from course to course. They entertain us and make us feel as if we are progressing. However, watching a succession of DVDs doesn't make you an expert house flipper. To do that, you need to stop watching, get out of your comfort zone, and actually flip a house.

Read More

Don't Be Worried About The Turbulence in The Stock Market

In a wild, see-saw market like we've seen in the last few weeks, it is common for regular people to become worried and confused. In fact, even many professional traders are probably stressed out.

The thing is, there is never any reason to really worry - as long as you don't have to cash out the whole account in the next 5 years and you aren't trading with leverage.

Instead, there are only two things to know: stocks fluctuate, and fluctuations allow you to boost your return by buying low and selling high. When a stock you own goes down, buy some more. If a stock you own goes up, sell into the rise to generate your return.

In fact, buying into declines and selling into rises is the best way to trade - it does not require hindsight, luck, special knowledge or hours of research.

My book stock trading riches gives a complete trading system that follows this strategy. It also provides information on portfolio building, diversification, and choosing stocks and funds.

Read More

It's OK To Splurge Once In A While

I did something impulsive on Wednesday.

I took our 2002 Camry for servicing, and they gave me a 2010 rav4 (small suv) for a loaner. My son and I fell in love with it and got my wife to agree to trade the Camry for it - plus we paid maybe $12k (and an extra $1400 to upgrade to leather seats).

We have the car now, but will drop it off on Monday to get the leather seats installed (they will give us another loaner for 2 days).

This rav4 is now only the third car I've owned.

I owned my Celica for 19 years (1990-2009), so part of me feels like I'm wasting money changing the Camry when it's only 9 years old.

But, I justify the purchase for two reasons:

1. We are pretty frugal in general.

2. Life isn't always about saving money. Sometimes, it is nice to actually spend and enjoy your hard-earned money. I feel good when I drive my new car, and enjoy looking at it.

Read More

Interesting Article on Walter Breuning, The World's Oldest Man

Walter Breuning, the world's oldest man, died Thursday at age 114. The Associated Press article on his death included his story - based on an interview they did with him last October.  It's very interesting reading, because they framed his story in parallel with the history of the U.S. Some highlights: 0. His mother died at 46, and his father at 50, so he didn't have longevity in the family.  His advice for living a long life:       a) Embrace change.       b) Eat only 2 meals a day.       c) Work as long as you can.      d) Help others.     e) Accept death. 1. His earliest memory is at 3 - with his grandfather horrifying him by telling stories of killing Southerners during the Civil War. 2. In 1912, his parents split up and he had to work on the railroad at 16.  He ended up working there for the next 50 years.  3. His mother died at 46 and his father at 50. 4. In 1919, he bought his first car, and said it spooked the horses that he had to share the street with. 5. He got married in 1922, and bought vacant land for $15.  The Depression hit and he was never able to build a house.  Eventually he sold the land for $25, making a $10 profit. He never bought property again and was a lifetime renter. 6. His wife died in 1957 - they had no children, and he never remarried.

Read More

The True Way to Spirituality

The true way to spirituality is accepting whatever happens in life without regrets. It lacks expectations and, so, is devoid of a need for rewards.

Read More

Four New Blogs

I recently started work on four more blogs. I haven't listed them on my profile yet. I'm waiting until they are more established.

They are:

1. Gridiron Madness - where I write about and express my interest in NFL football.

2. Fun, Humor, and Comedy - where I share some of the internet humor and jokes that pass through my inbox.

3. Simplicity in Politics - This is where I express my frustration with the complexity and selfishness of politics and contemplate simple, elegant solutions to make the U.S. strong, safe, sane, and secure.

4. Talking About Real Estate - I discuss real estate investing, home ownership, financing, etc.

Read More

The Toilet Paper Entrepreneur: How To Increase Productivity By 30 Minutes A Day

The Toilet Paper Entrepreneur blog has a great article on "How To Increase Productivity By 30 Minutes A Day".

I contributed step # 20!

Read More

Watson Trivia Game

I just played the "Dear Watson" trivia game, and I crushed it 41-12.

http://www.nytimes.com/interactive/2010/06/16/magazine/watson-trivia-game.html

I don't know if it will ever be able to completely rival human intelligence - but it will be better than us when it comes to retrieving knowledge.

Read More

The Powerful Google Search Box

The Google search box is really powerful, and does a lot of functions besides search. This is an example of over-loading, where one interface can do multiple tasks, depending on the context.

The minimal Google home page with its humble search box lets you track packages, convert currencies and measurements, find the local time in world cities, find movie show times, see sport results, and do math calculations.

Here is an article with more details on the Google search box.

Read More

Warren Buffett Quote

"It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently."

— Warren Buffett: CEO, Berkshire Hathaway, philanthropist.

Read More

Why Singer Tony Bennett Might Think That I'm An Idiot

Well, I'm probably being hard on myself. It's been almost 15 years and he probably is used to strange fans.

Anyway, the Woodfield Mall in Schaumburg, Illinois (probably the second biggest mall after "Mall of America") had a grand re-opening after a major remodel, and they hired Tony Bennett to perform in the mall for free.

My brother and I went there. It was crowded, but the concert was really nice. Then, we went to do some shopping. After a while, I noticed people lining up at an art gallery in the mall. It turned out that the gallery was selling some of Bennett's paintings, and he was signing autographs.

I was able to get into the line just before they cut it off. Eventually, I made it up to the front and you could see that he was tired, but pleasant. The guy in front of me must have come from work, so he had his employee badge out, and he let Bennett copy his name off that.

Then it was my turn. I told him my name, and he asked me to spell it. I went "P r a ..." and then blanked out. Maybe I was nervous.

All I could remember was the guy before me showing his badge. So, I pulled out my wallet and gave Tony my driver's license! He took it, but looked at me a little strangely.

Later, I was kicking myself for being a bonehead.

I'm just glad that his bodyguard didn't jump me when I was reaching in my back pocket. He didn't have some beefy bouncer, he had one of those smaller guys in a suit and earpiece. Those are probably ex-secret service guys - the kind who could drop you instantly with the Vulcan Death-grip ;-)

Read More

2016 Olympics - How They Voted

The first-round: Madrid 28, Rio 26, Tokyo 22, Chicago 18.

Second round, Rio 46, Madrid 29, and Tokyo 20.

Last round, Rio 66 and Madrid 32.

Read More

Rio Got 2016 Olympics! Chicago Out in First Round!

It was disappointing that Chicago was eliminated in the first round of voting.

People thought it would be between Chicago and Rio. Instead, it was between Rio and Madrid.

But, all four cities are world-class, so it was a close contest.

I'm just glad that Chicago took a chance and got some international exposure.

Read More

2016 Olympics Voting Process - Go Chicago!

Tomorrow is The Day! We will find out if my hometown of Chicago gets the 2016 Summer Games.

The candidates are Chicago, Rio, Madrid, and Tokyo.

Each country will get a final hour tomorrow (45 minute presentation, followed by 15 minutes of question/answer). Then, the voting starts.

The voting process is interesting. There are up to 5 rounds of voting. After each round, if one country does not receive a majority of the votes, then the team with the lowest number of votes is eliminated.

At that point, IOC (International Olympic Committee) members from that country can join in the voting. Also, members who voted for the eliminated country have to vote for their next choice (which is why cities still lobby members who are known to favor a different country - they want to be the member's second choice).

This makes things unpredictable. Many times in the past, the country that received more votes in the early rounds ends up not winning in the final round.

Read More

I Posted 5 Quotes on Simplicity

On my Tao of Simplicity blog, I posted 5 quotations on simplicity from great historic thinkers.

Read More

Simple, Elegant Way to Generate Secure Passwords

This article talks about creating secure passwords from mnemonic phrases that are meaningful to you and easy to remember.

Read More

On Why Things Are Not Simpler

I was just inspired to write a post on why simplicity is not valued more. This was a stream-of-conscious, passion type post, rather than thoughtful analysis.

Read More