May 25, 2015

Trade Recap - CMCM

This is my first trade recap in a while so I thought I'd make it special. I'm going to highlight one of my favorite trade setups for the 2pm - 4pm part of the trading day and highlight another one of my favorites in the next trade recap. Without further ado, let's talk about CMCM.

CMCM hit my scan mid-May 2015 because it had gone up from about $16.50 in March to $35 in May, which is a very impressive run.


On May 20th, I pulled up the intraday chart around 2pm and noticed CMCM had been in a trading range all day, which meant the stock was starting to flag. Around 2:30pm, CMCM tested and failed at the high of day (HOD) and then immediately failed its uptrend line with a strong bear breakout bar. I should've shorted after the HOD failure because CMCM was in a trading range, but I just wanted more information. I entered short (smaller red arrow in the next picture) at the close of the strong bear breakout bar under the uptrend line. My risk was to the high of the breakout bar (blue arrow) with a target equal to my risk (1R and indicated by the yellow arrow). My target was hit and I covered as indicated by the green arrow.

May 8, 2015

The Laws of Trading

Disclaimer

Trading is one of the hardest endeavors/professions on the planet. Navy SEAL BUDS selection graduates a higher percentage of trainees than the percentage of successful traders. So if you aspire to become a successful trader and want to smoothen your learning curve now, review these Laws of Trading. Let me know your thoughts in the comments below.

A successful trader needs a growth mindset (my skills can always be improved) instead of a fixed mindset (my skills cannot be improved because of excuse X, Y, and/or Z). Watch this video by Stanford University professor Carol Dweck, Ph.D., on the power of a growth mindset. Or check out this shorter and just as great video by Bite Size Psych about the growth mindset and how it's absolutely vital to success in any endeavor.

Discover your vision of the future. What do you want your ideal future to look, feel and sound like? A clear vision helps identify the right goals to navigate you to your personal idea of success. But first, make sure to do a quick check of your biases of success, in other words, make sure your vision of success is just that, genuinely personal. You don't want to create a vision that society (friends, family, the media, etc.) has pressured you to adopt. This video by Bite Size Psych will help you check your biases and ensure that you select a vision that truly fits you, and not someone else.

Will power is very limited and almost entirely ineffective at helping us achieve long term goals or behavior change. So when you hear people say, "I just need more discipline/motivation/etc.," what they're really saying is that they need more will power. But will power will always fail them. What is effective at helping us become a better trader and getting to super successful land? Setting small and achievable goals (or new habits) to execute each day. That is the answer and holy grail to that question, and research proves it.

About Me

  My name is Jory and I'm an intelligence analyst by day and financial furu by night. I have passed both the series 7 and 63 exams.

  The Furu to Guru blog is my attempt to document my evolving journey as a student of the markets. My posts aren't advice nor recommendations to buy or sell any security. This blog is just what I believe about the markets and how I trade the markets.

  This blog is for informational and my own self-improvement purposes only. Reading of this blog and any of my posts constitutes your acknowledgement of and adherence to this disclaimer. Thanks for understanding.

  What is a Furu? A Furu is a charlatan, a fake person masquerading as a Guru on Twitter or elsewhere. A Guru is a true professional and champion of his or her craft.

  But why did I name my blog Furu to Guru (F2G)? Am I implying that I am a fake Guru masquerading as a professional? Nope, I'm a student of the markets trying to get better every day.

  This blog is intended to document my failures and successes and thoughts because it helps me learn faster. I also hope you learn along with me!

  Follow me on Twitter if you like helpful trading related articles and tips from the pros: @Cambro320

  If you have any questions just leave a comment and I'll reply as soon as I get the chance. Thanks for stopping by F2G!

Jory



Furu to Guru Breaking News!

What's up guys and gals? I know I haven't posted in a long time and I apologize for that. I had to stop trading to focus on personal things. But good news! I've finally found time to get some day trading in, and that means blog updates are coming back and they'll cover topics that aspiring traders will especially appreciate. After doing an analysis of my blog statistics, these are my most visited pages on Furu to Guru:

1. Resources Mega List
2. The Best Traders to Follow on Twitter
3. Why Trading is the Best Therapy
4. My Trading Rules

So based on these results, I'm going to focus my attention on delivering more powerful and useful resources, trading psychology research, and trading rules. Also, to give you guys an idea of how useful my posts are going to be, here is a little taste of what's to come. The following are my Laws of Trading based on extensive research that I've conducted in cognitive science, human behavior and motivation, and in interviews with ultra successful traders: