Sunday, August 30, 2015

The 8 Deadly Sins in Trading


There's just something special about trading. You just can't go 
through the day without it. You itch to trade even if it's a weekend.
 You sometimes loathe weekday holidays.

You don't really have to do it, but there's a certain 'high' you feel
 whenever you make a winning trade. And that feeling drives 
you to make more trades. 

You think to yourself 

"How will I be able to make money if I DON'T trade?"

Commission loss ain't that bad... Right?

- Commission



Fundamentals or Technicals.

You've gone a long way with these two. Both of them tell you the 
very things you want to hear. And for that, you love them dearly.

You reach the crossroads. You're at a loss. They can't mix. 
And you're allowed to choose, but only one.

"Love transcends all." You confidently tell them. 

Oh what a fool you are. But you're willing to be a fool just 
so you could be with them both.



Don't you just wish you could trade EVERY stock that went up? 
The want to trade every stock leaves your port in such diversity
 that you can't make decent returns. But that doesn't bother you.

Instead of focusing on a few conviction picks, you just want it all.
 When a stock you're eyeing goes up, you feel empty and left out.

"I knew it!" you blurt out. You tell your friends you saw it coming. 
They say the same. Even their deceased grandfathers saw it coming.

But were you able to buy? No.

You then continue to buy the next potential 'bagger' you see.



"So far so good." 

You think to yourself as you were able to get a stock at a low price.
 You believe nothing can go wrong at this point and nothing else
 will shake you - especially not those bashers and doomsayers.

Greed has gotten the best of you. You've bought more than what
 you can chew, after all, You Only Live Once. Hashtag. #. 

Cutting loss will never be an issue at this point so you don't set one.
 And so you not only count your profits for the day, but you also 
include tomorrow's. 

You then check the internet for the things you've been eyeing 
to buy. Like that new Iphone6.

"Nothing can go wrong" you chant. "Nothing."



The citizens of certain stock market groups are you biggest assets. 

"Why do you need to work hard, invest, or study when you can ask 
the experts for free?" You proudly tell your stock buddies while 
recommending your best group find.

You buy and sell the stock recommendations. You don't really plan
 your trades. But why? If it doesn't go your way there must be 
some bloody explanation. After all, experts can never go wrong.

You sip your morning tea while you comfortably recline on your 
couch and sing "que sera sera..."

A few weeks later you open your port with this reaction:



You completely sold down a certain stock to its low for the day 
and vowed to sell your dog if you ever trade it again.

"Hah!" You exclaim in delight as you think that it's all over 
for that stock.

It rallies the following day covering all loses it made for the whole
 week. You look at your dog. Your dog looks back.

"I was just joking." You say softly.

A complete whipsaw. It hurts as hell.

You once more look into the eyes of your loving dog, and say 
"I'm the hero you need. But not the one you deserve."

You know you shouldn't, but something tells you that you need to.

The Batdog Trader Rises.



You wonder why several of your friends are all in high spirits. 
They show you gains you've never seen before. You want what 
they have. And you want it bad!

They tell you to join in. Cause it's gonna be the next big thing.
 You've heard this many times before. You know it's not. But you
 say to yourself

"This time, it's different."



An expert. That's what you are. 

Success? You've tasted it. You know what it's like. You brag about 
the bagger trades you made years ago over and over again.
You tell everyone it's a piece of cake. 

Your past record will dictate the future.

Even when the market itself tells you otherwise, you simply 
announce to your followers,


You know shit just hit the fan. Oh you know it. But you just won't
 admit it. Pulling out words of wisdom from the experts of old 
seems to be the best way to cover it all up.

After all, you can never go wrong. Ever.


How many have you committed?

Thursday, August 27, 2015

Personal Notes Series 001


We all have them.

I particularly, am a person with big dreams. I am not a rich person. Nor is my family. And by this, I mean that even if we combine all our assets and work our asses off, we won't even reach 12M PHP worth. And by judging my capacity, the culture, the connections and the opportunities around me, I have safely concluded that it wouldn't be feasible to attain my dreams on my preferred retirement age of 30, if I'd follow our world's system of living.

Side note: Some "shortcuts" were plausible, but since I am a person groomed with morals and integrity, I have chosen to uphold the law.

In my years of seeking financial freedom and handling money, I have gotten myself into different kinds of jobs and tested financial laws and systems. Tried the very basic of jobs, you may even call some demeaning. Tried work overseas, networking, call centers, direct selling, teaching in schools, etc. Many of course were failures, a few were decent, and some were ordinary.

And of course, you already know how stocks have been to me.

"So what's your secret Zee?" 

I get this question a lot.

Now just to set the record and my credentials, I have no proper financial education. Zero. None. Nada. I didn't read (or at least didn't finish reading) ANY financial books - too lazy to do that. Unless of course you'd count my subjects in college in Accounting and Economics 101. LOL.

Now as to my secret.

I would just love to say it's all me and my superior intellect. But it isn't. It's God's wisdom.

Say wuuut? You heard that right. And I know I'm so deep, I can see Adele Rolling.

But out of all the systems I've tried, God's principles and laws on finances have proven to be far superior than any lawful human system I've gotten into. 

By now some of you are like, W.T.F. has ZF been smoking?

This is weird for me to write this stuff on my blog as well. But hell I'll write it because even though ZF is fictional, the God ZF serves ain't. I wouldn't be writing this in the first place if all I get is hateful mocking from unbelievers and haters.

Now deal with it and let me continue.

Let me put it this way. Intellect is when you are able to solve and pass complex physics shit with flying colors. Wisdom is being able to teach that same shit to a kid who's about to start grade school.

In the world of stocks I'm the grade schooler and God, my teacher.

Human as I am, I tend to put a schedule on things especially when it comes to money - and when it doesn't go my way, I'd be lying if I said I wouldn't be discouraged. But you know what? When God promises, He definitely delivers. And it's even mind blowing when the 'package' you receive exceeds your expectations. 

God cannot deny himself. But God cannot be mocked and cannot be BRIBED. That is why It's important to check your motives - Your innermost being. Are you serving God? Or are you serving Money? One can easily argue that he would give more if he gets more. But the thing is, God's principles and laws work differently than the ways of us humans. If you can't be trusted with the less that you have, how can you be trusted with greater or more valuable things than material stuff and money?

God is no Genie nor a Quick Fix to your problems.
Know your place.

A few days ago, I have taken up a NEW challenge. A testing if you may of one of God's principles and laws in finances. This would be my first of this kind. This isn't really the usual thing of the tithe, regular offerings, or charity works, but since it's biblical, then let's do this.

I've already set aside my budget until my next "special" reset on October. And I have no idea where I'll get that 6 figure I pledged by the end of September. Subasta funds will not go to this pledge. So It'll be one hell of a miracle especially in this kind of effed up market sentiment.

Somewhere in the bible, there's this law and promise...

and this is one of the things I continually hold on to as I surrender my finances to the person "up there" and take up this new challenge.

I'm pretty sure this post has to do with someone who has the same calling as mine... I'd just love to hear your story.

And if there's one thing this post will prove, it's how someone ordinary will be doing extraordinary things, not because of his own strength and intellect, but because of a God of extremes - who btw, also calls out to YOU... to bring you to your destiny.

Are you ready?


I'll be updating this post in the future.

Thursday, August 13, 2015

We all have that one friend...

The Right Trading System

Consistency that goes with profitability is 
what makes a good trading system.

So what then is the right trading system?

The amazing thing about almost every market is that there are
 certain fundamental but different trading systems that co-exist 
and compliment or even kill each other to form this unique and
 dynamic environment. Like a desert filled with creepies trying to 
outsmart and eat one another for survival.

Like animals, every trader is different. And the only way for us to
 be able to maximize our kills in the market is if we focus on 
developing our strengths rather than our weaknesses. 
Or hunt when the environment is in favor to our physique.

It's a simple matter of common sense. If you are a day trader and
 you have a day job that restricts you to check the markets, 
then don't trade! 

If you're a trend follower, then don't buy stocks 
that are counter trending.

If you bought because of techs, don't go holding 
because of the 'fundamentals' of the stock.

Another common mistake traders make is experimenting or using 
a fine tuned system on trade setups that don't exactly fit.

"Braces with wheels! Awesome invention doc!"

For example, a player who buys for the bounce. The trader buys at
 the lows, and the position matures to a whopping +20%. 
BUT the trader decides to HOLD it for "long term" 
because his entry price was the perfect long term price.

A shift in play has occurred and in a few months all his gains 
get eaten up by the downtrend.

...And the trader now becomes an "Investor"

Remember the FNI boys?

Always stick to your strengths. 

Do not be what you are not.

Trading systems are ways of life. I say ways of life because there 
is no one system that is consistent in all kinds of market sentiments.
 There will always be a system that will thrive or starve 
for each season.


Did you notice the leopard on the first image of this post? 
If you didn't, that's how it is with trading systems. 
You won't see it if you don't look hard enough.


Yep. And by the time you checked and continued reading this post, 
your port just got slaughtered by a fundie on a sell rampage.

Let's continue....

A system will most likely be profitable if it is used by a big chunk
 of players who have the 'controlling' funds in a certain market.
 And yes market anomalies and deviations will pop up from time
 to time. You'd see multiple ceiling plays or super plays like CAL
 (IPO craze) and MBC (Multiple Ceilings). 

But you don't see them sustained over a longer period of time.

Like the bunch of people you see in FB who post about their port
 snapshots and open to public trading performance 'diaries' when
 they get lucky. Then a few months later you won't find a 
single trace of their presence.


That's why it is important to study and trade popular patterns 
that the market has deemed worthy of existence.

They aren't there just for show.


One common misconception about trading systems is that 
it is an overnight experience. Well, it's not.

It's not a holy grail that you find and when you start using it, 
you become instantly rich.

All those sleepless nights of charting and backtesting. 
All the stress filled days of test trading. The discipline 
you nurtured. The persistence despite your losses. 
The passion. Your principles and character.
Your dreams of the future.

All these make up that holy grail. 
All these make up a successful trading system.

So if you still haven't found your system, go 
get your shit together and Beast mode ON!