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January 31, 2010

Trading is 95% Emotional Management!
Are YOU the MASTER of your emotions?

Newsletter

Stock Watch 2010


Company Answers Corporation.
Stock Symbol:  ANSW

January 29th Closed at 8.06
January 22nd Closed at 7.62

Positioned as a long trade.

Status
Have had a move up to 8.20 and settled a bit less for the week, on a little less than average volume.



Current Investment Opportunity
by CM Capital Services

Super Collateralized
First Trust Deed

9% Annual Interest
 Paid Monthly

Many of you have taken advantage of our Super C program this year.  These first trust deeds are characterized by  "extremely low Loan-To-Value Ratios and a 9% annual return".  This will be one of the last Super C deals we see.

We found an excellent opportunity with our current offering "CM Elsinore".  Our collateral is 70 acres of residential land located in the hills just above Lake Elsinore, California.  The property is zoned R-1 (single family homes) and is mapped for the development of approximately 300 home sites.  Our borrower has $7.9 Million in Cash invested in this property with Zero debt.  We are placing a first trust deed on this property for $1 Million.  At less than $14,500 per acre, and less than $3,400 per paper lot, we believe this first trust deed is very secure.  Should the borrower default and we have to file foreclosure, we believe we could easily dispose of this property very quickly for considerably more than our loan amount. 

This investment is a fully collateralized first trust deed.  You are lending at a fraction of today's value.  This investment pays monthly interest at a 9% annual rate and has an 18 Month Term.  Our investment minimum remains $10,000.

If you have any interest in participating or would like to discuss our highly collateralized, fixed income investments, please call or email us at the numbers below.  This will be one of the last Super Cs.

Current Opportunities

First Trust Deed Opportunity
HCM Elsinore 1-421 LLC (3252)

Also Available:

Turnkey Rental Property Program

"Is now the right time to buy a house for investment purposes?" Over the past year this was our number one question from investors…our answer has always been, "Maybe".

Our reasons are rooted in the facts that most people underestimate the work, the potential pitfalls, and the headaches associated with identifying, buying, rehabbing, and then qualifying and securing renters—to say nothing of ongoing property management.

Many clients have asked us for our assistance to embrace the unique opportunity of purchasing real estate in this downtrodden market—this opportunity could provide an investor with current income (rental income) as well as the potential for growth (property appreciation). It's important to know that this is not a "flip" strategy—this opportunity involves buying a recently rehabbed property at a big discount to fair market value with a renter already in place—we believe this to be a two to five year hold.

After months of research, we have identified and selected and tested a group that we are now ready to introduce to our clients. This particular company has a long and successful track record. They will buy the property, rehab it, get a renter and property manager into it, and then turn it over to a potential buyer.

Interested in learning more? This is an exciting opportunity that we believe is a well timed product for today's turbulent market. If you are considering purchasing rental property in 2010, you should call or email us right away.

Happy New Year to you and your family,

For More Info Contact:

Jay York
jyork@CMemail.com
702-739-9090
Be sure to mention
EMT Newsletter


Trader Testimonials

The day in 2007 that I e-mailed Robin for help, I was ready to give up trading. I was at the point where just looking at charts would give me an anxiety attack. I was literally frozen at the screen. Whenever I did manage to trade, invariably it would be a loss! I needed help, fast. 
With the coaching, several blocks that had set in over a period of time were identified and "scrambled" or neutralized. Within a very short period, my fear of losing again was no longer freezing me up. My anxiety was a thing of the past. I could trade again!

Over time, other blocks popped up, which I scrambled with a similar positive outcome.

Robin teaches you to scramble, using a very simple technique that you can do with a friend or partner, for trading or even for other issues in your life. 

With the 1-2-3 process, Robin taught me to analyze each and every trade taken, good or bad .Previously, when I had a winning trade, I just basked in the short-lived glory of the winning trade, and conversely just buried my head in the sand when I had a losing trade, I did not want to re-live the pain! So I was not learning from my mistakes and I wasn't learning from my successes. By facing each trade and making a proper objective analysis, I could then construct a set of my own rules for trading, based on my theoretical knowledge of technical analysis.

Over time, these rules were refined and adapted. This provided me with a trading plan or system that suited my personality. This was crucial to me, as there are 1000 ways to trade, but none may be suited to you or your personality.
Working with Robin has given my trading a rock solid foundation. I am eternally grateful to her for this.
EDNA


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Free Presentation

"Managing The Trading Temperaments"

Presented by
Robin Dayne

Hosted By
Robin Dayne
"The Trader's Coach
"
16 years as a trading and life coach

Coaching for:
 Individual Traders - all levels
Trading and Hedge Firms
 Brokerage Firms

Trading Mindset Focus:
 Managing Loses
 Establishing a Game Plan
 Removing Mental Blocks
 Reversing a Losing Streak
 Overcoming Fears
 Improving - Consistency,
 Confidence and  Certainty 


Creating High Probability Trades
 
By Robin Dayne

To gain the most from any given trade a trader must be mentally prepared before the trade, at the time of entry and the conditions for the exit.  Mental preparation can come in many forms and one in particular is how a trader determines the "highest probability" of any given trade. The preparation and analysis needs to ensure the outcome will produce the desired result.  By doing this up front, a trader can build and maintain a level of confidence and certainty that perpetuates a successful trading career filled with high percentage winners.

With an ever changing market environment being flexible, developing a reliable analysis and having a predetermined game plan will increase the odds of the overall successful trade.

It comes down to the areas that are focused through fine-tuning and gaining control of the parts of the trade that can be controlled. If a trader only focuses on the outcome and neglects the other parts emotions have a tendency to build up and the market takes over control of the trade verses the trader being in control. So a good rule of thumb for all traders is put the attention on those things that can be controlled and don't waste precise time and energy on the areas that can't be controlled and the outcome will have greatest potential or a higher probability in success.   

So how does one build high probability into the trade?

One of the primary areas is defining the trade set-up or criteria that must be in place before the trade is taken and any money is put on the line. A trading strategy that can identify the optimal market conditions needed to maximize the trade's outcome is critical.  Each of the components of the set-up can also be "tweaked" so it draws out a clearly defined signal to enter, maintain or close a trade. Here are four parts that when defined and combined, set the foundation for a great trade.

First is technical analysis which can have many parts in itself based on a combination of chosen indicators. Testing different indicators together and playing with timeframes can result in fine-tuning entries and exits that result is maximizing the profits. This trial and error takes work and time, but well worth it in the end. Some who have followed this newsletter know I call this "digging".

All the great successful traders I have studied have been fantastic diggers. They watch the market; test a theory and indicators by measuring the percentages of the outcome and look for 80-95% redundancy in a particular pattern, before they add it to their criteria list. 

Second is the fundamental analysis of the overall market or markets that influence the trade and can drive the direction or trend. One market influences another just like one stock can be the leader of an industry sector. So noticing what leads and what follows can add to the strength of the trade's conviction. It can also add to a trader's emotional certainty if the pattern is consistent.

Third are the events that can occur during the trading day. These can alter, change or increase the directional momentum of the trend and sometimes even shift the markets direction and atmosphere at any given moment. As an example you have seen this when the President speaks or an unpredicted natural disaster strikes in the world.

I remember several years ago I wrote something that said: "Within the next 10 years we will be able to trade any market anytime around the world." That prediction came sooner expected and we are in the era now. We are global and global events shape and influence all markets and as traders we have to take this into consideration.

The last part to work on within the trade is time frames, patterns and cycles that show up. When defining a strategy then uncovering a distinct predicable pattern a trader can now leverage it over and over with the same success. Many times back testing can help to see the repeats in the cycles and patterns. A great amount of data can be compared and analyzed to determine the trade's probability but all this takes work and time. However, the rewards are well worth the effort. Many strategies can be fine-tuned with back testing the theory which can determine the percentages to see if it stands the test of time.

These four parts combined can add to the quality of each trade and quality is where the focus should be. Many high quality trades will reap higher rewards then high amount of low quality trades. 

There is one more component to be considered when defining the trade and that's the acceptable capital exposure of any given trade. This has to be established and followed.

Knowing ahead of time the money that is needed for success and leaving room for draw-downs mentally help a trader to stay focused on a new trade verses focusing on the past.

All of these parts contribute to a high probability trade and all translate into the mindset of a trader as certainty and confidence. Having this certainty and confidence allows for developing a solid trading skill set that leads to success.

You know it call comes down to a plan and knowing you are in control of as much as you possibly can before the trade is executed that keeps the mind clear of confusion and doubt. As soon as a trader goes into the H-W-P mode (that's the hope, wish, pray mode) they are in trouble. 

When a trader trades from an offensive posture and exits if they are forced into be defensive one they will have a high probability of success when adding it to the defined trading set-ups.

The more a trade can do before the trade the better. Remember each trade stands on its' own and with a strong set-up criteria that is refined and tested the next trade can be taken in greater confidence.

This topic has a direct affect on a trader's emotional state. Creating as much "certainty" as possible will influence your trading successes.

Till next time great trading! 

Disclaimer/Nondisclosure 

ALL the information in the Robin Dayne Newsletter is for educational purposes only and is the sole property of Robin Dayne Inc. (RDI) and may not be duplicated, recorded or reproduced in any way and includes: verbal, print, e-mail, or any media vehicle without the written permission of RDI.



Top Traders Advice



Futures
By Chris Vermeulen

Educational ETF's Futures & CFD's Low Risk Trading Setups Explained
January 29th, 2010

I thought I would put this more detailed report on finding and trading low risk setups for gold, silver, oil indexes etc.... In short it does not matter what time frame you trade with or if you trade exchange traded funds, futures contracts or CFD's (contract of difference).

This type of trading setup works for virtually every investment but I mainly focus on trading: Gold Futures, Gold ETFs, Gold CFD's, and the SP500 & Dow 30 futures, ETF's and CFD's as I find they are very accurate and profitable.

Obviously swing traders who watch the daily chart will have few trades because it takes weeks and months for these low risk patterns to form. This is the reason I am using short term intraday charts and using a setup from yesterday (Thursday) for demonstrating my trading setups.

My Short Trading Setup - Rough Guideline

  • Trend on 2hour and 1hour charts are down
  • Increased volume during sell offs, and light volume on rallies/rising prices
  • Entry is best at Fibonacci retracement level which is also at a previous resistance level.
  • Set Stop just above the resistance level you are expecting the current price to stop at. Exit if this top is penetrated and wait for a new opportunity.
  • Cover half of your position just before the investment reaches the first level of support to lock in gains and reduce overall risk.
  • Once the price of the investment starts to make a new short term high exit the balance of the position. Shown in the charts below.. Read More


Stock
By Michael Markowski

Don't be Fooled by the Better than Expected GDP Number Today
January 29th, 2010

Investors and traders should not be looking at improving fundamentals including a better than expected increase in GDP to 5.7% as compared to the estimate of 4.6% which was expected by a majority of economists for the U.S. economy's fourth quarter of 2009 as a BUY signal in a correcting stock market.  The psychology and the mood of investors has shifted from positive to negative because of the regulatory reforms for the banks and financial companies which have been proposed.  This mood is reflected in the inability of the price of Microsoft's shares to advance on the heels of the record quarter that they announced today. Microsoft's results were also much higher than anticipated by Wall Street analysts.  

Due to the proposed regulatory reforms for the banks and financials and the high probability that they will be enacted I expect that 2010 will be a particularly brutal year for the stock market and the major indices including the Dow 30 and the S&P 500. I also predict that the highs for the Dow 30 and S&P 500 that were hit on Tuesday January 19th will prove to be the high water mark of the breathtaking 10 month rally which began after the market traded to eleven year lows in March of 2009. . Read More


Market
By John Winston

Buy Gold in late Summer & Oil in late Winter.
January 31st, 2010
 

In my December 11th article "A Seasonal Look at Gold and Oil" the gold correction was just beginning its second week.  At that time I speculated on where gold would pullback to as far as price goes and said:

Gold has now reached a timeframe where a December pullback is in effect. If things play out a temporary bottom should be seen in mid December or early January and another gold leg up would develop into the early winter……. the 1075-1125 area ….offers a potential opportunity.

Since that December 11th update gold bottomed right at the 1075 area. In early January (the first trading day) the price of gold opened under 1100 and another rally leg of 93 dollars from bottom to top price developed into mid January.  But since that time gold and just about all other markets have a begun a severe short term decline.  The one market of course that is rallying is the US Dollar.  When you look at a seasonal chart of the dollar BEFORE the turn of the century it looked like this below. We can see the lows are made in the October thru December time frame and the highs occur in February, March or June depending on the strength of the rally. Read More


Options
By Stan Moore

The Good, the Bad and the Ugly, This just another Clint Eastwood movie
January 31st, 2010
 

The 1st quarter GDP grew at 5.7% - that's the Good. Upon closer examination the real GDP growth was closer to 2% - the Bad. Coming out of a recession given all the financial stimulus and Fed monies thrown at the economy.  US growth should have exceeded 10% - the Ugly. Expectations this time were much too high based on previous experiences. Experts in Davos, Switzerland this week see another global dip ahead. Heavy government and consumer debt will weigh on governments and consumers in the western world while these economies look for growth from emerging markets to bail us out of this mess.. Read More


 


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