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March 28, 2010

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

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Newsletter

Stock Watch 2010


Company Answers Corporation.
Stock Symbol:  ANSW

March 26th Closed at 8.43
March 19th Closed at 8.52

Positioned as a long trade.

Status
The week ANSW dipped to a low of 8.04 and started to come back finishing at 8.43 at the close on Friday. At the dip higher volume came in at 48K shares and the rest of the week volume was low 3-4k per day when average volume is 21k shares



Current Investment Opportunity
by CM Capital Services

 
New First Trust Deed
Opportunity

Short Term Loan Pays
10% to 10.25%

CM Capital Services continues to search the western states for quality real estate loans that will yield double digit annual returns for our investors.  Just north of Salt Lake City, an experienced Utah team seeks funds to purchase and complete development of a highly desirable residential community.   

Phase One of The Old Farm at Kay's Creek features 24 distinctive lots zoned for single family homes.  All 24 lots are currently reserved by end buyers.  Our borrower was able to negotiate an extremely favorable purchase price with a local bank looking to get these lots off its balance sheet.   

Proving, yet again, that in this real estate market only the savvy need apply, our borrower is purchasing this high quality development for a fraction of its previous value.  

We are lending 43% of the "as developed" value of this property.  Interest to investors will be paid monthly at an annual rate of 10% to 10.25%.  The loan term is 6 months with two optional 90 day extensions possible.  Take a look at the attached fact sheet for all of the details.

If you are looking for a quality income investment that is short term, then act quickly and call or email us at the numbers below.  Our investment minimum remains $10,000.

Current Opportunities

First Trust Deed Opportunity
Old Farm at Kays Creek, LLC Loan #3289


For More Info Contact:

Jay York
jyork@CMemail.com
702-739-9090
Be sure to mention this 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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"
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"Trader and Human Patterns"
 
By Robin Dayne

While coaching and noticing human behavior one of the most common challenges facing trades is when a bad pattern from their normal life slips into their trading. Patterns are a common cause for repeating bad behaviors.

Let me give you an example. Let's say a trader always feels anxious when they have to wait in a line at the movies, or in traffic or crowded supermarket and their impatience gets the best of them and they start complaining and may even cause a scene.

If this happen on a regular basis than there is a good chance they will lack patience while they trade as well.

Or in the day to day world the person is fearful when trying new things or hates to lose at sports.  When these events happen there is a good chance the person will go into avoidance. This could show up in their trading as emotional blocks of fear, apprehension, and uncertainty.    

So why does this happen? Our Patterns of Behavior.

We all have built within us, an automatic sub-conscience addiction to patterns. This is understandable when so much around us also has patterns. Think about it patterns are in all forms of nature, the wings of a butterfly, snowflakes, right down to cellular structure, and in all markets we trade. We look for patterns to reoccur.

Our brains have a passion for patterns and install them whether we want them or not.  Patterns provide us with some wonderful benefits like security, certainty, stability and the bottom line is they make us feel good. The problem is our internal unconscious desire for patterns, has a small "glitch"…..it can't distinguish between a good pattern and a bad one it just likes and holds onto any pattern.

Think of your favorite restaurant and the last time you were there. You were handed the menu, you even asked for the specials, but you ordered the same thing you did on your last visit!  Patterns! Think of the way you drive home, same streets same direction or when you get dressed in the morning you go to the closet and pick out your favorite shirt, pants, shoes, drink, all patterns. Most likely they were the same ones you wore not too long ago.  They provide you comfort.

Well patterns are great for our normal lives but they can really mess up ones trading. When we trade over and over and we begin to lose over and over our bodies "lock in" to the pattern and it says: "Yippee I feel good here comes a pattern, I can do this again."  It just doesn't care you have just lost money or even that you have lost 3-4 times in a row. It just LOVES the pattern and hooks onto it.

I can't tell you how many times a trader will call and say the same exact thing, "I can't take a winning trade, when I took the last 4 trades I lost, doing the same thing over and over." I ask: "Do you know specifically what you did wrong?"  They say: "Sure" and give me a list of things they have done to make the errors.  My standard reply is "Than stop doing those things." They say, with all the intelligence they have "I can't."  WHY? Because their mind has locked in and craves the pattern, even if intellectually they know it's wrong.

This is the premise detectives go on when catching criminals, they work to identify their patterns of behavior, and because they know eventually the criminal will repeat the same patterns time and time again.    

So, to stop this and make some changes it's important to be aware of when the pattern is happening whether good or bad. Then make the decision if it's a pattern you want to keep or get rid of.  When trading the ones you want to repeat are when you have a great trade. Identify all you can about the trade and work to repeat it when you can.  Repeating the good patterns will help to establish disciplines as well.

When one losing trade follows another losing trade be aware that the third time may be a sign you are locking in a bad pattern, and it will repeat if you don't make a change, quickly.  

Do the three strikes your out technique. If you repeat a losing trade three times in a row, make it a RULE to stop, and change the approach BEFORE you place the next trade.

Second, ask the question: "What is the pattern I'm in?" What other approaches can I take on the next trade to be profitable?" Come up with a few approaches.

Third, you might want to consider reducing your size till you try the new approach and find the one that works. Working to get back on track is the key and take a break if it's necessary, till you have your composure.

Let ONLY the good patterns be your best friend.

If these suggestions don not remove the bad patterns than you should seriously consider coaching as an alterative to the problem.

In the meantime 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

Gold & Dow Trading In a Congestion Zone
March 28th, 2010

Last week the general market continued to grind its way higher for yet another week. Overall I feel the market is very much over bought. We all know the market can stay in extreme overbought levels for extended periods of time making it very difficult to pick tops.

This is the reason I do not try to pick tops, but rather wait for a top to form before putting my money to work. While a bottom can be made in 1 day, tops tend to take days and some times months to complete.

A few things really stood out to me when looking back on last week's price action.

Gold (GLD Fund) was only up 0.29% for the week while the gold mining stocks (GDX Fund) was down over 3.5%. This strong divergence really has me concerned about the price of gold in the near term. Gold stocks generally lead gold and if they are down 10x more than gold last week we better watch out..

The US Dollar broke out and started to rally posting a gain of 1% for the week. It is definitely weird to see gold move higher when the US dollar is rising…

Gold GLD Daily Chart

Gold has been trading sideways/down since December.  I see this large 5 month pullback as bull flag and expect to see much higher prices for gold long term. But I don't count my eggs before they hatch so I continue to focus on the daily and intraday chart patterns for low risk trading opportunities.

Friday we saw gold close very strong for the day. It looks very much like a reversal candle but with the price trading under the mini head & shoulders neck line and with the US Dollar in rally mode again I don't think the stars are aligned enough for me to put money to work just yet.

Gold is currently trading in a major congestion zone. Until there is a breakout of this zone I think setups will not be very accurate.. Read More


Options
By Stan Moore

Traders, Call Your Brokers and ask for Options on BTIM now
March 24th, 2010

BTIM has finally gotten the volume and volatility to make option trading extremely profitable. Here's how we can get Options. 

I found these thoughts on Yahoo Finance message board. Go BTIM!

"Call your broker and ask him to call an option exchange (like CBOE) to request that options be listed on BTIM and your broker just says to the exchange, "my clients are asking for it".

By using options for part of your position this could be THE OPPORTUNITY for a really enormous gain. But if you do nothing and everybody waits for somebody else, it's not going to get listed.

It will take you one minute to pick up the phone and call your broker. And say,"Hey I would like to trade options on BTIM, which isn't now listed but can you (your broker) call one of the option exchanges like CBOE to request they be listed".

That's it; it will take you one minute. Based on the amount of request, the exchange will decide on whether to list options on BTIM. Even if you don't want to use options now, you may want to in the future..
Read More


Quote of the Week

Laughter is the best medicine. I have a healthy sense of humor.

Every experience is a stepping stone to my greater success and higher understanding.

I will be still and listen… I am in tune with the infinite

What I truly believe is what I'll achieve – my faith is my fortune.

When I'm wearing a smile I'm always in style


.


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