Trade Like a Ninja

Don't let recent movement in the market detour you in your quest. A Trading Ninja is always confident in his plan. Pounce on the enemy, and eliminate doubt. Who is the enemy? You can find the answer to that question by looking in the mirror, or on Mad Money. Don't give in to the temptation to think that something needs to change in the market before we can begin making money.

THE MARKET NEVER CHANGES. The only thing that changes is how we perceive the market, hence our beliefs about the expected outcome of our actions will change. Stick to what makes you money. As traders we can not afford to fall prey to self doubt. YOU are the best judge of the market concerning your trades, and your money.

Stop and Smell the Roses

While the market makes up its mind; check out this tasty lick. I am looking at FLWS for an ascending triangle breakout above 2 year highs. The breakout needs to happen on volume but you can make the call on your own.

Got Shorts?

Well we have had quite the week. I have talked to lots of traders about what is going on and most of us agree that the market has most definately moved. What I can't believe is that nobody told me it was going to be to the downside.

If you are going into Monday short, be careful and willing to admit you were wrong. Its one thing to say the market is bearish now because of deep pull back. It is quite another thing to make money on that belief short term.

I am still in some bullish positions after all this but I am not treating them any differently than I would if the market was still in the calm seas of the last 6 months or so. Right now I am doing 3 important things...

1. Stick to my plan
2. Search for the new bull sectors to emerge
3. Be patient and enjoy life

That is all for now...

The Market Reveals its Remorseless Fang

Greenspan is a Jack Ass! Wow! How intelligent do you have to be to know that a recession is coming? if the world doesn't get hit by a comet we will have a recession at some point in the future. Alan- just go back to your can of Vienna sausage and leave the public commentary to Uncle Ben.

China's Government... Communist Market Manipulation. Yo East side!

The market is a lot of fun. Lets talk more after the week is over. And if you are wondering...I wasn't stopped out of anything yesterday. More on that later.

Did you all see the VIX today? that was pretty impressive. If it gets up to a 52 week high today you may as well go jump off of your balcony... Not really. NO please don't!

Strong Stocks Near Bullish Breakouts for continuation.

Here they are, no frills or smart ass commentary. Bullish stocks with my price alerts for new high breakouts. Plain and simple. If any of these breaks the following price points on good volume- I am in as long as the new high is confirmed on the day after the new high is set. These are "position trade" set ups in the classic fashion.


AMR Alert @ $41.06

NCTY Alert @ $40.00

FTEK Alert @ $30.00

DLB Alert @ $35.00

COL Alert @ $70.00

DFR Alert @ $17.00

Set your alerts and watch for the emails to roll in. If they don't, they don't. I can say no more.

Have a nice day.

Presidents Day = Nice Break From Trading

Today was a welcome holiday from monitoring my active trades. If you found frustration with the lack of market activity, you should seek professional help. I promise the markets will take their pound of flesh by and by. However, if you found your self enjoying life today, there may be hope for you and your future as a trader.

One final note for anyone who may read this post from foreign soil- I wish you a hardy "piss off!" from all the dead presidents of the US and A- Go eat some French jungle rot AKA Brie cheese

Damons Prefered Trading Strategies

I am often asked what I trade. "Are options better, or are stocks?" You can answer that question for your self. If you want to know how a pro does it, I will break it down and give you a sense of what makes the Smart Bomb tick...



I normally have between 5 and 10 active trades in a single account at any given time. The break down looks a little something like this.

• 5 long stock positions
• 3 synthetic long stock positions – 6 to12 months away from expiration
• 2 short term option plays. Usually single leg (directional) straddle, strangle, ratio spread or spread that I have legged in to.

I have found that this fits my style the best. The belief that one strategy is superior to another is simply not true. I used to think that I had to trade nothing but options to crank out superior returns. I tend to shift my thinking a little from time to time, but what you see here is a reflection of my style. I personally have associates that produce stellar returns using options only. I also have seen others replicate those returns by simply buying and selling stock.

This may come as a shock to some, but I have never seen one shred of evidence that would substantiate a claim that “option traders make more money than stock traders”

The best traders find a good mix that matches their own “Inner Holy Grail” and go with that. My holy grail is to trade stocks primarily- with options as a supplement.

BAM! There you have it.

The recent trade on ABM and the topic of 2 previous posts was a plain and simple long stock position (I bought shares) and I will buy more when it pops again. Here in the big time we call that a "scale in." That's a different subject all together.