Friday, May 9, 2008

Looking to the week ahead

The economic calendar in the week ahead is filled with a lot of market moving data.
-Tuesday -Retail Sales
-Wednesday - Consumer Price Index (CPI), and Crude Inventories
-Thursday - weekly Unemployment Claims, NY Empire State Index, Capacity Utilization, and Philadelphia Fed Manufacturing data, (WOW to Thursday!). Friday is stock option expiration day, so we urge our readers to set up trades accordingly, and remind you to never force trades as patience is truly the key to long term success and peace of mind.
-Friday - Building Permits & Housing starts for April and Michigan Consumer Sentiment for May.

Thank you for participating in our S&P poll. It looks like the 1,388 level is where the congratulations must go ~

The Psychology of the Call team wishes you a comfortable weekend, please don't forget to visit us back tomorrow night for the Psychology in the Upcoming Week's Data. And now we offer you the 11 Commandments:

1. Never trade more than 10% of your total capital/account value in any one position.
2. Cash is King, but always keep a minimum of 20% liquid.
3. Cut losses to 15% maximum whenever possible. If your psyche is shaken, step away and don't trade for 1 week.
4. Take and enjoy profits of 30% or more.
5. Never fall in love with a stock and never force trades or over trade; remember commandment #2.
6. Never accept excuses from management, period.
7. Use technical and fundamental data & psychology/sentiment from the conference call to select trades.
8. There are two sides to the market, long & short; take advantage of that leverage.
9. Understand the significance of the macro geo-political economic environment.
10. Unforeseen events/shocks will happen, inverting the market upside down (remember commandments #1 & #2)
11. All of the above are void without reading the Psychology of the Call.

1 comment:

Anonymous said...

Very well done. The 20% cash position is not practiced enough.
Have friends who are on margin 24/7