Just be fking patient !

Get the cash, and when time comes. BUY !

2-3 Stocks I must dump in at opportunity.

Clean..

It's about being 'clean' cut. Just CLEAN !

KISS

Keeping it simple.

1) Trade easy patterns w/ good risk/reward ratio. Ride trends, exit quick, cut losses ASAP.
2) If a pattern confuses you, dont' bother with it. When in doubt, just exit !
3) Have a strong 'defense'.

Defense is important in absorbing risk. I've resumed my portfolio building w/ health care stocks. I have selected 2-3 big name health care stocks to build into my portfolio. They are: MRK, BMY, ABT. I might include PFE, but those 3 stocks I've mentioned will be my core nucleus for Health Care exposure.

Healthcare continues to lag the big boy sectors, but that is where undervaluation might come into play. Regardless, I think Healthcare is fundamentally a great pickup for my portfolio.

Today I bought BMY. =)

So I lied..

I don't think it's right as of now to build that portfolio. I don't mean to say I've abandoned it, rather, I will reguage my entry. I sold my health care stock and will re-evaluate my entries, sector, and allocation.

As of now, I've devoted my capital into energy stocks.

For my ROTH. I've rotated out of one tobacco company and into another. Minimum of 3 day commitment to hold.

That's all..

The 1st Step...

I'm finally on my way into building a portfolio !!

Healthcare stocks are on my radar and I will scoop some up.

Discussion...Full Circle

I was talking to my friend the other night about my dilemma. A second opinion and point of view can mean a whole lot. He was green, pure and away from the corruption and gambling this game had with it. He simply told me to invest in good companies!

I have told him how I hardly managed my ROTH IRA, but my ROTH IRA has out performed my regular account! The stress level is not there as much!

2011 is near and I want a different approach. I remember when I got into the game and how the basics of investing should start w/ a strong core (portfolio) that could weather the storm. Therefore, I will spend the next few weeks before the end of 2010 and look to buy into companies that pay dividends, have good financial standing, and most of all, good operational profit in their nature of business. I will allocate a big chunk to the big names, but also put some in growth stocks. I won't be trading as much as I'd like and did before. Part of the reason I once heard was because of 'taxes'. Just like the housing market. You try hard to sell homes, but you get taxed for all the hard work. Is it worth it, taking such a risk, only to have taxes take a chunk? The real reason though, is for me to try a different approach. I have a lifetime to get this right, hopefully I get it right.

With my other capital, I will swing and trade for profits ! Maybe I'll trade index funds instead, and change my approach. All I know is that patience is what I lacked in this game. Maybe I should study QQQQs, trade that, or SPYs.

I've spent Freshman and Sophomore years playing around. Junior level is around the corner and I hope I am able to finally grow up and mature myself !

For the Long Term, I think energy and resource companies are the place to be. Per Gekko, the biggest bubble in history have been the human beings !

Burnt

I closed out most of my positions at losses and re-entered into SU (SunCor). A big oil integrated energy company in Canada. It looks poised to be on a break out.

If it does, I will hold and walk away from trading for a while.

2011 is here and I hope to improve my risk management and risk taking.

My biggest concern is my position size. Being impatient is my biggest enemy.

Bad Trading...

Aside from the difficulty already presented to a part time trader, there is much more to bad trading, than blaming the lack of attention on my monitors due to my full time day job at the prison cell - they call it 'work' !

The past 2 weeks have eroded my hard work and cut me into negative territory. I have a hole I must amend by the end of this week. What makes amends? Trading better, and taking more lessons and patience until you nail a good habit that goes against your human emotions !

Time is definitely the most valuable commodity ever !

Bad trading is when you rush to judgment. I once read a suggestion that one should not trade the first 15-30 minutes of opening bell. NOW, I know why !

W/O stops, don't take the risk, regardless of position. Sit back and just walk away. Or just buy a few shares into your investment stock if you find the price favorable. That way, you satisfy the cravings.

Never fall in love w/ a stock ! It can kill you and make you feel even worst when you see it under perform the market.

Diversification is the most defensive strategy that works !

LONG:

BBY (Best Buy)

AUY (Yamana Gold)

MSFT (Microsoft)

No use crying in this game. A loss is a loss. What matters is a plan for the next step. What should I do? More importantly, will I do it?

Another painful lesson (somewhat) that will never stop as long as FATE feels my lessons have not situated itself as second nature in my trading.

I will plan my stops tonight and they will be HARD STOPS.

Positions..

I've learned that having a diary is very important w/ observations, thoughts, & self reflection. Friday was one of those days I regret a bit. The week was amateurish, desperate, and a violation to good trading mentality. I had put in a big position on a gap up and was up for the week. Pretty sizable but I decided to continue my hand..

As a result, the erosion took place. Why not just walk away? I should next time....

Current positions:

LONG
-MO (I love Altria, and the whole tobacco industry and its stock). The yields are amazing !
-AUY (Gold exposure via miners)
-FTO (Oil exposure)

From what I see, I ponder why gold, crude did not rise in sync w/ the broad market indexes. However, copper held its ground above everything else. But you've got to wonder what and why there is that dis correlation. Does copper really lead the way? So much things going on...

We shall see. I've heavily weighted my position in MO, and used margin to trade.

Hope my 'reading' is right..

I'm awake..

Here on a Friday morning, trading stocks. Well, mostly putting my eyes on screens, looking at things, listening to things.