Casting out the Demon of Poverty

I didn't post last week, as essentially nothing happened on the stocks front. My continued experiments with 15 minute and 1 hour chart combos on the s&p XJO 200 did draw a bit of fruit - with a handy 50 points picked up after the DOW did its 238+ points. I also spent a pleasant 4-5 days in a beach-side retreat re-learning how to write songs and enjoy playing the guitar.


Unfortunately the break was disturbed by a message that a work colleague who had been dealing with various cancers was taken ill and passed away suddenly... farewell Kate.....


A quick recap on SGB - I was knocked out at break even after a couple of promising days--

MR XJO hit the ceiling and bounced-but not all the way this time-- Could this be the 'last leg' all the Ellioticians are waiting for.....

SO, I was out of range of Mr Internet for about 4 and a half days and vaguely monitored my position in (cey.au) Centennial Coal through the newspaper... it wasn't doing much.... then yesterday it had did a VERY tatsy bar... and looked like it would hand in its chips after an early break this morning but finished strongly on the close.

As to the XJO this week- I am now using a sort-of 'triple screen' method -a derivation of the methods proposed by Dr Alexander Elder in his well thumbed dissertation 'Trading for a Living'. After 4 months of this I think that I can at best count it as a Hobby - I seem to lack the 'killer' instinct, the hunger for money- It's more about finding a way to make sense of all that data and then managing myself [reactions-emotions-rationalisations] as I see the signals come through - I WILL be patient- I WILL wait for the end of the bar before taking the trade--but, but- it's "getting away!"- sucker!

I put on a trade yesterday when the 3 screens were in accord- 'the tide'-1hour chart-said "GO LONG". 'The wave'-15 minute and 'the ripple'- the 5 minute chart were in accord. It was a nice bar out over the fast Weighted MA and the trade held up overnight- I thought it would open steady this morning, and was shocked as it opened at 6427 [Entry was 6385]... my inclination was to sell immediately- it was a huge gap- but- I wanted to follow the plan and watched it ride down to around 6410- my stop was around 6399- the slow moving average- there was a spike and I was out of the trade.

-Profit is a good thing. I am grateful-

There were a few moments today where the 'little voice' was chattering about how that bar just got over the moving average and it's backed up by that other bar -but chart 2 says uh-huh no GO- DRAT!!!- and sure enough it plunged about a minute later ALMOST suckered that time- and then about 20 minutes before C.O.B. the full suite of GREENS came up and though hesitant, I took it-8 points at risk- Very close and tight, but there was nice rally at the end of the day and I picked up a further 11 points, closing right on the futures close at 1629 and 30 seconds! The rally 'may' continue..

Oh, as too the title of this weeks blog- One of the things I struggle with is getting out of my 'I'm a little poor boy' psychology /trap/game. Rationally I 'know' it's the cause of my self sabotaging behaviour in relation to money, but that has not changed the behaviours I indulge in.

I was meditating on these things this morning and wondered if I was 'possessed' by some type of demon- Of course I don't believe in that sort of thing- having studied to be a psychic at one point- i know the ins and outs of the 'spirit world'. Instead of a being I envisaged my 'demon' of poverty as an energy force- yeah OK it could look a bit like Casper the friendly ghost...But I did a cleansing meditation and commanded the demon[energy force?] to 'be removed'. I will see if my thinking changes at all over the next few months- maybe that's my 'big trading secret I can share with the world!

Trade well and prosper.

PJP