Don't Fear the Reaper

As most of you know, I've been following Timothy Syke's trading style for almost two years. I first saw him on Wall Street Warriors (Mojo HD network show about various traders/investors) a few years back, and enjoyed his brutal honesty and knack for profiting from penny stocks. Here's a pic of me reading his first book, An American hedge Fund, while on a mission trip to the Amazon region of Brazil last summer. His trading abilities are only trumped by his business saavy (as he's currently growing an empire built on stock alerts, DVD and book sales, and even a publishing company called Bullship Press, LLC). Needless to say, his ship has sailed and, to most penny stock pros, needs no introduction. As for the title of this post, I introduce you to Michael Goode (aka Reaper), a padawan/apprentice of Master Sykes. I began shadowing Reaper on various trading sites such as Tim's and Investor's Underground. He always posted intelligent questions and comments, and his increasing profits could not be ignored (he's even been featured in some of Tim's posts like THIS ONE).

I'm pleased to say that Reaper himself has built a very nice looking website (Pallian would be proud ;-), and posts a well researched watchlist and ongoing video teaching series. Lucky for us, it's FREE (well, for now at least). below is a video from just a few days ago where he not only confidently explains the technicals of VG (Vonage), but also correctly predicts the following day's price action. He was dead on, and I'm excited to continue my own apprenticeship under this up and coming Master Trader. Enjoy the embedded video (very informative once you get passed his music preferences), or click HERE to check out his site (and don't forget to buy him a cup of coffee using the link on the right-hand sidebar of his homepage).


Successfully merging Blue Oyster Cult and Star Wars references,

Evan (aka Island Minister)

Web 2.0

"Web 2.0" refers to web development and web design that facilitates interactive information sharing, interoperability, user-centered design^[1] and collaboration on the World Wide Web. Examples of Web 2.0 include web-based communities, hosted services, web applications, social-networking sites, video-sharing sites, wikis, blogs, mashups and folksonomies. A Web 2.0 site allows its users to interact with other users or to change website content, in contrast to non-interactive websites where users are limited to the passive viewing of information that is provided to them. Thank you Wikipedia :-) For the full definition, click HERE. (I've left the links in just in case you wanted to look up the things Wikipedia assumes you might want to look up)

So why am I even taking time to post about Web 2.0? If you're into stocks, finance, missions, cooking, whatever- technology WILL NOT WAIT FOR YOU! I've found out the hard way sometimes, since I'm usually a laggard when it comes to hopping on the bandwagon (ie. Facebook, Twitter, etc.) Whether you're trying to figure out how to access Think or Swim from your iPhone, or wondering how to embed an RSS feed into your website- you need to keep up! This brings me to my next point (and thanks to Charlie G., who unfortunately for us has taken some time off from blogging, I know I'm not alone in my thought process):

Stop being lazy! This not only goes for your trading, but EVERY aspect in your life: physical fitness, diet, relationships, education, etc. I've lost my night job recently at a Christian Bookstore because of a little thing called bankruptcy, and have found myself with more time than I know what to do with! Since I began seriously trading and investing for mission trips almost two years ago, I've wanted to have more time to devote to these two passions. Well, my mom always says, "Be careful what you wish for". Now it's game on! I have the time, so let's see what I'm made of. I built some exercise equipment yesterday (one big piece with dip bars and a pull-up bar), and have been working on my ministry website (it's actually a small business that uses t-shirt sales in order to fund youth mission trips- I've just been neglecting it for years).

I guess what I'm trying to say (if anyone is still reading at this point :-), is that there's no better time than the present to pursue your goals- but it takes work, patience, and perseverance (no, I did not get that from a fortune cookie). Web 2.0 pretty much personifies what I'm talking about. There are people building empires using the new social networking sites and tools anyone reading this blog has access to. I'm serious, now matter what your passion is, it can be enriched by the computer you're using right now! I'm well aware that most of my readers are traders and investors in the stock market- use the new tools available on the web to quicken your learning curve. The other day, JEDM was in play and went supernova- small fortunes were made. You know how I heard of it? A tweet from Timothy Sykes I saw come across my Facebook home page.

Now, I'm not saying everyone should be a web 2.0 junkie and have a blog, tweet all day long, update their Facebook status hourly, and/or get rich from building numerous websites full of ppc (pay-per-click) ads. I just know it's enriched my life. Feel free to share any new ideas or apps you find helpful from the wonderful, widget-filled world of Web 2.0!

Waaay too much time on my hands,

Evan (aka. Island Minister)

What I Believe...

Don't worry- I'm not about to go into a long dissertation on why I am a Christian (even though I'd be happy to if anyone was interested). This post is about my belief that the market will correct and retest the March lows. The reasoning could stem from something as simple as everyone saying 'the worst is over' and calling march the absolute bottom for decades to come, to following the Elliot Wave theory and strictly using technicals. Since I'm not a saavy enough analyst yet to map out the Wave's peaks and troughs or chart how the dollar is bottoming, I'll just let you watch one of countless videos bouncing around in my head that seem to make sense. When everyone around you is bullish (especially non-traders), it's time to protect your profits!

Long DOG, EVFL & SUNV (these two are purely speculative),Up to my neck in wedding plans,
Evan (aka Island Minister)

Back from the Motherland and Still Bearish!

I'm back from the mission field, newly engaged, and still waiting for the market to correct itself. My last post taught me a valuable lesson- NEVER CALL A TOP! For a while, though, I looked like a genius- the DOW retraced to 8200 before the current rally ensued. I'm not calling the top, but definitely agree with THIS article. I understand debt (my knowledge on the subject has increased exponentially along with most other Americans the last couple of years), so I know there has to be some sort of reckoning for the carelessness of both the private and public sectors over the past few decades. Again, THIS Seeking Alpha article is pretty good at nailing the details.

Thanks for the prayers and e-mails many of you sent me last month while I was away. Here's a pic of my fiancee and I, at what we hope will the location of our wedding. As for the mission trip- it was FANTASTIC! You're welcome to view all the pics HERE, as well as THESE pics from Paris (where I proposed at the Eiffel Tower). I've been working on the Island Ministries website since I got back (that's the company I started to help fund youth missions), and plan on putting a team together to go down the Amazon next summer. Interested? You can see pics from last year's Amazon trip HERE. I've also added a cool 'Tip Jar' type of application to my main trading SITE. For $5, anyone can advertise their wares. Timothy Sykes I 'aint (He's made about 50k trading in just under 2 years, and hundreds of thousands from Ad revenue and selling his products), but every little bit helps:-) As for the following video, all I can say is this- you have to be able to break loose sometimes. I thought about titling this post 'Michael Jackson's Alive and Well in Zimbabwe', but I thought that might be in bad taste. Enjoy!


Learning new tricks every day,

Evan (aka Island Minister)

I'm Calling It!

     The top that is- and yes, I mean the Bear Market Rally! We may have a few more up days, but I am putting my credibility on the line and saying that the Dow will not hit 9000 before it hits 7000 (yes, I know it closed at 8800 today). Many have been blaring "BS" at the rally's persistance, and I have taken it upon myself to research every aspect of the climb (from the historical likelihood of a V-shaped recovery to the infusion of TARP money in which the banks have used to bid the market higher). There's definitely no sound reason to list 'what-if' scenarios that may aid in the turning of the tide, but since it's my blog, here goes nothing:

1. Failing of another Major U.S. financial institution. Keep in mind that the number of failed U.S. banks in 2008 was 25, compared to 37 already in 2009.

*Courtesy http://www.fdic.gov/bank/individual/failed/banklist.html

2. Trigger Happy Nuke Holders (ie. N. Korea, Iran, China, Russia- really, take your pick of a nuclear power that may have qualms with us).

3. Natural Disaster for which we don't have money for (another Katrina, California quaking into the sea, etc.)

4. Reality setting in and the FED not only realizing we're broke, but admiting it.

* this probably shouldn't have it's own number, but I've been thinking- if unemployment is at multi-decade highs, why does the market rally when the 'expected' number isn't met? When 600k+ more people are unemployed each month, that's 600k+ more that won't be added to that number. Eventually, we won't have any new unemployed because everyone will already be...well, you know. These are the thoughts I'm plagued with while working two full-time jobs (and yes, I feel very blessed to have work).

     Disclaimer- I am long FAZ, DOG, and short DDRX. The first two are in preparation for the collapse, and DDRX just needs to fade (like MAXY- it may take 3 months, but I believe DDRX is more than overbought at this point).

     Closing thought- I would love for our country to return to it's faith-based, non-borrowing, non-negotiating-with-terrorist roots, but it is what it is. I don't know what-all's going on in D.C., on Wall Street or at the Goldman Sachs closed door meetings, but I can tell you this: This world is not my ultimate home or final resting place. I am a Christian. I was promised by my Savior that this life wasn't going to be easy (sorry if you've been misled by 'prosperity televangelists'), but that I wouldn't have to go through it alone. Sorry for the sudden 'spiritual' overtone, but this blog is called Mission Trading for a reason. I leave for East Africa on June 27th in order to train pastors in Mozambique, Zimbabwe and Malawi (where Madonna is trying to adopt). I'm still not sure if my trading will fund missions, but it's all in His hands.

In Him,

Evan

Who's With Me?

Do you ever feel like you know exactly what's going to happen in a given stock, wait for price action to confirm, then do absolutely nothing?! If that doesn't consistently happen to you- you shouldn't be reading this blog (or any blogs for that matter- go kiss your supermodel wife and buy another ferrari ;). The fact is, this happens to all traders (usually after the shellshock of a losing streak- which reminds me of my last post and brings me to my next point): You're a good trader. That's right- YOU, the person reading this blog. I have a fairly accurate headcount of most of you here- and you're all traders (some very experienced). Knowing my audience, I can guarantee 3 things:

1. You know how to read a chart (maybe not expound on Fibonacci retracements, but...)
2. You have 1 or more actual trade accounts online
3. You would trade for a living if you could master your faults (psychological, emotional, etc.)

So what is the one character trait that I believe is keeping the whole lot of us from consistently profiting (and sometimes hitting the motherload on the stocks we call well before price action confirms)? DISCIPLINE. Period. The most successful trading streaks I have are the ones in which I have applied discipline. Like Pavlov's dog, the profits tell me to keep doing what I'm doing in order to experience the same reward. I am extremely confident I can take 10k and turn it into 15k in a matter of weeks- but after about 5k in profits (and it may be a much different amount for you depending on your income level) I break. Do I stop enjoying profits? No, but maybe I get bored from lack of a challenge (I know it sounds ridiculous to get bored of winning). I don't know how to overcome this cycle, but any advise would help. I don't want to be a good trader- I want to be a consistent one. That's the only knid of trader that leaves his day job (or two as the case may be)- one that has figured out how to consistently discipline himself, because he already knows how to trade!

I'm getting closer every opening bell,

Evan

ps- the stocks I knew to play today were OGXI (short when it faded if there were shares), and JVA (after the DDRX run-up, this one was next- and could keep going for days)

pps- Do any of you ever actually click on links in blogs (like if I made the words 'last post' take you to my last post)? The reason I ask is that I could write these things a bit more frequently with my schedule if I didn't think all the extra html work was worth it- you'll notice I don't have any charts or links in this one. Thanks for the input!

Dust Yourself Off

If you've been following this blog at all the last few months, you've watched me a:) Successfully profit from shorting 7 stocks in a row (when I stuck to my strategy), b:) Launch a website that focuses on my two passions: missionary work and the stock market, and c:) Completely disregard my strategy and hold on to two stocks that eventually led to a margin call, forcing me to watch my Covestor chart and $ dwindle to a negative % for the year. So what now? Being the movie buff that I am, I will explain how I plan to come back from this trading funk by rehashing a lesson from Top Gun. After Maverick, a fighter pilot for the Navy, loses his best friend in a training exercise, he finds it very difficult to fly again. He second guesses himself, is fearful, and quite frankly wants to quit. His commanding officer instructs Maverick's 'handlers' to "Get him back in the air- the sooner the better". This is the turning point of the movie, as Maverick comes back with a vengeance and achieves the success he was destined for.

There have been time constrictions lately (ie. still have two full-time jobs, planning the confirmed mission trip to East Africa, and opening another trading account), but I absolutely plan on keeping this blog alive. To bring you up to speed, in the past two weeks I've a:) Opened another Think or Swim account in which I plan to use for mission trip income (was already able to withdraw funds from successful FAZ and DDRX trades, as well as my first profitable LULU trade using put options), b:) was given a minor promotion at Target (moved from stocking to human resources- this is my morning job), and c:) Had a wonderful Mother's Day/Birthday with my entire immediate family, my brother-in-law, brother's girlfriend, and my sweetheart of five months, Michelle. Below is a great depiction of what truly matters in life:

From Left to Right: Brother and girlfriend, brother-in-law and sister, me, Michelle, Mom, Dad

Living in Exciting Times,

Evan