Allotta From China

Oooh, dear!

Just when I thought I would be the main beneficiary of today's market stimulation brought to you by China's RMB policy shift, which led to Shanghai rallying +2.9%, Nikkei banking +2.43%, and EuroFirst 300 migrating north by 1.04%, I got home to a major birthday surprise of:

-1.26% on the SBA
+0.11% on the Roth IRA

Strangely, EUR/USD and GBP/USD both declined - as did gold and oil. So the indices may show an optimistic picture, but the financial sector still seems to be off. My portfolio basically comprises mainly risk assets in the financial sector, so something's definitely in the air! But what? If there's fear, why?

DJIA closed above the 200 Day Moving Average the past several sessions and we're still well above the 365 Day Moving Average. Since 200 DMA is still above 365 DMA, this could still be considered a bullish indication and yet the financial sector is generally not rallying, but miners, including BHP, RTP, AA, and X all joined in the Honey Bunny Sunny Money Rally.

Just in case anyone was wondering why I'm such a Royal Pain, I share the same birthday as Prince William. Same day, different year. Definitely a different portfolio too, I reckon.

One of my birthday wishes, besides Prince Carl Philip (what? one can hope... and why don't they make men like this in Belgium), is to finally get rid of my Always Right, Never Making Money disposition. I've had a few years of ATNA now and this time, I'm really going to make it! If I'm going to be six figures this year, I've got to make a run for it.

Today, I had some new trading insight. Our trading capital is like our inventory. We must therefore keep our trading capital turning. So, my new and improved strategy in the most primal sense is:

1. Always keep part of my capital moving. The faster it moves in my direction, the better.

2. Never get locked in with one investment for too long. I have a tendency to stay in a trade for far too long. The longer the capital gets locked up, the more painful it becomes. Remember, the longer you wait, the longer you're bait. So, I'm going to have to bank, bank, bank - especially with my forex trading.

3. If I take a loss, I have to bounce back more quickly and more effiently. I can't sit here and cry about how I lost a few hundred pips and then close my trading legs for a month. I've got to take a leap of faith and just do it - maybe with a new position.

4. Finally, I really have to implement a bull + bear portfolio. If I time it right, I can S&R with one of them at a pivotal market turn and then make a ton of moola. I shall have to find out more about straddling though. I haven't tried that before... not that I know of anyway. So far, it seems the way I can implement this successfully is to use my equities to target a bull market and then use forex to capitalise on a bear market.

It's going to get hot in here again!

Yes, smokin' hot!