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Fri, 1-Jun-2012

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Could I have exercised today?  Yup, but did I?  Nope.

I stayed up way too late last night, up until nearly 5 am doing practice trading on LCC, the SPY and the SH.  The SH is an UltraShort  ETF of the S&P 500.  The SPY is an ETF of the S&P 500.  When the SPY is up the SH is the inverse of that.  I learned something new yesterday and was so fascinated.

As I eventually get back to reinvesting, after I get a job outside the home full-time very soon hopefully, I will need to reinvest to get back all that was lost over the past few years through my divorce & custody battle and other stuff there.  I have a great deal more knowledge and wisdom about money management, including trading.

Eventually I will have a 401K again and within a 401K or IRA, you cannot do any shorting of stocks or funds. You can only make money when the market is going up, which seems like a travesty.  So, the ideal situation is to find 2 things that you can invest in that work the inverse of each other.  I won't go into why you can't short stocks in a retirement account, but it has to do with IRS rules, and no broker will let you do this, that I know of.

However, you can in a retirement account like an IRA, invest in ETFs and if you found 2 ETFs that work exactly the opposite of each other, when the EFT 1, in my case the SPY stops going up, I can get out of that and get into the SH, which always goes up when the SPY goes down.  I looked at the historical pricing of this over years last night and it is the case 100% of the time.  It is the inverse mirror of each other.  Perfect.  So, that means when the overall market is going down, you can still make money by choosing a vehicle that you can trade that is going up.

Some stocks also typically do go up when everything else in its sector goes down, but it's not always consistent.  So, this is a great way to always be in a fund that is going up, you just need to know when to get in and out (when to switch).  This would be great to do in an Roth IRA, as the money you put in a Roth IRA you get taxed BEFORE you put that money in.  However, it grows tax free and I believe you aren't taxed on that money either . . . what you make.  Which is different than a traditional IRA, where you are taxed on the money when you withdraw.

I think also with a Roth IRA, if you have these set up for your kids, when they go looking for scholarships based on need, what is in a Roth IRA does not count against them.  However, if you have an educational IRA, that does count against their need basis.

Anyway, I was doing a lot of reading on this, as well as on the topic of shorting stocks (equities).  I know how to easily short in options and in futures, but I've never personally done with with equities.  I understand the concepts really well, but the logistics of what happens at the brokerage, I did not until now.  Anyway, between reading up and experimenting on this, doing practice trades on LCC, SPY, and SH, it was super late into the evenings.

Anyway, none of this would be daytrading, rather swing trading.  My average trade was about every 1.5 wks, which is long, but in practice, the results were amazing.  This would be considered end of the day trading and the markets would not be active, so you can make sounder decisions less based on emotions and follow a good trading strategy.  My trading plan over 96 trades produced results of 89% winning trades, which really is phenomenal.  You don't even need THAT great of a percentage to be profitable.

I've lost basically 20 yrs time and unless I want to work for someone else until I'm 90 yrs old, I have to figure out a way to make my money work very hard for me.  If you know how to make money when the market either goes up or down, there's no reason to not make money.  Anyway, daytrading when you're super stressed or in really stressful situations isn't good, which is what I did.  I did make a lot of money in trading working in the corporate world simultaneously.  I think getting a job outside the home will help reduce stress in trading so I don't need to depend on that money, which will allow me to trade better.

Technically, I would only be making about 2-3 trades a month, which doesn't really take hardly any time.  I just got out of my LCC practice trade yesterday because it looked like it was topping out for the short-interim.  I got in about 1.5 weeks ago at $10 with $3K.  I got out at yesterday at $13.25, as that's where I had my stop set.  I made $3.25 per share, which is about a 33% return in about 1.5 wks.  Really amazing.  And, today I switched to Short it at $12.75.  Hopefully it will come back to $12 or less.  If not, I'm willing to risk $0.35 to see if I'm right or now.  That would end up being a 5-6% return, but hopefully it would do that in 1/3 the time.  So, if it went against me, I'd still have made about 28-29% ROI.  If it went in my favor the way I see it, I'd make a 40% ROI.  Either way, it's still nice.

Anyway, I want to put all that money I invested to get training be put to work.  I've had it with not having money for things and it's time I started making money again.  A year from now, things will be financially way better for my kids and I.  I am going to, by the grace of God, am going to make my money work very hard for me (when I get the money) and catch back up and exceed where I left off, except, now I will have greater wisdom and knowledge and do my due diligence.

So, that is how I spent my day, and also with my kids.  We didn't go anywhere, except the kids got to hang out with the neighbor kids some.  I took a nap and trying to replenish from feeling so burned out and way too much social interactions with people.

A friend of mine had me join Kiva, which I have known about it for years.  Anyway, they have a free $25 gift card trial that some anonymous Kiva donor is giving away to people to make those loans out to others.  When it gets repaid back, it will go back to that anonymous donor, but at least you get to choose who the loan goes to.  I chose to give my $25 gift card trial that didn't cost me anything to a man in Peru regarding computer stuff.  Kiva loans are given to people around the world to help them support their businesses and to become self-sufficient.  How great is that?  If you're interested in a free $25 gift trial, you can sign up here:  Kiva Loans.  You can read up there, too, on how they do it and for what.

I truly believe in investing in people and if I can do it financially, especially when I'm much better off financially I will.  Helping them become successful is important to me, and especially if they can impact more people or have less reliance on others.  I love getting a great ROI on my investment.

It's like rather than just give a man a fish, teach him how to fish philosophy.  Anyway, I know a bunch of people have invested in me to help my kids and I out, and it's time that there is a great return on investment.  I am asking God to give me a decent paying job with great health benefits, flexible schedule and it be close to home.  I have my kids 100% of the time with zero involvement from their dad.  I just have to pray that God will be there to help my kids when I'm not around and working.  I don't know how that I will do this, as I get very little help now with them, almost none.  So, hopefully this is affordable for me and a concern of mine.

I already have no life as is, so I will have even less of a life.  But, I pray that I get paid well enough to make it all worth it and over the next year, that I can make my money work super, super hard for me that it'll blow the socks off everyone as to what God can do with being faithful in the little things as I have been over these past few years, and to really bless those who have blessed our lives.  I really want to have enough to fully fund my kids' college educations and have that not be an issue.  We've lived on so very little, that I think some people's eating out bill in a month is more than what we live on.

But, it's time to make money again and lots of it.  I don't say that in a greedy manner, rather I do think I think and have the ability to do way more than where I am at right now.  I have $0 to invest into trading or really anything right now and $0 times anything is still a BIG FAT ZERO.

I know there are all sorts of ways to get money - work for it, make money off the internet (please click on my Google Adsense Ads if you want to buy things from whomever advertises or buy through my Amazon link), have people invest financially in me, and other ways I'm sure.  I don't buy lottery tickets, so that won't be an option unless someone gives me a winning lottery ticket.

Anyway, tomorrow is progress update and I'm not looking forward to it as I haven't exercised in 2 weeks, and haven't eaten great this past week.  Today, however, I did stay on track with my eating.  Didn't eat anything that I wasn't supposed to - quiche for breakfast, protein smoothie for lunch, Indian curry for dinner.

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