Whenever I move to cash, I get the same questions over and over: Why don’t you short? What do you do for money? Why don’t you daytrade? My simple answer to all these questions is: DO WHAT WORKS FOR YOU! My more detailed response is the following:

1) I am a trader, not an investor. The market is healthy 2 to 3 times a year. When I feel we’re in an uptrend, I trade companies that are both fundamentally and technically strong. When I see warnings signs, I get out!

2) One of the main reasons I STAY out during corrective markets is that 4 out 5 stocks move in the general direction of the market. In other words, if we are in a downtrend, I don’t care how good the company is because most stocks will get hit.

3) I’ve studied some of the best traders who ever lived, such as Jesse Livermore and Gerald Loeb. They believe that you should only be in the market when probabilities are in your favor, and that the LESS you are in the market, the better. According to Harvard Business Review, since 1886, the US economy has been in a recession or depression 61% of the time. I realize that the stock market does not equal the economy, but they are somewhat related. Again, I only want to be in the market when I feel it’s healthy.

4) In my opinion, 90% of what we’re taught about the stock market is flat out wrong: dollar-cost averaging, buy and hold, buy cheap stocks, always be in the market. The last point has certainly been proven wrong because we have seen two declines of over -50%…just in the past decade! Keep in mind, it takes a +100% gain to recover a -50% decline.

5) 95% of individual traders lose money over ANY 10-year period. Why? I could write a book on the many reasons why I think this happens, but one reason is their inability to sit out (trust me, I struggled with it for years). Many traders not only lose money by trading choppy markets, but more importantly, they lose confidence. Since 80% of anything in life is psychology, protecting confidence should always be a top priority for traders.

6) I rarely short because I believe shorting is very difficult. In his Market Wizards interview, William O’Neil said: “I have only made significant profits on the short side of two of the last nine bear markets.” In other words, if one of the best traders of all-time finds the short side challenging, then who am I to try and re-invent the wheel?

7) The older I get, the more I like to focus on the QUALITY of my life. I like taking a “mental break” once in a while to make sure I’m not a slave to the stock market. I consider myself such an intense and aggressive trader during market uptrends, that I prefer to relax during corrective periods. Keep in mind that no one on their deathbed ever wished they worked more in life. They wish they spent more time with their families, spent more time traveling, etc. I have no problem with working hard, but I prefer to “work smart.”

Again, the simple answer to all this is: DO WHAT WORKS FOR YOU. Personally, I know my strengths and my weaknesses and I acknowledge what works for me. As I said in the beginning, I’m a trader and this strategy is not for everyone. Don’t get me wrong, I want the market to be healthy. I simply respect and understand that it’s not always going to go up. When it goes through corrections (as it inevitably does from time to time), I choose to sit out not only to protect my capital, but also to clear my head and protect my confidence. Remember, the market’s not going anywhere and there is more to life than trading.

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Assuming we agree there is no magical formula, it doesn’t mean you can’t improve your probabilities. You can at least give yourself a better chance of success by exposing yourself to “high probability situations.” Here are a few examples:

1) Expose capital during healthy times. Look for a “follow-through day” coming out of corrections, make sure the institutions are accumulating stock, and look for the major indexes to be above their 50-day moving average.

2) When we are in a “confirmed uptrend,” look for stocks that have strong earnings and sales growth. The higher the growth, the better. Only buy the BEST you can find! Do not be afraid of higher-priced stocks or companies that you have never heard of.

3) Use technical charts to look for “safer entry points.” Getting a good entry point is very critical so make sure to study charts. You will find that many patterns repeat themselves over and over.

4) Don’t forget proper risk/reward techniques. It doesn’t make sense to take a $2 profit on a stock if your stop is $2. You will never make progress! I can’t tell you what parameters to set because I don’t know your timeframe, but once you decide your plan, do your best to stick to your targets.

5) The most crucial point: CUT YOUR LOSSES! Again, exposing yourself to high probability situations does NOT guarantee that you will be correct. Sometimes, I find a perfect setup that I have huge conviction in, I aggressively get into the trade, and then the market proves me wrong. This is where separating your ego from your trading and making sound decisions comes into play. When it doesn’t work, it’s okay, just keep in mind there will always be plenty of ideas down the road.

Good luck trading!

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When I got home that night as my wife served dinner, I held her hand and said, I’ve got something to tell you. She sat down and ate quietly. Again I observed the hurt in her eyes.

Suddenly I didn’t know how to open my mouth. But I had to let her know what I was thinking. I want a divorce. I raised the topic calmly. She didn’t seem to be annoyed by my words, instead she asked me softly, why?

I avoided her question. This made her angry. She threw away the chopsticks and shouted at me, you are not a man! That night, we didn’t talk to each other. She was weeping. I knew she wanted to find out what had happened to our marriage. But I could hardly give her a satisfactory answer; she had lost my heart to Jane. I didn’t love her anymore. I just pitied her!

With a deep sense of guilt, I drafted a divorce agreement which stated that she could own our house, our car, and 30% stake of my company. She glanced at it and then tore it into pieces. The woman who had spent ten years of her life with me had become a stranger. I felt sorry for her wasted time, resources and energy but I could not take back what I had said for I loved Jane so dearly. Finally she cried loudly in front of me, which was what I had expected to see. To me her cry was actually a kind of release. The idea of divorce which had obsessed me for several weeks seemed to be firmer and clearer now.

The next day, I came back home very late and found her writing something at the table. I didn’t have supper but went straight to sleep and fell asleep very fast because I was tired after an eventful day with Jane. When I woke up, she was still there at the table writing. I just did not care so I turned over and was asleep again.

In the morning she presented her divorce conditions: she didn’t want anything from me, but needed a month’s notice before the divorce. She requested that in that one month we both struggle to live as normal a life as possible. Her reasons were simple: our son had his exams in a month’s time and she didn’t want to disrupt him with our broken marriage.

This was agreeable to me. But she had something more, she asked me to recall how I had carried her into our bridal room on our wedding day. She requested that every day for the month’s duration I carry her out of our bedroom to the front door every morning. I thought she was going crazy. Just to make our last days together bearable I accepted her odd request.

I told Jane about my wife’s divorce conditions. She laughed loudly and thought it was absurd. No matter what tricks she applies, she has to face the divorce, she said scornfully.

My wife and I hadn’t had any body contact since my divorce intention was explicitly expressed. So when I carried her out on the first day, we both appeared clumsy. Our son clapped behind us, daddy is holding mommy in his arms. His words brought me a sense of pain. From the bedroom to the sitting room, then to the door, I walked over ten meters with her in my arms. She closed her eyes and said softly; don’t tell our son about the divorce. I nodded, feeling somewhat upset. I put her down outside the door. She went to wait for the bus to work. I drove alone to the office.

On the second day, both of us acted much more easily. She leaned on my chest. I could smell the fragrance of her blouse. I realized that I hadn’t looked at this woman carefully for a long time. I realized she was not young any more. There were fine wrinkles on her face, her hair was graying! Our marriage had taken its toll on her. For a minute I wondered what I had done to her.

On the fourth day, when I lifted her up, I felt a sense of intimacy returning. This was the woman who had given ten years of her life to me. On the fifth and sixth day, I realized that our sense of intimacy was growing again. I didn’t tell Jane about this. It became easier to carry her as the month slipped by. Perhaps the everyday workout made me stronger.

She was choosing what to wear one morning. She tried on quite a few dresses but could not find a suitable one. Then she sighed, all my dresses have grown bigger. I suddenly realized that she had grown so thin, that was the reason why I could carry her more easily.

Suddenly it hit me… she had buried so much pain and bitterness in her heart. Subconsciously I reached out and touched her head.

Our son came in at the moment and said, Dad, it’s time to carry mom out. To him, seeing his father carrying his mother out had become an essential part of his life. My wife gestured to our son to come closer and hugged him tightly. I turned my face away because I was afraid I might change my mind at this last minute. I then held her in my arms, walking from the bedroom, through the sitting room, to the hallway. Her hand surrounded my neck softly and naturally. I held her body tightly; it was just like our wedding day.

But her much lighter weight made me sad. On the last day, when I held her in my arms I could hardly move a step. Our son had gone to school. I held her tightly and said, I hadn’t noticed that our life lacked intimacy. I drove to office…. jumped out of the car swiftly without locking the door. I was afraid any delay would make me change my mind…I walked upstairs. Jane opened the door and I said to her, Sorry, Jane, I do not want the divorce anymore.

She looked at me, astonished, and then touched my forehead. Do you have a fever? She said. I moved her hand off my head. Sorry, Jane, I said, I won’t divorce. My marriage life was boring probably because she and I didn’t value the details of our lives, not because we didn’t love each other anymore. Now I realize that since I carried her into my home on our wedding day I am supposed to hold her until death do us apart. Jane seemed to suddenly wake up. She gave me a loud slap and then slammed the door and burst into tears. I walked downstairs and drove away. At the floral shop on the way, I ordered a bouquet of flowers for my wife. The salesgirl asked me what to write on the card. I smiled and wrote, I’ll carry you out every morning until death do us apart.

That evening I arrived home, flowers in my hands, a smile on my face, I run up stairs, only to find my wife in the bed -dead. My wife had been fighting CANCER for months and I was so busy with Jane to even notice. She knew that she would die soon and she wanted to save me from the whatever negative reaction from our son, in case we push through with the divorce.— At least, in the eyes of our son—- I’m a loving husband….

The small details of your lives are what really matter in a relationship. It is not the mansion, the car, property, the money in the bank. These create an environment conducive for happiness but cannot give happiness in themselves.

So find time to be your spouse’s friend and do those little things for each other that build intimacy. Do have a real happy marriage!

If you don’t share this, nothing will happen to you.

If you do, you just might save a marriage. Many of life’s failures are people who did not realize how close they were to success when they gave up…..

1) Everybody has a fear that “we are not enough.” For example, we feel we’re not smart enough, attractive enough, old or young enough, rich enough, happy enough, etc. Therefore, we fear that if “we are not enough,” we won’t be loved. Our response is one of two things: 1) We create an empowering story that allows us to overcome our fears no matter what the situation or 2) We come up with a story about why our life is a certain way and that it’s not our fault. The latter is the story that REALLY destroys us. Why? Because we tell ourselves the same story over and over again until we start to believe it. Not only does it ruin our lives, but it also affects everyone around us (friends, family, co-workers, etc).

2) What’s the solution? Stop telling your story! Or as Tony says: “Divorce your story!” Challenge yourself to see the truth and to own a NEW story. He suggests 3 basic ways to help do this: 1) STRATEGY. You need to know “How do I get this done?” Tony always says “Success leaves clues.” In other words, if your goal is to lose weight, find someone who has been successful at it and mimic them. 2) STORY. You need the right story. You need to create a compelling reason to change and this will help change your belief system. 3) STATE. You need to put yourself in a quality state to help create a strong strategy and a better story. State refers to both a mental AND physical one. The fastest way to change your state is “a radical change in the way you move because the emotion is what creates motion.” In other words, taking massive action is a solution to most problems, but you will only do it if you are in a stronger state.

3) Tony and Oprah both had challenging upbringings. They could have made excuses, told themselves disempowering stories, and taken the easy way out. Instead, they are REAL-LIFE examples of people who overcame their fears, convinced themselves they could achieve their goals, and took MASSIVE ACTION to pursue their dreams. Most importantly, they both enjoy fulfilled lives because they experience a deep sense of meaning and purpose consistently in their lives. They truly live by the phrase: “The secret to living is giving.”

4) Tony Robbins is NOT a motivational speaker. He’s interested in knowing WHY people do what they do, getting them to change their patterns, inspiring them to have a breakthrough, and then encouraging them to make a LASTING change. Sounds easy, right? I guess that’s why some of the top athletes, business people, and world leaders seek his advice and coaching. In addition, many people believe that Tony teaches “positive thinking” but it’s simply NOT true. He will actually tell you that NOT getting what you want can sometimes be part of your larger plan in life. “Life isn’t about getting what you want, life is about becoming more. What you get is not going to make you happy because success without fulfillment is failure.”

5) You become who you spend time with. Surrounding yourself with people who are better than you will get you to “step up your game” in business, relationships, health, and your overall life. The fastest way to get out of your comfort zone is to get around people that aren’t so comfortable. In other words, it’s harder to make a change when you’re around people who keep reaffirming you and simply tell you what you want to hear. When you surround yourself with people who will challenge you and tell you the truth, it may be uncomfortable at first, but it’s the best way to make a change.

I have learned so many things from Oprah and Tony over the years, but these are just a few of the topics from their recent class. I encourage you to watch the entire video posted below. Enjoy!

Full Episode of Oprah’s Lifeclass: the Tour: Tony Robbins on Living Fearlessly

During this broadcast from New York City’s famed Radio City Music Hall, Oprah and life coach Tony Robbins work with viewers to help them to start living fearlessly and to divorce themselves from the stories that are holding them back. Watch the entire show to discover ways to turn your fear into power.

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Follow me on Twitter @jfahmy
Follow me on StockTwits @jfahmy

Follow me on Twitter @jfahmy
Follow me on StockTwits @jfahmy

1) I use StockTwits for IDEA GENERATION. I love to see what people are trading, especially the swing traders who share a similar style as me. Who knows? I might discover a new idea that looks strong and fits my trading philosophy.

2) When I signed up for Twitter, it didn’t say anywhere in their “Terms & Conditions” that I have to tweet all my trades in real-time. In fact, the real reason I joined Twitter was for the porn and free iPad offers.

3) I don’t know everyone’s time frame! It makes no sense for me to buy a stock at $50 and tell you my target is $60 if you are a day-trader. It also doesn’t make sense to tell you I have a $2 stop if you are a long-term investor. I try to give general ideas, and people can use them to fit their personal strategies and time frames. If you don’t like them, remember, you don’t have to trade them (it’s really that simple).

4) I prefer to give ideas that are, in my opinion, approaching decent or safe entry points. If you look up the charts when I tweet ideas, many of the stocks on my watch list are near consolidation areas. When I say they are “worth watching,” I am looking for a possible breakout above the consolidation area and my stop is usually the low of that same area. I don’t like buying stocks that are sticking straight up in the air, nor do I look for stocks that are in a free-fall. Some people do it, not me.

5) I like giving a wide-range of market caps and sectors because everyone has different preferences. Some people like small-caps, large-caps, Biotech, Technology, etc. Although I mostly trade mid-cap names, I try to mention a wide-range of ideas to help my diverse group of followers.

6) Sometimes, I’m just busy trading! No offense, but I’d rather make money than worry about tweeting an idea and having 10 people tell me “great trade.” I have NO EGO when it comes to trading.

7) Occasionally, I enter a trade and don’t like the way I get filled. Especially, if I get an instant fill on a small-cap stock. This is one of the nuances of trading that you will understand the more you gain experience. Therefore, it makes no sense to tweet a trade that I might dump a few minutes later if I don’t like my execution.

In conclusion, I prefer that traders use StockTwits for the same reason I do: IDEA GENERATION.
I DO NOT recommend that you follow ANYONE’S trades blindly, including mine. Look for people that share a similar philosophy as you, and use their ideas to help your strategy. If you don’t have a trading philosophy, I highly recommend that you get one! You should not turn on your computer every morning and “wing it.” You will never produce consistent results that way. Once you discover what time frames, sectors, and market caps fit your personality, I suggest focusing your skills and trying to master one style. It takes time, discipline, and a great deal of hard work, but it’s certainly worth it in the long-run. Good luck trading!

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A few months ago, I realized that if I’m going to trade for the next 20-30 years, there will inevitably be extended periods of unhealthy conditions. So, I decided to put together a stock trading seminar for 3 reasons: 1) To keep me busy and keep my mind sharp during slow times 2) To make some extra money (I won’t insult your intelligence and say otherwise) and 3) Because I enjoy teaching and genuinely want to see people improve as traders.

When I announced I was doing this, I have to admit that I was shocked by the two extreme reactions I received. On one hand was extreme kindness. For example, many people emailed me about how excited they were to go, great friends offered strong advice, and some genuine people showed tremendous support and encouragement. These people know who they are and they are some of the most generous people I have met in the StockTwits community.

On the other hand, I was floored by the extreme hate I received. I’m talking deep-rooted, flat out hatred…from “who the fuck are you to be running seminars?”…to “how dare you charge so much you arrogant prick?”…to “you are total fraud you asshole!” Pardon my language, but these are ACTUAL quotes. You know what all these people had in common? They were all anonymous. No picture, no name, fake email addresses, fake Twitter handles, etc.

So what do you do in this situation? Well, you can either focus on the haters and let them destroy you, or you can focus on the strong supporters who genuinely care and who make you a better person by simply being around them. That’s what life is all about…What are you going to focus on? It takes just as much energy to be depressed or to be happy, it’s up to you to decide which path to take. Or as they say in Shawshank Redemption: “Get busy living, or get busy dying.”

I decided to focus on the great people that I am very blessed to have in my life. I used all their positive energy to put together a tremendous seminar. By the way, I’m not the one saying it, you can read their testimonials here (Testimonials link). What humbles me the most is that these comments came from highly respected people in the community.

To all my supporters, from the bottom of my heart, I sincerely appreciate your kindness and generosity. You all know who you are and I thank you.

I learned two valuable life lessons from this entire experience: 1) There are angry people who will take shots at you because they are so miserable in their lives. They try to bring you down to feel better about their pathetic lives. If this ever happens to you, pray for those people and use their jealously to inspire you to become a better person. “Never hate your haters but respect them because they are the ones who think that you’re better than them.”

2) There are some amazing and genuine people out there who are always willing to help. Sometimes, all you have to do is ask. Keep those great people close to you, and always let them know how much you appreciate their efforts. “Don’t dwell on who let you down, cherish those who hold you up.”

I am very blessed to have some great people in my life. I will continue to channel their positive energy and put together an even better performance this Saturday in New York. Thank you for allowing me to share this experience and God Bless You!

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