Discipline to follow your rules is essential.

I believe that having discipline to follow your rules is essential.  Without specific clear and tested rules, speculators do not have any chance at success.  Why?  Because speculators without a plan are like a general without a strategy, and therefore without an actionable battle plan. Speculators without a single clear plan can only act and react, act and react, to the slings and arrows of stock market misfortune, until they are finally defeated.  - Jesse Livermore

EU Solution-A Transaction Tax-What It Means To You.

To me, transaction taxes are like a willing, sexy women at the bar. She looks so appealing. You take her to your room, and you wind up with a disease that you can never get rid of.


Transaction taxes are taxes on liquidity. Every time a trade is placed, a tax is paid. That makes it more expensive to trade. Market participants have to widen the bid/ask spread to account for the tax. This damages the market and costs consumers more than they actually realize.

Think about how much an account needs to gain after a loss. It's easier to protect your capital than to make it back.

Loss% Gain%
1%  1.01%
3%  3.09%
5%  5.26%
7%  7.53%
8%  8.70%


10%  11.12%
15%  17.65%
...
25% 33%
33% 50%
50% 100%
75% 300%
..

I’m still all cash although I traded some things last week and caught a few rallies, before they fizzled. Nothing though to write home about. Capital preservation is job #one right now.

                                                   30 min. view

30 min. view of SP-500

Tomorrow we'll put today's reversal to the test, we'll ether extend the reversal and get a price follow-through or we'll go back to a range.