The Secrets to Emotion Free Trading

link below: http://www.trading-naked.com/library/EmotionFreeTradingBook.pdf

Open Interest

Open Interest is the number of long or short contract that has not been exercised, closed out, or allowed to expire. Open interest acts more of an information item than an indicator.

Open interest increases whenever a new contract is created. when a buyer initiates a long position or a seller initiates a short position. Open interest decreases whenever an existing contract is closed.

Open interest shows how liquid the specific option’s contract is. If the open interest is very low, the option is considered to be ‘illiquid’, which also means it will usually be a wide spreads between the bid and ask and possibly very difficult to close the option out. The greater the open interest, the more confidence the trader can have that it will be simple to get into and out of a trade with that option.

We can study the volume analysis with open interest to find out the flow of money into and out of the market. The theory is that rising volume and rising open interest confirm the direction of the current trend, and that falling volume and falling open interest signal that the current trend may be ready to reverse.

Therefore, it never hurts for any trader to check the open interest before entering any kind of options trade and that large volumes are your friend in options trades.

Risk and Reward ratio-an alternate view

The concept of a risk/reward ratio is simply for any given trade, you're targeting a certain amount of gain, while setting a stop-loss limit if the trade goes the against your direction. As a trader you want your reward to be at least a little better than your risk, a good rule of thumb is to seek a return of three times as much as the amount risked and making the reward/risk ratio 3 to 1 or anywhere between 2 to 1 and 4 to 1.

So as long as you're rewards are bigger than your risks, over time you will make money ? Unfortunately, it is not necessarily true , it is the the likelihood of a number of successful trade with the highest percent of gain that give the most reward.

Let's stick with the assumption that our optimal reward/risk ratio is 3 to 1 and assume you have a developed a trading system that produces one winning trade for every four trades. So, your win/loss ratio is 1 in 4 (25%), while your reward/risk ratio on a per trade basis is 3 to 1. Do you think you will make money with that system? Nope - for every trade that gains 30%, you have three more trades that lose 10%. The rewards were three times as big as the risk, but it didn't create any real profit! The best you could hope for is to break even.

Let examine another example. Say you've found a stock you think will move 20% higher, and you're willing to risk 10% to enter that trade. You're target is 20% above your entry price, and your stop loss is 10% under your entry price. With a reward/risk ratio of 2 to 1, this trade doesn't necessarily seem all that great. But, what if the trading system had a success rate of three winners for every four trades? You'd have a 75% chance of making 20%, while only a 25% chance of losing 10%. With that particular trade, your real reward-to-risk ratio would be about 6 to 1.

Bottom Line – The point here is not the setting of targets and stops based on a predetermined risk/reward ratio . Big targets and tight stops are pointless if the system is a net loser. Rather, focus on the actual risks and rewards of a total methodology. This will also force you to determine just how successful your trading system or stock picking really is.

Follow up on Options Play

Carpenter Plunges on 1Q Profit Miss ,earnings per share $1.94 and Analysts polled by Wall Street were looking for much higher profit of $2.15 per share. Shares fell $13.59, or 11 percent, to $105.50.

On the other hand, NII Holdings (NIHD) beats on top and bottom lines Reports Q3 (Sep) earnings of $0.43 per share, $0.03 better than the Reuters Estimates consensus of $0.40; revenues.

So the games is draw.

Today Actions

Tonight , I will be looking at 2 options play

NII Holdings, Inc(NIHD) provider digital wireless communication services and Carpenter Technology Corporation(CRS). Both are reporting their earnings on the 26 October.

NII Holdings and RIMM recently Launch BlackBerry for Nextel Mexico and Nextel Peru Customers and also announced a five-year extension of the company's current agreement with Motorola related to the iDEN network.The stock climbed on this contract.

Carpenter Technology Corporation (Carpenter) is in the steel and iron industry should also see some actions tommorrow after a big earnings from Nucor (NUE) yesterday. Steel had a big day

The Bull Still Charging

The U.S. share market has soared on the back of speculative talk regarding interest rate reductions before the end of the year. The Dow Jones continues to push to record highs in recent times with the S&P 500 in close pursuit. Crude oil prices have also been on the decline for quite a while. NASDAQ too has had an impressive ran, adding to market momentum.

Despite the bull rage, I will continue to focus on trading prudently with suitable entry and predefined stops in place. There are probably still some big gains to be claimed in the coming months. ‘Trade with the market trend’ and stick closely to my trading plan. By locking in profits and taking moderate, well timed positions, Let us look forward to a very happy new year!

My trading rules

Always Pay youreslf first-This is the first rule to save at least 10% of my paycheck so that I have money to invest.

Know my tolerance of risk-If I feel uncomfortable with my open position, this means that I have exceed my risk tolerance, my guildline is always only to invest 5 % of my total investment capital. This is also my money management rule.

Know when to exit-Choosing investment is easy, it is getting out that is hard, I always set an exit target point in every trade so that my emotion will not play a role in my trades.

Play an active role in my investment plan-It is my responsible to take care of my hard earned money , nobody cares about your money as much as you do and therefore it is important to spend some time on homework and get involved in my investment plan.

Don't be greedy-As Jim Cramer always put it"Pigs get fat and hogs get slaughtered , you will never lose money if you ring the register.

Bottom Line-Treat your investing like a business and it could potentially pay you like a business . Treat your investing like a hobby and it will pay you like a hobby.

Monday feelings

The bull market was in fury last week, the Dow Jones has gone passed the all time high of 12,0000 marks. There seem to be no stopping the DOW and the NASDAQ from continuation of the bull rally and we may enter a "Santa Clause" rally moving toward December

Most believe that the current stock market rally has been fully justified because the key fundamental factors remain strong. The US economy is stable and not weakening as much as many in the market have feared. Based on the first half of quarterly reports, earnings report remain reasonably strong.

The interest rates is expected to remain constant in the immediate future and inflation outlook seem to be contained at good level at the moment to deter the Federal Reserve from making rate changes. Couple all of these factors with the current valuations in the market, with the S&P 500 stocks trading at around 16 times earnings and you can’t help to conclude that the overall market remains bullish.

Although earnings growth has remained strong despite some of the economic indicators slowing down, but the decrease in energy prices are helping the bull.

The only concern is that the immediate future of inflation to wary the market. The core rates of inflation, as measured by the Consumer Price Index (CPI) have been been up 0.2% each of the past two months and at this moment the market accepted without too much concern.

There are even analysts argued that some stocks tend to be undervalued at this point, based on the combination of interest rates, bond prices, and earnings growth. If more of the big institutions boys in the market start to feel this way, then the market cannot help but stay in rally mood.

Although there are always risks that the market , in short-term there are always chances of pullbacks and volatility. A short-term trader should always keep in mind support and resistance and position trades accordingly. For the intermediate-term, expect the bulls to continue to have the upper hand in the market. Hooray to the bull.

The business of trading

Investing in the stock market is often exciting and at times can be very rewarding. The rewards are easy to explain because you want rewards, the more the better. However, when it comes to losing money , it is an entirely different feelings.

Trading is always associated with different level of risks and we often need to find the level of risk we are able to tolerate and comfortable with.

One of the biggest mistakes is that if we try to invest our money that we cannot afford to lose and we need this money for our basic living like buying groceries or paying our utilities bill , then that is not investing, that like gambling in Las Vegas.

The stock market has been proven to be a fantastic place to invest and grow our money over long period of time and accordingly to finding, it is one of the best asset that outperform other class of assets over a 20 years time span. However, investing in hopes of making a fortune overnight usually involves tremendous amount of risk and never be done except with "risk capital" which mean money you can afford to lose without changing your present lifestyle and financial circumstances if it is lost.

Investor often has to battle the emotion of fear and greed in the stock market and therefore we if we are not able know what has gone wrong and have the discipline to put a stop lost and a trading plan to exit because of greed , then our career in the stock market is often said to be short-lived. The discipline investors are said to be very mechanical and automatic. They have a trading plan and they stick to it as they know that not every investment is a winner.

As said earlier, the biggest enemy of an investor is emotion, when stocks are dropping and investment starts to lose money , you may get into "house of pain"and with this feeling, it is difficult to make good decision thereafter, worst of all, you find it hard to sleep.

In conclusion, managing the risk before going into a trade and stick closely to our pre-determined trading plan of entry and exit points will help us to take the emotion out of investing.

The Buy Setup

Along our trading journey, we often want to buy a stock because we don’t want to miss out on the next big move and suddenly the next day we watch in horror as it gapped down and then fear sets in.

The Buy Setup strategy I was taught by a professional trader look as follow:-

First – Look for a new high price. We start by looking at a a stock that has hit a new high, not necessarily a new 52-week high, but has recently rallied higher breaking above recent previous highs. A general guideline to consider is that the stock should have made a new high no longer than eight trading periods ago.

Second – Look for three or more consecutive lower highs. This step calls for stocks to drop at least three days in a row with three lower highs. The high of each down day must be lower than the previous day’s high.

Third – We buy the stock when it trades one tick above the previous day’s high price.

The chart below shown an example of what the Buy Setup looks like.


This is a little useful trading entry technique that can use along with other technical indicators.

Options Play-23 Oct

Some of the names I am watching for earning plays for options are:

IPS (IPSCO) is a steel and steel pipe producer and that was after watching another steel producer, Steel Dynamics (STLD) reported Q3 results $0.09 above consensus Reports Q3 (Sep) earnings of $2.17 per share, $0.09 better than the Reuters Estimates consensus of $2.08.

Apple (AAPL) which may not be done going up as it may hit above $80 since the start of the year with a 52 weeks high of $86 and with a record earnings quater they have , the share really has to do better than the 52 week high earlier in January 06.

Finally, on Google(GOOG) many believes that this stock is going higher beyond $500 per share.

Options Review on 17 Oct

The bull market continues in fury, the Dow Jones industrials has gone passed the all time high of 12,0000 marks.

Let review the trades I mentioned earlier-

Parker-Hannifin CorpCorporation (PH) , which makes parts for the aerospace and construction reported first-quarter earnings soared 22 percent and earnings $1.75 per share above analysts estimated $1.48 per share. The stock gapped $3 on the opening bell to $87 , but ended the day with a disappointing $83. Hooray to those took profit in the earlier session.

Share of CSX Corporation(CSX) rose slightly on after the railroad reported quarterly earnings of $0.54 per share that topped Wall Street expectations of $0.51 per share on heavier shipping volumes and higher prices.

and General Dynamics Corporation(GD) reported a 17 percent increase in third-quarter earnings and earnings $1.08 per share was above the forecast of $1.06 per share of analysts surveyed by Thomson Financial. However, it gapped down to $2.00 per share and eventually ended the day with disappointment and further fell on Thursday 19 Oct after the company warned lower-than-expected third-quarter sales, and two research analysts downgraded the stock.

Entry Points

Sometimes I get “penny wise and pound foolish” in trade entry points. What I mean by that is that I sometimes spend a lot of time trying to get the very best fill on a trade entry, only to see the stock continue to move upward and leave us behind. This gives us the choice of chasing the stock (never a very good place to be as a trader) or leaving that trade behind and looking for something else.

The irony of trading is that the hard trades to enter are the ones you most want to get filled. Competition for sought-after shares from other traders who also think it is a good trade makes execution difficult at a desired limit price. Yet these are usually the stocks you want to own. If you instead think these leaders have run up too far, and start to pick less desirable stocks you hope will catch up, you are likely to be left with poor trades. The saying, 'If you lie down with the dogs, you get up with the fleas' is very true here. If you don't fight to get on board the leaders, and instead let the market pick your stocks, you get only the bad ones.

As a result, the most expensive trade for most of us is the trade never done. The impact of these missed trades can be expensive, and failure to execute these trades usually costs more than the squabbling over trying to get in at a specific limit price. If you don't track these trade that get away, you will believe you are doing a good job when you may be leaving a lot of opportunity on the table. One solution is to place market orders when you are concerned about missing out on a breakout situation. We usually discourage market orders, but a fast moving stock with a lot of volume can and sometimes should be the exception to that rule.

Bottom Line – Try to think about this another way. If you think you're saving 10 cents a trade by placing limit orders, if you miss just one five-point mover because of a limit set too tightly, then it will take 50 trades worth 10 cents of savings to make up for this trade not being done. Think about how you currently enter trades and evaluate whether you should make any modifications to help capture more of these types of trades.

Market Sentiment and flow of information

Crowd psychology plays an important role in the development of market tops and bottoms. Generally, a market bottom forms when the vast majority of traders are extremely pessimistic, and a market top occurs when the vast majority of traders are ultimately bullish. The fear of the unknown can be one of the biggest obstacles and challenges that we as traders can experience in our day to day trading.

How does crowd psychology work? All financial markets like the stock market convey the predominant opinion of traders about the future direction of their financial securities. Simply put, traders buy because they are optimistic, and they sell because they are pessimistic. By and large, if everyone was optimistic about the stock market, then the market wouldn’t function properly, because the market would be lopsided with buyers and there would be a significant lack of sellers.

The opposite happens at significant market bottoms. As a market bottoms, traders begin to believe that stocks will continue to fall and not likely to reverse anytime soon. Such a high degree of pessimism sets the stage for buying opportunities as traders wait for a sign that the worst is behind them.

Thus, many traders are confused about market sentiment. Here is a general guideline for you to consider the next time you look at a particular market with the thought of which direction is it likely to move.
Positive sentiment amid positive price action is natural, embrace it.
Negative sentiment amid positive price action is a contrarian's play, buy it
Negative sentiment amid negative price action is natural, let it be
Positive sentiment amid negative price action is a contrarian's play, sell it

There are many places to turn to get the general market information and the flow often falls into the following phrases-

News from internet example Briefing.com to TV , newspaper and finally magazines like Fobers. If we can convert information from the so call Phrase 1 source like internet news and Phrase 2 to check these news to see if they are belong to one of the companies listed in the S&P 500 index, then we have a very good chance that we can profit ahead of the crowd .We can go to the US gov't and agencies website to check the news whether any governement projects are awarded to private companies that are listed in the S&P 500 index so that we can prepare ourselves if we want to play this companies in advance before the full news is release to the media & make known to the public.

CSX 3Q Profit Surges

CSX Corp. said Tuesday its third-quarter profit doubled, aided by stronger volumes and pricing, as well as insurance recoveries related to Hurricane Katrina.

CSX earned 54 cents per share in the quarter, above the 51 cents Wall Street estimated.

Revenue balloned to $2.42 billion from $2.13 billion in the year-ago period, also above analysts' expectations of $2.37 billion.

Options Play-17 Oct

The bull market is in rage, it is not going to stop going up. The Dow Jones industrials came close
to hitting a new intra-day high of 11,997.25 shortly after 3:30 p.m. ET on 16 Oct 06 and the Standard & Poor's 500 Index was up 3.4 points, 0.25%, to 1,369.

Some of the names I am watching for tonight earning plays for options are:
Parker-Hannifin CorpCorporation(PH) , CSX Corporation(CSX) and General Dynamics Corporation(GD).

Big industrials,which is a strong area right now are JLG Industries (JLG)
W.W. Grainger (GWW) and and Eaton (ETN) which on Monday said its third-quarter profit rose 25 percent due to strong sales in its fluid power and electrical segments. The company's stock jumped 7.47 % after the close of the market, so big industrials, seem to be a strong area right now and therefore I like Parker-Hannifin Corporation (PH) as it is also closely related to Industrial segment.

CSX Corporation(CSX) , railroad company is expected to get a boost from volume growth and to solid pricing increases from the last quarter.

General Dynamics (GD) is in aerospace/Defense industry benefited most from government increase military spending and news sources reported that their orders have outpaced deliveries, pushing back delivery dates for third-quarter orders into 2009.

Well, as a individual and self directed investor, I am always very excited during the earnings season beacuse the market present many opportunities that we can profit upon and let hope this time will also not be any exception.

Monday Feelings-16 Oct

Earnings – The first big week of quarterly earnings reports started a bit shaky, with a disappointing report from Alcoa (AA), however,it got much better quickly as several companies in various sectors, including Costco (COST) and Pepico (PEP) reported earnings above expectations. Add to this a report from McDonald’s (MCD) that their third quarter earnings will come in above expectations, and the market made a big jump toward the end of the week. The reports so far also suggest that consumer-based companies will do well overall. The market tends to be very sensitive to what the consumer is doing, so a big quarter for those stocks will likely help bullish trends to continue. Next week will bring us a lot of the financial and technology reports. If the positive earnings also include those sectors, we could continue to rally. If these sectors have some major disappointments, we could trend back a bit. A bullish factor right now.

Economic Reports – There were only a few economic reports last week, but they supported the bullish case. New claims for unemployment were down from previous weeks and the U.S. budget deficit continued to drop. The September Retail Sales report was down, but that was actually good news, since the drop was mostly because of a drop in gasoline prices. This is also a bullish factor right now.

Energy prices – The price of crude oil continues to decline, which can be nothing else but bullish. Crude oil closed the week around $58.50, and the chart trend suggests that it will continue to move downward. This is also a bullish factor.

Interest Rates – Really a non-factor right now. The market does not expect the Federal Reserve to change interest rates one way or another for a while. Stability in this area is a plus for the bulls in the market.

Bottom Line – All the factors seem to continue to line up to the bulls in the market.

Earnings Season Begins

Right now, there is a bull market in tech and it seem that it is not going to stop going up. People are selling the oil stocks and consumer staples.

So the question is that when money is out of a sector, it has to move somewhere.

The big names I am watching for earning plays are Motorola(MOT) ,Microsoft(MSFT), Google (GOOG), Qualcomm(QCOM) and Apple (AAPL).

Apple is having a more market share on iPod and Motorola has also gains some market share with lot of room to improve on their profit.

Google is a $420 stock that can go to $500 by year end, this is the Internet company has locked up a key demographic with its purchase of YouTube.com.

Mindset of Trading

Here the 5 areas to share about the mindset and how to become a better trader and the articles below serve as a reminder to me just as important (maybe more important) than learning the technical indicators.

Develop Consistency - We should try to create a mindset of consistency by developing beliefs which support us in obtaining this result. In order to develop consistency, try to objectively identify your edges, defining the risk in each trade in advance, and accepting the risk to be able to exit a position when a defined loss level is realized.

Trading is a Probability Game - You can't be a perfectionist and expect to be a great trader. Your losses (that you hope will return to breakeven) will kill you.Jumping.

In Too soon or getting In Too Late - These mistakes come from traders not having a well-defined plan of how they will enter the market. This positions the trader as a reactive trader instead of a proactive trader, which increases the level of emotion the trader will feel in reacting to market movements. A written plan helps make a trader more systematic and objective, and reduces the risk that emotions will cause the trader to deviate from his plan.

Not taking profits on winners and letting winners turn to losers - Again this is a function of not having a properly thought-out plan. Entries are easy but exits are hard. You must have a plan for how you will exit the market, both on your winners and your losers. Then your job as a trader becomes to execute your plan precisely.

Great traders don't place their own expectations on to the market's behavior - Poor traders expect the market to give them something. When conditions change, a smart trader will recognize that, and take what the market gives.

The Secrets to Emotion Free Trading

Among the 3 elements of mind, method and money management, mastering the mind is probably the most challenging task.

"A person with good self-discipline but a poor trading method will outperform a person with poor self-discipline but the best trading method currently available."

Traders Analysis -Genentech (DNA)

Genentech shares fell 1.6% in after-hours trading Tuesday after the biotech company reported results for the third quarter. The company posted earnings of 55 cents per share on revenue of $2.38 billion. Genentech was expected to announce a profit of 50 cents per share on revenue of $2.31 billion, according to analysts surveyed by Thomson First Call. Investors appeared to be disappointed by the quarterly performance of key products Avastin and Rituxan, as sales for both cancer drugs missed Street expectations.

Traders Analysis

Third-quarter earnings season officially kicks on Tuesday with Alcoa's (AA).

I am now looking at Genentech (DNA) which will announce their Q3 2006 earnings on
October 10, 2006 after market close.

Genentech has met expectations twice and beat expectations twice over the past four quarters. The current consensus estimate for third-quarter earnings of 46 cents is unchanged from 30 days ago, but one thing that caught my eye was the most recent consensus. The most recent consensus, which reflects the average of recently issued revisions, is 43 cents - three cents below the overall consensus estimate.

So with this I will probably go for an intermediate out of the money (OTM) call option where the strike price is above the actual stock price tommorrow. If the earnings fail to impress , then stock will likely to get slump and gap down , I will then convert the trade into a bear call spread immediately .

A Proper Plan of Attack

When you first get introduced to the world of trading for the first time, you begin to hear catchy little phrases like: “Buy low, sell high” or “Don’t try to pick tops or bottoms” or “Plan your trades and trade your plan”…and so on. Obviously there is some truth to these truisms; otherwise we wouldn’t be constantly reminded of them.

In all probability you have heard the saying "if you fail to plan, you plan to fail." This couldn't be truer in the world of trading. None of us begin to trade with the intention of failing but that is just what we are doing if we aimlessly look for trades to put our money into without a proper plan of attack.

When we start a new trade, for most of us it begins when we hit the buy button on the order entry screen. In reality, a new trade really begins the night before when we set aside some quiet time free of the everyday stresses. It’s during this time that we review our current trades and plan for new ones. Planning our trades and writing them out can help make them easier to execute with discipline. If it's written out and in front of us every trading day, we are constantly reminded of why we got into the trade in the first place. If you’re just interested in playing the markets and not spending the time to plan your trades then you are setup to have a gambling mentality and your trading career will be very short-lived as you find yourself caught up in fear and greed making irrational trading decisions.

The first step in planning our trades is to devote some time each day.
It doesn't have to be a huge amount of time, but I suggest you to start with a 30 minute to an hour block of time. Everyone’s trading approach will be different and should be personalized to your own trading style.

Next I might want to start review some price charts.

Now that you have an understanding of the general direction for the markets, you might want to use some sort of scanning software to help you find trades that will work with the current market conditions.

Next, you want to look for strong trends or chart patterns that suggest a stock will move in the direction of the markets.

Now that you’ve found some stocks that look good for the next day, you’ll want to consider any type of recent news event that could affect the stock’s performance.

When evening approaches, it’s back to reviewing your trades and going through the hold process again. Do not forget to manage the trades you’re already in, spend a few minutes checking the charts of your current trades and adjusting the stops accordingly. Following a trading plan and sticking to it is really the only way to consistently profit from the markets. This nightly ritual or routine is extremely important for us to maintain our focus. If we trade strictly from our plan in a ritualistic way, any deviation will become uncomfortable or "unlucky."

Monday Feelings

Key points:
1) The market can remain irrational longer than you can remain solvent.

2) No matter how high it goes, it can always go higher. No matter how low it goes, it can always go lower (look at a 10-year chart of MSTR)

3) Stick to your rules. We are trading, we are not buying Certificates of Deposit, so it requires a bit more emotional fortitude.

4)Diversify. As the charts become more bullish, consider some long trades or covered calls as money flows in force back into market seemingly in 4th Q.

5)Watch / listen to the Fed – if Bernanke does cut rates like he alluded to in his talk last week, we could in for a nice ride next year.

Stay Disciplined

What's about trendlines

Rule: Price piercing through a trendline signals a trend change. In reality, the initial piercing of a trendline is only a warning of a possible trend change. In a study I saw recently, it was found that if you sold when the price first pierced the trendline, you would be selling too soon in nearly two out of three trades. This suggests that you should not rely on the trendline to be your only signal of a trend change, but as a first warning.

Rule: The more price touches a trendline has, the better the line is. When we define a touch as the closing price, this rule does generally hold up. One of the interesting things I have found is that the down sloping trendline tends to be stronger than an up sloping one.

Rule: Long trendlines perform better than short ones. This one just makes sense on the face of it. The longer the trend is in place, the better the stock performance is. The study I mentioned earlier suggests that trendlines that last more than about 140 days have about a 10% better return rate for the trader than shorter ones.

Rule: Shallow trendlines perform better than steep trendlines. This is a bit subjective because it deals with the perceived angle of the trendline. It is thought that a stock that is going up at a steep angle cannot continue that trend for as long as a stock that is having a steady, slow increase. In the study I have been citing, this rule was validated, with the shallow trending stocks averaging about 50% more increase over time than stocks with a steep uptrend angle.

Bottom Line – Today we touched on just a couple of aspects of trendlines. My best advice if you are new to trendlines is to read up as much as you can on them and then go out and start drawing your own lines. The best way to get good at them (as with anything else) is to keep doing then over and over. Trendlines can be a great tool to help set trading entrances and exits, so learn to use them. Good luck and good trading.

Monday Feelings

First of all, September was not a typical market month. September tends to be one of the weakest months of the year for the market.

My personal opinion at this point is that the DOW will probably push to a new all-time high in the next few weeks.

It is once again earnings season and there have been very few earnings warnings during the last couple of weeks. Without the normal amount of earnings warnings, the market analysts are thinking that the current 14% increase in the S&P 500 earning estimates will hold.

Bottom Line – There is always a lot of volatility around earnings season, so I need to stay alert and trade with discipline.