“Meditations” Book IV: Passage III

They seek for themselves private retiring places, as country villages, the sea-shore, mountains; yea thou thyself art wont to long much after such places. But all this thou must know proceeds from simplicity in the highest degree. At what time soever thou wilt, it is in thy power to retire into thyself, and to be at rest, and free from all businesses.

A man cannot any whither retire better than to his own soul; he especially who is beforehand provided of such things within, which whensoever he doth withdraw himself to look in, may presently afford unto him perfect ease and tranquility.

By tranquility I understand a decent orderly disposition and carriage, free from all confusion and tumultuousness. Afford then thyself this retiring continually, and thereby refresh and renew thyself.

Let these precepts be brief and fundamental, which as soon as thou dost call them to mind, may suffice thee to purge thy soul thoroughly, and to send thee away well pleased with those things whatsoever they be, which now again after this short withdrawing of thy soul into herself thou dost return unto.

For what is it that thou art offended at? Can it be at the wickedness of men, when thou dost call to mind this conclusion, that all reasonable creatures are made one for another? And that it is part of justice to bear with them? And that it is against their wills that they offend? And how many already, who once likewise prosecuted their enmities, suspected, hated, and fiercely contended, are now long ago stretched out, and reduced unto ashes? It is time for thee to make an end.

As for those things which among the common chances of the world happen unto thee as thy particular lot and portion, canst thou be displeased with any of them, when thou dost call that our ordinary dilemma to mind, either a providence, or Democritus his atoms; and with it, whatsoever we brought to prove that the whole world is as it were one city?

And as for thy body, what canst thou fear, if thou dost consider that thy mind and understanding, when once it hath recollected itself, and knows its own power, hath in this life and breath (whether it run smoothly and gently, or whether harshly and rudely), no interest at all, but is altogether indifferent: and whatsoever else thou hast heard and assented unto concerning either pain or pleasure?

But the care of thine honour and reputation will perchance distract thee? How can that be, if thou dost look back, and consider both how quickly all things that are, are forgotten, and what an immense chaos of eternity was before, and will follow after all things: and the vanity of praise, and the inconstancy and variableness of human judgments and opinions, and the narrowness of the place, wherein it is limited and circumscribed?

For the whole earth is but as one point; and of it, this inhabited part of it, is but a very little part; and of this part, how many in number, and what manner of men are they, that will commend thee?

What remains then, but that thou often put in practice this kind of retiring of thyself, to this little part of thyself; and above all things, keep thyself from distraction, and intend not anything vehemently, but be free and consider all things, as a man whose proper object is Virtue, as a man whose true nature is to be kind and sociable, as a citizen, as a mortal creature.

Among other things, which to consider, and look into thou must use to withdraw thyself, let those two be among the most obvious and at hand.

One, that the things or objects themselves reach not unto the soul, but stand without still and quiet, and that it is from the opinion only which is within, that all the tumult and all the trouble doth proceed.

The next, that all these things, which now thou seest, shall within a very little while be changed, and be no more: and ever call to mind, how many changes and alterations in the world thou thyself hast already been an eyewitness of in thy time. This world is mere change, and this life, opinion.

“Meditations” Book III: Passage IV

Those things that are his own, and in his own power, he himself takes order, for that they be good: and as for those that happen unto him, he believes them to be so. For that lot and portion which is assigned to every one, as it is unavoidable and necessary, so it is always profitable.

He remembers besides that whatsoever partakes of reason, is akin unto him, and that to care for all men generally, is agreeing to the nature of a man: but as for honour and praise, that they ought not generally to be admitted and accepted from all, but from such only who live according to nature.

As for them that do not, what manner of men they be at home, or abroad; day or night, how conditioned themselves with what manner of conditions, OR WITH MEN OF WHAT CONDITIONS THEY MOIL AND PASS AWAY THE TIME TOGETHER, HE KNOWETH, AND REMEMBERS RIGHT WELL, he therefore regards not such praise and approbation, as proceeding from them, who cannot like and approve themselves.

S&P 500 Closes Above 2800 for First Time Since FEB

The SPX closed slightly above 2800 on Friday for the first time since 2/1/18.

Year over year (y/y) or since 7/14/17 –  the SPX is up 14.38%

Year to date (YTD) – SPX is up 4.78%

SPX has been range bound since FEB and is pushing towards the top of its range for a potential test/breakout of the January high (2872.87)

 

Stock Market 101

One of the first things I see newer traders struggling with and wondering about is how to trade the stock market like a professional. To trade the stock market like a pro there is one important concept market participants must understand. This concept is critical to people’s success and can lead to devastating failures if not followed. To trade the stock market like a pro, market participants need to first focus on analyzing the overall market, not stocks.

TRADE THE MARKET, NOT STOCKS!

What I mean by trade the market not stocks is that everybody should start their analysis with the big indexes and sectors, then structure their outlook on stocks accordingly. To trade the stock market like a professional, all market players need to be aware of critical price points on the S&P 500 (SPX). Most stocks are highly correlated to the SPX.

A COMMON MISTAKE IS TRADING A STOCK BEFORE BEING AWARE OF THE OVERALL MARKET TREND.

Trading against the overall trend of the market is something newer traders need to avoid. Initially, traders should focus on identifying the primary trend of the market. An attractive trade setup for a stock is a setup allowing an entry on a minor pullback against the primary trend of the market.

WHAT IS THE S&P 500?

The S&P 500 (SPX) is made up of the top 505 companies in the U.S. that are publicly traded, with market capitalizations (total size) of $2.53 billion or more. These 505 companies make up 80% of the U.S. stock market’s size.

The top 10 companies within the SPX make up 18.2% of the total index.

When beginning traders ask me how to trade the stock market like a professional, I always point them in the direction of seeing the entire market before focusing on individual stocks. The S&P 500 (SPX) is consistently on every professional’s radar.

ALL PARTICIPANTS NEED TO ASK THEMSELVES THE FOLLOWING QUESTIONS:

Where is critical support/resistance on the SPX? Where is SPX price relative to the 50 day simple moving average (SMA) and 200 SMA? Is the 50 SMA above the 200 SMA or below? Is the distance between the two expanding or shrinking? These are all important things participants should be asking themselves to begin seeing the market through the professional’s lens.

Using daily/weekly/monthly candlestick charts is an efficient way to analyze the stock market.

If there is one mantra a beginner must be aware of to know how to trade the stock market like a professional it is:

TRADE THE MARKET, NOT STOCKS!