Rear-mounted radar Backing out of a parking space in a busy lot can be an adventure. Although rear-pointing radar has been around for a few years alerting drivers to unseen objects immediately behind them — a fence, wall, tree or another vehicle — new radar technology searches for approaching cross traffic. When it “sees” traffic approaching while you’re backing up, it sounds an alarm. Chrysler’s version is available in its minivans and is called Cross Path Detection System. It includes visual indicators in the outboard mirrors. Ford’s system is called Cross Traffic Alert. Offered in the just-released 2010 Fusion and Mercury Milan, it also has outboard mirror alarm indicators. Night vision with pedestrian detection Although night vision in vehicles isn’t a new technology — Cadillac offered it in 2000 — the Mercedes-Benz updated version is called Night View Assist Plus. Unlike the Night View Assist, which has been available in the S-Class since 2005, the new system pinpoints pedestrians, highlighting them on a dashboard display. It’s offered in the 2010 E-Class in showrooms late this spring. BMW has a similar system with a pedestrian identifier that also shows the direction the pedestrian is moving. As the distance closes between pedestrian and vehicle, a warning appears on the night vision monitor as well as the head-up display on the windshield if so equipped. BMW offers this system on the 2009 7 Series. Automatic high-beam control In the redesigned RX, Lexus offers a system that automatically illuminates and dims the high-beam headlights in relation to approaching traffic. A camera mounted on the rearview mirror detects when the vehicle is closing in on oncoming traffic, as well as vehicles ahead traveling in the same direction, and disengages the high beams. Mercedes-Benz takes the technology one step further with its Adaptive Highbeam Assist. Also found in the new E-Class, it doesn’t merely switch between low and high beams, but reacts by gradually increasing or lowering the light distribution based on the distance of approaching traffic. It also dims the high beams for sharp turns and then re-engages the high beams if there is no approaching traffic once the turn is completed. Parental control Parents who are afraid their teen driver might speed or be distracted by playing the vehicle’s audio system at an excessive volume can use Ford’s new MyKey system to limit speed and volume. When programmed, MyKey limits the speed to 80 miles per hour. It can also be programmed to limit the audio volume and to sound a continuous alarm if seat belts are left unfastened. Eventually available in all Fords, MyKey is offered in the recently released 2010 Escape Hybrid and Mercury Mariner Hybrid. Parental control Parents who are afraid their teen driver might speed or be distracted by playing the vehicle’s audio system at an excessive volume can use Ford’s new MyKey system to limit speed and volume. When programmed, MyKey limits the speed to 80 miles per hour. It can also be programmed to limit the audio volume and to sound a continuous alarm if seat belts are left unfastened. Eventually available in all Fords, MyKey is offered in the recently released 2010 Escape Hybrid and Mercury Mariner Hybrid.
Do not trade before you have a proven edge: Even before writing your trading plan you need to be sure that the system you are looking at has an edge. There is no reason to trade a system that loses money over time. The system has to have a positive outcome over X amount of time. Backtest it either by automatic (programming) or manually but remember to be critical and take every signal in your backtest. You are only fooling yourself if you do not do it correctly. It is not enough just to plot Stochastic on your chart and then believe you can make money. Do not even consider trading (either real money or paper money) before you have written your trading plan: You must have a plan in order to execute trades properly and this is definitely more true in trading than in most other fields. Despite the incredible importance of this task, most beginners have not even heard of a trading plan. This is the single biggest reason why so many new traders fail. Make a trading plan describing the signals you are allowed to take, when to take them and with how big a position. Stops, targets and money management all need to be written in detail. What kind of trader are you? We are all different types of people so it is important to figure out what kind of trader you are. You cannot just copy someone else's system if that trader has a completely different personality than you. Find out if you like to trade break outs or pull backs. Are you a scalper, a longer term day trader or perhaps even a swing trader. Discover yourself and then focus all your energy in that direction. If you are a "break out trader" then "stay away" from "pull back trades", at least when it comes to entry as then their analysis might be suitable for you. Rome wasn't built in one day: Trading is not a "get rich quick scheme" so it is important to enter this new career with realistic goals. Do not expect to be consistently profitable during the first 2 years. Some people are but most new traders need years to be consistently profitable. It is also equally as important not to expect to become a millionaire with a $5,000 account! Lower your expectations and set realistic goals. Learn from your mistakes as well as your profitable trades: An important thing new traders seem to forget or ignore is keeping a journal of your trades. Since they no longer have a boss asking for updates and reports they seem to think that keeping a journal is no longer important. This could not be further from the truth as keeping a journal helps with discipline and keeps you focused on the big picture and profitability. A great way to learn from your mistake is by going over your trades every weekend or end of the month. Sometimes you need fresh eyes to see what went wrong and that you cannot do just after the trade as you might still be emotional over the loss.
1. Forget about shorting For most traders, selling short is too difficult. First, it’s tough to get the timing right. Second, even when you’re right, many rookie short sellers lose all their gains by holding too long. Because people don’t remain in panic mode for very long, there are often big snap-back rallies that can quickly wipe out all your profits. Bottom line: Leave shorting to the pros. 2. Buy on the dip Rather than sell short during a crash, it’s better to wait and then buy on the dip. As long as you quickly cut losses if the trade doesn’t work out, buying on the dip after a crash can make sense. “Pullbacks have generally been good buying opportunities for the short term,” said former hedge fund manager Shah Gilani. “If you have money, you’d buy strong, international companies with good dividend yields. That being said, I have stops everywhere in case I’m wrong.” Short-seller Timothy Sykes also buys on the dip after crashes. “The only angle I see is selectively buying strong stocks with solid earnings like Apple, Priceline, and Google,” Sykes said. “Focus on strong companies that have proven themselves. If the market moves higher, these leaders will move higher the fastest in a flight to quality.” Rather than short the overall market, Sykes shorts individual stocks. “Because markets tend to overreact on the way down, I never short market drops because it’s so difficult.” His usual strategy is to short weak stocks that have tried but failed to rally. 3. Trade like a coward “It’s not about who can make the most money the quickest, but who can employ risk management techniques to focus on survival and consistent profits,” Sykes said. “The idea is to remain liquid coming into these crashes.” Cowardly, yes, but not scared. Said Sykes: “By managing my risk carefully and cutting losses quickly, I am not afraid.” As a cowardly trader, he often moves to 90% cash by the end of the day, and almost always before weekends. 4. Consider put options for protection or profit Buying put options to protect your stocks can make sense for some traders. When used in this way, you are buying options as a form of insurance. As the stock value goes down, the put option typically rises. If your stocks go up, however, you can lose what you paid for the option. Some traders may also consider buying put options for speculation, but they’d need to be right about the timing as well as the direction. Unfortunately, many option speculators lose money. Another strategy: Before a crash, experienced option traders might consider a long strangle, a sophisticated strategy that takes advantage of extreme market conditions. 5. Be careful in September and October The market so far in August looks bad enough, but most previous crashes have occurred in September and October. Accordingly, these are considered the two most dangerous months of the year. “In all likelihood, this is just a precursor to a lot of trouble we’ll see in September and October,” Sykes said of the market’s recent downturn. “I don’t expect us to rebound to the highs and break out. If 11,000 cracks, then we can see some true panic.” Gilani added: “I’d be concerned if the economy doesn’t show better numbers by September and October. Unless the Fed comes to the rescue, a potential for a crash is looming.” Even if there is QE3 — round three of the Fed’s quantitative easing — Gilani said he’s concerned about what would happen if “the Fed threw a party and no one came.” 6. Stay on the sidelines A more conservative strategy during a crash is to simply stay on the sidelines and wait for lower risk and higher reward opportunities. Before and after crashes, emotions are running high and it’s easy to get whipsawed. When markets are too volatile, it’s not the time to be a hero. 7. Be nimble Because the market is so emotional right now, traders have to be nimble. If you do enter the market, tread cautiously. Gilani suggests that you read economic data and pay attention to the Fed’s moves. “If the Fed makes a move, be ready to ride on that train. Right now, it’s a stock picker’s market.” 8. Cut losses quickly Rule No. 1 for traders is to cut losses quickly at a predetermined price. You’ve probably been told to use a hard stop loss to limit losses. Unfortunately, in a fast moving market, stop loss orders often don’t work as advertised. Therefore, disciplined traders may consider initiating a mental stop that is calculated in advance. To close the trade, however, use a limit order (absolutely do not use a market order in a fast-moving market). We often use the phrase, “Being in the present moment.” But knowing the words and singing the song are two different acts. Being in the present means honoring your present moment no matter what is going on. We can’t just be present in moments that are good, comfortable, or pleasurable. Many of us are not even present when times are good. Learning to be present when things are rough is a powerful aspect of a yoga practice. Transformation and growth do not happen from a place of comfort and ease. Being present in times of adversity offers us a closer glimpse of the nature of things, including the truth about our interaction with the world. Being present in tough times helps to illuminate the lessons to be learned presentfrom strife. Being present moves us into a place where we can see that nothing truly happens to us, but that Life just moves on and we keep moving on as well. On the mat, we simulate the difficult times when our practices are hard. We remain aware of the body, mind and thoughts when we hold a pose longer than we want to even when we feel like running away from it. Every time we step on the mat, we have the opportunity to move into the present and stop the inner turmoil. This is the difference between hearing the words “Be in the present moment” and actually experiencing it. The idea is simple, but the practice is a lifetime commitment.
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