About Nate Allred

Author Archive | Nate Allred

Our Philosophy On Success

I was on facebook the other night, and I ran into an article, “Will Your Child be Rich or Poor? 15 Poverty Habits Parents Teach Their Children.”  I read the article, and was surprised by Habit #4. It stated,

“62% of the wealthy floss their teeth every day vs. 16% of the poor.”
 

Now that may seem like a silly statistic about an unrelated field.  I mean, how does flossing your teeth connect with the size of your bank account?  As I started to think, it hit me as to why it was #4 on the list. Successful people are creatures of habit, but not just any habits: Successful habits.

If you want clean teeth you need to both brush and floss.  I don’t think I am saying anything too ground breaking here.  I mean, we’ve all been taught the benefits of dental hygiene from a very young age.

So how will dental floss help you in your trading?

Habits.  We, by our life experience, create habits on how we act when different things happen to us.  When people see the market falling they are naturally fearful.  When people see the market raising they are naturally greedy.  It is not the emotions that define who we are, it is what we DO with those emotions.  Do you let fear take control of you?  Do you cut your winners short?  What we have found in the Apiary Fund is that the most successful traders are the ones who have a set of rules, and apply those rules consistently every day.  We all have times in trading where the market does not go our way.  The question is what do we do at those times?

Remedy: Know your rules and follow them.

That might seem like a nice trite remark, but what do I mean by know your rules?  Step one is to write your rules down on paper.  I know most of you have your system that you follow in your head, but if you can’t write it down then you can’t measure it.  If you can’t measure it you can’t improve it.  Once you know it, you have to follow it.

Seems like a simple enough recipe for success, but then again so does flossing!

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Success on the Field

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Everyone knows that Apiary fund is made of traders, but did you know that we have a professional football player right here in our midst? That’s right. Drafted by the BC Lions in Vancouver, Paul Allen grew up playing ball and decided to play for BYU in 1959.

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In 1961 Paul was a running back and special teams BYU Football player. He holds the record for the longest average punt return yardage. He was a tank whose tenacity and perseverance allowed him to carry the ball an average of 40.1 yards each punt return.

When asked about his success, he said it mainly came because he ran fast-and because he was really scared. Well, we say tongue-in-cheek that it takes a lot more than fear to hold a record like that. He still holds the record, and it has stood for over 50 years. For more information about what the Legacy reward is, click here:http://thejetaward.com/the-jet-award-story/ You can see Paul’s stats at http://byucougars.com/athlete/m-football/paul-allen

 

Paul has brought that same record making tenacity and perseverance that brought him success on the field into his work. He loves helping and developing traders. His patience in seeing the lay of the land both on and off the field has been a great asset to Apiary. Paul has been instrumental in counseling traders, helping them get into funded accounts, and becoming successful in the stock market.

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Dinosaurs and Stock Charts

Vernal, Utah is world famous. Seriously it is. It is world famous for dinosaur bones. There is the highest concentration of dinosaur bones there than in any other place in the world. A few years back I took my 5 and 3 year old at the time to the dinosaur quarry to see some dinosaur bones. It is needless to say quite an amazing site. You can’t put your hand on the quarry with out touching two dinosaur bones. There is also a small nature hike that you can take and see dinosaur bones that are jutting out of the mountains that are there. After chasing the kids around the visitor center for a while I decided that they needed to burn off some energy. So I decided to take them on the hike.

So the guide was telling me before the hike that you can see bones all over the place on this hike. Now along this hike we were getting near the end, and up to this point I was not able to point out to my son a single dinosaur bone. I was looking and looking but for the life of me I could not find a single one. Finally,­ in my frustration I turned to the guide and asked him where all of these so called “dino bones” were. He laughed a good laugh, said they are everywhere, and pointed to the ground, and not two feet from where I was standing was a dinosaur bone embedded in the rock.

I have since thought back on the at experience and have wondered how was it he could spot a bone so easily? It wasn’t until one day where I was showing a trader a head and shoulders pattern. I was seeing the turning points in the market that formed the pattern. I surely knew what was coming next, but the trader could not see it. Then it dawned on me. The guide on the hike had trained his eye. He knew the patterns in the rock. He had trained his eye that when the pattern of the rock went from speckled to smooth, he knew he was seeing a dinosaur bone. We also as traders have to train ourselves to see the pivot points, the turning points in the market. As you train your eye you will be able to see the opportunities that are all around you. If you don’t train your eye to see you may be the person who goes on a hike with dinosaur bones all around you and never see one!

Happy Trading,

Nate Allred

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Dinosaurs and Charts

Vernal, Utah is world famous. Seriously it is. It is world famous for dinosaur bones. There is a higher concentration of dinosaur bones there than in any other place in the world. A few years back I took my 5 and 3 year old at the time to the dinosaur quarry to see some dinosaur bones. It is, needless to say, quite an amazing site. You can’t put your hand on the quarry with out touching two dinosaur bones. There is also a small nature hike that you can take and see dinosaur bones that are jutting out of the mountains that are there. After chasing the kids around the visitor center for a while I decided that they needed to burn off some energy. So I decided to take them on the hike.

The guide was telling me before the hike that you can see bones all over the place on this hike. Now along this hike we were getting near the end, and up to this point I was not able to point out to my son a single dinosaur bone. I was looking and looking but, for the life of me, I could not find a single one. Finally­ in my frustration I turned to the guide and asked him where all of these so called “dino bones” were. He laughed a good laugh, said they are everywhere, and pointed to the ground, and not two feet from where I was standing was a dinosaur bone embedded in the rock.

I have since thought back on that experience and have wondered “how was it he could spot a bone so easily?” It wasn’t until one day where I was showing a trader a head and shoulders pattern on chart. I was seeing the turning points in the market that formed the pattern on chart. I surely knew what was coming next, but the trader could not see the chart patterns. Then it dawned on me. The guide on the hike had trained his eye. He knew the patterns in the rock. He had trained his eye such that when the pattern of the rock went from speckled to smooth, he knew he was seeing a dinosaur bone. We as traders also have to train ourselves to see the pivot points, the turning points in the market, and read it as chart patterns. As you train your eyes to read chart patterns, you will be able to see the opportunities that are all around you. If you don’t train your eye to read the chart, you may be the person who goes on a hike with dinosaur bones all around you and never see one!

Happy Trading

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5 Reasons I Never Take Market Tips

Let’s face it—when it comes to investing, everybody has something to say. But whatever you do, don’t fall prey to bad investing advice! There are lots of reasons to never take market tips from others, but I’ve found the following five to be imperative to my success as a trader:

5. Different goals
Whoever is giving you the tip may have a long term outlook on the market and may be willing to hold the investment for 20 years until they retire. Your objective may be to make a daily income. You shouldn’t take their word for your investment. Rise and fall on your own knowledge of the markets.

4. Uncertainties
There are so many uncertainties that it’s amazing that people ever accept tips from others. When someone gives you market tips, you should ask yourself whether or not you know their knowledge level. They may have a degree hanging on their wall, but did they pay attention in class? Did they pass their tests? Would you trust this person to have done proper due diligence on their recommendation? There are so many unknowns. At the very least, if you do your own research, you’ll have no one to blame but yourself.

3. Different investing methods
A mutual fund invests differently than a hedge fund. A commodity pool invests differently than a retirement account. If you are taking advice from someone, make sure that their objective with trading are very close to the same as what you would do. Most of the time when you dig into it you will find that they are not the same.

2. They don’t care about your money
Believe it or not, the person who cares most about your money is you. You worked hard for the money that you have so before you take a risk you should evaluate the potential outcomes. How many people include a budget when they plan a family vacation? How many of those same people don’t know how much money they are looking to make when they place a trade?

1. Ulterior motives
Just like we saw Al “Mr. Green” Gore recently sell out to the biggest oil company, you don’t know if the person giving you the “tip” has something else that he is trying to do. Remember to always, always, always do your own research!

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