Trader, Investment Advisor The premise of The DOCument is to observe and interpret global political and financial news, combine it with technical analysis, and use such knowledge for profit. The writer of The DOCument is Deric O. Cadora, a full-time professional trader and investment advisor. My initials are DOC, hence The DOCument. I ran a successful Web development and hosting company for 14 years. As an aside from running the company, I was an active market participant and advanced my trading and investing skills as well as my understanding of economic theory. In 2007 I worked a brief stint as a discretionary trader for Citigroup and racked up a 30% gain in 5 months. If you are interested in contacting me regarding investment advisory services, please follow the link in the paragraph above. I consider myself fortunate to have initially studied economics under Dr. William Schaffer at Georgia Tech. Although Austrian economics is sadly not part of many mainstream curriculum, Dr. Schaffer was at least wise enough to make students aware of its existence. Anyone with common sense who studies both economic theory and empirical evidence comparing Keynesian and Austrian school theories will adopt an Austrian-style approach to analysis. Unfortunately for society, nearly every governement on this planet adopts a Keynesian-style approach to economic management. A Keynesian approach allows politicians to do what is politically expedient, and such actions are nearly always economically imprudent. The Keynesian approach is politically expedient because it calls for excessive artificial stimulation. Such stimulation is very useful to a politician who requires the perception of economic activity in order to foster an agenda. However, artificial stimulation is just that: artificial, and it creates gross imbalances and misallocations of resources. In other words, Keynesian economics is about illusory economic growth, whereas the Austrian school looks at real economic growth. While this blog analyzes markets in the context of an Austrian viewpoint, it also recognizes that macroeconomic factors take a very long time to play out. Therefore, tools to help with trade timing are crucial to success. The key to timing understanding the psychological and monetary forces at play at any given time. Technical analysis certainly opens the window, but highly successful traders must also use instinct and common sense. Readers of this newsletter will not find the author opining about what should be. Personal political views are irrelevant to what will be unless the person is in a position of power. The rest of us have the right, if not the obligation, to defend ourselves from those in power who are making decisions, many of which are not in our best interests. The defensive strategy entails positioning our portfolios to take advantage of the economic imbalances that are created in the system, which ultimately must rebalance. As Jim Rogers unambiguously puts it, "Reality always wins in the end." The Market Blog contains interpretations of market action and has an integrated comment system so that readers can respond and share views. The Articles section presents a broader focus than the market blog by focusing on general economic theory and longer-term market outlooks. The Library highlights books that I consider vital reads for any professional investor. I have read every book on my recommended reading list at least once.

Last Updated April 8, 2010

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