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Archive for November, 2008

Posted by Martin November 30, 2008

Investor’s checklist III. – Strategy 1.

Investor's checklist III. - Strategy 1.

Having a [tag]strategy[/tag] in a battlefield was a key to a battle or a war victory. Having a strategy in a [tag]business[/tag] is a key to a success in everyone’s business. People plan their work, vacation and even their family budget (well, some of them). Every morning when we get up, we may start our thoughts with a simple question: “What am I going to do today?”. At work we have schedules and plan our meetings. When it comes to investing our hard earned money, we are blind and deaf. We [tag]invest[/tag] without any plans, strategies and tactics. It is a random walk, which looses our money. About 80% of all [tag]investors[/tag] and traders loose their [tag]money[/tag]. There are many causes, one of them is a lack of any kind of strategy.
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Posted by Martin November 28, 2008

Picks 11/24 – 11/28

No [tag]new picks[/tag].

There is nothing to buy out there.

Existing holdings:

100% CASH


Contribution this week: $0

Starting account value = $1,903.78

Account value = $1,809.80 (without margin)

Buying power = $1,809.80

[tag]Portfolio Gain/loss[/tag] this week = -4.94%

[tag]Portfolio[/tag] Gain/Loss for NOVEMBER 2008 = -5.74%

Portfolio Gain/loss since inception = -19.19%

[tag]Annual Return[/tag] (CAGR): -19.19%

Now the portfolio is 100% cash, waiting for the new confirmed rally. I transferred all money to a savings account and I will be saving more money for the new upturn, study the market and wait.


Are you interested in Reverse Scale Strategy and see how it works when implemented to even a small account?

[tag]Subscribe[/tag] to [tag]Hello Suckers[/tag] today!

Links:

$4.95 Trades + $.65 per Contract – Market or Limit, No Minimums. www.TradeKing.com

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TradingSolutions: Financial analysis and investment software that combines technical analysis with neural network and genetic algorithms.

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Posted by Martin November 27, 2008

DEAR FELLOW INVESTORS

Happy Thanksgiving Day

Posted by Martin November 26, 2008

The stock market: promises and wishful thoughts

The stock market: promises and wishful thoughts

When the [tag]stock market[/tag] started rocketing last Monday, I was very suspicious about it. I truly wished the [tag]market[/tag] would turn already, finish its bottoming and start moving up, even slowly, carefully, but with confidence. Then I have realized that all this move is based on a fake power. The news that the Government is going to bail-out CitiGroup by pouring 20-something billions of inflationary [tag]dollars[/tag] into another [tag]company[/tag], which doesn’t deserve it at all, Obama’s picks of people in his future administration and some others, are just promises and wishful thoughts, which won’t do anything good to the market in a long run. I would like to be wrong however. The truth is that the stock market is [tag]oversold[/tag] and it needs some impulse to boost its growth. Maybe these “news” will help it grow. We may see what would happen in the stock market next week. All the rise could be a pre-holiday rush, which will fade next week.

[tag]Dow[/tag]
+247.14 +2.91% 8,726.61
[tag]Nasdaq[/tag]
+67.37 +4.60% 1,532.10
[tag]S&P[/tag]
+30.29 +3.53% 887.68

However when you take a look at the chart we can see a turnover, which was missing last time. The OVB indicator turned sharply up and the Dow index raised 4th day in a row. However the only negative point is declining low volume.

Dow Jones chart

I am changing the market status to “Rally Attempt” even though the low volume and the sources of this attempt are weak and may cause another failure next week.

Tip: There is still nothing to do than waiting. This attempt may fail as a few attempts ago. Use this time for studying the market and stocks, save money, do not open any new positions, create [tag]emergency account[/tag] if you still do not have it, build a [tag]watch list[/tag] and wait for the market to tell you when it is the best time to start [tag]buying stocks[/tag] again.


Subscribe to Hello Suckers today!

Links:

$4.95 Trades + $.65 per Contract – Market or Limit, No Minimums. www.TradeKing.com

Get The Wall Street Journal for 75% off!

TradingSolutions: Financial analysis and investment software that combines technical analysis with neural network and genetic algorithms.

Click Here to get 4 Bonus Weeks of Investor’s Business Daily Digital Edition!

Posted by Martin November 26, 2008

Protect your money: timing the market

I wrote about [tag]timing the market[/tag] in my previous post to emphasize this approach and to show that it is a [tag]good strategy[/tag], which every [tag]individual investor[/tag] who wants to manage his own [tag]portfolio[/tag] actively and [tag]make money[/tag] consistently should learn and practice as long as he or she becomes a pro. This strategy can help you to survive [tag]bear markets[/tag] like this one with the peace of mind while protecting your own [tag]money[/tag] you already have made during your [tag]investing[/tag] career.
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Posted by Martin November 22, 2008

Picks 11/17 – 11/21

No [tag]new picks[/tag].

There is nothing to buy out there.

Existing holdings:

100% CASH


Contribution this week: $0

Starting account value = $1,903.78

Account value = $1,809.80 (without margin)

Buying power = $1,809.80

[tag]Portfolio Gain/loss[/tag] this week = -4.94%

[tag]Portfolio[/tag] Gain/Loss for NOVEMBER 2008 = -5.74%

Portfolio Gain/loss since inception = -19.19%

[tag]Annual Return[/tag] (CAGR): -19.19%

Now the portfolio is 100% cash, waiting for the new confirmed rally. I transferred all money to a savings account and I will be saving more money for the new upturn, study the market and wait.


Are you interested in Reverse Scale Strategy and see how it works when implemented to even a small account?

[tag]Subscribe[/tag] to [tag]Hello Suckers[/tag] today!

Posted by Martin November 21, 2008

AFAM sold

Here we go, AFAM hit my stop loss and has been sold.

11/21/2008 10:57:50 Sold 10 AFAM @ 38.1306
Now I am 100% in cash and waiting for the market to provide new opportunities. Until then I will be saving money and wait.


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Posted by Martin November 20, 2008

AFAM dragged down by the stock market weakness

AFAM dragged down by the stock market weakness

Stocks
This is the post from Hello Suckers.
The stock market sank by 445 points again. Leading [tag]stocks[/tag] such as AFAM headed south pulled by the market without mercy and became a proof that [tag]trading[/tag] against the market is [tag]fools’ play[/tag]. Do not buy any new positions and wait for the market.
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Posted by Martin November 19, 2008

Stock Market diving

Stock Market diving

This is the post from Hello Suckers

[tag]Dow[/tag]
427.47 -5.07% 7,997.28
[tag]Nasdaq[/tag]
-96.85 -6.53% 1,386.42
[tag]S&P[/tag]
-52.54 -6.12% 806.58

The [tag]stock market[/tag] suffered another huge [tag]sell-off[/tag] today. Volume was light, however Dow ended below psychological level of 8000 points and erased all gains since April 2003. The path to lower levels is now open. Tomorrow we may expect some recovery, but it seems like we are heading more south.

DOW JONES

If you are thinking, that this would be the best time to [tag]start buying[/tag] [tag]cheap stocks[/tag], I would warn you. We still didn’t reach the bottom or at least we do not know whether we did or not. All major [tag]stocks declined[/tag] today even though it seemed that they couldn’t go lower anymore. They could and they would go as bad news would reach this [tag]volatile market[/tag].

Tip: There is nothing more to do than waiting. If you are good in [tag]shorting stocks[/tag] (I do not short yet due to lack of experience), you can consider shorting stocks. Otherwise the best we can do now is to [tag]save more money[/tag] to be ready for next rally, study [tag]stocks[/tag] and market, create [tag]emergency account[/tag] if you still do not have it, do not open any new positions, build a [tag]watch list[/tag] and wait for the market to tell when it is the best time to start [tag]buying stocks[/tag].


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Posted by Martin November 15, 2008

Investor’s checklist II.

This is a post from Hello Suckers.

[tag]Wall Street[/tag]

In my previous post of [tag]Investor’s checklist[/tag], I tried to emphasize how an [tag]investor[/tag] can prepare himself for [tag]investing[/tag]. Now (November 2008) we have the best time for such preparation. The [tag]market[/tag] is in correction and nobody knows when this decline stops, so the best to do now is to wait, [tag]save money[/tag], study and work on preparing yourself for next rally. If you are a beginner who has decided to start investing or you are already on the market, you can prepare yourself by:

  1. Saving money
  2. Creating your [tag]emergency account[/tag]
  3. Studying
  4. Creating your [tag]investing journal[/tag]
  5. Creating your investing and [tag]money management plan[/tag]
  6. Open your investing account

In this post I would like to continue explaining [tag]trading basics[/tag], how the [tag]stock market[/tag] works, how you can trade yourself and what [tag]investing tools[/tag] you may consider to use.

Subscribe to Hello Suckers today!

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