Trading 101
The market was terrible today. But we did very very well today!
Anyone who read my blog yesterday and act on them made serious $ today. Those of you who are not in the market do not understand the feeling of being up when the market is down. Let's just say it feels fantastic! I had placed my orders (with stop orders of course) in the morning and I left to receive my ninth (9) chemo therapy at the Memorial Sloan Kettering Cancer Center (by far the best cancer center in the world-nothing but the best for yours truly).
One of our holding (refer to the welcome section dated 3/30) IDWD hit a home run today.
Let me recap what happened today:
IDWD - Up 29.35% to $1.19
KRY - Down 6.75% to $5.66 (this one is new & that's right, we shorted)
HYTM - Down 7.89% to $8.05 (we shorted this per yesterday's notes)
My last article was titled "Investment 101" because I wished some of you to have a realistic view and expectations when approaching personal finances. If your goal is to mearly perform at the market average rate, then you need not bother with learning & trading. You simply invest your money in the Wilshire 5000 index (this covers all stocks in the U.S). By the way, I do not suggest mutual funds (higher fees) instead buy an EFT (exchange traded funds: VTI). This will be your best all weather, no worry, sleep tight, better performance than 75% of all funds type of investment. Actually, most average passive investors are better off with VTI than trying to act fancy with hard earned money. Maybe I should be better off with VTI as well; time will tell.
But I have so much fun, why stop?
Back to why I have titled this as "Trading 101".
To remind you once more (avarage person forgets things unless they hear it five different times) the market will give you 8% maybe 9% including the dividends (if you bought VTI) annually. Your savings account gives you 4% in a year. Now think about this; answer the question:
Q: If my stock gave me 5% to 10% in a few days what should I do?
A: If you are a trader, take the profit off the table. You probably can buy it back at lower price.
For example, my reccommendation KRY (short) yesterday gave you almost 7% profit in one afternoon. Although I feel it will go lower in coming days (profit for us) I will not stop you from taking the profit. This is the rule: If you are handed a yearly profit in one day, TAKE IT ! So far, I gave you many such trades. Good luck.
Some of you missed IDWD's 30% up move today (30% in one day!). Few of you called me to congratulate me and to pad themselves in the back (some made serious $ and I hope receive few meals on them). Mark my words, in coming weeks, same thing will occur with RICK and BTYH.
Yesterday I already told you this will be tough week or two. It started today (I am this good). Finally new fresh lows (115) was higher than new highs (91). As you may know, this does not look good. We are in for a ride. NASDAQ, SP500, Gold, Oil all looks to take a rest. Only special situation stocks with its own special news will move ahead. Vast majority big name stocks will stall. The easy $ has been made (we are up over 20% in the first quarter) it will take more time & energy to produce decent results in the 2nd and 3rd quarter. Please allow me to try. You simply rest and watch! I will disclose all my buys and sells.
P.S: As per my last blog I have shorted KRY at $6.15 this morning. I already have 7.67% gain in one day. Normally I would take the profit but I was at the hospital getting my chemo. Also, I believe this will head lower as gold price moves lower. The Wall Street just issued (today) a buy reccommendation on KRY with target price of $9.5! I fully agree that it wil get there, it is just that I feel it will go lower first, then move up. Why are they asking people to buy just as it hits an all time high of $6.25? Let's watch. (refer to the Apple article dated 4/5)
PPS: HYTM fell 8% but I could not get in (my resources are limited too you know). I will be in this short play this week. My target for this stock? First stop at $6.5 next stop at $4.50 then who knows what will happen. My gut tells me this is worth 50 cents if that. For those with investigative mind try googling [Hythiam Post] and [Chalem Hythiam] then [Chalem CITA].
I guarantee you, you will get shocked! Isn't this fun? This will make you money :-))
Anyone who read my blog yesterday and act on them made serious $ today. Those of you who are not in the market do not understand the feeling of being up when the market is down. Let's just say it feels fantastic! I had placed my orders (with stop orders of course) in the morning and I left to receive my ninth (9) chemo therapy at the Memorial Sloan Kettering Cancer Center (by far the best cancer center in the world-nothing but the best for yours truly).
One of our holding (refer to the welcome section dated 3/30) IDWD hit a home run today.
Let me recap what happened today:
IDWD - Up 29.35% to $1.19
KRY - Down 6.75% to $5.66 (this one is new & that's right, we shorted)
HYTM - Down 7.89% to $8.05 (we shorted this per yesterday's notes)
My last article was titled "Investment 101" because I wished some of you to have a realistic view and expectations when approaching personal finances. If your goal is to mearly perform at the market average rate, then you need not bother with learning & trading. You simply invest your money in the Wilshire 5000 index (this covers all stocks in the U.S). By the way, I do not suggest mutual funds (higher fees) instead buy an EFT (exchange traded funds: VTI). This will be your best all weather, no worry, sleep tight, better performance than 75% of all funds type of investment. Actually, most average passive investors are better off with VTI than trying to act fancy with hard earned money. Maybe I should be better off with VTI as well; time will tell.
But I have so much fun, why stop?
Back to why I have titled this as "Trading 101".
To remind you once more (avarage person forgets things unless they hear it five different times) the market will give you 8% maybe 9% including the dividends (if you bought VTI) annually. Your savings account gives you 4% in a year. Now think about this; answer the question:
Q: If my stock gave me 5% to 10% in a few days what should I do?
A: If you are a trader, take the profit off the table. You probably can buy it back at lower price.
For example, my reccommendation KRY (short) yesterday gave you almost 7% profit in one afternoon. Although I feel it will go lower in coming days (profit for us) I will not stop you from taking the profit. This is the rule: If you are handed a yearly profit in one day, TAKE IT ! So far, I gave you many such trades. Good luck.
Some of you missed IDWD's 30% up move today (30% in one day!). Few of you called me to congratulate me and to pad themselves in the back (some made serious $ and I hope receive few meals on them). Mark my words, in coming weeks, same thing will occur with RICK and BTYH.
Yesterday I already told you this will be tough week or two. It started today (I am this good). Finally new fresh lows (115) was higher than new highs (91). As you may know, this does not look good. We are in for a ride. NASDAQ, SP500, Gold, Oil all looks to take a rest. Only special situation stocks with its own special news will move ahead. Vast majority big name stocks will stall. The easy $ has been made (we are up over 20% in the first quarter) it will take more time & energy to produce decent results in the 2nd and 3rd quarter. Please allow me to try. You simply rest and watch! I will disclose all my buys and sells.
P.S: As per my last blog I have shorted KRY at $6.15 this morning. I already have 7.67% gain in one day. Normally I would take the profit but I was at the hospital getting my chemo. Also, I believe this will head lower as gold price moves lower. The Wall Street just issued (today) a buy reccommendation on KRY with target price of $9.5! I fully agree that it wil get there, it is just that I feel it will go lower first, then move up. Why are they asking people to buy just as it hits an all time high of $6.25? Let's watch. (refer to the Apple article dated 4/5)
PPS: HYTM fell 8% but I could not get in (my resources are limited too you know). I will be in this short play this week. My target for this stock? First stop at $6.5 next stop at $4.50 then who knows what will happen. My gut tells me this is worth 50 cents if that. For those with investigative mind try googling [Hythiam Post] and [Chalem Hythiam] then [Chalem CITA].
I guarantee you, you will get shocked! Isn't this fun? This will make you money :-))
posted by Jaewoo | 9:12 PM
6 Comments:
Lets thank John for this info. This is why we have comment section. Share ideas that may benefit others. Make sure you do not sell IDWD before 4/28/06. You will kick yourself again...
P.S: Academically speaking(finance MBA talking here), there should not be any difference in value before and after the special dividend. The share price should reflect the total value (including the dividend) by 4/28. Let's see what happens. Go IDWD!
Trading seems like a fairly dishonest way to earn a living that depends on insider knowledge. Investing, on the other hand, makes sense because you are at least theoretically owning something and not making money off of other people's information disadvantage. Except, of course, when the company itself lies about it's finances. Then you're the one with an unfair information disadvantage, even when investing.
Trading is what makes the market liquid. Can you sell a home in two minutes and have cash on hand? You can with stocks. Trading is not a dis-honest activity. It is a ground where buyers and sellers negotiate freely and transact. Without this liquidity stocks will not be as valuable. Make sense?
Very pretty site! Keep working. thnx!
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