Friday, December 19, 2008

Cash-In Time

My limit sell on BAX filled for 54.00 making for a nice one week gain of 8.67%. I think I’m going to let “Pete’s” 68,197 dollars rest over the weekend. He still can’t believe I took his 25,000 and turned it to this in just this month.

I saw resistance at 54.50, and knew it would be a ceiling or a break-out at that point, so I played it safe with his money. I’ll spend this weekend looking at Stock Assault 2.0 and studying charts for my next pick.

Have a good one,


Charts I Use

Attached are screenshots of my favorite charting tools. I use everything from Amibroker to StockShare V2. As you can see, I was studying BAX hard today before selling. Studying charts for things such as trend lines, etc. is a form of technical analysis. Another method of analyzing stocks is called fundamental analysis and involves things such as insider trading and news announcements.

Have a good one. - Roger

Thursday, December 18, 2008

Picks Going Strong

The first of the week I picked up 2340 shares of BAX for Pete at 49.69 and I am still riding it. Still a lot of room to run on this one. One bad habit I have is not spreading my funds over at least a couple of stocks to kind of diversify my holdings. This is really a good idea for new investors, as it lessens your exposure to potential downside.

Personally, I am still riding the HIG train. I don't know when this one will end, but I will start getting cautious around 22.00 when it's close to half its book value. The market itself seems a little unsure of itself amidst the auto industry bail-out talk. We'll just have to wait and see how it all plays-out.

Have a good one.
- Roger

Monday, December 15, 2008

Inverse ETFs are Impressive

On the 9th I took my money-managed funds and purchased 447 shares of SRS @ 80.45 and purchased 339 shares of SKF @ 106.25. For simplification of terms, let's start calling my fortunate friend "Pete". What a run. Ever notice the peak in trading the first 15 minutes of the market's open?

After having had an excellent run with Pete's money and not wanting to be long in an inverse ETF over the weekend, I sold quickly on Friday fetching 104.15 for SRS, and 140.53 for SKF. That's a gain of 29.46% and 32.26% respectively and I owed it all to Stock Assault 2.0. I actually would have never traded those otherwise.

Pete started me out with $25,000 and as of this morning, the 15th, I have turned that into $58,163.00, give or take, in only 10 Trading Days. that's a profit of 132% in 10 days . Project that over a year, and you can see that there is some real money to be made.

Please remember this tip for inverse ETF's : it is not wise to carry a long position over a weekend. I close every position in a long inverse EFT the same week I open it. Trust me on this one.

Have a good one. I know Pete will.
- Roger