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Profit While Others Panic

myuniversitymoney.com

If you haven’t guessed, I am of the opinion that the US Equities market is headed for a large correction. I described my technical reasons for this in my post “Buckle Up” and you may want to review this for context. Also I have provided my top 5 stocks with the most to lose in my previous post “The Harder They Fall.” However, it is certainly possible to profit from a correction without taking any company specific risk. To describe this, I’ll need to revisit my biggest winner from 2011 “Winning with Volatility”. (more…)

The Harder They Fall

goenglish.com

The bigger they are, the harder they fall

When preparing for a major market correction, as described in my previous post “Buckle Up,” I focus my research around the highest performing industries and their leaders over the past 6 to 12 months. In my experience, the companies that climbed the highest tend to give back the most during a reversal. Additionally, I look only at growth stocks that are not paying dividends. Here are my top 5… (more…)

Buckle Up!

Deviant Art

Analysts have been calling for a correction for a while now. We may finally get it. Fundamentals and global unrest have made me cautious of late; however, I’ve been watching for a pattern that was curiously absent in 2013. I remind you of my previous article, Summer Cycles, (you may want to read this first for context) where I described a pattern that repeats almost every summer. (more…)

Options Trading: an introduction to the topic.

“Financial instruments of mass destruction” – Warren Buffett on derivatives

If I sit back to consider my trading strategies, it makes me laugh when I compare them to the mainstream. In my time as a New York stock broker, I remember being admonished constantly with the phrase: “90% of options expire worthless…” (more…)

A year in the Dow…

Image courtesy of http://www.fraissi.net Excellent photos of home!
Thank you John Fraissinet!

As we charge into the New Year, I find myself spending time looking back over 2012.  Not out of longing to remain young or to slow the passage of time, but to appreciate the experience of life and to reflect on various situations.  This habit is an invaluable tool to anyone looking to succeed as a trader. (more…)

Always a Good Decision

Sam Adams Boston Brewery

Image from tumblr.com

If Fibonacci were thirsty, he’d “make it a Sam Adams!”  Much like the rest of the market throughout the last 2 years…  Due to a strong demand for craft (otherwise known as “good”) beer, not to mention pleasantly plump margins, SAM share price has doubled.  This binge has driven share price to 27 times earnings and has significantly weakened the desirability of this stock to value investors. (more…)