Why trade like this? Because anytime you're in the market you're swimming with the NWO (New World Order) sharks, the heads of which are meeting in Chantilly, VA this weekend to discuss who gets to be the next puppet President and Vice President of the USA in violation of the Logan Act. Go Alex Jones and InfoWars.com!!! Check out their live feed: Bilderberg Protest . The Banking Cartel that represents these people are Goldman Sachs, the Fed, JP Morgan, Bank of America, etc. Their world political front is the U.N., NATO, etc. If you buy and hold stocks you are a sitting duck for these parasites, who by the way want to reduce the population by 90%, in other words they want to kill you and yours so they can have everything for themselves. However, if you learn to watch their footprints via charts, you can pick their pockets by making some profits at their expense instead of letting them pick your pockets which is what they count on being able to do by inflating our money into worthless ness via the Fed, our central bank, which is privately owned by the globalist banking cartel, e.g. Rockefellers, Bushes, Rotheschilds, European Royals etc.. Do some research on the NWO and check it out for yourself. A good place to start your research is with the JFK assassination, or 9/11 which was an obvious inside job. Check out Loose Change youtube video.
It's time to stop these globalists wherever we can by refusing to knuckle under. Don't cooperate with evil by becoming dependent on the government dole. Live free or die might be a good motto. Check out Larry McDonald on youtube for an explanation of these globalist elites who murdered him along with innocent people back in 1982 or 83. Larry McDonald on the NWO
Friday, June 1, 2012
Lower Lows, Lower Highs
Lower lows, lower highs is the definition of a downtrend. ACOM and LOW have been making lower lows and highs so they are trending down even if they are slow to do it. Of course as the stocks trend lower the put options' values rise. Even on a morning like this morning when the market is over 200 points lower these stocks opened lower and then have proceeded to go up. But because the stocks are making lower lows and lower highs they are still in a downtrend. I'm trading in the direction of their trend and also in the direction of the market which has been in a downtrend this past month. The old axiom still holds true: "Sell in May and go away."
Of course LOW popped up as soon as I bought the second set of puts and the value of them fell to about 20 cents at one point. This morning the puts are about 50 cents so they have only about 35 cents to get back to where I bought them about 85 cents average price. The stock will have to move to below $25 for these $26 puts to be worth much. LOW seems to be headed downward in a stubborn manner. I'd like to at least double my money on these puts before June expiration (Option expiration is the third Friday of every month). That gives them 2 more weeks to do something before becoming worthless. The stock is at about $26.60 this morning.
ACOM is in the money by approximately $3 so the puts are valued about $3.50 which is what I paid for them. I'd like to double my money on these, too. The stock will have to move $3.50 below where it is,$21.75 this a.m., for that to happen. So far no go. However, you can bet if I sell them in order to bail out the stock would then go down as expected! So far this spring only one stock I picked failed to perform and that was ESRX that I thought would go up but it never did. I did take a loss on it of about $14 on a $1900 long position in the stock itself, not the options. Not too bad for a loss. My point being: so far it has paid to be patient as the stocks generally will do what is expected. I lost money a couple of times earlier this spring because I was not patient and bailed out like a chicken when the stocks went the other way (which they almost always do). Then the stocks/options did what I was expecting once I had sold them of course!
That illustrates the need for a strategy to trade by instead of trading based on emotional reactions to the market. So, on breakouts from a "cash in the box" a la Gary B. Smith's method I aim for 5% gains or 6% losses before selling. See my earlier posts regarding the Chartman's method for trading these breakouts. His average was 80% gains and 20% losses. I was doing better than that with them. Approximately 90% wins if I hadn't bailed on a couple of them it would have been even better.
ACOM and LOW however are Breakaway Gaps. These are basically a targeted trade based on the distance the stock will fall based on the width of the triangle's base they fell out of or where previous support is located, etc. See Steve Wirrick's book, High Octane Trading, see chapter 14. Whether they will achieve their targets before expiration day when their June put options expire who knows. I'm betting they will at least get part way there and perhaps double my money or better. I could be wrong of course!
A gamble! I hear someone say . It's a chance based on logic and probabilities. It's no more of a gamble than any business I've ever been in. Farming is a gamble (though maybe not as much as it was in my grandfather's day with all the government subsidies that he so hated and refused to participate in based on his principles and belief in freedom). But publishing and advertising were a gamble for my parents and me, as was the retail business we purchased and were defrauded out of. True freedom requires a willingness to take some chances. With your faith in Christ you will never lose because even if you lose everything here on earth you will still have the true riches, the pearl of great price, Jesus the Messiah as your Savior and life. You can't get any richer than a personal intimate relationship with the Creator of the universe. Everything else is garbage by comparison.
Of course LOW popped up as soon as I bought the second set of puts and the value of them fell to about 20 cents at one point. This morning the puts are about 50 cents so they have only about 35 cents to get back to where I bought them about 85 cents average price. The stock will have to move to below $25 for these $26 puts to be worth much. LOW seems to be headed downward in a stubborn manner. I'd like to at least double my money on these puts before June expiration (Option expiration is the third Friday of every month). That gives them 2 more weeks to do something before becoming worthless. The stock is at about $26.60 this morning.
ACOM is in the money by approximately $3 so the puts are valued about $3.50 which is what I paid for them. I'd like to double my money on these, too. The stock will have to move $3.50 below where it is,$21.75 this a.m., for that to happen. So far no go. However, you can bet if I sell them in order to bail out the stock would then go down as expected! So far this spring only one stock I picked failed to perform and that was ESRX that I thought would go up but it never did. I did take a loss on it of about $14 on a $1900 long position in the stock itself, not the options. Not too bad for a loss. My point being: so far it has paid to be patient as the stocks generally will do what is expected. I lost money a couple of times earlier this spring because I was not patient and bailed out like a chicken when the stocks went the other way (which they almost always do). Then the stocks/options did what I was expecting once I had sold them of course!
That illustrates the need for a strategy to trade by instead of trading based on emotional reactions to the market. So, on breakouts from a "cash in the box" a la Gary B. Smith's method I aim for 5% gains or 6% losses before selling. See my earlier posts regarding the Chartman's method for trading these breakouts. His average was 80% gains and 20% losses. I was doing better than that with them. Approximately 90% wins if I hadn't bailed on a couple of them it would have been even better.
ACOM and LOW however are Breakaway Gaps. These are basically a targeted trade based on the distance the stock will fall based on the width of the triangle's base they fell out of or where previous support is located, etc. See Steve Wirrick's book, High Octane Trading, see chapter 14. Whether they will achieve their targets before expiration day when their June put options expire who knows. I'm betting they will at least get part way there and perhaps double my money or better. I could be wrong of course!
A gamble! I hear someone say . It's a chance based on logic and probabilities. It's no more of a gamble than any business I've ever been in. Farming is a gamble (though maybe not as much as it was in my grandfather's day with all the government subsidies that he so hated and refused to participate in based on his principles and belief in freedom). But publishing and advertising were a gamble for my parents and me, as was the retail business we purchased and were defrauded out of. True freedom requires a willingness to take some chances. With your faith in Christ you will never lose because even if you lose everything here on earth you will still have the true riches, the pearl of great price, Jesus the Messiah as your Savior and life. You can't get any richer than a personal intimate relationship with the Creator of the universe. Everything else is garbage by comparison.
Thursday, May 24, 2012
Location, Location, Location!
Wyoming and Weather May 24th
It's partly cloudy and kind of coolish this morning with a breeze. But the air is as fresh as it comes and the spaces are wide open vistas. A small space heater and a little ambient sun shining in the windows is keeping us in perfect comfort. I'm very thankful that fulltime RVing has enabled me to live in this wonderful state of open spaces year round! And I love being able to volunteer a bit and enjoy a lot of what I truly enjoy...leisure and animals. I get to spend loads of time with my own beloved animals plus help take care of some more at Pet Pals, Inc. a True Shelter where pets are never killed.
RU Crazy?
Am I crazy? Some might be wondering if it's risky not taking in all the information about a company before trading its stocks/options. Sure! Anything with the potential of making money entails risk. But it's not half as risky as me having to sift through all of that boring financial trivia and then trying to guess which way the stock should probably move. I hate all that financial stuff. The only thing I enjoy about financial stuff and numbers is how many digits I can put in my checkbook to spend! Trading based on a picture (chart) is called technical trading I suppose because it gives one a snapshot so you can follow the money.
Going LOWer
I doubled up on more LOW June $26 Put contracts just now. Got them for half what I paid for the originals which puts my average cost basis at 82 cents per share (I still miss the cent sign on my old Smith Corona portable).
LOW's Chart This Morning
If you want to look at charts that I am speaking about there is a free chart service on the web http://www.bigcharts.com/ . This is a great place to look at charts. Just type in the stock symbol and hit enter! Sorry I haven't figured out how to put charts into these blog posts yet. Techie I'm not.
So What Has Happened to LOW and ACOM?
As seems usual on thes breakaway gaps both LOW and ACOM (for the second time) yesterday made a little foray back up to areas where selling recommences. They went up a ways. I had planned to buy another put contract or two of each one if they went up significantly which would lessen the average price I paid for them overall. I did that with HUM and was well rewarded a couple of weeks ago. ACOM is already falling however this morning so have decided to wait and see if it tries to run back up before buying some more. LOW is also up but was falling back a few minutes ago so I will wait and see on it, too. So far these breakaway gaps have not been overcome and Steve Wirrick states that breakaway gaps are never filled so am proceeding on that basis. It sure worked for me on HUM as I was really biting my nails then. The stock climbed back up even back up into the breakaway space and I thought it was going all the way back up but it didn't. And when it turned back down it went down very nicely. I think given all the problems these breakaway gaps give one in the beginning it makes trying to milk it for all its worth on the way down a good idea. I sure got out too early on HUM. I sort of get the sense that people have to get used to the idea of the stock going down and when they finally do there isn't much resistance until they completely traverse the expected distance. Remember Wirrick said the distance the stock can be expected to go down/up is the same distance as the height/depth of its previous range whether it's a triangle or a rectangle. One thing also with a rectangle which he calls a "Cash In The Box" he says the longer they base the further they race, so the longer the rectangle the further a stock will go down/up once it breaks out of it. In fact I need to go back and check in his book, High Octane Trading, but I think the length of the rectangle determines how far the stock moves and is of equal distance down/up as the length of the rectangle.
A Day Gone Bye
A dear friend lost some of her nearest and dearest yesterday so this blog was silent, which it has been more often than not of late. Not because of nothing going on but because of so much going on that I have neglected to record. She lost three dear pets. Some might say that pets are of no significance. But judging by the profound ways that they touch some of our hearts and weave their way into the very core of our lives and beings I would have to disagree. Each of these mysteriously wonderful creatures is a unique creation, so unique in fact that there will never be another just the same. They are as unique as snowflakes are said to be...and far more complex. They seem to absolutely blossom in the presence of any human love shed on them. This loving part of them more than any other is proof that there is a God Who made them and that He is indeed love. The Bible says that God is love, and His creation and His humble creatures that share our lives at our feet, on our laps, in our arms are significant in that they point us to Him and utterly break our hearts when they leave us for it is a little piece of the Creator's care for us that goes with them. Is it any wonder that their absence leaves us so bereft?
Tuesday, May 22, 2012
High for LOW
OK. So I chased it a little. I bought the $26 LOW June put for $1.09. Hey, I did wait until the half hour before close this time. That is what my mentor Jon Wirrick taught me to do. That is not considered chasing. Now watch it go to 95 cents! It always does that to me. Oh well, that's trading. It's hard not to let emotions interfere. The stock was at $25.48 so the option is now about 50 cents in the money or so. What fun! ACOM is also cooperating and seems to be heading back down. Lets hope they keep on going. I put a sell order in right away for the LOW puts at $5. So if they happen to zing up there it will go KA-CHING!
Chasing LOW!
Well, LOW has seemingly taken off. It's now about 35 minutes before market closing and the put option I was trying for has gone up to $1.01. Which is still not bad. I put my order in for 95 cents. We will see if it comes back to me. I try not to totally chase things but with a better than even chance to at least double my money I hate to let it get away. I may buy on close if it does not come back to me. It would be a strong bearish close if it keeps going down.
Why Am I Trading Stocks and Options?
What could be more ideal for an RVer? With portable internet access you can trade almost anywhere you are RVing. If done at a profit it will provide a more than adequate income. For instance if you have $100 to trade on options and can double it the first month (more than possible using options for instance read my previous post regarding LOW the 86 cent put could easily more than double in a month). You will have $200 to trade next month. If you can double your cash six times in one year you will have $6400 to trade with. Take out half to pay your taxes and to spend and that will leave you $3200 to trade next year. If you can double that cash just 4 times you will have $25,600. Reduce it by half for spending and taxes leaves $12,800 to trade with. Double that four times and you will have $102,400. Reduce it by half for spending and taxes and you will have $51,200 to trade with. Double that once in a year and that will afford you a really nice RVing income or income supplement. Of course the sky is the limit for profits and you only risked $100. Many online brokers like OptionsXpress.com will allow you to open a brokerage account with any amount of cash, even $100. The commission to trade 1 option contract is only $14.95. So if you were to trade my LOW $26 put option for 86 cents it would cost you $100.95 with the potential of more than doubling your cash (of course you can lose it, too! There is no profit without risk that I know of no matter what business you are in).
How LOW Can It Go?
Looking at a year chart of LOW reveals that recent previous support is clear down to $17.95 so I expect the stock to go down there again. That could mean a gain from here of about $8 less any premium paid for the put option. I guess I will see if I can find a reasonably priced put.
I see the June $26 puts are about 86 cents with the spread of only 2 cents. So for a month of time it will cost me 86 cents to play. If the stock plumets to $18 profits would be about $7. But I think I stand a better than even chance of at least doubling my money on this put if the stock even drops to just $24 the put will more than double in price. The stock seems to be drifting higher right now midday so I will wait to pounce. The higher the stock rises the less the put will cost. I put my order in for the put at 65 cents, maybe the put will go down since the market is trying to go up right now. Might get it for less than 86 cents. Which would be fun!
I see the June $26 puts are about 86 cents with the spread of only 2 cents. So for a month of time it will cost me 86 cents to play. If the stock plumets to $18 profits would be about $7. But I think I stand a better than even chance of at least doubling my money on this put if the stock even drops to just $24 the put will more than double in price. The stock seems to be drifting higher right now midday so I will wait to pounce. The higher the stock rises the less the put will cost. I put my order in for the put at 65 cents, maybe the put will go down since the market is trying to go up right now. Might get it for less than 86 cents. Which would be fun!
The Breakaway Gap Syndrome Explored
ACOM closed up yesterday and the put was about $3 at the close so I was only down about 50 cents from my purchase price and $1.40 from the previous close, OUCH! Shoulda sold it Friday but really not bad for me as a newbie. This morning ACOM made a run up and tried to go up, yet so far in spite of an up day on the Dow ACOM can't seem to bust through yesterday's highs or the opening highs this morning. According to both Jon and Steve Wirrick the definition of a downtrend is lower highs and lower lows. So far ACOM is still in a downtrend by their definition. I've figured out that once a stock gaps down there are still people who have sights set on buying it a bargain price should it get there. So buyers remain at that low price and they come in after the initial down day/s and run the stock back up a ways. If you've purchased stocks before you've probably done that, too. I know I have, thinking I was lucky to get a break to buy at that lower level not realizing it's probably going to go even lower yet. (Just the reverse is true if it's a breakaway gap up). Once those bargain buyers/sellers are out of the way the stock is then free to resume its new trend down in the case of ACOM. After rushing up to its high, so far, for the day at the open it is now going down again resuming its downward trend...I hope! We will see. I think the stock will go down $12 from here which would make my $25 put worth about $15. Not bad for an investment of $3.50... if I can hold on.
Now what does this mean for LOW? I thought yesterday maybe I shouldn't be in such a hurry to jump on the bandwagon down. So, I didn't buy the put on it and decided to wait to see if my theory would prove out with LOW and so far it has done the same as ACOM, and HUM also did this to me a couple of weeks ago, too. I bought my HUM puts immediately after the breakaway gap and just about got faked into bailing out at a huge loss as the stock went back up quite a way for two days before the mini rally petered out and the sellers (bears) were able to dominate without as much competition from buyers (bulls). I was richly rewarded for hanging on by more than doubling my $1.95 investment to $4.45 and could have done far better if I'd held on longer down to my $74 target I'd estimated Hum would go to and it did. The low was $73.71, May 21st, before it started back up.
So, based on past history of my breakaway gaps, I guess I will see if I can buy a put on LOW, perhaps today, since it seems to be getting the bargain hunters out of the way today. So far it has been up from yesterday's close by 54 cents and has now backed off a bit to only up 36 cents (I really miss not having a cent sign key like I had on my old Smith Corona portable, does that date me?). Back to you later if/when I purchase the LOW puts. I will be looking at a 1 day chart with 5 minute bars to see what volume is doing, etc. and to determine a good jumping in point if possible. I'd like to figure out a good system for entering these gap trades.
Now what does this mean for LOW? I thought yesterday maybe I shouldn't be in such a hurry to jump on the bandwagon down. So, I didn't buy the put on it and decided to wait to see if my theory would prove out with LOW and so far it has done the same as ACOM, and HUM also did this to me a couple of weeks ago, too. I bought my HUM puts immediately after the breakaway gap and just about got faked into bailing out at a huge loss as the stock went back up quite a way for two days before the mini rally petered out and the sellers (bears) were able to dominate without as much competition from buyers (bulls). I was richly rewarded for hanging on by more than doubling my $1.95 investment to $4.45 and could have done far better if I'd held on longer down to my $74 target I'd estimated Hum would go to and it did. The low was $73.71, May 21st, before it started back up.
So, based on past history of my breakaway gaps, I guess I will see if I can buy a put on LOW, perhaps today, since it seems to be getting the bargain hunters out of the way today. So far it has been up from yesterday's close by 54 cents and has now backed off a bit to only up 36 cents (I really miss not having a cent sign key like I had on my old Smith Corona portable, does that date me?). Back to you later if/when I purchase the LOW puts. I will be looking at a 1 day chart with 5 minute bars to see what volume is doing, etc. and to determine a good jumping in point if possible. I'd like to figure out a good system for entering these gap trades.
Monday, May 21, 2012
Aquarian - Age of Evil by Keith Thompson YouTube Video
I can recommend an excellent video on the philosophies and happenings pushing the New World Order (NWO) agenda. Of course we know who is pushing it...Satan! Just like the Bible predicted, it is coming about. Check out this video for an indepth perspective. It's fascinating to see Bible prophecies describing the last days global government as they are happening in front of our eyes. Aquarian - Age of Evil Documentary Now I'm off toAlex Jones' Info Wars.com to catch up on the latest shenanigans by the NWO boys and girls! You NSA boys and girls who monitor our internet activity and emails really ought listen to these programs too. There is still time for you all to repent, and change your final destination to Heaven by accepting Jesus as your personal Savior. The Lord has not returned for His Church yet. Once we're raptured out of here, though you will believe the Devil's deception because you rejected the Gospel you have been privy to in my emails and blog posts. Today is the day of salvation.... Seek Him with your whole heart and you will find Him. He promised.
LOW is looking low today! Plus Muffin In A Cup recipe
After checking out Ivestors.com Stocks on the Move I see that LOW or Lowes is gapping down bigtime today after a pretty long uptrend . It's definitely broken and it's down on heavy volume in fact you can see its been selling off the last few days. Did somebody know something? Naaaaa! There's no insider trading! I am tempted to buy some puts on this one.
But ACOM has popped up a bit this morning because the market is up. How high will it go back up? I am hoping not too far above $22 which seems to have some resistance, so far its popped up to $21.91, but who knows? Should I divide my attention between ACOM and LOW? If so, when? Well whenever I buy I usually buy my stocks/options at their high for the day and they end up on their lows so I'm usually underwater in the beginning. I would love to improve that and buy at the low for a change and end up on the highs.
I've noticed the professional traders, funds etc., seem to let the stocks drift up or down during the middle of the day and then come in about a half hour before close and sell/buy with a vengeance. This phenomenon is confirmed by my mentor, Jon Wirrick (High Octane Trading author) Steve Wirrick's brother, who recommends not trading before the last hour of the day. Steve recommends not trading during the first hour much either. Hmmmmm. Doesn't leave lots of time does it? Me, I like to put on a 1 day 1 or 5 minute chart and start watching for formations and moving averages to cross as a bit of a clue when to jump in/out.
I have drawn a triangle on a 1 day 1 min. chart of LOW. If the stock drops out of the triangle it should drop about $1.20 based on the width of the base of the triangle which is $1.20. I might paper trade this as I'm not so hot as a day trader but I've made/lost a few bucks at it and probably need to practice.
Right now the stock is bumping off the top line of the triangle. Will it head for the bottom? It's getting pretty close to the point of the triangle. While I wasn't watching, ACOM is being naughty and popped up above $22. Drat! Back to LOW which has just broken up out of the triangle! There seems to be no resistance at all until it goes back up to the downtrending 200 line moving average at about 80 cents above where it is right now. Lets see if goes up there. Of course with every minute the 200 line moving average line is descending to meet the stock. I'm guessing if/when the stock price meets the 200 line moving average the stock will trend lower. Time for a muffin in a cup. Want my recipe?
Chocolate Muffin in a Cup - Use 8 oz. microwavable mug or cup
1/2 egg beaten (just beat the whole egg and pour in half, then you can make another muffin)
1/4 C Sugar
1/4 Cup Flour
Splash of Vanilla
5 Shakes of Salt
3 TB Water or Milk
2 TB Cocoa
1 TB Butter/oil (the original recipe calls for 3 TB. which is sort of fattening but good!)
1-2 TB Walnuts if desired
Stir. Microwave on high for 3 min. Let it cool for a minute or two and enjoy!
But ACOM has popped up a bit this morning because the market is up. How high will it go back up? I am hoping not too far above $22 which seems to have some resistance, so far its popped up to $21.91, but who knows? Should I divide my attention between ACOM and LOW? If so, when? Well whenever I buy I usually buy my stocks/options at their high for the day and they end up on their lows so I'm usually underwater in the beginning. I would love to improve that and buy at the low for a change and end up on the highs.
I've noticed the professional traders, funds etc., seem to let the stocks drift up or down during the middle of the day and then come in about a half hour before close and sell/buy with a vengeance. This phenomenon is confirmed by my mentor, Jon Wirrick (High Octane Trading author) Steve Wirrick's brother, who recommends not trading before the last hour of the day. Steve recommends not trading during the first hour much either. Hmmmmm. Doesn't leave lots of time does it? Me, I like to put on a 1 day 1 or 5 minute chart and start watching for formations and moving averages to cross as a bit of a clue when to jump in/out.
I have drawn a triangle on a 1 day 1 min. chart of LOW. If the stock drops out of the triangle it should drop about $1.20 based on the width of the base of the triangle which is $1.20. I might paper trade this as I'm not so hot as a day trader but I've made/lost a few bucks at it and probably need to practice.
Right now the stock is bumping off the top line of the triangle. Will it head for the bottom? It's getting pretty close to the point of the triangle. While I wasn't watching, ACOM is being naughty and popped up above $22. Drat! Back to LOW which has just broken up out of the triangle! There seems to be no resistance at all until it goes back up to the downtrending 200 line moving average at about 80 cents above where it is right now. Lets see if goes up there. Of course with every minute the 200 line moving average line is descending to meet the stock. I'm guessing if/when the stock price meets the 200 line moving average the stock will trend lower. Time for a muffin in a cup. Want my recipe?
Chocolate Muffin in a Cup - Use 8 oz. microwavable mug or cup
1/2 egg beaten (just beat the whole egg and pour in half, then you can make another muffin)
1/4 C Sugar
1/4 Cup Flour
Splash of Vanilla
5 Shakes of Salt
3 TB Water or Milk
2 TB Cocoa
1 TB Butter/oil (the original recipe calls for 3 TB. which is sort of fattening but good!)
1-2 TB Walnuts if desired
Stir. Microwave on high for 3 min. Let it cool for a minute or two and enjoy!
Friday, May 18, 2012
No Job? No Problem...Another Day Another Option!
Today my purpose is to share what I am doing right now to earn an income which may or may not work for me or someone else. It possibly might point out an income option that many people who are down on their luck right now/or not, might want to consider for themselves. Don't dismiss it as "too risky" until you check it out for yourself. In my opinion there is nothing riskier than being totally dependent on someone else, be it an employer, a pension, or the government, for your entire sustenance. Anyway I will begin sharing what I am doing right now to earn cash as food for thought and/or for entertainment value. If someone has a sincere question about what I'm doing they are more than welcome to post a question and I will try to answer them to the best of my ability or point you to a better opinion than mine.
Sharing daily what and how I am trading stocks and options with the hope of encouraging anyone who might be in need of a way to make some cash is my intent. IMO everyone idealy should start their own small business and to my mind a trading business if successful would be ideal. You can start with only a small amount of money. $500 would probably do nicely. How many small home businesses can you start with just $500, not have employees, major office expenses, etc.? My expenses consist only of internet, computer, Investors.com subscription ($28) and whatever commissions and taxes I must pay. It's great if you can use money it won't kill you to lose but if you're desperate you're desperate! Been there done that. We have to make use of our opportunities. What difference if we go broke this week or a month from now? And you might just turn things around and become well off financially. It's not the end of the world either way. If one simply puts his/her whole-hearted trust in the Lord Jesus instead of this world or one's own abilities, one can even face death with joy and hope. Take it from someone who knows.
Here's what I have done so far: Opened a trading account with an online discount broker like a Scottrade or an OptionsXpress (anyone can virtual trade free with OptionsXpress. To get a feel for the trading business, just open an account for free and begin using the Virtual Trading, under the Toolbox tab. If you like trading and think it's for you then you can fund your account later or go someplace else to open an account). I then signed up with Investors.com http://research.investors.com/ for their 30 day free trial (it's $28 per month ever after). After the market closes I can go to the "Stocks on the Move" screen. There I can easily find all the largest % Volume Change stocks listed along with a handy dandy chart of each stock. I look for stocks that have broken out on heavy volume from a flatish rectangle range formation (look for bars that you can draw a flat rectangle around) of at least 20 days or longer . I place a market order before the open to buy/sell the stock, or (this is my own innovation) a put or call option contract on the stock depending on the direction up or down the stock is breaking out. My goal is to make a 5% gain on the stock's move or 6% loss before getting out. Avoid stocks that have already moved more than 6% away from the rectangle range. I learned this strategy from the Chartman, Gary B. Smith, when he was writing for The Street.com years ago. His winning percentage was 80% using this simple strategy. So far I have done that well trading cautiously due to my inexperience.
Another strategy I have been pursuing using the largest % Volume Change stocks mentioned above is to look for breakaway gaps on heavy volume. These have been working well, also. A book I like that talks about this sort of trading is High Octane Trading by Steve Wirrick. He tells about breakaway gaps on pg. 247.
May 1st I traded the HUM (Humana) breakaway gap on heavy volume by buying May $82.50 put option contracts for $1.95 and sold them last week for $4.42 cuz I was chicken and wanted to bag a profit. However according to Wirrick's book I could have waited (and probably should have) today those same puts are worth over $8. The rule on these gaps are the stock will move the same distance as the wide part of the triangle range the stock was moving in prior to the breakout. Maybe as I get more practiced I will get smarter! However I more than doubled my money and that is good enough for me right now. Greed can get a trader into trouble, but so can fear.
Monday of this week I traded the ACOM (Ancestry.com) breakaway gap/island gap (very bearish according to Wirrick) on heavy volume by buying the June $25 put option contracts for $3.50 when the stock was at $22.44. Just like HUM, ACOM proceeded to go back up (nail biting time) before it has finally headed back down the last 3 days (whew!). Today those puts are in the money as I write, with the stock at $21.30 making the puts worth $4.20 so far. I have a $7 limit order to sell them when the options hit $7. The wide part of the triangle formation this stock was moving in is $13 in width so the stock should move down $13 to about $10 before it stops. If I get brave I may try to ride this one to that level rather than chickening. We will see.
Goals of these posts is to share my failures and successes with others in case they might be of encouragement/entertainment to others who might be in need of an idea or two as to how to make some quick cash (hopefully we will not lose it, but no guarantees I guess). Feel free to ask honest questions about what I'm doing and why.
Sharing daily what and how I am trading stocks and options with the hope of encouraging anyone who might be in need of a way to make some cash is my intent. IMO everyone idealy should start their own small business and to my mind a trading business if successful would be ideal. You can start with only a small amount of money. $500 would probably do nicely. How many small home businesses can you start with just $500, not have employees, major office expenses, etc.? My expenses consist only of internet, computer, Investors.com subscription ($28) and whatever commissions and taxes I must pay. It's great if you can use money it won't kill you to lose but if you're desperate you're desperate! Been there done that. We have to make use of our opportunities. What difference if we go broke this week or a month from now? And you might just turn things around and become well off financially. It's not the end of the world either way. If one simply puts his/her whole-hearted trust in the Lord Jesus instead of this world or one's own abilities, one can even face death with joy and hope. Take it from someone who knows.
Here's what I have done so far: Opened a trading account with an online discount broker like a Scottrade or an OptionsXpress (anyone can virtual trade free with OptionsXpress. To get a feel for the trading business, just open an account for free and begin using the Virtual Trading, under the Toolbox tab. If you like trading and think it's for you then you can fund your account later or go someplace else to open an account). I then signed up with Investors.com http://research.investors.com/ for their 30 day free trial (it's $28 per month ever after). After the market closes I can go to the "Stocks on the Move" screen. There I can easily find all the largest % Volume Change stocks listed along with a handy dandy chart of each stock. I look for stocks that have broken out on heavy volume from a flatish rectangle range formation (look for bars that you can draw a flat rectangle around) of at least 20 days or longer . I place a market order before the open to buy/sell the stock, or (this is my own innovation) a put or call option contract on the stock depending on the direction up or down the stock is breaking out. My goal is to make a 5% gain on the stock's move or 6% loss before getting out. Avoid stocks that have already moved more than 6% away from the rectangle range. I learned this strategy from the Chartman, Gary B. Smith, when he was writing for The Street.com years ago. His winning percentage was 80% using this simple strategy. So far I have done that well trading cautiously due to my inexperience.
Another strategy I have been pursuing using the largest % Volume Change stocks mentioned above is to look for breakaway gaps on heavy volume. These have been working well, also. A book I like that talks about this sort of trading is High Octane Trading by Steve Wirrick. He tells about breakaway gaps on pg. 247.
May 1st I traded the HUM (Humana) breakaway gap on heavy volume by buying May $82.50 put option contracts for $1.95 and sold them last week for $4.42 cuz I was chicken and wanted to bag a profit. However according to Wirrick's book I could have waited (and probably should have) today those same puts are worth over $8. The rule on these gaps are the stock will move the same distance as the wide part of the triangle range the stock was moving in prior to the breakout. Maybe as I get more practiced I will get smarter! However I more than doubled my money and that is good enough for me right now. Greed can get a trader into trouble, but so can fear.
Monday of this week I traded the ACOM (Ancestry.com) breakaway gap/island gap (very bearish according to Wirrick) on heavy volume by buying the June $25 put option contracts for $3.50 when the stock was at $22.44. Just like HUM, ACOM proceeded to go back up (nail biting time) before it has finally headed back down the last 3 days (whew!). Today those puts are in the money as I write, with the stock at $21.30 making the puts worth $4.20 so far. I have a $7 limit order to sell them when the options hit $7. The wide part of the triangle formation this stock was moving in is $13 in width so the stock should move down $13 to about $10 before it stops. If I get brave I may try to ride this one to that level rather than chickening. We will see.
Goals of these posts is to share my failures and successes with others in case they might be of encouragement/entertainment to others who might be in need of an idea or two as to how to make some quick cash (hopefully we will not lose it, but no guarantees I guess). Feel free to ask honest questions about what I'm doing and why.
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